AS Ekspress Grupp: Consolidated unaudited interim report for the
Fourth Quarter and 12 Months of 2021
In the 4th quarter of 2021, the revenue
of AS Ekspress Grupp increased by 18%, totalling EUR 15.9 million
and 12-month revenue increased by 20% to EUR 53.5 million. The
Group’s net profit for the 4th quarter of 2021 was
EUR 2.3 million and 12-month net profit was EUR 4.1 million. At the
end of December, digital revenue made up 76% of the Group's total
revenue. In coordination with the Supervisory Board, the Management
Board proposes to pay dividends to the shareholders in the amount
of 5-euro cents per share.
The Group's performance in the fourth quarter
was strong as expected. In the 4th quarter of 2021, the
consolidated revenue reached EUR 15.9 million (4th quarter 2020:
EUR 13.5 million), increasing by 18% as compared to the previous
year. Revenue growth is attributable to the active online
advertising market which continued to grow as compared to
traditional media outlets. In the 4th quarter, the online
advertising market in the Baltics increased by more than 20%
year-over-year. Advertising customers have adapted to the economic
circumstances and the growth of the advertising business in all
countries demonstrates that the majority of companies have been
able to digitalise their businesses more; they have opened or
adapted their ways of trading to e-channels. Thus, they need
increasingly more flexible digital advertising solutions which
major news portals are able to provide well.
The number of the digital subscriptions of AS
Ekspress Grupp increased by 62% by the end of December 2021 as
compared to the same period last year and reached 135 thousand
subscriptions. As compared to the previous quarter, the growth in
digital subscriptions was 8% or 9 662 subscriptions in the 4th
quarter. The Latvian and Lithuanian media outlets demonstrated the
strongest growth. The growth of digital subscriptions is as
expected while additional growth is primarily attributable to new
customers, demonstrating that the Group’s periodicals address
increasingly more those readers who until now have not been
subscribers. In addition, the Group has managed to keep its
current digital subscribers, lowering the share of digital
subscription cancellations and increasing the average life of
digital subscriptions. We are witnessing a decent potential for
further growth in Latvia and Lithuania.
The earnings before interest, tax, depreciation
and amortisation (EBITDA) of Ekspress Grupp totalled EUR 3.2
million in the 4th quarter and EUR 8.2 million for the 12-month
period which is 14% and 39%, respectively, higher as compared to
the same period in 2020. Strong sales of online advertising and
digital subscriptions in all Baltic States and continued cost
reductions have helped improve profitability. The Group's net
profit in the 4th quarter totalled EUR 2.3 million which is 1%
higher than in the same period last year. The 12-month net profit
totalled EUR 4.13 million which is 61% higher than in the same
period last year (12 months 2020: EUR 2.57 million). The net profit
of the 4th quarter of 2021 was impacted by recognition of one-off
finance income in the amount of EUR 0.4 million for fair value
adjustment of the future commitment related the purchase price of
the ticket sales platform (4th quarter 2020: EUR 0.7 million).
During the 12 months of 2021, the Group received a one-off state
subsidy in the amount of EUR 0.41 million in Latvia to offset the
effect of the COVID-19 pandemic. Its purpose was to support the
activities of the ticket sales platform at a time when event
organisation during a 7-month period was limited. In 2020, one-off
COVID-19 pandemic-related state subsidies totalled EUR 0.9 million
in Estonia and Latvia.
At the end of the 4th quarter, the Group
acquired a 100% ownership interest in Geenius Meedia OÜ which is a
modern media company with 13 online portals (geenius.ee), a podcast
and print magazines. The purpose of the acquisition is to grow and
expand the digital media business into a niche that has not yet
been regularly covered by the periodicals of Ekspress Grupp. The
Group of Ekspress Grupp creates a synergy for Geenius Meedia in the
functions promoting the media business which gives a greater growth
potential for a fast-growing company. The joint objective of
Ekspress Grupp and Geenius Meedia is to provide captivating content
for its readers in technology, business and automotive
segments.
