Earnings Release • Aug 14, 2024
Earnings Release
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14 AUGUST 2024
REGULATED INFORMATION ROULARTA MEDIA GROUP
Roularta Media Group has realised revenue of € 159.5 million, which maintains the status quo with the first half of 2023. A growing readers' market has enabled the Group to compensate fully for the decline in external printing. In addition, the advertising market is holding up compared to the same period last year. In terms of profitability, lower paper costs, lower print runs and higher selling prices have resulted in an increase in EBITDA of € 3.1 million. Excluding one-off effects, there was an increase in EBITDA of € 4.3 million.
Over the past six months, the Group has continued to invest in the user experience via the 'Mijn Magazines' app, with a view to both increasing reader comfort and acquiring digital subscriptions. In both Belgium and the Netherlands, the subscriber has the choice to take a digital subscription to all the magazines or to one (or more) paper magazine(s) combined with digital access to the other magazines.
Consolidated revenue finished at € 159.5 million, which is unchanged compared to the same period last year. The consolidated revenue includes the full firsthalf year revenue from the Dutch BV RMN Mindstyle with its brands Happinez, Yoga, Psychologie and Flow, which were acquired at the end of 2023. The adjusted revenue in the first half of 2024 is comparable to the first half of 2023, amounting to €153.4 million.
EBITDA for the first half of 2024 finished at €11.4 million or 7.2% of revenue vs €8.4 million or 5.3% in the same period last year. Increased selling prices, along with lower print runs and 19% lower paper costs compared to the same period last year, mean that the gross margin increased by 3.3 percentage points.
The costs for services, other goods and personnel have risen compared to last year. This increase is entirely attributable to the acquisition of the Dutch brands mentioned above. Without this acquisition, these costs would have decreased by € 3.6 million, with energy costs, among other things, accounting for a substantial decrease of € 0.8 million.
In addition, EBITDA includes a positive effect due to the sale of two commercial buildings (capital gain of € 2.2 million). A one-off positive impact was also recorded last year, following the reversal of the provision on the pending dispute with the former supplier Infobase for an amount of € 3.4 million. Excluding these one-off revenues, EBITDA has increased by € 4.3 million compared to last year. However, there was also an unexpected write-down of € 0.6 million on a customer in the first half of 2024, due to bankruptcy.
Revenue from the 50% joint venture Mediafin (De Tijd/L'Echo) rose in the first half of 2024 by 4.9% to € 42.5 million (i.e. the 100% value). EBITDA amounted to € 9.7 million (+6.1% vs. last year), generating a net result of € 3.4 million (-2.5% vs. last year), even after the depreciation of the De Tijd/L'Echo brands. For the 50% participation, this results in a contribution for Roularta of € 1.7 million (€ -0.1 million compared to last year) according to the equity accounting method. Mediafin revenue and ebitda are not proportionally included in the consolidated figures of Roularta.
The fully consolidated businesses in the Group realised € 10.0 million EBITDA in the first half of 2024, compared to € 6.6 million in 2023; the associated businesses and joint ventures realised € 1.4 million EBITDA (their earnings via the equity method), compared to € 1.8 million last year.
EBIT evolved from € -0.5 million in 2023 to € 1.6 million in 2024. In 2024, depreciation was booked among other things on the brands acquired at the end of 2023. The 'Share in the result of associated companies and joint ventures' contains € 2.2 million (i.e. the 100% value) of depreciation of brands and
customer relationships.
Taxes are almost zero comparted to € -0.4 million in the same period last year, due to losses in the Netherlands.
The consolidated net result of the Group finished at € 2.3 million, of which € 2.4 million was allocable to the shareholders of Roularta Media Group.
Thanks to higher EBITDA and the sale of some company buildings, the cash position increased slightly in the first half of 2024 to € 68.5 million, compared to a cash position of € 68.3 million at the end of 2023.
In terms of capital expenditure and in the context of the Group's stated sustainability ambitions, the three eco-efficient drying ovens in the printing works are now up and running. This investment will reduce the printing works' CO2 emissions by 14% and its gas and electricity consumption by 25% and 5% respectively.
