Market announcement

Title

AS Ekspress Grupp: Consolidated unaudited interim report for Q4 and 12 months of 2024

Message

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
--------------------------------------------------------------
  ASSETS
--------------------------------------------------------------
  Current assets
--------------------------------------------------------------
  Cash and cash equivalents                8 971        9 606
--------------------------------------------------------------
  Trade and other receivables             14 394       13 143
--------------------------------------------------------------
  Corporate income tax prepayment            170           24
--------------------------------------------------------------
  Inventories                                373          321
--------------------------------------------------------------
  Total current assets                    23 908       23 094
--------------------------------------------------------------
  Non-current assets
--------------------------------------------------------------
  Other receivables and investments        1 775        1 628
--------------------------------------------------------------
  Deferred tax asset                          71          130
--------------------------------------------------------------
  Investments in joint ventures              872          851
--------------------------------------------------------------
  Investments in associates                2 464        2 197
--------------------------------------------------------------
  Property, plant and equipment           10 834       10 384
--------------------------------------------------------------
  Intangible assets                       74 112       67 482
--------------------------------------------------------------
  Total non-current assets                90 128       82 672
--------------------------------------------------------------
  TOTAL ASSETS                           114 036      105 766
--------------------------------------------------------------
  LIABILITIES
--------------------------------------------------------------
  Current liabilities
--------------------------------------------------------------
  Borrowings                               5 309        4 353
--------------------------------------------------------------
  Trade and other payables                27 014       23 046
--------------------------------------------------------------
  Corporate income tax payable                36           39
--------------------------------------------------------------
  Total current liabilities               32 359       27 438
--------------------------------------------------------------
  Non-current liabilities
--------------------------------------------------------------
  Long-term borrowings                    23 232       21 765
--------------------------------------------------------------
  Other long-term liabilities                  5           22
--------------------------------------------------------------
  Total non-current liabilities           23 237       21 787
--------------------------------------------------------------
  TOTAL LIABILITIES                       55 596       49 225
--------------------------------------------------------------
  EQUITY
--------------------------------------------------------------
  Share capital                           18 576       18 478
--------------------------------------------------------------
  Share premium                           14 295       14 277
--------------------------------------------------------------
  Treasury shares                            (5)      (1 057)
--------------------------------------------------------------
  Reserves                                 2 364        2 285
--------------------------------------------------------------
  Retained earnings                       23 210       22 558
--------------------------------------------------------------
  TOTAL EQUITY                            58 440       56 541
--------------------------------------------------------------
  TOTAL LIABILITIES AND EQUITY           114 036      105 766
--------------------------------------------------------------


Consolidated statement of comprehensive income (unaudited)

