Klassik Radio (KA8) H2 2024 earnings summary

Executive summary

• Revenue decreased slightly to €19.4m for 2024, with EBITDA at €1.93m, nearly matching the prior year despite economic headwinds and increased investments.

• Adjusted EBITDA, excluding significant investments in new distribution and Beats Radio, reached €3m, reflecting a margin above 15%.

• Net income declined to €586k from €759k year-over-year, with a proposed dividend of €0.15 per share.

• The company remains debt-free on a net basis and funded all investments internally.

• A segment change from Frankfurt's General Standard to Munich's m:access was completed, reducing regulatory costs by €200k annually.

Financial highlights

• Revenue fell by €418k year-over-year to €19.4m, mainly due to lower advertising and barter business.

• EBITDA was €1.93m (2023: €2.01m); EBIT was €1.26m (2023: €1.40m).

• Net income was €586k, down from €759k in 2023.

• Free cash flow increased to €2.52m from €907k year-over-year.

• Cash at year-end rose to €933k (2023: €326k); equity ratio improved to 40.4% (2023: 37.8%).

Outlook and guidance

• For 2025, management expects stable EBITDA and slightly to moderately higher revenues, driven by digital reach and new distribution areas.

• Macroeconomic forecasts for Germany remain subdued, with GDP growth expected at 0% in 2025.

• The company plans to leverage digital expansion and strong self-marketing to offset market stagnation.