Ilkka (ILKKA2) Q4 2023 earnings summary

Executive summary

• FY2023 continuing-operations revenue rose 3.1% to €56.091m, while adjusted own-operations operating profit fell to €424k from €1.282m amid weaker demand and cost pressures.

• Net income increased to €4.808m from €870k, supported by higher net financial income; EPS was €0.19 versus €0.03.

• Q4 revenue declined 3.2% YoY to €14.112m; adjusted own-operations operating profit was €106k versus €307k.

Financial highlights

• FY continuing-operations revenue was €56.091m (+3.1%); reported operating loss widened to €1.272m from €760k, while adjusted own-operations operating profit was €424k versus €1.282m.

• FY profit before tax was €5.412m versus €1.265m; net income was €4.808m versus €870k, and EPS was €0.19 versus €0.03.

• Q4 profit before tax was €646k versus €166k; net income was €626k versus €47k, and EPS was €0.02 versus €0.00.

• FY net financial income was €6.683m, including €3.957m in Alma Media dividends and €2.150m net gains on financial assets held for trading.

• Continuing-operations operating cash flow was €5.215m versus €6.780m; costs increased 4.6% for FY, reflecting acquisitions and inflation.

Outlook and guidance

• FY2024 continuing-operations revenue is expected to remain at the prior-year level or increase slightly; adjusted own-operations operating profit is expected to rise YoY.

• Media services revenue is expected to decline in 2024, while marketing services revenue is expected to grow; marketing and communications technology services growth and profitability are expected to improve.

• Outlook remains uncertain due to geopolitical developments and economic conditions; Hilla Group earnings and Alma Media dividends materially affect earnings.