Market announcement

Title

AS Ekspress Grupp: Consolidated unaudited interim report for Q3 and 9 months of 2025

Message

The  revenue of Ekspress  Grupp continued to  grow in the  3(rd) quarter and the
first  nine months of the year, driven  by the Group's investments in the fields
of  conference business, ticket  sales and digital  outdoor screens. The digital
subscriptions of media companies also grew strongly.

The  revenue of AS Ekspress Grupp for the 3(rd) quarter of 2025 increased by EUR
1.1 million  (+6%) year-over-year,  totalling EUR  17.9 million. The revenue for
the  first nine months of 2025 increased by EUR 3.6 million (+7%) year-over-year
to  EUR 56.3 million. The  top contributors to  growth in the 3(rd) quarter were
the  business activities of  the Estonian Training  and Conference Centre (Eesti
Koolitus-  ja Konverentsikeskus), acquired by Delfi Meedia in July 2024, and the
conference  company UAB Kenton  Baltic, acquired by  Delfi Lithuania in December
2024. In  addition,  growth  was  driven  by  Delfi  Lithuania's  AI project and
continued  growth  in  the  revenues  of  digital  subscriptions,  ticket  sales
platforms  and digital screens.  On the other  hand, the Group's activities were
impacted  by  the  general  weakness  of  the business environment in the Baltic
States,  reflected in a 2% revenue decline in the 3(rd) quarter and a 5% decline
in the first nine months of the year.

The  digital revenue for the first nine months of the year increased by 5% year-
over-year.  The digital subscription revenue of  the Group's media companies and
the  number  of  people  with  digital  subscriptions  increased  in  all  three
countries.  In  a  year,  the  Group  received  about  22 thousand  new  digital
subscriptions  (+10%) and reached  245 thousand subscriptions at  the end of the
3(rd) quarter  2025. Thus, the Group's digital  revenue is 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  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 thousand subscribers by
2026.

The  revenue of ticket  sales platforms increased  by 6% in the 3(rd) quarter as
compared  to a year ago. The outdoor  screen business also showed a 1% increase,
supported  by the expansion  of the network  to 159 screens and  the increase in
sales revenue per screen. With this, the Group has increased its presence in the
Latvian market, where the number of screens increased from 107 to 112 in a year,
while in Estonia we have 47 screens. These two areas have proven to be resilient
even in conditions of slower economic growth.

In   the   3(rd) quarter,   Ekspress  Grupp's  profit  before  interest,  taxes,
depreciation  and amortisation (EBITDA) totalled  EUR 2.4 million, increasing by
EUR  0.4 million year-over-year  (+21%). The  EBITDA for  the first  nine months
totalled  EUR  5.5 million,  matching  last  year's  level.  EBITDA  growth  was
supported by the training and conference business acquired in 2024. However, due
to  the  weak  economic  environment  in  the  Baltic  States,  media companies'
advertising  sales were under pressure,  which in turn had  a negative impact on
EBITDA.

The  consolidated net profit for the  3(rd) quarter of 2025 was EUR 2.4 million,
an  increase of EUR 2.1 million. The consolidated  net profit for the first nine
months  of 2025 totalled EUR 1.9 million, increasing  by EUR 1.8 million. A one-
off  gain from the sale of an ownership  interest in SIA Altero in the amount of
EUR  2.0 million contributed to the net  profit growth both in the 3(rd) quarter
and  in the first nine months of the year. However, higher depreciation expenses
related  to the  Group's investments  had a  negative impact  on the  Groups net
profit  for the  first nine  months of  the year.  Still, a  lower income tax on
dividends  and lower interest expenses had a  positive impact as compared to the
previous year.

The  Group's liquidity continues to be strong. 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. As of 30 September
2025, the  Group's available cash totalled EUR 9.0 million (30.09.2024: EUR 5.4
million). In June 2025, the Group paid dividends of EUR 6 cents per share to its
shareholders, in the total amount of EUR 1.86 million.


Q3 AND 9 MONTHS RESULTS

REVENUE

In the 3(rd) quarter of 2025, the consolidated revenue totalled EUR 17.9 million
(Q3  2024: EUR 16.8 million). The revenue for the 3(rd) quarter increased by 6%
year-over-year. The consolidated revenue for the first 9 months of 2025 totalled
EUR 56.3 million (9 months 2024: EUR 52.7 million). The revenue for the first 9
months of the year increased by 7% as compared to the previous year.

