Polaris Media (POL) Q4 2024 earnings summary

Executive summary

• Achieved four consecutive quarters of earnings growth, driven by digital subscription and distribution gains, cost reductions, and strengthened financial flexibility from the NOK 1.0 billion Schibsted ASA share sale and proposed extraordinary dividend.

• Digital transformation accelerated, with digital subscriptions up 17% and digital user revenues up 18% year-over-year; digital products now a key revenue driver.

• Cost efficiency measures reduced operating costs by 4% year-over-year, supporting improved profitability.

• Acquired 81% of Hallingdølen AS in December.

Financial highlights

• Full-year adjusted EBITDA up 23% to NOK 293 million; Q4 adjusted EBITDA up 14% to NOK 66 million year-over-year.

• Digital revenues rose 15% to NOK 1,299 million, with strong growth in digital user income.

• Operating costs reduced by 4% to NOK 3,314 million.

• Net income for 2024 was NOK 694 million (2023: -51 million); Q4 net income NOK 2 million (Q4 2023: -97 million).

• Net interest-bearing debt at year-end: NOK -1,224 million, reflecting strong cash position after asset sales.

Outlook and guidance

• Well positioned for continued digital growth in the user market, with digital user revenues now 45% of total user income.

• Advertising market stabilizing but faces strong competition from global digital players; print advertising expected to decline further.

• Macroeconomic outlook marked by stabilization and cautious optimism, with some uncertainty from potential trade conflicts; interest rate cuts and stronger consumer spending expected in 2025.

• Ongoing cost focus and significant investments in technology and product development to ensure profitable digital growth.

• Further cost efficiency measures planned, especially in Swedish distribution.