Ekspress Grupp’s revenues increase but profits fall 31.10
Over the 9-month period, the revenue of AS Ekspress Grupp increased by 8% and totalled EUR 49.6 million. The Group’s digital revenue increased by 25% and made up 37 per cent of the company’s total sales. The Group’s EBITDA totalled EUR 3.0 million over the 9-month period. EBITDA fell by EUR 2.2 million year-on-year.
According to Mari-Liis Rüütsalu, Chairman of the Management Board of Ekspress
Grupp, the fast growth of digital revenue was unable to compensate for the
weaker-than-expected performance in the printing services segment, the growth of
several input prices as well as one-off expenses related to the reorganisation
of the business of Ajakirjade Kirjastus.
“Despite higher sales volumes, the Group’s profitability is under pressure
primarily due to the intensifying competitive situation in the media and
printing services segments. The performance is additionally impacted by higher
input prices, especially higher labour, electricity and paper costs. We keep
looking for additional opportunities to improve our profitability and increase
efficiency,” noted Rüütsalu.
In the future, Ekspress Grupp will continue to focus on the growth of
digital revenue. “Media consumption
habits of consumers are changing. More consumers opt for digital content while
many of them are still not used to paying for digital content. We are making
constant efforts in this area to increase the number of digital subscribers as
this represents a significant growth opportunity for us,” said Rüütsalu.
In the 3rd quarter, the marketing and sales activities of Ekspress
Grupp’s real estate portal Kinnisvara24.ee were fully launched. “The first
active months of operation may be considered successful for the portal - as of
the end of September, we have caught up with the second-largest portal in the
market City24.ee both in terms of the number of advertisements as well users,” noted
In the 3rd quarter, Ekspress Grupp arranged several important
events in the experience marketing area. The largest one was an entertainment
event with more than 25 000 participants in Kaunas, Lithuania.
AS Ekspress Grupp is the leading media group in
the Baltic States whose key activities include web media content production, publishing
of newspapers and magazines and provision of printing services in Estonia,
Latvia and Lithuania. Ekspress Grupp that launched its operations in 1989 owns
leading web media portals in the Baltic States and publishes the most popular
weekly and daily newspapers as well as the majority of the most popular
magazines in Estonia.
More precise in Stock Exchange Release.