The revenue of AS Ekspress Grupp for the 1(st) quarter of 2024 totalled EUR
16.2 million, EBITDA totalled EUR 0.4 million and net loss totalled EUR 1.2
million. Digital revenue increased by 2% as compared to the same period last
year and made up 84% of the Group's total revenue. The digital subscription
revenue of the Group's media companies and the number of people with digital
subscriptions grew strongly year-over-year in all three countries. The revenue
from ticket sales platforms and the advertising revenue from outdoor screens
have also increased strongly.
As expected, the Group's results for the 1(st) quarter were primarily impacted
by seasonality as a result of which the company's profitability is always under
the greatest pressure in the 1(st) quarter each year. On the other hand, the
advertising revenue in the 1(st) quarter this year was impacted by lower demand
caused by the weak economic environment, which was exacerbated by the election
cycles taking place in later quarters.
The revenue of Ekspress Grupp for the 1(st) quarter totalled EUR 16.2 million,
decreasing by 3% as compared to the same period last year. The reasons for lower
revenue also include last year's higher base of comparison: parliamentary
elections were held both in Lithuania and Estonia in the 1(st) quarter of 2023,
which additionally boosted advertising revenue. This year, elections in the
Baltic States will be held in the second and third quarter and for this reason
the impact on revenue is to be expected later. At the same time, the decline in
the advertising market due to the general weak economic environment in the
Baltic States also plays a role in the annual comparison, the greatest impact of
which can be felt in Estonia. In the 1(st) quarter's results, this also impacts
EBITDA. The decrease in advertising revenue is also compensated by the increase
in the volume of ticket sales platforms and digital outdoor screens as well as
the increase in digital subscription revenue.
In a year-over-year comparison, the Group received nearly 50 000 digital
subscriptions in the Baltic States, i.e. 31% more than at the end of March last
year. At the end of March 2024, digital subscriptions totalled 211 000. The
Group's digital revenue is increasingly based on the revenue from digital
subscriptions 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 the 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.
In the 1(st) quarter, the earnings before interest, tax, depreciation and
amortisation (EBITDA) of Ekspress Grupp totalled EUR 0.4 million, decreasing by
-62%. Although the quarterly profitability fell against the background of the
advertising market cooldown and the increasing pressure of input costs caused by
the overall economic environment, the Group's earnings before interest, tax,
depreciation and amortisation of the trailing 12-month period increased by EUR
0.1 million.
The net loss for the 1(st) quarter of 2024 amounted to EUR 1.2 million, which is
67% higher as compared to last year. Higher net loss is also primarily related
to higher interest rates due to the increase in Euribor and higher depreciation
expenses arising from the Group's investments.
The Group's liquidity continues to be strong. The Management Board considers it
important to maintain liquidity reserves both for the use of potential new
acquisitions and for situations related to further cooling of the economy. As of
31 March 2024, the Group's available cash totalled EUR 8.8 million (31.03.2023:
EUR 7.3 million). The regular general meeting of shareholders to be held on 3
May 2024 will vote on the profit allocation proposal, according to which regular
dividends of 6 euro cents per share will be paid to the shareholders in the
total amount of EUR 1.8 million.
Q1 RESULTS
REVENUE
In the 1(st) quarter of 2024, the consolidated revenue totalled EUR 16.2 million
(Q1 2023: EUR 16.8 million). The revenue for the 1(st) quarter decreased by -3%
year-over-year. The Group's results for the 1(st) quarter were primarily
impacted by seasonality as a result of which the company's profitability is
always under the greatest pressure in the 1(st )quarter each year. On the other
hand, the advertising revenue in the 1(st) quarter this year was impacted by
lower demand caused by the weak economic environment, which was exacerbated by
the election cycles taking place in later quarters. The reasons for lower
revenue also include last year's higher base of comparison: parliamentary
elections were held both in Lithuania and Estonia in the 1(st) quarter of 2023,
which additionally boosted advertising revenue. This year, elections in the
Baltic States will be held in the second and third quarter and for this reason
the impact on revenue is to be expected later. At the same time, the decline in
the advertising market due to the general weak economic environment in the
Baltic States also plays a role in the annual comparison, the greatest impact of
which can be felt in Estonia. In the 1(st) quarter's results, this also impacts
EBITDA. The decrease in advertising revenue is also compensated by the increase
in the volume of ticket sales platforms and digital outdoor screens as well as
the increase in digital subscription revenue. The share of the Group's digital
revenue in total revenue was 84% at the end of the 1(st) quarter of 2024 (at the
end of Q1 2023: 80% of total revenue). Digital revenue for the 1(st) quarter of
2024 increased by 2% as compared to the same period last year.