The  growth in both the 3(rd) quarter and the first 9 months is mainly driven by
the  business operations of  Eesti Koolitus- ja  Konverentsikeskus (the Estonian
Training  and Conference Centre), acquired by  Delfi Meedia in July 2024 and the
conference  company UAB Kenton  Baltic, acquired by  Delfi Lithuania in December
2024. In  addition, the growth  was contributed by  Delfi Lithuania's AI project
and  continued  growth  in  digital  subscription revenue, ticket sales platform
revenue, and digital outdoor screen revenue.

The  AI module being developed by Delfi UAB  is funded by the European Union and
aims  to enable the automatic identification  of false information. The project,
which  began in the  1(st) quarter of 2025 and  is scheduled to  conclude in the
2(nd) quarter  of 2026, is expected to generate  revenue of 3 million euros. The
model will be publicly available to all artificial intelligence developers.

The  share of the Group's digital revenue in total revenue was 85% at the end of
the  3(rd) quarter of  2025 (at the  end of  Q3 2024: 86% of total revenue). The
share  of digital revenues in the Group's total revenue has decreased due to the
expansion  of  the  training  and  conference  business as a new revenue stream.
Digital  revenue for the  first 9 months of  2025 increased by 5% as compared to
the same period last year.

EXPENSES

In the 3(rd) quarter of 2025, the cost of goods sold, marketing, and general and
administrative costs, excluding depreciation and amortisation totalled EUR 15.5
million  (Q3 2024: EUR 15.2 million).  Operating expenses increased  by EUR 0.3
million (+2%) as compared to the same period last year. In the first 9 months of
2025, the  cost of goods sold, marketing,  and general and administrative costs,
excluding  depreciation  and  amortisation  totalled  EUR 51.1 million (9 months
2024: EUR  47.8 million). Operating expenses increased  by EUR 3.3 million (+7%)
as  compared to the same period last year.  The increase in expenses in both the
3(rd) quarter  and the  first 9 months  of the  year is  mainly due to operating
expenses  related  to  newly  acquired  training  and  conference businesses and
expenses  related to  the Lithuanian  AI project  (Q3 2025: EUR  0.5 million; 9
months 2025: EUR 2.6 million).

PROFITABILITY

In  the 3(rd) quarter of 2025, the  consolidated EBITDA totalled EUR 2.4 million
(Q3 2024: EUR 2.0 million). EBITDA increased by 21% as compared to last year and
the  EBITDA margin  was 13% (Q3  2024: 12%). In the  first 9 months of 2025, the
consolidated  EBITDA totalled EUR 5.5 million  (9 months 2024: EUR 5.5 million).
EBITDA  remained at the same level as last year and the EBITDA margin was 10% (9
months  2024: 10%). EBITDA growth was  supported by the  training and conference
business  acquired in 2024. However, due to the weak economic environment in the
Baltic  States, media companies' advertising sales were under pressure, which in
turn had a negative impact on EBITDA.

The  consolidated net  profit for  the 3(rd) quarter  of 2025 totalled  EUR 2.4
million  (Q3  2024: EUR  0.3 million),  an  increase  of  EUR  2.1 million.  The
consolidated  net profit for the first 9 months of 2025 totalled EUR 1.9 million
(9 months 2024: EUR 0.1 million), an increase of EUR 1.8 million. A one-off gain
from  the sale of an ownership interest in  SIA Altero in the amount of EUR 2.0
million  contributed to the net  profit growth both in  the 3(rd) quarter and in
the first nine months of the year. The Group's 9-month net profit was negatively
affected  by  an  increase  in  depreciation  expense resulting from the Group's
investments  (EUR -0.8  million). However,  it was  positively impacted by lower
income  tax expense (EUR +0.7 million), mainly  related to dividend taxation, as
well as lower interest expenses (EUR +0.3 million).

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 58.5 million (53% of total
assets).  The comparable data  as of 30 September  2024 were EUR 5.4 million and
EUR  55.3 million (52% of total assets), respectively. As of 30 September 2025,
the Group's net debt was EUR 16.6 million (30 September 2024: EUR 21.2 million).

