Alma Media (ALMA) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue increased by 2.4% year-over-year to €80.1M, driven by acquisitions and digital business, with digital share rising to 84.4%.

• Adjusted operating profit for Q2 was €19.4M (24.2% margin), flat year-over-year; H1 margin at 22.7% due to higher product development costs.

• H1 2024 revenue rose 1.8% to €156.2M; adjusted operating profit fell 2.4% to €35.5M.

• Earnings per share for Q2 was €0.18, down from €0.23 last year due to prior year non-recurring items.

• Netwheels acquisition and increased stake in Suomen Tunnistetieto Oy expanded digital and mobility services.

Financial highlights

• Q2 revenue: €80.1M (+2.4%); H1 revenue: €156.2M (+1.8%).

• Q2 adjusted operating profit: €19.4M (24.2% margin); H1: €35.5M (22.7% margin).

• Operating cash flow: €10.9M in Q2, up from €9.8M last year; free cash flow reached €8.3M, up €2.5M year-over-year.

• Earnings per share for H1 was €0.31, down from €0.37, impacted by lower fair value changes in contingent consideration.

• Investments totaled €3M in Q2, focused on digital and mobility services.

Outlook and guidance

• Full-year 2024 revenue and adjusted operating profit expected to remain at 2023 levels.

• Cost-cutting measures are ongoing and will continue in H2 2024.

• Acquisitions expected to support turnover and profit.

• Economic forecasts revised down in key markets; recruitment and advertising demand remain uncertain.

• Upside risks depend on market improvement; downside risks are internally managed.