Stroer SE & Co (SAX) Q4 2024 earnings summary

Executive summary

• Revenue reached €2.05 billion in 2024, up 7% year-over-year, surpassing the €2 billion milestone for the first time, with strong operational leverage and cash flow generation.

• Adjusted EBITDA rose 10% to €626 million, adjusted EBIT increased 20% to €320 million, and adjusted net income grew 20% to €171 million.

• Adjusted free cash flow nearly doubled to €158 million, driven by higher earnings and lower CapEx.

• Digital Out-of-Home (DOOH) revenue grew over 23% organically, driving group margin expansion and outperforming other media categories.

• Out-of-Home (OoH) and DOOH segments outperformed the broader ad market, with programmatic DOOH (pDOOH) advertising up 34%.

Financial highlights

• Reported EBIT increased by €56 million to €287 million; reported net income rose 31% to €148 million.

• Adjusted EBITDA margin improved to 47% for OOH Media; CapEx reduced by 27% to €93.7 million, reflecting DOOH portfolio optimization.

• Free cash flow (adjusted) for FY 2024 at €158 million, nearly double prior year.

• Net debt increased by €67 million to €837 million, with leverage ratio stable at 2.1x (1.9x excluding RBL acquisition).

• Tax rate for FY 2024 at 29.8%.

Outlook and guidance

• Q1 2025 expected top-line growth of 13%-14% in core OOH, with digital and programmatic DOOH revenue anticipated to grow in the mid to high 20s percent and over 30% respectively.

• Classic Out-of-Home projected to grow mid-single digit; Digital and Dialogue segment to see low to mid-single digit growth.

• Statista and DAS margin improvements expected, though Q1 still impacted by China sales decline.

• Digital & Dialog Media and Statista & Asam segments anticipated to maintain solid growth and robust margin profiles.

• Order books indicate a strong start to the year.