The Group's liquidity is excellent. As of
31 December 2021, the Group's cash and cash equivalents totalled
EUR 11 million (31.12.2020: EUR 6.3 million). The strong cash
balance at the year-end was impacted by the proceeds in the amount
of EUR 6.3 million from the sale of the printing house Printall in
the 3rd quarter. The Group used this cash to make an extraordinary
dividend distribution of 10 euro cents per share (a total of EUR
3.03 million) in 4th quarter of 2021.
In coordination with the Supervisory Board, the
Management Board proposes to pay dividends from the net profit of
the 2021 financial year to the shareholders in the amount of 5 euro
cents per share, in the total amount of EUR 1.51 million, resulting
in a dividend rate of 37% (calculated on the net profit from
continuing operations). In autumn 2021, the Supervisory Board of AS
Ekspress Grupp approved the Group's dividend policy pursuant to
which Ekspress Grupp will pay at least 30% of its annual profit as
dividends starting from 2022.
Q4 AND 12 MONTHS RESULTS
In accordance with the decision of the
extraordinary general meeting of shareholders of AS Ekspress Grupp
from 13 July 2021, AS Ekspress Grupp and OÜ Trükitung concluded a
sales agreement on 3 September 2021, according to which Ekspress
Grupp sold its 100% ownership interest in its subsidiary Printall
AS. The transaction was completed as of 6 September 2021. In the
consolidated interim report for the 4th quarter and 12 months of
2021, the information is presented about continuing operations
where the revenue and expenses of discontinued operations are shown
in a separate line in the comprehensive income statement
"Gain/-loss from discontinued operations". Until the sale, the
business of Printall AS was recognised as a separate printing
services segment which the Group discloses as a discontinued
operation in this report. In the comprehensive income statement of
the interim report and the segment overview, the comparative
information of continuing operations has been restated. No
restatements have been made to the consolidated balance sheet and
cash flows in accordance with the requirements of IFRS. The assets
of the printing services segment continue to be consolidated
line-by-line in the balance sheet as of 31 December 2020, because
Printall AS did not meet the criteria to be classified as held for
sale as of 31 December 2020.
REVENUE
In the 4th quarter of 2021, the consolidated
revenue from continuing operations totalled EUR 15.9 million (4th
quarter 2020: EUR 13.5 million). Revenue increased by 18%
year-over-year in the 4th quarter. Both advertising as well as
digital subscription revenue increased. The consolidated revenue
from continuing operations for the twelve months of 2021 totalled
EUR 53.5 million (12 months of 2020: EUR 44.5 million). At the end
of 2021, the share of the Group's digital revenue accounted for 76%
of total revenue (at the end of 2020: 70% of total revenue).
Digital revenue increased by 31% as compared to the same period
last year.
PROFITABILITY
In the 4th quarter of 2021, the consolidated
EBITDA of continuing operations totalled EUR 3.19 million (4th
quarter 2020: EUR 2.80 million). The consolidated EBITDA of
continuing operations for the twelve months of 2021 totalled EUR
8.24 million (12 months of 2020: EUR 5.92 million). In 2021, EBITDA
increased by 39% as compared to the previous year and the EBITDA
margin was 15.4% (2020: 13.3%). Strong sales of online advertising,
digital subscriptions and tight cost controls in all Baltic States
have helped to improve profitability. During the 12 months of 2021,
the Group received a one-off state subsidy in Latvia in the amount
of EUR 0.41 million related to the ticket sales platform where
events had been cancelled during the period of almost 7 months. In
2020, one-off COVID-19 pandemic-related state subsidies totalled
EUR 0.9 million in Estonia and Latvia.
In the 4th quarter of 2021, the consolidated net
profit from continuing operations totalled EUR 2.31 million (4th
quarter 2020: EUR 2.28 million), which is EUR 0.03 million and 1%
higher as compared to 2020. The consolidated net profit from
continuing operations for the twelve months of 2021 totalled EUR
4.13 million (12 months of 2020: EUR 2.57 million), which is EUR
1.57 million and 61% better as compared to 2020. The net profit for
the 4th quarter of 2021 was impacted by one-off finance income for
fair value adjustment of the outstanding commitment related
the purchase price of the ticket sales platform in the amount of
EUR 0.4 million (4th quarter 2020: EUR 0.7 million).