On 21 May 2024, the general meeting of Roularta Media Group NV approved the payout of a gross dividend of €1 per share (net € 0.70) for the 2023 financial year. At the recommendation of the Board of Directors, it was decided to offer the shareholders, besides the cash dividend, the opportunity to contribute their claim on the Company arising from the distribution of profits to the capital of the Company, in exchange for the issue of new shares by the Company (the Optional Dividend) or a combination of the above two options. A total of 10,280,361 dividend rights for the 2023 financial year were contributed to the capital of the company, in exchange for the issue of 790,797 new shares for a total amount of € 7.2 million. On 12 June 2024, the new shares were issued and admitted for trading on Euronext Brussels. The balance of the dividend was paid in cash on the same day, for a total gross amount of € 4.6 million.
1.1 Consolidated key figures
| in thousands of euros |
30/06/2024 | 30/06/2023 | Trend | Trend (%) |
|---|---|---|---|---|
| INCOME STATEMENT | ||||
| Sales | 159,521 | 159,432 | 89 | 0.1% |
| Adjusted sales (1) | 153,425 | 159,432 | -6,007 | -3.8% |
| EBITDA (2) | 11,448 | 8,389 | 3,059 | 36.5% |
| EBITDA - margin | 7.2% | 5.3% | ||
| EBIT (3) | 1,552 | -456 | 2,008 | 440.4% |
| EBIT - margin | 1.0% | -0.3% | ||
| Net finance costs | 782 | -91 | 873 | 959.3% |
| Income taxes | -48 | -411 | 363 | -88.3% |
| Net result | 2,286 | -958 | 3,244 | 338.6% |
| Attributable to minority interests | -113 | -131 | 18 | 13.7% |
| Attributable to equity holders of RMG | 2,399 | -827 | 3,226 | 390.1% |
| Net result attributable to equity holders of RMG - margin | 1.5% | -0.5% | 1 | |
| Number of full time equivalents at closing date (4) | 1,224 | 1,252 | -28 | -2.2% |
(1) Adjusted sales = sales on a like-for-like basis with 1H last year, i.e. excluding changes in the consolidation scope (2) EBITDA = EBIT + depreciations, amortizations and impairments
(3) EBIT = operating profit, including the share in the result of associated companies and joint ventures
(4) Joint ventures (mainly Mediafin) not included
| Consolidated key figures (€ per share) in euro |
30/06/2024 | 30/06/2023 | Trend |
|---|---|---|---|
| EBITDA | 0.91 | 0.71 | 0.20 |
| EBIT | 0.12 | -0.04 | 0.16 |
| Net result attributable to equity holders of RMG | 0.19 | -0.07 | 0.26 |
| Net result attributable to equity holders of RMG after dilution | 0.19 | -0.07 | 0.26 |
| Weighted average number of shares | 11,776,799 | 791,903 | |
| Weighted average number of shares after dilution | 12,568,702 | 11,788,659 | 780,043 |
The increase in the weighted average number of shares (after dilution) is due to the capital increase implemented as a result of the optional dividend (see above and 6.9.1 in the half yearly report for further explanation).
| in thousands of euros | 30/06/2024 | 30/06/2023 | Trend | Trend (%) |
|---|---|---|---|---|
| INCOME STATEMENT | ||||
| Sales | 145,109 | 141,276 | 3,833 | 2.7% |
| (1) Adjusted sales |
139,004 | 141,276 | -2,272 | -1.6% |
| Gross margin | 114,138 | 108,390 | 5,748 | 5.3% |
| Gross margin on sales | 78.7% | 76.7% | 1 |
(1) Adjusted sales = sales on like-for-like basis with the preceding year, excluding changes in the consolidation scope.
The 'Media Brands' segment refers to all brands that are marketed by RMG and its investments.
Revenue from the Media Brands segment increased by 2.7% or € 3.8 million, from € 141.3 million to € 145.1 million. Adjusted revenue (i.e. with the same consolidation scope as the same period last year) fell, however, by € -2.3 million.
The advertising market remained unchanged compared to the same period last year. For the first time, the increased advertising rates compensated for declining volumes due to the slowing advertising market.
Subscription revenue grew by 3.3% on the previous year, thanks to the subscription portfolio from the acquired Mindstyle titles (Happinez, Yoga, Psychologie and Flow). Excluding this acquisition, there is a decrease of 1.4%. Newsstand sales rose by 9.8%, but without the acquisitions there would be a decrease of 3.2%.
