Ekspress Grupp’s revenue increased by almost 10 per cent in the first six months of the year 31.07

Ekspress Grupp, a media group listed on the Tallinn Stock Exchange, managed to increase its revenue, market share as well as the volume and share of digital revenue over the first six months of the year, as the company’s interim report for the first six months of the year reveals.

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“, noted Rüütsalu.

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.


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