Ekspress Grupp (EEG1T) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales revenue rose 2% year-over-year to EUR 16.8 million; 9-month revenue up 2% to EUR 52.7 million.

• EBITDA declined 19% in Q3 to EUR 2.0 million and 9% for 9 months to EUR 5.5 million.

• Net profit dropped 68% in Q3 to EUR 0.31 million and 87% for 9 months to EUR 0.11 million.

• Digital revenue share increased to 88% of total revenue; digital subscriptions in the Baltics up 24% year-over-year to 223,000.

• Growth in ticket platforms and outdoor screen advertising offset by weaker media advertising due to economic conditions.

Financial highlights

• Q3 2024 sales: EUR 16.8 million (+2%); EBITDA: EUR 2.0 million (-19%); net profit: EUR 0.31 million (-68%).

• 9M 2024 sales: EUR 52.7 million (+2%); EBITDA: EUR 5.5 million (-9%); net profit: EUR 0.11 million (-87%).

• EBITDA margin: 12% in Q3 (15% prior year); 10% for 9 months (12% prior year).

• Operating expenses rose 5% year-over-year, mainly due to higher labor costs.

• Available cash at period end: EUR 5.4 million; net debt: EUR 15.6 million.

Outlook and guidance

• Strategic goal to reach at least 340,000 digital subscribers and >85% digital revenue share by 2026.

• Focus on organic digital growth, acquisitions, and maintaining strong liquidity for potential investments.

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