AS Ekspress Grupp: Consolidated unaudited interim report for Q4 and 12 months of 2024
The revenue of AS Ekspress Grupp for the 4th quarter of 2024 increased by 10% year-over-year to EUR 23.5 million and EBITDA increased by 23% to EUR 5.2 million. The revenue for the 12 months of 2024 increased by 4% to EUR 76.2 million and EBITDA increased by 4% to EUR 10.7 million. At the same time, digital revenue increased by 9% and as a result, the share of digital revenue made up 86% of the Group’s total revenue in 2024. This exceeds the 85% target set for the share of digital revenue by the year 2026.
The digital subscription revenue and the number of subscribers of the Group’s media companies increased strongly year-over-year in all three countries. In a year, the Group received nearly 31 000 new digital subscriptions (+15%) in the Baltic States, totalling 238 000 subscriptions at the end of December 2024. The Group’s digital revenue is thus increasingly based on digital subscription revenue and it makes up an increasingly larger recurring revenue base without the need for additional sales activity (and costs). We have enhanced the quality and volume of content offered by the Group’s media companies in order to be the leader in the digital subscription field in all Baltic States. The Group is gradually moving towards its financial strategic goals and wishes to offer paid digital content to at least 340 000 subscribers by the year 2026.
The Group was also successful outside traditional media activities. The revenue of ticket sales platforms increased by 21% in a year, growing especially strongly in the Latvian market. The outdoor screen business also demonstrated significant 26% growth supported by the extension of the network to 156 screens. With this, the Group has increased its presence in the Latvian market, where the number of screens increased from 98 to 109 in a year, while there are 47 screens in Estonia. These two areas have shown resilience also in the conditions of slower economic growth.
Successful sales of online advertising and digital subscriptions, and the volume growth of ticket sales platforms and digital outdoor screens have also helped to increase profitability. The net profit for the 4th quarter of 2024 totalled EUR 3.1 million which is EUR 0.6 million (25%) higher than last higher. This is slightly faster than the EBITDA’s 23% growth rate. At the same time, the Group’s net profit for 12 months totalled EUR 3.3 million which is EUR 0.1 million (-3%) lower as compared to last year, although EBITDA increased by 4%. The decrease in the 12-month net profit was mainly influenced by higher interest rates due to the increase in Euribor and higher depreciation expenses related to the Group's investments.
In 2024, the Group continued to create value for its shareholders, paying out 1.85 million or 55% of the profit for the 2023 (6 euro cents per share) as dividends. This significantly exceeds the Group's minimum 30% dividend payout ratio. Despite active investments and dividend payments, the Group's liquidity position remained strong – at the end of 2024, the Group had available cash in the amount of EUR 9.0 million (2023: EUR 9.6 million). The Management Board considers it important to maintain liquidity reserves both for potential new acquisitions and for situations related to further cooling of the economy.
In 2024, Ekspress Grupp significantly expanded its activities in the conference business, making two important acquisitions. In July, Delfi Meedia acquired the business of Eesti Koolitus- ja Konverentsikeskus (the Estonian Training and Conference Centre) and in December, the Lithuanian subsidiary UAB Delfi acquired the conference company Kenton Baltic. These acquisitions support the Group's strategic goal of developing the conference business as a new revenue area that complements existing media activities and enables to find new synergies. By its nature, the conference business is content creation business and thus is a good match for the portfolio of Ekspress Grupp. The content produced at conferences can successfully be enhanced through the Group’s strong media outlets. In addition, this field of activity strengthens the position of Delfi’s brand among business customers and creates opportunities for new business relations and revenue.
The year 2024 led to significant changes in the governance of the Group and its subsidiaries. Erik Heinsaar started as the CEO of Delfi Meedia, the largest subsidiary of the Group. He previously successfully managed Õhtuleht Kirjastus. Heinsaar took over the company from the current CEO Argo Virkebau. The editor-in-chief of Õhtuleht, Martin Šmutov, became the Chairman of the Management Board of Õhtuleht Kirjastus. On 2 January 2025, Jānis Grīviņš who has more than 15 years of management experience in the field of media, digital marketing and technology, became the Chairman of the Management Bord of Delfi Latvia. On 30 January 2025, Lili Kirikal, who previously worked as a transaction advisor in audit companies and as the CFO of Sunly AS, became a new member of the Management Board and the CFO of the Group.
