Ekspress Grupp’s revenue increased by almost 10 per cent in the first six months of the year 31.07
The consolidated revenue of AS Ekspress Grupp totalled EUR 19.5 million in the 2nd quarter and EUR 36.8 million in the first six months of 2019 which is 8% higher as compared to last year. The growth was primarily driven by digital revenue which increased by 14 per cent as compared to last year and made up already 57% of the Group’s media segment revenue.
According to Chairman of the Management Board
of the Group, Mari-Liis Rüütsalu, the Group managed to increase its market
share in the first six months of the year despite intense competition, and the
number of people visiting Delfi sites in all Baltic States has increased more
than that of its competitors. “In the 2nd quarter, our Estonian and
Lithuanian media companies were successful both in the sale of advertisements
as well as subscriptions. In Estonia, we are pleased with the growth of the
number of digital subscriptions which demonstrates that more readers are
embracing and getting used to using paid digital platforms. In the 2nd
quarter, we also launched sale of paid content in Latvia, but similarly to
Estonia, changes in consumer habits take time and therefore, it is a long-term process“,
The Group’s earnings before interest, tax,
depreciation and amortisation (EBITDA) totalled EUR 1.80 million in the 2nd
quarter and EUR 2.47 million in the first six months of the year, growing by
almost 6% as compared to the same period last year. In the first half of the
year, the Group’s consolidated net loss totalled EUR 0.26 million.
In the 2nd quarter, the Group
managed to grow media segment profit to EUR 1.5 million as compared to EUR 1.2
million in the same period of 2018. Profitability growth in the media sector
was primarily attributable to the growth in advertising sales and efficiency attained
from cost savings. However, the decline in net profit is primarily attributable
to intensifying competition in the printing services segment and the increase
in input prices. In a situation where the volumes in the printing segment are
falling in Estonia mostly due to the decline in the share of the print media
and advertising brochures of large store chains, we have nevertheless managed
to maintain our level of exports that made up 62% of the total portfolio of
printing services, stated the Management Board of Ekspress Grupp in the
management report for the first six months of the year.
In the 2nd quarter, an important
milestone for Ekspress Grupp was its acquisition of a 100% ownership interest in
the Latvian ticket sales portal SIA Biļešu Paradīze that manages the electronic
ticket sales platform bilesuparadize.lv and ticket sales sites, selling through them tickets to various
entertainment events on behalf of event organisers. The purpose of the
acquisition is to expand into new business sectors, by focusing on increasing
the Group’s share of digital revenue, increasing the Group’s return on equity
and using the synergy between the new business acquired and media activities.
We also wish to enhance our current core activities and support the Group in
its digital transformation as well as develop the diverse digital footprint of
the Group's business.