Revenue of Ekspress Grupp increased by almost 20% in the first six months of the year
The leading Baltic media group, AS Ekspress Grupp, significantly increased both its revenue and profitability in the 1st half of the year, mainly thanks to the growth in advertising sales and digital subscriptions. However, due to the one-off costs related to the liquidation of the unprofitable home delivery service in Estonia and the high inflationary environment, it earned a net loss as the interim report of Ekspress Grupp shows.
The revenue of AS Ekspress Grupp for the first six months of the year increased by 18% year-over-year and totalled EUR 35.3 million. At the same time, earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 25%, reaching EUR 3.6 million. At the end of June, digital revenue contributed 82% to the total revenue of Ekspress Grupp. The revenue for the 2nd quarter of 2023 grew by 13% and totalled EUR 18.5 million.
According to the Chairman of the Management Board of Ekspress Grupp, Mari-Liis Rüütsalu, the 1st half of the year was successful for the Group because it managed to grow both revenue and EBITDA which is an indicator of profitable operations and complete the exit from the unprofitable home delivery business. “We were successful in increasing sales volumes in both advertising and digital subscriptions. Advertising sales were strong in Estonia and Lithuania where the market has remained stable. The total volume of the Latvian advertising market decreased, and Ekspress Grupp’s advertising revenue earned in Latvia was 4% lower than last year. This decrease was offset by the revenue growth of the ticket platform and digital screens in Latvia, “explained Rüütsalu.
In the 1st half of the year, the number of digital subscriptions of Ekspress Grupp increased by 24% in the Baltic States as compared to the same period last year and totalled 175 400 subscriptions at the end of June.
The net profit for the 1st half of 2023 totalled EUR 0.2 million, which is 71% lower than last year. Including one-off extraordinary costs, the Group incurred a loss of EUR -0.1 million in the 1st half of the year. “Lower net profit is primarily attributable to the one-off liquidation costs related to AS Express Post and higher losses in the home delivery business in the total amount of EUR 0.6 million in the 1st half of the year. The home delivery business of Express Post was discontinued in the 1st half of the year, and the one-off liquidation costs and unprofitable operations will no longer be reflected in the next quarters of the Group,” added Rüütsalu, according to whom the net profit level has also been impacted by higher interest rates related to the increase in the Euribor rate amounting to EUR 0.3 million and the growth in the Group’s depreciation charge due to the investments made.
Ekspress Grupp’s liquidity is solid: as of 30 June 2023, the Group’s available cash totalled EUR 6.1 million. In the 1st half of the year, the Group repurchased its own shares for EUR 1 million and paid dividends to shareholders in the amount of EUR 1.5 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