PROFITABILITY
In the 1(st) quarter of 2024, the consolidated EBITDA totalled EUR 0.4 million
(Q1 2023: EUR 1.2 million). EBITDA decreased by -62% as compared to last year
and the EBITDA margin was 3% (Q1 2023: 7%). The decrease in profitability is
impacted by the decline in the advertising market due to the general weak
economic environment in the Baltic States and the increasing pressure of input
costs.
The consolidated net loss for the 1(st) quarter of 2024 totalled EUR -1.2
million (Q1 2023: EUR -0.7 million). In addition to expected seasonality, higher
net loss is also primarily related to higher interest rates due to the increase
in Euribor rates and higher depreciation expenses arising from the Group's
investments.
EXPENSES
In the 1(st) quarter of 2024, the cost of goods sold, marketing, and general and
administrative costs totalled EUR 17.3 million (Q1 2023: EUR 16.8 million).
Operating expenses increased by EUR 0.5 million (+3%) as compared to the same
period last year. Labour costs increased the most, by EUR 0.4 million (+5%).
CASH POSITION
At the end of the reporting period, the Group had available cash in the amount
of EUR 8.8 million and equity in the amount of EUR 55.7 million (53% of total
assets). The comparable data as of 31 March 2023 were EUR 7.3 million and EUR
53.7 million (53% of total assets), respectively. As of 31 March 2024, the
Group's net debt was EUR 10.8 million (31 March 2023: EUR 13.6 million).
In the 1(st) quarter of 2024, the Group's cash flows from operating activities
totalled EUR 0.9 million (Q1 2023: EUR 2.4 million).
In the 1(st) quarter of 2024, the Group's cash flows from investing activities
totalled EUR -0.9 million (Q1 2023: EUR -0.7 million), of which EUR -1.1 million
was related to development and acquisition of property, plant and equipment and
intangible assets, indicating higher investments in products and technologies.
In the 1(st) quarter of 2024, the Group's cash flows from financing activities
totalled EUR -0.8 million (Q1 2023: EUR -1.9 million, of which EUR -1.0 million
was the share buy-back). Financing activities also include a net change in
borrowings in the amount of EUR -0.6 million and lease liabilities in the amount
of EUR -0.6 million.
DIVIDENDS
In March 2024, the Group's Management Board proposed to pay 6 euro cents per
share as dividends to shareholders from the net profit of the financial year
2023 in the total amount of EUR 1.8 million. The profit allocation proposal will
be made at the ordinary general meeting of shareholders on 3 May 2024.
