Wirtualna Polska (WPL) Q2 2024 earnings summary

Executive summary

• Cash revenue in Q2 2024 rose 6% YoY to PLN 374.3m, with adjusted EBITDA down 2% to PLN 98.4m.

• Net profit attributable to equity holders dropped to PLN 16.8m from PLN 31.9m, impacted by one-off restructuring costs, higher depreciation, and weaker financial results.

• Workforce reductions and restructuring were implemented in response to slower-than-expected advertising revenue growth.

• For 1H 2024, cash revenue increased 9% YoY to PLN 719.0m, with adjusted EBITDA up 4% YoY at PLN 182.7m.

• Net debt at end-June 2024 was PLN 407.3m, with net debt/adj. EBITDA at 0.9x.

Financial highlights

• Q2 2024: Total revenues reached PLN 380.8m (+6% YoY); adjusted EBITDA was PLN 98.4m (-2% YoY, margin 26.3%).

• Q2 2024: Net profit was PLN 19.1m (-43% YoY); adjusted net income (excluding PLN 8.6m restructuring provision) was PLN 25.5m (-20% YoY).

• 1H 2024: Sales PLN 730.6m (+9% YoY), adjusted EBITDA PLN 182.7m (+3.7% YoY), net profit attributable to equity holders PLN 33.5m (-27.6% YoY).

• Cash flow from operations in 1H 2024 was PLN 246.1m (+1% YoY); CAPEX was PLN 70.0m.

• Dividend of PLN 60m paid in July 2024, following a resolution in June.

Outlook and guidance

• Management adjusted cost levels and implemented workforce reductions to align with lower revenue expectations in advertising.

• The improving macroeconomic environment in Poland and CEE is expected to positively impact advertising and travel markets.

• Management expects continued growth in online advertising and international travel markets.

• Competition in Polish online advertising and e-commerce remains intense, with market leadership seen as key.

• No formal financial forecasts for 2024 were published.