Wirtualna Polska (WPL) Q3 2024 earnings summary

Executive summary

• Cash revenue in Q3 2024 increased by 8% year-over-year to PLN 429.7m; adjusted EBITDA grew by 3% to PLN 153.6m.

• Net profit for Q3 2024 rose 11% year-over-year to PLN 79.9m; net profit per share up 10% year-over-year.

• For the first nine months, cash revenue grew 9% year-over-year to PLN 1,148.7m; adjusted EBITDA up 3% year-over-year.

• Cash flow from operations declined 12% year-over-year to PLN 64.7m in Q3; for nine months, it was PLN 310.7m, down 2% year-over-year.

• Net debt increased to PLN 495.4m at September 2024, up from PLN 407.3m at June 2024, mainly due to dividend payout and acquisition of Creative Eye.

Financial highlights

• Total group revenue for Q3 2024 was PLN 437.5m, up 8% year-over-year; adjusted EBITDA margin was 35.8%, down from 37.8% a year earlier.

• Q3 2024 operating profit: PLN 113.5m (+3.6% YoY); profit before tax: PLN 98.8m (+9.8% YoY).

• Net profit for Q3 2024 was PLN 79.9m, up 11% year-over-year.

• Year-to-date Q3 2024 adjusted EBITDA increased 3% to PLN 336.3m.

• Dividend of PLN 2 per share (PLN 59.2m total) paid in July 2024.

Outlook and guidance

• Management expects full-year 2024 EBITDA in the Advertising & Subscriptions segment to be slightly below 2023, despite ongoing profitability measures.

• International travel market growth expected to continue; early bookings for Winter 2024/25 up double digits year-over-year.

• Online advertising market in Poland is expected to continue expanding its share, but remains sensitive to macroeconomic factors and consumer sentiment.

• Macroeconomic improvement in CEE region anticipated, but retail sales remain below expectations.

• No formal financial forecasts published for 2024.