The economic environment of the Baltic States was difficult in the first nine months of 2024. It was characterised by low consumer confidence, conservative investment policies of businesses and changing tax policies of countries. This put pressure on both advertising revenue and subscriptions. However, under these conditions, the Group has been able to grow its digital revenue base and to maintain profitability. The challenges of the beginning of year included the high level of Euribor, which increased finance costs, and the overall slowdown in economic growth in the Baltic States. The Group had been prepared for these challenges, keeping a strong liquidity position and successfully focusing on digital revenue.
The Management Board is going to make a dividend distribution proposal from the net profit for 2024 together with the announcement of the convening of the General Meeting of Shareholders and in its proposal, will adhere to the previously approved dividend policy. The Group pays at least 30% of previous year's net profit out as dividends, provided that there are sufficient funds for core activities and making new strategic investments.
Q4 AND 12 MONTHS RESULTS
REVENUE
In the 4th quarter of 2024, the consolidated revenue totalled EUR 23.5 million (Q4 2023: EUR 21.3 million). The revenue for the 4th quarter increased by 10% year-over-year. The consolidated revenue for the 12 months of 2024 totalled EUR 76.2 million (12 months 2023: EUR 73.1 million). The revenue for the 12 months of the year increased by 4% as compared to the previous year. The growth is primarily attributable to the increase in digital subscription revenue as well as increase in the volume of ticket sales platforms and digital outdoor screens. The share of the Group’s digital revenue in total revenue was 86% in the 12 months of 2024 (12 months 2023: 83% of total revenue). Digital revenue for the 12 months of 2024 increased by 9% as compared to the same period last year.
PROFITABILITY
In the 4th quarter of 2024, the consolidated EBITDA totalled EUR 5.2 million (Q4 2023: EUR 4.2 million). EBITDA increased by 23% as compared to last year and the EBITDA margin was 22% (Q4 2023: 20%). The profitability received a boost from the successful sale of online advertising and digital subscriptions as well as the increase in the volume of ticket sales platforms and digital outdoor screens. In the 12 months of 2024, the consolidated EBITDA totalled EUR 10.7 million (12 months 2023: EUR 10.2 million). EBITDA increased by 4% as compared to last year and the EBITDA margin was 14% (12 months 2023: 14%).
The consolidated net profit for the 4th quarter of 2024 totalled EUR 3.1 million (Q4 2023: EUR 2.5 million), increasing by 25%. The consolidated net profit for the 12 months of 2024 totalled EUR 3.3 million (12 months 2023: EUR 3.4 million), decreasing by -3%. The decrease in 12 months net profit is primarily related to higher interest rates due to the increase in Euribor rates at the beginning of the year and higher depreciation expenses arising from the Group’s investments.
EXPENSES
In the 12 months of 2024, the cost of goods sold, marketing, and general and administrative costs totalled EUR 72.1 million (12 months 2023: EUR 67.4 million). Operating expenses increased by EUR 4.7 million (+7%) as compared to the same period last year. Labour costs increased the most, by EUR 1.2 million (+3%).
CASH POSITION
At the end of the reporting period, the Group had available cash in the amount of EUR 9.0 million and equity in the amount of EUR 58.4 million (51% of total assets). The comparable data as of 31 December 2023 were EUR 9.6 million and 56.5 million (53% of total assets), respectively. As of 31 December 2024, the Group’s net debt totalled EUR 13.1 million (31 December 2023: EUR 10.6 million).
In the 12 months of 2024, the Group’s cash flows from operating activities totalled EUR 10.2 million (12 months 2023: EUR 12.2 million).
In the 12 months of 2024, the Group’s cash flows from investing activities totalled EUR -9.4 million (12 months 2023: EUR -3.9 million), of which EUR -4.6 million was related to the development and acquisition of tangible and intangible assets, demonstrating higher investments in products and technologies.