In  the first 9 months of 2025, the Group's cash flows from operating activities
totalled  EUR 4.2 million (9 months 2024: EUR 3.1 million), which was positively
affected  by ticket sales platforms in both Estonia and Latvia, as well as lower
corporate income tax paid.

In  the first 9 months of 2025, the Group's cash flows from investing activities
totalled  EUR 1.8 million (9  months 2024: EUR -5.3  million), of which EUR 4.2
million  resulted from  the sale  of the  associate SIA  Altero, while  EUR -2.9
million  was  related  to  development  and  acquisition  of property, plant and
equipment  and  intangible  assets,  of  which  the largest investments were the
acquisition  of LED  outdoor screens  and the  investments in the development of
Delfi platform and Delfi TV.

In  the first 9 months of 2025, the Group's cash flows from financing activities
totalled  EUR -6.0 million (9 months 2024: EUR -2.1 million), of which EUR -1.86
million  is the  dividend payment  to the  shareholders of  AS Ekspress Grupp (9
months  2024: EUR -1.85 million).  In the first  9 months of 2025, there were no
proceeds  from the sale of treasury shares  within the framework of the exercise
of  share options (9 months 2024: EUR 0.5 million). Financing activities include
a net change in borrowings in the amount of EUR -2.3 million (9 months 2024: EUR
1.0 million)  and lease liabilities in the amount  of EUR -1.9 million (9 months
2024: EUR -1.7 million) due to the normal reduction of the remaining lease term.

DIVIDENDS

At  the regular general meeting of shareholders of AS Ekspress Grupp held on 23
May  2025, it was  decided to  pay a  dividend of  6 euro cents per share in the
total amount of EUR 1.86 million. Dividends were paid to shareholders on 12 June
2025.


SEGMENT OVERVIEW

Key financial indicators for segments

 (EUR thousand)    Sales

                                                                     12 months
                   Q3 2025 Q3 2024 change % 9M 2025 9M 2024 change % 2024

 Media segment     17 820  16 780  6%       56 213  52 592  7%       76 071

  advertising
 revenue           8 765   8 936   -2%      27 912  29 315  -5%      42 234

 subscriptions
 (incl. single-
 copy sales)       5 139   5 012   3%       15 537  15 089  3%       20 457

 ticket sales
 platforms         994     940     6%       2 845   2 604   9%       4 157

 outdoor screens   1 076   1 066   1%       3 317   3 117   6%       4 445

 sale of other
 goods and
 services          1 846   827     123%     6 602   2 467   168%     4 778

 Corporate
 functions         223     194     15%      614     548     12%      752

 Inter-segment
 eliminations      (171)   (167)            (524)   (483)            (653)

 TOTAL GROUP       17 871  16 806  6%       56 303  52 657  7%       76 170

  incl. revenue
 from all digital
 channels*         15 507  14 693  6%       47 806  45 330  5%       65 070

  % of revenue
 from all digital
 channels*         87%     87%              85%     86%              85%


 (EUR thousand)    EBITDA

                                                                     12 months
                   Q3 2025 Q3 2024 change % 9M 2025 9M 2024 change % 2024

 Media segment     2 702   2 374   14%      6 567   6 676   -2%      12 364

 Corporate
 functions         (307)   (380)   19%      (1 097) (1 221) 10%      (1 699)

 Inter-segment
 eliminations      1       (12)             4       10               11

 TOTAL GROUP       2 396   1 982   21%      5 475   5 466   0%       10 677


  EBITDA margin   Q3 2025   Q3 2024   9M 2025   9M 2024   12 months 2024

  Media segment   15%       14%       12%       13%       16%

  TOTAL GROUP     13%       12%       10%       10%       14%

*  The share of digital revenue in the Group's total revenue has been reassessed
due to the addition of new business areas.


