Banijay Group (BNJ) Q3 2024 earnings summary

Executive summary

• Achieved 8.9% revenue growth to €3,125 million and 15.3% adjusted EBITDA growth to €546 million for the first nine months of 2024, with margin up 100 basis points to 17.5% year-over-year, driven by strong performance in online sports betting, gaming, and live events.

• Adjusted net income rose 14.3% to €248 million; net income increased to €56 million from €21 million in 9M 2023.

• Major scripted show deliveries expected in Q4 2024, reinforcing confidence in meeting full-year guidance.

• Expanded market share across all activities and geographies, with notable gains in online sports betting and gaming.

• Continued consolidation in live events and expansion in premium documentary and kids' content portfolios.

Financial highlights

• Group revenue rose 8.9% year-on-year to €3,125 million for the first nine months; adjusted EBITDA up 15.3% to €546 million, with margin improving to 17.5%.

• Adjusted net income increased 14.3% to €248 million; net income at €56 million, up from €21 million year-over-year.

• Adjusted free cash flow at group level reached €437 million; cash conversion rate after CapEx and lease payments at 80%.

• Net financial debt at €2,591 million as of September 30, 2024, with leverage at 3.2x, up from 3.1x at December 2023 due to acquisitions and dividends.

• CapEx increased to €72 million from €48 million in the prior year, mainly due to higher IT costs and distribution advances.

Outlook and guidance

• Confirmed full-year 2024 guidance for organic revenue growth around 10% and organic adjusted EBITDA growth in the low teens.

• Strong Q4 expected, especially in content production and distribution, with major scripted show deliveries anticipated.

• Expects softer demand for large live events in Saudi Arabia in Q4, reflecting broader market trends.

• Online sports betting and gaming to capitalize on user growth, with no major sporting events except the Champions League in Q4.

• Free cash flow conversion expected above 80%; net debt leverage targeted below 3x by year-end.