Ekspress Grupp (EEG1T) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales revenue rose 6% year-over-year to €19.6m; EBITDA up 27% to €3.0m; net profit up 67% to €1.0m.

• For H1 2024, sales revenue increased 2% to €35.9m; EBITDA declined 2% to €3.5m; net loss widened to €-0.2m.

• Digital revenue share reached 87% in H1 2024, up from 82% last year; digital subscriptions in the Baltics grew 27% to 223,000.

• Growth driven by digital subscriptions, ticket sales platforms, and outdoor screen advertising.

• Management maintains strong liquidity and reserves for acquisitions and economic uncertainty.

Financial highlights

• Q2 2024: Revenue €19.6m (+6%), EBITDA €3.0m (+27%), net profit €1.0m (+67%), EPS €0.0332.

• H1 2024: Revenue €35.9m (+2%), EBITDA €3.5m (-2%), net loss €-0.2m, EPS €-0.0064.

• Digital revenue up 9% year-over-year; digital revenue share at 87% in H1.

• Operating expenses rose 4% in H1, mainly due to higher labor costs.

• Available cash at period end: €5.5m; net debt €13.4m.

Outlook and guidance

• Strategic goal to reach 340,000 digital subscriptions in the Baltics by 2026.

• Focus remains on organic digital growth, acquisitions, and increasing recurring digital revenue.

• Dividend policy targets payout of at least 30% of annual net profit, subject to cash flow and investment needs.