Consolidated statement of financial position (unaudited)

  (EUR thousand)                      30.09.2025   31.12.2024
--------------------------------------------------------------
  ASSETS
--------------------------------------------------------------
  Current assets
--------------------------------------------------------------
  Cash and cash equivalents                8 961        8 971
--------------------------------------------------------------
  Trade and other receivables             14 729       14 394
--------------------------------------------------------------
  Corporate income tax prepayment            148          170
--------------------------------------------------------------
  Inventories                                373          373
--------------------------------------------------------------
  Total current assets                    24 211       23 908
--------------------------------------------------------------
  Non-current assets
--------------------------------------------------------------
  Other receivables and investments        1 737        1 775
--------------------------------------------------------------
  Deferred tax asset                          71           71
--------------------------------------------------------------
  Investments in joint ventures            1 032          872
--------------------------------------------------------------
  Investments in associates                  150        2 464
--------------------------------------------------------------
  Property, plant and equipment            9 744       10 834
--------------------------------------------------------------
  Intangible assets                       74 203       74 112
--------------------------------------------------------------
  Total non-current assets                86 936       90 128
--------------------------------------------------------------
  TOTAL ASSETS                           111 148      114 036
--------------------------------------------------------------
  LIABILITIES
--------------------------------------------------------------
  Current liabilities
--------------------------------------------------------------
  Borrowings                               3 274        5 309
--------------------------------------------------------------
  Trade and other payables                27 080       27 014
--------------------------------------------------------------
  Corporate income tax payable                 5           36
--------------------------------------------------------------
  Total current liabilities               30 359       32 359
--------------------------------------------------------------
  Non-current liabilities
--------------------------------------------------------------
  Long-term borrowings                    22 273       23 232
--------------------------------------------------------------
  Other long-term liabilities                  5            5
--------------------------------------------------------------
  Total non-current liabilities           22 278       23 237
--------------------------------------------------------------
  TOTAL LIABILITIES                       52 637       55 596
--------------------------------------------------------------
  EQUITY
--------------------------------------------------------------
  Share capital                           18 576       18 576
--------------------------------------------------------------
  Share premium                           14 295       14 295
--------------------------------------------------------------
  Treasury shares                            (5)          (5)
--------------------------------------------------------------
  Reserves                                 2 494        2 364
--------------------------------------------------------------
  Retained earnings                       23 151       23 210
--------------------------------------------------------------
  TOTAL EQUITY                            58 511       58 440
--------------------------------------------------------------
  TOTAL LIABILITIES AND EQUITY           111 148      114 036
--------------------------------------------------------------


Consolidated statement of comprehensive income (unaudited)

 (EUR thousand)               Q3 2025  Q3 2024  9M 2025  9M 2024 12 months 2024
-------------------------------------------------------------------------------
 Sales                         17 871   16 806   56 303   52 657         76 170
-------------------------------------------------------------------------------
 Cost of sales               (13 955) (13 594) (45 358) (41 853)       (58 209)
-------------------------------------------------------------------------------
 Gross profit                   3 916    3 211   10 944   10 804         17 961
-------------------------------------------------------------------------------
 Other income                      97      409      424      698            959
-------------------------------------------------------------------------------
 Marketing expenses             (939)    (640)  (2 971)  (2 321)        (3 369)
-------------------------------------------------------------------------------
 Administrative expenses      (2 364)  (2 455)  (7 849)  (7 851)       (10 530)
-------------------------------------------------------------------------------
 Other expenses                  (34)     (39)    (115)    (134)          (164)
-------------------------------------------------------------------------------
 Operating profit /(loss)         676      486      433    1 196          4 857
-------------------------------------------------------------------------------
 Interest income                   13       23       69       84            117
-------------------------------------------------------------------------------
 Interest expenses              (309)    (476)  (1 124)  (1 384)        (1 836)
-------------------------------------------------------------------------------
 Other finance
 income/(costs)                 (162)     (16)    (199)     (39)           (58)
-------------------------------------------------------------------------------
 Net finance cost               (458)    (468)  (1 254)  (1 339)        (1 777)
-------------------------------------------------------------------------------
 Profit/(loss) on shares of
 joint ventures                    58      122      159      243            318
-------------------------------------------------------------------------------
 Profit/(loss) on shares of
 associates                     2 068      173    2 343      423            471
-------------------------------------------------------------------------------
 Profit /(loss) before
 income tax                     2 343      312    1 682      524          3 869
-------------------------------------------------------------------------------
 Income tax expense               101      (7)      246    (416)          (617)
-------------------------------------------------------------------------------
 Net profit /(loss) for the
 reporting period               2 444      305    1 928      108          3 252
-------------------------------------------------------------------------------
 Total comprehensive income
 /(loss)                        2 444      305    1 928      108          3 252
-------------------------------------------------------------------------------
 Earnings per share (euro)
-------------------------------------------------------------------------------
 Basic earnings per share      0.0790   0.0098   0.0623   0.0035         0.1058
-------------------------------------------------------------------------------


