Earnings Release • Apr 30, 2025
Earnings Release
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AS Ekspress Grupp: Consolidated unaudited interim report for Q1 of 2025
The revenue of AS Ekspress Grupp for the 1(st) quarter of 2025 increased by 5%
year-over-year to EUR 17.0 million. However, EBITDA decreased by EUR 0.2
million. Digital revenue also increased by 5% and the share of digital revenue
remained at 84% of the Group's total revenue in the first quarter.
As expected, the Group's first quarter's results were most affected by the
expected seasonality, due to which the company's profitability is under the
greatest pressure in the 1(st) quarter each year. In addition, lower demand due
to the weak economic environment in the Baltic States, was reflected in the
advertising revenue of the 1(st) quarter.
In the 1(st) quarter, Ekspress Grupp's revenue amounted to EUR 17.0 million, an
increase of 5% as compared to the same period last year. The increase is mainly
due to the increase in digital subscription revenue and the increase in the
volumes of ticket platforms and digital outdoor screens. The business operations
of Eesti Koolitus- ja Konverentsikeskus (the Estonian Training and Conference
Centre), acquired by Delfi Meedia in July 2024 as well as external cooperation
projects also made a positive contribution. The company's operations were
affected by the general downturn in the business environment in Estonia, as well
as in other Baltic countries, which was reflected in a 4% decrease in
advertising revenue.
The digital subscription revenue and the number of people with digital
subscriptions of the Group's media companies increased strongly in all three
countries. In a year, the Group received more than 25 000 new digital
subscriptions (+12%) in the Baltic States, reaching 236 000 subscriptions at the
end of the 1(st) quarter of 2025. Thus, the Group's digital revenue is
increasingly based on digital subscription revenue and makes up an increasingly
larger recurring revenue base without the need for additional sales activity
(and costs). We have enhanced the quality and volume of content offered by the
Group's media companies to be the leader in the digital subscription field in
all Baltic States. The Group is gradually moving towards its financial strategic
goals and wishes to offer paid digital content to at least 340 000 subscribers
by the year 2026.
The revenue of ticket sales platforms increased by 10% in a year. The outdoor
screen business also demonstrated significant 19% growth, supported by the
extension of the network to 156 screens as well as the increase in the average
price per screen. With this, the Group has increased its presence in the Latvian
market, where the number of screens increased from 105 to 109 in a year, while
we have 47 screens in Estonia. These two areas have shown resilience also in the
conditions of slower economic growth.
In the 1(st) quarter, Ekspress Grupp's profit before interest, tax, depreciation
and amortisation (EBITDA) totalled EUR 0.2 million, decreasing by 45%. Behind
the decline in profitability is the decline in the advertising market due to the
general weak economic environment in the Baltic States and increasing pressure
on input costs. The net loss for the 1(st) quarter of 2025 was EUR 1.6 million,
which is 31% higher than last year. The increase in net loss is mainly
influenced by higher depreciation costs due to the Group's investments.
The Group's liquidity continues to be strong. The Management Board considers it
important to maintain liquidity reserves both for potential new acquisitions and
for situations related to further cooling of the economy. As of 31 March 2025,
the Group had EUR 8.4 million (31.03.2024: EUR 8.8 million) in cash. The
ordinary general meeting of shareholders to be held on 23 May 2025 shall vote on
the profit allocation proposal, according to which shareholders will be paid
regular dividends of 6 euro cents per share in the total amount of EUR 1.86
million.
Q1 RESULTS
REVENUE
In the 1(st) quarter of 2025, the consolidated revenue totalled EUR 17.0 million
(Q1 2024: EUR 16.2 million). The revenue for the 1(st) quarter increased by 5%
year-over-year. The growth is primarily attributable to the increase in digital
subscription revenue as well as increase in the volume of ticket sales platforms
and digital outdoor screens. The business operations of Eesti Koolitus- ja
Konverentsikeskus (the Estonian Training and Conference Centre), acquired by
Delfi Meedia in July 2024 as well as external cooperation projects also made a
positive contribution. Revenues from external projects will be affected by the
development of Delfi UAB's artificial intelligence module for the automatic
identification of false information. The project, which began in the 1(st)
quarter of 2025 and is scheduled to conclude in the 2(nd) quarter of 2026, is
expected to generate revenue of 3 million euros. The model will be publicly
available to all artificial intelligence developers.
The share of the Group's digital revenue in total revenue was 84% at the end of
the 1(st) quarter of 2025 (at the end of Q1 2024: 84% of total revenue). Digital
revenue for the 1(st) quarter of 2025 increased by 5% as compared to the same
period last year.
EXPENSES
In the 1(st) quarter of 2025, the cost of goods sold, marketing, and general and
administrative costs, excluding depreciation and amortisation totalled EUR 16.9
million (Q1 2024: EUR 15.9 million). Operating expenses increased by EUR 1.0
million (+6%) as compared to the same period last year. Labour costs increased
the most, by EUR 0.3 million (+3%).
