Polaris Media (POL) Q3 2024 earnings summary

Executive summary

• Achieved third consecutive quarter of earnings growth, with adjusted EBITDA at NOK 102 million, mainly driven by Swedish media houses and Norwegian distribution.

• Digital user revenues rose 25% year-over-year, with 406,000 digital subscriptions, up 18% from last year.

• Strong digital revenue growth and continued cost savings from efficiency measures, especially in Sweden.

• Proposed extraordinary dividend of NOK 1.0 billion after Schibsted Marketplaces share sale.

• Strategic acquisitions in Norway and closure of Sunnhordland printing operations from 2025.

Financial highlights

• Adjusted EBITDA rose 25% to NOK 102 million in Q3 2024 compared to Q3 2023.

• Digital revenues increased 16% year-over-year to NOK 316 million.

• Operating costs reduced by 4% year-over-year to NOK 772 million.

• Group operating revenues were NOK 874 million, down 1% year-over-year.

• Improved operational cash flow to NOK 73 million year-to-date, up from NOK 16 million last year.

Outlook and guidance

• Maintains strong financial position and flexibility for further development after Schibsted share sale.

• Board proposes NOK 1.0 billion extraordinary dividend, pending approval in May 2025.

• Ongoing cost reduction initiatives expected to yield annual savings of NOK 250 million in 2024 and NOK 300 million in 2025.

• Macroeconomic conditions remain challenging, with low growth in Norway and Sweden.