In the 12 months of 2024, the Group’s cash flows from financing activities totalled EUR -1.4 million, of which EUR -1.8 million is the dividend payment to the shareholders of AS Ekspress Grupp (12 months 2023: EUR -6.2 million, of which EUR -1.0 million is the share buy-back and EUR -1.5 million is the dividend payment to the shareholders of AS Ekspress Grupp). The financing activities also include the net change in borrowings in the amount of EUR 2.2 million and lease liabilities in the amount of EUR -2.3 million.
DIVIDENDS
At the regular general meeting of shareholders of AS Ekspress Grupp held on 3 May 2024, it was decided to pay a dividend of 6 euro cents per share in the total amount of EUR 1.8 million. Dividends were paid to shareholders on 22 May 2024.
SEGMENT OVERVIEW
Key financial indicators for segments
(EUR thousand) Sales
12 months 12 months
Q4 2024 Q4 2023 Change % 2024 2023 Change %
Media segment 23 479 21 276 10% 76 071 73 365 4%
advertising
revenue 12 919 11 856 9% 42 234 42 074 0%
subscriptions
(incl. single-copy
sales) 5 368 5 132 5% 20 457 19 016 8%
marketplaces 1 553 1 335 16% 4 157 3 434 21%
outdoor screens 1 327 1 181 12% 4 445 3 530 26%
sale of other goods
and services 2 311 1 773 30% 4 778 5 311 -10%
Corporate functions 204 167 22% 752 2 642 -72%
Inter-segment
eliminations (169) (131) (653) (2 920)
TOTAL GROUP 23 513 21 313 10% 76 170 73 086 4%
incl. revenue from
all digital
channels 19 554 17 518 12% 65 786 60 460 9%
% of revenue from
all digital
channels 83% 82% 86% 83%
(EUR thousand) EBITDA
12 months 12 months
Q4 2024 Q4 2023 Change % 2024 2023 Change %
Media segment 5 688 4 721 20% 12 364 11 695 6%
Corporate
functions (478) (500) 4% (1 699) (1 477) -15%
Inter-segment
eliminations 1 3 11 (1)
TOTAL GROUP 5 211 4 225 23% 10 677 10 217 4%
EBITDA margin Q4 2024 Q4 2023 12 months 2024 12 months 2023
Media segment 24% 22% 16% 16%
TOTAL GROUP 22% 20% 14% 14%
Consolidated statement of financial position (unaudited)
(EUR thousand) 31.12.2024 31.12.2023
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ASSETS
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Current assets
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Cash and cash equivalents 8 971 9 606
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Trade and other receivables 14 394 13 143
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Corporate income tax prepayment 170 24
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Inventories 373 321
--------------------------------------------------------------
Total current assets 23 908 23 094
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Non-current assets
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Other receivables and investments 1 775 1 628
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Deferred tax asset 71 130
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Investments in joint ventures 872 851
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Investments in associates 2 464 2 197
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Property, plant and equipment 10 834 10 384
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Intangible assets 74 112 67 482
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Total non-current assets 90 128 82 672
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TOTAL ASSETS 114 036 105 766
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LIABILITIES
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Current liabilities
--------------------------------------------------------------
Borrowings 5 309 4 353
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Trade and other payables 27 014 23 046
--------------------------------------------------------------
Corporate income tax payable 36 39
--------------------------------------------------------------
Total current liabilities 32 359 27 438
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Non-current liabilities
--------------------------------------------------------------
Long-term borrowings 23 232 21 765
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Other long-term liabilities 5 22
--------------------------------------------------------------
Total non-current liabilities 23 237 21 787
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TOTAL LIABILITIES 55 596 49 225
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EQUITY
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Share capital 18 576 18 478
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Share premium 14 295 14 277
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Treasury shares (5) (1 057)
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Reserves 2 364 2 285
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Retained earnings 23 210 22 558
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TOTAL EQUITY 58 440 56 541
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TOTAL LIABILITIES AND EQUITY 114 036 105 766
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Consolidated statement of comprehensive income (unaudited)
12 months
(EUR thousand) Q4 2024 Q4 2023 2024 12 months 2023
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Sales 23 513 21 313 76 170 73 086
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Cost of sales (16 356) (14 915) (58 209) (55 046)
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Gross profit 7 156 6 398 17 961 18 040
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Other income 261 234 959 581
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Marketing expenses (1 049) (792) (3 369) (2 803)
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Administrative expenses (2 679) (2 402) (10 530) (9 582)
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Other expenses (30) (475) (164) (737)
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Operating profit /(loss) 3 660 2 962 4 857 5 499
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Interest income 33 29 117 60
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Interest expenses (451) (439) (1 836) (1 499)
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Other finance income/(costs) (19) (20) (58) (55)