Other revenue rose by € 0.3 million compared to last year, although this is a decrease of € 1.0 million if we disregard the aforementioned acquisitions.
Gross margin increased from 76.7% to 78.7%. The higher margin is due to a combination of higher sales prices, lower paper prices and lower print runs. In absolute value, the gross margin increased by € 5.7 million to € 114.1 million.
| in thousands of euros | 30/06/2024 | 30/06/2023 | Trend | Trend (%) |
|---|---|---|---|---|
| INCOME STATEMENT | ||||
| Sales | 32,996 | 39,631 | -6,635 | -16.7% |
| (1) Adjusted sales |
32,996 | 39,631 | -6,635 | -16.7% |
| Gross margin | 18,995 | 19,499 | -504 | -2.6% |
| Gross margin on sales | 57.6% | 49.2% | 1 | -100.00% |
(1) Adjusted sales - sales on a like-for-like basis with the preceding year, excluding changes in the consolidation scope.
The 'Printing Services' segment refers to pre-press and printing works activities for internal brands and external customers.
Revenue from the Printing Services segment fell by € 6.6 million (or 16.7%), from € 39.6 million to € 33.0 million.
The decrease of € 6.6 million is a combination of in-house and external printing (approximately 50/50). Externally, there is a loss of print orders for brochures, a decrease in print runs and in the number of publications. In house, the lower print runs combined with the lower paper prices charged on to the Media Brands are responsible for the decrease.
In absolute value, the gross margin decreased by € 0.5 million due to the lower revenue, but it rose as a percentage of revenue from 49.2% to 57.6% due to the lower prices of paper and consumables.
| Balance sheet | in thousands of euros |
30/06/2024 | 31/12/2023 | Trend (%) |
|---|---|---|---|---|
| Non-current assets | 217,521 | 223,272 | -2.6% | |
| Current assets | 142,939 | 140,184 | 2.0% | |
| Balance sheet total | 360,460 | 363,456 | -0.8% | |
| Equity - Group's share | 214,825 | 217,003 | -1.0% | |
| Equity - minority interests | -341 | -228 | 49.6% | |
| Liabilities | 145,976 | 146,681 | -0.5% | |
| Liquidity (5) | 1.1 | 1.1 | 0.5% | |
| Solvency (6) | 59.5% | 59.6% | -0.2% | |
| Net financial cash/(debt) (7) | 58,202 | 56,794 | 2.5% | |
| Gearing (8) | -27.1% | -26.2% | 3.6% | |
(5) Liquidity = current assets / current liabilities
(6) Solvency = equity (Group's share + minority interests) / balance sheet tota
(7) Net financial cash/(debt) = current cash - financial debts
(8) Gearing = - net financial cash/(debt)/equity (Group's share + minority interests)
Equity – Group share amounted to € 214.8 million on 30 June 2024 compared to €217.0 million on 31 December 2023. The movement in equity mainly consists of the profit attributable to the RMG shareholders (€ 2.4 million) and otherwise of the payment of the (optional) dividend (€ 4.6 million). The dividend payment is lower than last year (when it was € 11.8 million) due to the optional dividend, which increased the equity capital by € 7.2 million.
RMG remains free of any bank debts. As of 30 June 2024, the consolidated net financial cash position (= current cash less financial debts) amounted to € 58.2 million vs. € 56.8 million as of December 2023 or an increase of € 1.4 million.
Total consolidated investments (CAPEX) in the first half of 2024 amounted to € 6.2 million (2023: € 7.0 million). This includes investments of € 3.3 million in new software, mainly to optimise the digital reader experience, the attraction of digital readers and the printing works processes, as well as investments of € 2.8 million in tangible fixed assets. Last year, € 2.1 million was invested in new software, mainly for investments in digitisation.
The investments in tangible fixed assets mainly included: 1/ the renovation and furnishing of the offices in Brussels (€ 1.0 million), 2/ a final instalment for the three new eco-efficient drying ovens in the printing works (€ 0.4 million) and 3/ the investment in a paper wrap blister machine so that the magazines are delivered to subscribers in a recyclable paper wrapping instead of a plastic cover (€ 0.3 million). In the first half of last year, € 4.9 million was invested in tangible fixed assets, within which the aforementioned investment in the new ovens was the largest investment (€ 2.0 million).