PROFITABILITY
In the 1(st) quarter of 2025, the consolidated EBITDA totalled EUR 0.2 million
(Q1 2024: EUR 0.4 million). EBITDA decreased by 45% as compared to last year and
the EBITDA margin was 1.4% (Q1 2024: 2.7%). The decrease in profitability is
impacted by the decline in the advertising market due to the general weak
economic environment in the Baltic States and the increasing pressure of input
costs.
The consolidated net loss for the 1(st) quarter of 2025 totalled EUR -1.6
million (Q1 2024: EUR -1.2 million), an increase of 31%. In addition to the
decrease in EBITDA, higher net loss is also primarily related to higher
depreciation expenses arising from the Group's investments.
CASH POSITION
At the end of the reporting period, the Group had available cash in the amount
of EUR 8.4 million and equity in the amount of EUR 56.8 million (50% of total
assets). The comparable data as of 31 March 2024 were EUR 8.8 million and EUR
55.7 million (53% of total assets), respectively. As of 31 March 2025, the
Group's net debt was EUR 20.0 million (31 March 2024: EUR 16.8 million). The
increase in net debt is mainly due to the financing of the acquisitions of
business operations of Eesti Koolitus- ja Konverentsikeskus (the Estonian
Training and Conference Centre) and UAB Kenton Baltic (conference business in
Lithuania).
In the 1(st) quarter of 2025, the Group's cash flows from operating activities
totalled EUR 0.7 million (Q1 2024: EUR 0.9 million), which was negatively
affected by the decrease in EBITDA in the first quarter compared to the same
period last year.
In the 1(st) quarter of 2025, the Group's cash flows from investing activities
totalled EUR -0.7 million (Q1 2024: EUR -0.9 million), of which EUR -1.0 million
was related to development and acquisition of property, plant and equipment and
intangible assets, of which the largest investments were in the development of
Delfi platform and Delfi TV.
In the 1(st) quarter of 2025, the Group's cash flows from financing activities
totalled EUR -0.5 million (Q1 2024: EUR -0.8 million, of which EUR +0.3 million
were proceeds from the sale of treasury shares within the framework of the
exercise of share options). Financing activities include a net change in
borrowings in the amount of EUR +0.2 million (Q1 2024: EUR -0.6 million) and
lease liabilities in the amount of EUR -0.6 million (Q1 2024: EUR -0.6 million)
due to the normal reduction of the remaining lease term.
DIVIDENDS
In April 2025, the Group's Management Board proposed to pay 6 euro cents per
share as dividends to shareholders from the net profit of the financial year
2024 in the total amount of EUR 1.86 million. The profit allocation proposal
will be made at the ordinary general meeting of shareholders on 23 May 2025.
SEGMENT OVERVIEW
Key financial indicators for segments
(EUR thousand) Sales
Q1 2025 Q1 2024 Change % 12 months 2024
Media segment 16 983 16 205 5% 76 071
advertising revenue 8 489 8 800 -4% 42 234
subscriptions (incl. single-copy
sales) 5 196 5 043 3% 20 457
ticket sales platforms 1 000 910 10% 4 157
outdoor screens 929 783 19% 4 445
sale of other goods and services 1 369 669 105% 4 778
Corporate functions 196 170 15% 752
Inter-segment eliminations (176) (155) (653)
TOTAL GROUP 17 003 16 220 5% 76 170
incl. revenue from all digital
channels 14 335 13 668 5% 65 786
% of revenue from all digital
channels 84% 84% 86%
(EUR thousand) EBITDA
Q1 2025 Q1 2024 Change % 12 months 2024
Media segment 626 914 -32% 12 364
Corporate functions (383) (477) 20% (1 699)
Inter-segment eliminations 2 4 11
TOTAL GROUP 244 442 -45% 10 677
EBITDA margin Q1 2025 Q1 2024 12 months 2024
Media segment 4% 6% 16%
TOTAL GROUP 1% 3% 14%
Consolidated statement of financial position (unaudited)
Consolidated statement of comprehensive income (unaudited)
12 months
Consolidated cash flow statement (unaudited)
(Gain)/loss on sale, write-down and impairment
of property, plant and equipment 16 4 33
Acquisition of subsidiaries/ associates (less
cash acquired) and other investments /sale/
cash paid-in equity-accounted investees 0 0 (5 246)
Purchase of property, plant and equipment and
intangible assets (988) (1 082) (4 619)
Proceeds from sale of property, plant and
equipment and intangible assets 1 3 3
NET (DECREASE)/INCREASE IN CASH AND CASH
EQUIVALENTS (530) (845) (635)
Cash and cash equivalents at the beginning of
the period 8 971 9 606 9 606
Cash and cash equivalents at the end of the
period 8 441 8 761 8 971
Lili Kirikal
CFO
AS Ekspress Grupp
Email: [email protected] (mailto:[email protected])
AS Ekspress Grupp is the leading Baltic media group whose key activities include
web media content production, and publishing of newspapers, magazines and books.
The Group also operates an electronic ticket sales platform and ticket sales
offices and offers outdoor screen service in Estonia and Latvia. Ekspress Grupp
launched its operations in 1989 and employs almost 1,100 people.
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