Digital Network (DIG) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 reached PLN 47.4m, up 14% year-over-year, with 98% from digital out-of-home (DOOH) advertising.

• Operating profit rose 16% to PLN 18.0m, and EBITDA increased 16% to PLN 27.0m year-over-year.

• Net profit was PLN 16.9m, up 49% year-over-year when excluding a one-off gain from subsidiary sales in 2023.

• The company maintains a leading position in Poland's DOOH market, operating over 20,000 screens.

Financial highlights

• Gross margin for the period was PLN 25.6m, with operating margin at 38% and EBITDA margin at 57%.

• Net margin improved to 36% (excluding one-off events), up from 27% in the prior year.

• Cash flow from operations was PLN 20.3m; net cash flow was negative at PLN -10.4m due to high dividend payouts and investments.

• Equity at quarter-end was PLN 53.8m, with total assets of PLN 91.8m.

Outlook and guidance

• Full-year 2024 guidance: revenue PLN 71.3m (+11% y/y), operating profit PLN 29.0m (+28%), EBITDA PLN 41.0m (+23%), net profit PLN 26.1m (+8% or +42% excluding one-offs).

• Management expects to meet guidance, assuming no major macroeconomic disruptions.

• Dividend policy targets payout of at least PLN 20m for 2024, with an interim dividend of PLN 10m (PLN 2.41/share) paid in December 2024.