There were no investments in new participations in the first half of the year.
a contribution in kind generated by the optional dividend. The capital of the company currently amounts to € 84,815,953.73, represented by 13,931,920 shares.
These prospects are the estimations of the Board of Directors, based on the elements reported by the Group's management. Since they are mere estimates, based on a snapshot, the actual results of the Group may deviate from them considerably.
Given the uncertain economic context and the budgetary restrictions that continue to confront advertisers, a certain amount of pressure on advertising income should continue to be borne in mind in the second half of the year. This income remains quite volatile and unpredictable.
We expect a positive impact on income from readership thanks to recruitment for digital subscriptions and the growing recruitment for print subscriptions via digital channels, especially in Belgium. A new and younger audience is discovering the Group's digital offer through 'Mijn Magazines': the app, digital kiosk and 24/24 website that offer all the content from all the Group's editorial teams.
We expect the trend in newsstand sales to be in line with the current market.
Revenue from line extensions (travel, books, design, cuisine, etc.) will remain more or less stable.
In the Printing Services segment, we expect revenue to stabilise in the second half of the year.
Distribution costs will rise less than initially estimated, given that the Group's newspapers are delivered with the normal delivery rounds for letters and parcels, and the deadlines for deliveries to the distributor have been adjusted. Additionally, the application of the tax credit will reduce the distribution costs. The Group's newspapers will be distributed by two parties from 1 July 2024, of which bpost is the main one.
We expect stable to slightly rising costs for energy and raw materials. Nonetheless, the Group is continuing to commit to efficiency measures to counter the persisting inflation, including the uniformization of the Dutch and Belgian processes and systems.
RMG is 'on track' to report in line with CSRD guidelines for the 2024 financial year as from 1 January 2025.
A full report on the half-yearly results can be found on our website: https://www.roularta.be/en/roularta-stock-market/financial/financial-reporting
| Contact persons Rik De Nolf | (Chairman of the Board of Directors and IR) |
Xavier Bouckaert (CEO) | Steven Vandenbogaerde (CFO) |
|---|---|---|---|
| Tel.: E-mail: URL: |
+32 51 26 61 11 [email protected] www.roularta.be |
+32 51 26 61 11 | +32 51 26 61 11 [email protected] [email protected] |
| in thousands of euros | 30/06/2024 | 30/06/2023 | Trend |
|---|---|---|---|
| Sales | 159,521 | 159,432 | 89 |
| Own construction capitalised | 729 | 1,018 | -289 |
| Raw materials, consumables and goods for resale | -27,116 | -32,561 | 5,445 |
| Gross margin | 133,133 | 127,888 | 5,245 |
| % on sales | 83.5% | 80.2% | |
| Services and other goods | -68,233 | -67,566 | -667 |
| Personnel | -58,932 | -58,772 | -160 |
| Other operating result | 2,905 | 918 | 1,987 |
| Other operating income | 4,281 | 2,636 | 1,645 |
| Other operating costs | -1,377 | -1,717 | 340 |
| Write-down of debtors and inventories | -364 | 481 | -845 |
| Provisions | 1,493 | 3,654 | -2,161 |
| Share in the result of associated companies and joint ventures | 1,445 | 1,784 | -339 |
| EBITDA | 11,448 | 8,389 | 3,059 |
| % on sales | 7.2% | 5.3% | |
| Depreciations, amortizations and impairments | -9,896 | -8,844 | -1,052 |
| Depreciation and write-down of intangible and tangible assets | -9,896 | -8,844 | -1,052 |
| Operating result - EBIT | 1,552 | -456 | 2,008 |
| % on sales | 1.0% | -0.3% | |
| Interest income | 973 | 150 | 823 |
| Interest expenses | -191 | -241 | 50 |
| Operating result after net finance costs | 2,334 | -547 | 2,881 |
| Income taxes | -48 | -411 | 363 |
| Net result | 2,286 | -958 | 3,244 |
| % on sales | 1.4% | -0.6% | |
| Net result of the consolidated companies | 2,286 | -958 | 3,244 |
| Attributable to: | |||
| Minority interests | -113 | -131 | 18 |
| Equity holders of Roularta Media Group | 2,399 | -827 | 3,226 |
| Earnings per share | |||
