Keskisuomalainen (KSL) H1 2024 earnings summary

Executive summary

• Revenue declined 5.9% year-over-year to €102.6m due to weak economic conditions and sluggish advertising markets.

• Operating profit fell to -€6.1m from €0.4m, mainly due to a €7.5m goodwill impairment in Etelä-Suomen Media.

• Adjusted operating profit improved to €1.8m from €0.1m, and adjusted EBITDA rose 15.3% to €7.2m.

• Consumer sales grew 6.0%, supported by acquisitions, while media sales dropped 10.5% in line with industry trends.

• Strategic focus sharpened on digital media and outdoor advertising infrastructure, with ongoing cost efficiency measures.

Financial highlights

• Revenue: €102.6m (down from €109.0m), operating profit: -€6.1m (down from €0.4m), net result: -€6.0m (down from €0.7m) year-over-year.

• Adjusted operating profit: €1.8m (up from €0.1m), adjusted EBITDA: €7.2m (up from €6.3m).

• EPS: -€0.58 (down from €0.07), ROE: -11.6% (down from 1.0%), equity ratio: 32.8% (down from 44.7%).

• Goodwill impairment of €7.5m related to Etelä-Suomen Media weighed on results.

• Cash flow from operations: €13.2m (down from €14.6m); investments: €9.8m (up from €2.2m).

Outlook and guidance

• Assuming no material deterioration in the Finnish market, 2024 revenue is expected to remain at 2023 levels, with adjusted operating profit improving from 2023.