Eletromidia (ELMD3) Q4 2024 earnings summary

Executive summary

• Gross revenue reached R$1.35 billion in 2024, up 28.9% year-over-year, driven by network expansion, increased advertiser demand, and strategic commercial initiatives.

• Adjusted EBITDA for 2024 was R$430.1 million, up 24.3% from 2023, with a margin of 36.2%.

• Adjusted net profit totaled R$198.3 million for the year, a 24.7% increase, with a net margin of 16.7%.

• Globo Comunicação e Participações S.A. acquired a 74.1% controlling stake, triggering a public tender offer for remaining shares.

Financial highlights

• 4Q24 gross revenue was R$442.9 million, up 16.3% compared to 4Q23; net revenue was R$391.7 million, up 16.1%.

• Full-year gross profit was R$591.7 million (+35.3%), with a gross margin of 49.8% (+3.2 p.p. year-over-year).

• Operating expenses rose 36.8% in 2024, mainly due to expansion, new service launches, and team growth.

• Adjusted EBITDA margin for 4Q24 was 40.2% (down 9.0 p.p. year-over-year); full-year margin was 36.2% (down 0.6 p.p.).

• Adjusted net profit for 4Q24 was R$92.1 million, down 1.5% year-over-year; full-year adjusted net profit was R$198.3 million (+24.7%).

Outlook and guidance

• Management reaffirmed commitment to sustainable growth, innovation, and expanding solutions for advertisers.

• Exclusive 20-year concession for Rio de Janeiro urban furniture, with operations starting in 2027.

• Expansion into new urban centers and digitalization of assets to continue.

• OPA (public tender offer) for delisting and Novo Mercado exit underway.