| Basic earnings per share | 0.19 | -0.07 | 0.26 |
| Diluted earnings per share | 0.19 | -0.07 | 0.26 |
| in thousands of euros | 30/06/2024 | 30/06/2023 |
|---|---|---|
| Net result of the consolidated companies | 2,286 | -958 |
| Other comprehensive income of the period | ||
| Other comprehensive income to be reclassified to profit or loss in subsequent periods | ||
| Other comprehensive income not te be reclassified to profit or loss in subsequent periods | ||
| Other comprehensive income of the period | - | - |
| Total comprehensive income of the period | 2,286 | -958 |
| Attributable to: | ||
| Minority interests | -113 | -131 |
| Equity holders of Roularta Media Group | 2,399 | -827 |
| in thousands ASSETS of euros |
30/06/2024 | 31/12/2023 | Trend |
|---|---|---|---|
| Non-current assets | 217,521 | 223,272 | -5,751 |
| Goodwill | 9,852 | 9,852 | - |
| Intangible assets | 83,212 | 85,686 | -2,474 |
| Property, plant and equipment | 70,137 | 70,830 | -693 |
| Investments accounted for using the equity method | 50,945 | 53,511 | -2,566 |
| Investments in financial assets, loans and guarantees | 475 | 494 | -19 |
| Deferred tax assets | 2,899 | 2,899 | - |
| Current assets | 142,939 | 140,184 | 2,755 |
| Inventories | 9,846 | 10,889 | -1,043 |
| Trade and other receivables | 48,766 | 52,777 | -4,011 |
| Tax receivable | 1,702 | 1,949 | -247 |
| Cash and cash equivalents | 68,488 | 68,267 | 221 |
| Deferred charges and accrued income | 14,136 | 6,301 | 7,835 |
| Total assets | 360,460 | 363,456 | -2,996 |
| in thousands LIABILITIES of euros |
30/06/2024 | 31/12/2023 | Trend |
|---|---|---|---|
| Equity | 214,484 | 216,775 | -2,291 |
| Group's equity | 214,825 | 217,003 | -2,178 |
| Issued capital | 84,816 | 80,000 | 4,816 |
| Treasury shares | -29,384 | -30,020 | 636 |
| Retained earnings | 156,356 | 166,366 | -10,010 |
| Other reserves | 3,038 | 657 | 2,381 |
| Minority interests | -341 | -228 | -113 |
| Non-current liabilities | 21,585 | 24,038 | -2,453 |
| Provisions | 2,613 | 2,901 | -288 |
| Employee benefits | 4,681 | 5,887 | -1,206 |
| Deferred tax liabilities | 9,097 | 9,208 | -111 |
| Financial debts | 5,179 | 6,029 | -850 |
| Other payables | 13 | 13 | - |
| Current liabilities | 124,392 | 122,643 | 1,749 |
| Financial debts | 5,107 | 5,444 | -337 |
| Trade payables | 42,217 | 43,824 | -1,607 |
| Advances received | 41,156 | 41,732 | -576 |
| Employee benefits | 20,040 | 18,728 | 1,312 |
| Taxes | 2,004 | 1,422 | 582 |
| Other payables | 4,227 | 5,091 | -864 |
| Accrued charges and deferred income | 9,642 | 6,402 | 3,240 |
| Total liabilities | 360,460 | 363,456 | -2,996 |
| Cash flow relating to operating activities | in thousands of euros |
30/06/2024 | 30/06/2023 |
|---|---|---|---|
| Net result of the consolidated companies | 2,286 | -958 | |
| Share in the results of associated companies and joint ventures | -1,445 | -1,784 | |
| Dividends received from associated companies and joint ventures | 4,000 | 4,000 | |
| Income tax expense / income | 48 | 411 | |
| Interest expenses | 191 | 241 | |
| Interest income (-) | -973 | -150 | |
| Gains (-) / losses (+) on disposal of intangible assets and property, plant and equipment |
-2,218 | -38 | |
| Non-cash items | 8,660 | 4,719 | |
| Depreciation of (in)tangible assets | 9,896 | 8,844 | |
| Share-based payment expense | - | 10 | |
| Increase (+) / decrease (-) in provision | -1,493 | -3,654 | |
| Other non-cash items | 258 | -481 | |
| Gross cash flow relating to operating activities | 10,548 | 6,442 | |
| Increase / decrease in trade receivables | 3,546 | 4,979 | |
| Increase / decrease in inventories | 1,084 | -1,498 | |
| Increase / decrease in trade payables | -1,589 | -7,565 | |
| Other increases / decreases in working capital (a) | -3,639 | -2,897 | |
| Increase / decrease in working capital | -598 | -6,981 | |
| Income taxes paid | -42 | -464 | |
| Interest paid | -191 | -241 | |
| Interest received | 863 | 150 | |
| NET CASH FLOW RELATING TO OPERATING ACTIVITIES (A) | 10,580 | -1,095 |
(a) Changes in current other receivables, deferred charges and accrued income, provisions, employee benefits, other payables, advances received and accrued charges and deferred income.