SEGMENT OVERVIEW
Key financial indicators for segments
(EUR thousand) Sales
Q1 2024 Q1 2023 Change % 12 months 2023
Media segment 16 205 16 867 -4% 73 365
advertising revenue 8 800 9 681 -9% 42 074
subscriptions (incl. single-copy
sales) 5 043 4 560 11% 19 016
marketplaces 910 636 43% 3 434
outdoor screens 783 688 14% 3 530
sale of other goods and services 669 1 302 -49% 5 311
Corporate functions 170 1 226 -86% 2 642
Inter-segment eliminations (155) (1 339) (2 920)
TOTAL GROUP 16 220 16 755 -3% 73 086
incl. revenue from all digital
channels 13 668 13 384 2% 60 460
% of revenue from all digital
channels 84% 80% 83%
(EUR thousand) EBITDA
Q1 2024 Q1 2023 Change % 12 months 2023
Media segment 914 1 478 -38% 11 695
Corporate functions (477) (321) -48% (1 477)
Inter-segment eliminations 4 (3) (1)
TOTAL GROUP 442 1 153 -62% 10 217
EBITDA margin Q1 2024 Q1 2023 12 months 2023
Media segment 6% 9% 16%
TOTAL GROUP 3% 7% 14%
Consolidated statement of financial position (unaudited)
(EUR thousand) 31.03.2024 31.12.2023
--------------------------------------------------------------
ASSETS
--------------------------------------------------------------
Current assets
--------------------------------------------------------------
Cash and cash equivalents 8 761 9 606
--------------------------------------------------------------
Trade and other receivables 12 772 13 143
--------------------------------------------------------------
Corporate income tax prepayment 93 24
--------------------------------------------------------------
Inventories 332 321
--------------------------------------------------------------
Total current assets 21 958 23 094
--------------------------------------------------------------
Non-current assets
--------------------------------------------------------------
Other receivables and investments 1 624 1 628
--------------------------------------------------------------
Deferred tax asset 132 130
--------------------------------------------------------------
Investments in joint ventures 890 851
--------------------------------------------------------------
Investments in associates 2 175 2 197
--------------------------------------------------------------
Property, plant and equipment 10 440 10 384
--------------------------------------------------------------
Intangible assets 67 749 67 482
--------------------------------------------------------------
Total non-current assets 83 011 82 672
--------------------------------------------------------------
TOTAL ASSETS 104 968 105 766
--------------------------------------------------------------
LIABILITIES
--------------------------------------------------------------
Current liabilities
--------------------------------------------------------------
Borrowings 3 766 4 353
--------------------------------------------------------------
Trade and other payables 23 648 23 046
--------------------------------------------------------------
Corporate income tax payable 38 39
--------------------------------------------------------------
Total current liabilities 27 453 27 438
--------------------------------------------------------------
Non-current liabilities
--------------------------------------------------------------
Long-term borrowings 21 829 21 765
--------------------------------------------------------------
Other long-term liabilities 22 22
--------------------------------------------------------------
Total non-current liabilities 21 851 21 787
--------------------------------------------------------------
TOTAL LIABILITIES 49 304 49 225
--------------------------------------------------------------
EQUITY
--------------------------------------------------------------
Share capital 18 478 18 478
--------------------------------------------------------------
Share premium 14 277 14 277
--------------------------------------------------------------
Treasury shares (147) (1 057)
--------------------------------------------------------------
Reserves 2 242 2 285
--------------------------------------------------------------
Retained earnings 20 814 22 558
--------------------------------------------------------------
TOTAL EQUITY 55 664 56 541
--------------------------------------------------------------
TOTAL LIABILITIES AND EQUITY 104 968 105 766
--------------------------------------------------------------
Consolidated statement of comprehensive income (unaudited)
(EUR thousand) Q1 2024 Q1 2023 12 months 2023
-------------------------------------------------------------------------------
Sales 16 220 16 755 73 086
-------------------------------------------------------------------------------
Cost of sales (13 569) (13 641) (55 046)
-------------------------------------------------------------------------------
Gross profit 2 652 3 114 18 040
-------------------------------------------------------------------------------
Other income 156 70 581
-------------------------------------------------------------------------------
Marketing expenses (858) (571) (2 803)
-------------------------------------------------------------------------------
Administrative expenses (2 834) (2 551) (9 582)
-------------------------------------------------------------------------------
Other expenses (21) (20) (737)
-------------------------------------------------------------------------------
Operating profit /(loss) (906) 42 5 499
-------------------------------------------------------------------------------
Interest income 36 9 60
-------------------------------------------------------------------------------
Interest expenses (457) (330) (1 499)
-------------------------------------------------------------------------------
Other finance income/(costs) (11) (11) (55)
-------------------------------------------------------------------------------
Net finance cost (432) (331) (1 494)
-------------------------------------------------------------------------------
Profit/(loss) on shares of joint ventures 39 (553) (661)
-------------------------------------------------------------------------------
Profit/(loss) on shares of associates 80 128 239
-------------------------------------------------------------------------------
Profit /(loss) before income tax (1 218) (715) 3 583
