Polaris Media (POL) Q2 2024 earnings summary

Executive summary

• EBITDA reached MNOK 88 in Q2 2024, up 12% year-over-year, driven by cost reductions, digital development, and print/distribution in Norway.

• First half EBITDA was MNOK 125, MNOK 26 higher year-over-year adjusted, with cost reductions and digital user revenue growth as key drivers.

• Digital subscription growth was strong, with 628,000 digital subscriptions (67% of total) and 420,000 digital subscribers in one segment, up 22% year-over-year.

• Sale of 9.99% FINN stake to Schibsted for NOK 2.5 billion completed in May, strengthening financial position and reducing bank loans.

• Cost-saving measures are expected to yield MNOK 250 in 2024 and MNOK 300 annually from 2025.

Financial highlights

• Q2 2024 revenue was MNOK 902, down 6% year-over-year; first half revenue MNOK 1,771, down 5%.

• Adjusted EBITDA margin improved to 10% in Q2 (from 8%) and 7% for H1 (from 5%).

• Digital revenues grew 13% in Q2 and 16% for H1; digital user revenues up 24% in Q2 and 26% for H1.

• Total ad revenues fell 15% in Q2, mainly due to a 24% drop in print ads.

• Net income after tax for Q2 was MNOK 629, boosted by extraordinary dividend from Schibsted.

Outlook and guidance

• Market conditions remain challenging in Norway and Sweden, with low economic growth and continued cost pressure.

• Digital user revenue growth is expected to continue, offsetting declines in print and combined products.

• Ongoing focus on cost savings, efficiency, and investments in digital tools, including AI.

• Print ad revenue decline is expected to persist, while digital ad market may gradually improve.

• Strong financial position post-FINN sale provides flexibility for strategic initiatives.