Readly International (READ) Q4 2024 earnings summary

Executive summary

• Achieved first-ever annual profit in 2024, driven by strong revenue growth, improved margins, and positive free cash flow.

• Revenue increased 9.4% year-over-year to SEK 725.3 million, with underlying growth of 16.1% when adjusted for VAT, FX, and divestments.

• Adjusted EBITDA margin rose to 8.7% (2.4% in 2023), and net result reached SEK 100.4 million (-54.6 million in 2023).

• Number of full-paying subscribers (FPS) decreased 8.0% to 427,227, but only 1.9% when adjusted for divestments.

• Board proposes a dividend of SEK 1.0 per share.

Financial highlights

• Q4 revenue up 7.2% year-over-year to SEK 182.8 million; adjusted revenue up 17.6%.

• Gross profit for 2024 increased 16.8% to SEK 292.4 million, gross margin improved to 40.3% (37.7%).

• Adjusted operating result (EBIT, excl. IAC) was SEK 36.8 million (-29.2 million in 2023), margin 5.1% (-4.4%).

• Free cash flow for the year was SEK 58.4 million (-59.9 million in 2023).

• Earnings per share were SEK 2.7 (-1.4) before and after dilution.

Segment performance

• Germany: Revenue up 18.8% to SEK 313.2 million, driven by price increases.

• UK: Revenue up 11.3% to SEK 141.4 million, with price increases implemented in May.

• Sweden: Revenue up 18.4% to SEK 117.9 million, mainly from price increases.

• Other markets: Revenue down 13.4% due to divestment of Readly France; Austria and Australia saw strong growth.