-------------------------------------------------------------------------------
Income tax expense (4) (16) (232)
-------------------------------------------------------------------------------
Net profit /(loss) for the reporting period (1 221) (730) 3 351
-------------------------------------------------------------------------------
Net profit /(loss) for the reporting period
attributable to
-------------------------------------------------------------------------------
Equity holders of the parent company (1 221) (733) 3 349
-------------------------------------------------------------------------------
Minority interest 0 3 2
-------------------------------------------------------------------------------
Total comprehensive income /(loss) (1 221) (730) 3 351
-------------------------------------------------------------------------------
Comprehensive income /(loss) for the reporting period attributable to
-------------------------------------------------------------------------------
Equity holders of the parent company (1 221) (733) 3 349
-------------------------------------------------------------------------------
Minority interest 0 3 2
-------------------------------------------------------------------------------
Earnings per share (euro)
-------------------------------------------------------------------------------
Basic earnings per share (0.0404) (0.0243) 0.1113
-------------------------------------------------------------------------------
Diluted earnings per share (0.0404) (0.0235) 0.1081
-------------------------------------------------------------------------------
Consolidated cash flow statement (unaudited)
(EUR thousand) Q1 2024 Q1 2023 12 months 2023
-------------------------------------------------------------------------------
Cash flows from operating activities
-------------------------------------------------------------------------------
Operating profit /(loss) for the reporting year (906) 42 5 499
-------------------------------------------------------------------------------
Adjustments for (non-cash):
-------------------------------------------------------------------------------
Depreciation and amortisation 1 353 1 112 4 719
-------------------------------------------------------------------------------
(Gain)/loss on sale, write-down and impairment
of property, plant and equipment 4 (2) 387
-------------------------------------------------------------------------------
Change in value of share option 0 8 26
-------------------------------------------------------------------------------
Cash flows from operating activities:
-------------------------------------------------------------------------------
Trade and other receivables 367 (441) (1 539)
-------------------------------------------------------------------------------
Inventories (11) 7 (35)
-------------------------------------------------------------------------------
Trade and other payables 469 1 960 4 921
-------------------------------------------------------------------------------
Income tax paid (73) (44) (263)
-------------------------------------------------------------------------------
Interest paid (336) (262) (1 476)
-------------------------------------------------------------------------------
Net cash generated from operating activities 867 2 380 12 239
-------------------------------------------------------------------------------
Cash flows from investing activities
-------------------------------------------------------------------------------
Acquisition of subsidiaries/ associates (less
cash acquired) and other investments /
cash paid-in equity-accounted investees 0 (387) (1 469)
-------------------------------------------------------------------------------
Receipts of other investments 0 0 13
-------------------------------------------------------------------------------
Interest received 36 0 28
-------------------------------------------------------------------------------
Purchase of property, plant and equipment and
intangible assets (1 082) (495) (3 391)
-------------------------------------------------------------------------------
Proceeds from sale of property, plant and
equipment and intangible assets 3 2 275
-------------------------------------------------------------------------------
Loan repayments received 4 0 8
-------------------------------------------------------------------------------
Dividends received 102 199 674
-------------------------------------------------------------------------------
Net cash used in investing activities (937) (681) (3 862)
-------------------------------------------------------------------------------
Cash flows from financing activities
-------------------------------------------------------------------------------
Dividends paid 0 0 (1 488)
-------------------------------------------------------------------------------
Payment of lease liabilities (557) (456) (2 004)
-------------------------------------------------------------------------------
Repayments of bank loans (561) (420) (1 727)
-------------------------------------------------------------------------------
Proceeds from sale of treasury shares 343 0 0
-------------------------------------------------------------------------------
Purchases of treasury shares 0 (1 000) (1 000)
-------------------------------------------------------------------------------
Net cash used in financing activities (775) (1 876) (6 219)
-------------------------------------------------------------------------------
NET (DECREASE)/INCREASE IN CASH AND CASH
EQUIVALENTS (845) (176) 2 158
-------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of
the period 9 606 7 448 7 448
-------------------------------------------------------------------------------
Cash and cash equivalents at the end of the
period 8 761 7 272 9 606
-------------------------------------------------------------------------------
Argo Rannamets
CFO
AS Ekspress Grupp
Email: argo.rannamets@egrupp.ee (mailto:argo.rannamets@egrupp.ee)
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 and offers outdoor screen service in Estonia and Latvia. Ekspress Grupp
launched its operations in 1989 and employs almost 1,100 people
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