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Net finance cost (438) (431) (1 777) (1 494)
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Profit/(loss) on shares of joint
ventures 75 65 318 (661)
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Profit/(loss) on shares of
associates 48 44 471 239
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Profit /(loss) before income tax 3 345 2 640 3 869 3 583
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Income tax expense (201) (119) (617) (232)
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Net profit /(loss) for the
reporting period 3 145 2 521 3 252
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Net profit /(loss) for the reporting period
attributable to 3 351
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Equity holders of the parent
company 3 145 2 521 3 252 3 349
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Minority interest 0 0 0 2
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Total comprehensive income
/(loss) 3 145 2 521 3 252
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Comprehensive income /(loss) for the reporting
period attributable to 3 351
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Equity holders of the parent
company 3 145 2 521 3 252 3 349
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Minority interest 0 0 0
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Earnings per share (euro) 2
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Basic earnings per share 0.1016 0.0837 0.1058 0.1113
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Diluted earnings per share 0.1016 0.0813 0.1058 0.1081
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Consolidated cash flow statement (unaudited)
(EUR thousand) 12 months 2024 12 months 2023
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Cash flows from operating activities
-------------------------------------------------------------------------------
Operating profit /(loss) for the reporting year 4 857 5 499
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Adjustments for (non-cash):
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Depreciation and amortisation 5 823 4 719
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(Gain)/loss on sale, write-down and impairment
of property, plant and equipment 33 387
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Change in value of share option 0 26
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Cash flows from operating activities:
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Trade and other receivables (1 281) (1 539)
-------------------------------------------------------------------------------
Inventories (52) (35)
-------------------------------------------------------------------------------
Trade and other payables 3 390 4 921
-------------------------------------------------------------------------------
Income tax paid (707) (263)
-------------------------------------------------------------------------------
Interest paid (1 875) (1 476)
-------------------------------------------------------------------------------
Net cash generated from operating activities 10 188 12 239
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Cash flows from investing activities
-------------------------------------------------------------------------------
Acquisition of subsidiaries/ associates (less
cash acquired) and other investments /sale/
cash paid-in equity-accounted investees (5 246) (1 469)
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Receipts of other investments 0 13
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Interest received 115 28
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Purchase of property, plant and equipment and
intangible assets (4 619) (3 391)
-------------------------------------------------------------------------------
Proceeds from sale of property, plant and
equipment and intangible assets 3 275
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Loans granted (12) 0
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Loan repayments received 4 8
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Dividends received 379 674
-------------------------------------------------------------------------------
Net cash used in investing activities (9 376) (3 862)
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Cash flows from financing activities
-------------------------------------------------------------------------------
Dividends paid (1 848) (1 488)
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Payment of lease liabilities (2 315) (2 004)
-------------------------------------------------------------------------------
Proceeds from borrowings 4 640 0
-------------------------------------------------------------------------------
Repayments of bank loans (2 419) (1 727)
-------------------------------------------------------------------------------
Proceeds from share issuance 98 0
-------------------------------------------------------------------------------
Proceeds from sale of treasury shares 397 0
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Purchases of treasury shares 0 (1 000)
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Net cash used in financing activities (1 447) (6 219)
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NET (DECREASE)/INCREASE IN CASH AND CASH
EQUIVALENTS (635) 2 158
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Cash and cash equivalents at the beginning of
the period 9 606 7 448
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Cash and cash equivalents at the end of the
period 8 971 9 606
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Lili Kirikal
CFO
AS Ekspress Grupp
E-mail address: [email protected]
AS Ekspress Grupp is the leading Baltic media group whose key activities include web media content production, and publishing of newspapers, magazines and books. The Group also operates an electronic ticket sales platform and ticket sales offices in Estonia and Latvia. Ekspress Grupp launched its operations in 1989 and employs almost 1100 people.
Attachment
EG_IV_kvartal_2024_ENG