Readly International (READ) Q2 2024 earnings summary

Executive summary

• Revenue grew 14.2% year-over-year in Q2 2024 to SEK 188.0 million, driven by price increases in Germany and Sweden.

• Gross profit margin improved to 40.1% (from 38.5%), and adjusted EBITDA margin reached a record 8.9%.

• Full-paying subscribers declined 7.0% to 422,986, mainly due to the divestment of Readly France SA.

• Positive cash flow from operating activities of SEK 36.1 million for H1 2024, compared to negative SEK 34.3 million last year.

• Net result for H1 2024 was SEK -17.5 million, a significant improvement from SEK -52.3 million in H1 2023.

Financial highlights

• H1 2024 revenue: SEK 362.0 million (+12.0% year-over-year); excluding divestments: SEK 331.4 million (+15.2%).

• Gross profit: SEK 143.6 million (+20.7%), gross margin: 39.7% (36.8%).

• Adjusted EBITDA (excl. IAC): SEK 25.8 million (H1 2023: -10.5 million), margin 7.1%.

• Operating result (EBIT): SEK 8.5 million (H1 2023: -55.3 million), margin 2.4%.

• Earnings per share: SEK -0.5 (H1 2023: -1.4).

• Cash and cash equivalents at period end: SEK 146.1 million (Dec 2023: 102.9 million).

Segment performance

• Germany: H1 revenue up 19.9% to SEK 150.0 million, driven by price increases and subscriber growth.

• UK: H1 revenue up 4.9% to SEK 65.3 million; Sweden: up 17.0% to SEK 57.9 million.

• Other markets: H1 revenue up 3.0% to SEK 88.8 million, with strong growth in Austria (+17.0%) and Australia (+59.5%).