| Cash flow relating to investing activities | in thousands of euros |
30/06/2024 | 30/06/2023 |
|---|---|---|---|
| Intangible assets - acquisitions | -3,447 | -2,093 | |
| Tangible assets - acquisitions | -2,787 | -4,876 | |
| Tangible assets - other movements | 2,343 | 18 | |
| Net cash flow relating to disposal of subsidiaries and sector acquisitions | 9 | - | |
| Investments in financial assets, loans, guarantees - other movements | 19 | -6 | |
| NET CASH FLOW RELATING TO INVESTING ACTIVITIES (B) | -3,863 | -6,957 | |
| Cash flow relating to financing activities | |||
| Dividends paid | -4,589 | -11,783 | |
| Treasury shares | 13 | 221 | |
| Redemption of current financial debts | -500 | - | |
| Redemption of non-current financial debts | - | -500 | |
| Repayment of leasing debt | -1,419 | -1,208 | |
| NET CASH FLOW RELATING TO FINANCING ACTIVITIES (C) | -6,496 | -13,270 | |
| TOTAL DECREASE / INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C) | 221 | -21,322 | |
| Cash and cash equivalents, beginning balance | 68,267 | 84,480 | |
| Cash and cash equivalents, ending balance | 68,488 | 63,158 | |
| NET DECREASE / INCREASE IN CASH AND CASH EQUIVALENTS | 221 | -21,322 |
| in thousands of euros | Issued capital |
Treasury shares |
Retained Earnings |
Other reserves |
Equity - Group's share |
Minority Interests |
Total equity |
|---|---|---|---|---|---|---|---|
| Balance as of 01/01/2024 | 80,000 | -30,020 | 166,366 | 657 | 217,003 | -228 | 216,775 |
| Total comprehensive income of the period |
- | - | 2,399 | - | 2,399 | -113 | 2,286 |
| Total comprehensive income | - | - | 2,399 | - | 2,399 | -113 | 2,286 |
| Exercise of options | - | 13 | - | - | 13 | - | 13 |
| Dividends | - | - | -11,786 | - | -11,786 | - | -11,786 |
| Capital increase following optional dividend |
4,816 | - | - | 2,380 | 7,196 | - | 7,196 |
| Other increase/decrease | - | 623 | -623 | - | - | - | - |
| Balance as of 30/06/2024 | 84,816 | -29,384 | 156,356 | 3,038 | 214,825 | -341 | 214,484 |
| in thousands of euros | Issued capital |
Treasury shares |
Retained Earnings |
Other reserves |
Equity - Group's share |
Minority Interests |
Total equity |
|---|---|---|---|---|---|---|---|
| Balance as of 01/01/2023 | 80,000 | -31,109 | 175,307 | 1,841 | 226,039 | -247 | 225,792 |
| Total comprehensive income of the period |
- | - | -827 | - | -827 | -131 | -958 |
| Total comprehensive income | - | - | -827 | - | -827 | -131 | -958 |
| Exercise of options | - | 221 | - | - | 221 | - | 221 |
| Recognition of share-based payments | - | - | - | 10 | 10 | - | 10 |
| Dividends | - | - | -11,783 | - | -11,783 | - | -11,783 |
| Other increase/decrease | - | 868 | -868 | - | - | - | - |
| Balance as of 30/06/2023 | 80,000 | -30,020 | 161,829 | 1,851 | 213,660 | -378 | 213,282 |
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