Consolidated cash flow statement (unaudited)

 (EUR thousand)                                  9M 2025 9M 2024 12 months 2024
-------------------------------------------------------------------------------
 Cash flows from operating activities
-------------------------------------------------------------------------------
 Operating profit /(loss) for the reporting year     433   1 196          4 857
-------------------------------------------------------------------------------
 Adjustments for (non-cash):
-------------------------------------------------------------------------------
 Depreciation and amortisation                     5 038   4 266          5 823
-------------------------------------------------------------------------------
 (Gain)/loss on sale, write-down and impairment
 of property, plant and equipment                     19      25             33
-------------------------------------------------------------------------------
 Cash flows from operating activities:
-------------------------------------------------------------------------------
 Trade and other receivables                       (274)   (576)        (1 281)
-------------------------------------------------------------------------------
 Inventories                                           0    (32)           (52)
-------------------------------------------------------------------------------
 Trade and other payables                            246    (84)          3 390
-------------------------------------------------------------------------------
 Income tax paid                                    (27)   (644)          (707)
-------------------------------------------------------------------------------
 Interest paid                                   (1 245) (1 025)        (1 875)
-------------------------------------------------------------------------------
 Net cash generated from operating activities      4 190   3 127         10 188
-------------------------------------------------------------------------------
 Cash flows from investing activities
-------------------------------------------------------------------------------
 Acquisition of subsidiaries/ associates (less
 cash acquired) and other investments /sale/
 cash paid-in equity-accounted investees           4 200 (2 579)        (5 246)
-------------------------------------------------------------------------------
 Interest received                                    71      82            115
-------------------------------------------------------------------------------
 Purchase of property, plant and equipment and
 intangible assets                               (2 934) (3 036)        (4 619)
-------------------------------------------------------------------------------
 Proceeds from sale of property, plant and
 equipment and intangible assets                       2       6              3
-------------------------------------------------------------------------------
 Loans granted                                      (42)    (12)           (12)
-------------------------------------------------------------------------------
 Loan repayments received                             60       4              4
-------------------------------------------------------------------------------
 Dividends received                                  456     204            379
-------------------------------------------------------------------------------
 Net cash used in investing activities             1 813 (5 331)        (9 376)
-------------------------------------------------------------------------------
 Cash flows from financing activities
-------------------------------------------------------------------------------
 Dividends paid                                  (1 857) (1 848)        (1 848)
-------------------------------------------------------------------------------
 Payment of lease liabilities                    (1 893) (1 708)        (2 315)
-------------------------------------------------------------------------------
 Change in overdraft                                   0     533              0
-------------------------------------------------------------------------------
 Proceeds from borrowings                          5 000   2 240          4 640
-------------------------------------------------------------------------------
 Repayments of bank loans                        (7 263) (1 763)        (2 419)
-------------------------------------------------------------------------------
 Proceeds from share issuance                          0      98             98
-------------------------------------------------------------------------------
 Proceeds from sale of treasury shares                 0     397            397
-------------------------------------------------------------------------------
 Net cash used in financing activities           (6 012) (2 052)        (1 447)
-------------------------------------------------------------------------------
 NET (DECREASE)/INCREASE IN CASH AND CASH
 EQUIVALENTS                                        (10) (4 256)          (635)
-------------------------------------------------------------------------------
 Cash and cash equivalents at the beginning of
 the period                                        8 971   9 606          9 606
-------------------------------------------------------------------------------
 Cash and cash equivalents at the end of the
 period                                            8 961   5 351          8 971
-------------------------------------------------------------------------------



Additional information
Rain Sarapuu
CFO of the Group
[email protected] (mailto:[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 Latvia and Estonia, offers digital outdoor screen service in Estonia
and Latvia. In addition, the Group companies organize conferences, trainings and
events  mainly  in  Estonia  and  Lithuania  but  also in Latvia. Ekspress Grupp
launched its operations in 1989 and employs about 1000 people.