                                                       12 months
 (EUR thousand)                    Q4 2024  Q4 2023         2024 12 months 2023
-------------------------------------------------------------------------------
 Sales                              23 513   21 313       76 170         73 086
-------------------------------------------------------------------------------
 Cost of sales                    (16 356) (14 915)     (58 209)       (55 046)
-------------------------------------------------------------------------------
 Gross profit                        7 156    6 398       17 961         18 040
-------------------------------------------------------------------------------
 Other income                          261      234          959            581
-------------------------------------------------------------------------------
 Marketing expenses                (1 049)    (792)      (3 369)        (2 803)
-------------------------------------------------------------------------------
 Administrative expenses           (2 679)  (2 402)     (10 530)        (9 582)
-------------------------------------------------------------------------------
 Other expenses                       (30)    (475)        (164)          (737)
-------------------------------------------------------------------------------
 Operating profit /(loss)            3 660    2 962        4 857          5 499
-------------------------------------------------------------------------------
 Interest income                        33       29          117             60
-------------------------------------------------------------------------------
 Interest expenses                   (451)    (439)      (1 836)        (1 499)
-------------------------------------------------------------------------------
 Other finance income/(costs)         (19)     (20)         (58)           (55)
-------------------------------------------------------------------------------
 Net finance cost                    (438)    (431)      (1 777)        (1 494)
-------------------------------------------------------------------------------
 Profit/(loss) on shares of joint
 ventures                               75       65          318          (661)
-------------------------------------------------------------------------------
 Profit/(loss) on shares of
 associates                             48       44          471            239
-------------------------------------------------------------------------------
 Profit /(loss) before income tax    3 345    2 640        3 869          3 583
-------------------------------------------------------------------------------
 Income tax expense                  (201)    (119)        (617)          (232)
-------------------------------------------------------------------------------
 Net profit /(loss) for the
 reporting period                    3 145    2 521        3 252
------------------------------------------------------
 Net profit /(loss) for the reporting period
 attributable to                                                          3 351
-------------------------------------------------------------------------------
 Equity holders of the parent
 company                             3 145    2 521        3 252          3 349
-------------------------------------------------------------------------------
 Minority interest                       0        0            0              2
-------------------------------------------------------------------------------
 Total comprehensive income
 /(loss)                             3 145    2 521        3 252
------------------------------------------------------
 Comprehensive income /(loss) for the reporting
 period attributable to                                                   3 351
-------------------------------------------------------------------------------
 Equity holders of the parent
 company                             3 145    2 521        3 252          3 349
-------------------------------------------------------------------------------
 Minority interest                       0        0            0
------------------------------------------------------
 Earnings per share (euro)                                                    2
-------------------------------------------------------------------------------
 Basic earnings per share           0.1016   0.0837       0.1058         0.1113
-------------------------------------------------------------------------------
 Diluted earnings per share         0.1016   0.0813       0.1058         0.1081
-------------------------------------------------------------------------------



Consolidated cash flow statement (unaudited)

 (EUR thousand)                                   12 months 2024 12 months 2023
-------------------------------------------------------------------------------
 Cash flows from operating activities
-------------------------------------------------------------------------------
 Operating profit /(loss) for the reporting year           4 857          5 499
-------------------------------------------------------------------------------
 Adjustments for (non-cash):
-------------------------------------------------------------------------------
 Depreciation and amortisation                             5 823          4 719
-------------------------------------------------------------------------------
 (Gain)/loss on sale, write-down and impairment
 of property, plant and equipment                             33            387
-------------------------------------------------------------------------------
 Change in value of share option                               0             26
-------------------------------------------------------------------------------
 Cash flows from operating activities:
-------------------------------------------------------------------------------
 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
-------------------------------------------------------------------------------
 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)
-------------------------------------------------------------------------------
 Receipts of other investments                                 0             13
-------------------------------------------------------------------------------
 Interest received                                           115             28
-------------------------------------------------------------------------------
 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
-------------------------------------------------------------------------------
 Loans granted                                              (12)              0
-------------------------------------------------------------------------------
 Loan repayments received                                      4              8
-------------------------------------------------------------------------------
 Dividends received                                          379            674
-------------------------------------------------------------------------------
 Net cash used in investing activities                   (9 376)        (3 862)
-------------------------------------------------------------------------------
 Cash flows from financing activities
-------------------------------------------------------------------------------
 Dividends paid                                          (1 848)        (1 488)
-------------------------------------------------------------------------------
 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
-------------------------------------------------------------------------------
 Purchases of treasury shares                                  0        (1 000)
-------------------------------------------------------------------------------
 Net cash used in financing activities                   (1 447)        (6 219)
-------------------------------------------------------------------------------
 NET (DECREASE)/INCREASE IN CASH AND CASH
 EQUIVALENTS                                               (635)          2 158
-------------------------------------------------------------------------------
 Cash and cash equivalents at the beginning of
 the period                                                9 606          7 448
-------------------------------------------------------------------------------
 Cash and cash equivalents at the end of the
 period                                                    8 971          9 606
-------------------------------------------------------------------------------
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