Wirtualna Polska (WPL) Q1 2025 earnings summary

Executive summary

• Cash revenue in Q1 2025 increased by 7% year-over-year to PLN 368.2m, with adjusted EBITDA up 2% to PLN 85.8m.

• Pro forma, including Creative Eye and Audioteka changes, revenue grew 9% and adjusted EBITDA rose 6% year-over-year.

• Net profit attributable to equity holders was PLN 10.0m, down 40% year-over-year.

• Major acquisitions included Creative Eye (finalized September 2024) and Invia Group (closed April 2025).

• Management Board recommended a dividend of PLN 2.9 per share from 2024 profits.

Financial highlights

• Total revenue reached PLN 372.0m (+6% YoY), cash revenue PLN 368.2m (+7% YoY).

• Adjusted EBITDA was PLN 85.8m (+2% YoY), with a margin of 23.3% (down 1.1pp YoY).

• Net profit was PLN 12.4m (-35% YoY); net income attributable to equity holders was PLN 10.0m (-40% YoY).

• Operating cash flow rose 14% year-over-year to PLN 131.0m.

• CAPEX in Q1 2025 amounted to PLN 39.0m.

Outlook and guidance

• Transaction-related costs of approx. PLN 25m expected in Q2 2025, mainly from M&A activities.

• Future quarters will reflect the consolidation of Invia Group and Creative Eye, and changes in revenue recognition for Audioteka Group.

• Macroeconomic improvements in CEE expected to support growth, with Poland's GDP forecasted to rise 3.6% in 2025.

• After the Invia Group acquisition, pro forma net debt to adjusted EBITDA would be 2.4x at end of March 2025.