Ekspress Grupp increased its second quarter revenue and earned a profit of 1 million euros
The leading Baltic media group, AS Ekspress Grupp, increased its revenue in the 2nd quarter of 2024, improved profitability indicators and earned a net profit of 1 million euros.
The revenue of Ekspress Grupp for the 2nd quarter increased by 6% and totalled EUR 19.6 million while the revenue for the first six months of the year increased year-over-year by 2% to EUR 35.9 million.
At the end of June, the share of digital revenue was 87% of the Group’s total revenue. Digital revenue increased by 9% as compared to the same period last year. The digital subscription revenue of the Group’s media companies and the number of people with digital subscriptions grew strongly year-over-year in all three countries. Revenue from ticket platforms and advertising revenue from outdoor screens have also demonstrated strong growth.
In a year-over-year comparison, the Group gained more than 47 000 digital subscriptions in the Baltic countries, or 27% more than at the end of June last year. The total number of digital subscriptions reached 223 000 subscriptions at the end of June 2024.
According to the Chairman of Ekspress Grupp, Mari-Liis Rüütsalu, the second quarter was successful in terms of growing both online advertising revenue and digital subscription revenue. “Solid results in the second quarter met expectations and were supported by the European Parliament election campaign. We also expect a positive impact on the results of the second half of the year from the Lithuanian parliamentary elections in October. Thus, the Group’s digital revenue is increasingly based on digital subscription revenue and it 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 the content offered by the Group’s media companies in order to be the leader in the area of digital subscriptions in all Baltic States. The Group is gradually moving towards its strategic goals and wishes to offer digital paid content to at least 340 000 subscribers by the year 2026,” added Rüütsalu.
The earnings before interest, tax, depreciation and amortisation (EBITDA) of Ekspress Grupp in the 2nd quarter totalled EUR 3.0 million, increasing by 27%. The profitability in the 2nd quarter received a boost from successful online advertising and digital subscription sales, as well as growth in the volume of ticket sale platforms and digital outdoor screens. The EBITDA for the first half of the year totalled EUR 3.5 million, decreasing by -2%. The negative impact is due to the 1st quarter, when advertising revenue decreased as a result of the general weak economic environment in the Baltic States, which was also exacerbated by the fact that the election cycles were in later quarters as compared to last year.
The net profit for the 2nd quarter of 2024 totalled EUR 1.0 million, which is 67% higher as compared to last year. However, in the first half of the year, the Group incurred a net loss of EUR -0.2 million, which is EUR 0.08 million higher as compared to last year. Higher net loss in the first half of the year was primarily attributable to higher interest rates due to the increase in Euribor and higher depreciation expenses arising from the Group’s investments.
According to the Group’s Management Board, the company’s liquidity is good and it is important to keep liquidity reserves both for the use of potential new acquisitions and for situations related to further cooling of the economy. As of 30 June 2024, the Group’s available cash totalled EUR 5.5 million (30.06.2023: EUR 6.1 million). In May 2024, the Group paid dividends of 6 euro cents per share to its shareholders in the total amount of EUR 1.8 million.
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 provides the outdoor screen service in Estonia and Latvia. Ekspress Grupp launched its operations in 1989 and employs almost 1100 people.
Additional information:
Mari-Liis Rüütsalu
AS Ekspress Grupp
Chairman of the Management Board
Phone: +372 512 2591
mariliis.ryytsalu@egrupp.ee