CASH POSITION
At the end of the reporting period, the Group
had available cash in the amount of EUR 11.0 million and equity in
the amount of EUR 53.7 million (57% of total assets). The
comparable data as of 31 December 2020, including the printing
services segment, were EUR 6.3 million and EUR 54.6 million (58% of
total assets), respectively. As of 31 December 2021, the Group's
net debt was EUR 11.3 million (31 December 2020: EUR 15.9 million).
As of 31 December 2021, the cash position was positively impacted
by net cash proceeds from the sale of the ownership interest in
Printall AS in the amount of EUR 6.3 million (incl. premature
payment of the outstanding loan balance of Printall AS to AS SEB
Pank under the loan contract in the amount of EUR 2.06 million, see
Note 8) in September. Proceeds have been partially used for the
extraordinary dividend payment (3.03 million euros) and for the
acquisition of Geenius Meedia in the last quarter.
DIVIDENDS AND DIVIDEND
POLICY
In conjunction with the sale of Printall AS, the
group paid the extraordinary dividends of 10 euro cents per share
in the total amount of EUR 3.03 million in November 2021.
The Management Board proposes to pay dividends
from the net profit of the 2021 financial year to the shareholders
in the amount of 5 euro cents per share, in the total amount of EUR
1.51 million, resulting in a dividend rate of 37% (calculated on
the net profit from continuing operations) and dividend yield of
3.2%.
The Supervisory Board of AS Ekspress Grupp has
approved the group's dividends policy, according to which Ekspress
Grupp will pay at least 30% of the annual profit as dividends
starting from 2022.
Key financial indicators for
segments (continuing operations)
|
(EUR thousand) |
Sales |
|
|
Q4 2021 |
Q4 2020 |
Change % |
12 months 2021 |
12 months 2020 |
Change % |
|
Media segment |
15 608 |
13 061 |
20% |
52 093 |
43 728 |
19% |
|
incl. revenue from all digital and online
channels |
12 610 |
9 625 |
31% |
40 453 |
30 963 |
31% |
|
% of revenue from all digital and online
channels |
81% |
74% |
|
78% |
71% |
|
|
Corporate functions |
1 013 |
1 032 |
-2% |
4 118 |
2 761 |
49% |
|
Inter-segment eliminations |
(677) |
(558) |
|
(2 695) |
(1 975) |
|
|
TOTAL GROUP |
15 943 |
13 535 |
18% |
53 516 |
44 514 |
20% |
|
% of revenue from all digital and online
channels |
79% |
71% |
|
76% |
70% |
|
|
(EUR thousand) |
EBITDA |
|
|
Q4 2021 |
Q4 2020 |
Change % |
12 months 2021 |
12 months 2020 |
Change % |
|
Media segment |
3 449 |
3 110 |
11% |
8 927 |
6 601 |
35% |
|
Corporate functions |
(245) |
(394) |
38% |
(669) |
(720) |
7% |
|
Inter-segment eliminations |
(15) |
86 |
|
(18) |
43 |
|
|
TOTAL GROUP |
3 189 |
2 802 |
14% |
8 240 |
5 924 |
39% |
|
EBITDA margin |
Q4 2021 |
Q4 2020 |
12 months 2021 |
12 months 2020 |
|
Media segment |
22% |
24% |
17% |
15% |
|
TOTAL GROUP |
20% |
21% |
15% |
13% |
Consolidated balance sheet (unaudited)
|
(EUR thousand) |
31.12.2021 |
31.12.2020 |
|
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
10 962 |
6 269 |
|
Trade and other receivables |
9 323 |
9 450 |
|
Corporate income tax prepayment |
2 |
7 |
|
Inventories |
266 |
2 756 |
|
Total current assets |
20 553 |
18 482 |
|
Non-current assets |
|
|
|
Other receivables and investments |
1 671 |
982 |
|
Deferred tax asset |
42 |
30 |
|
Investments in joint ventures |
1 011 |
1 661 |
|
Investments in associates |
2 210 |
2 253 |
|
Property, plant and equipment |
7 964 |
14 134 |
|
Intangible assets |
60 807 |
56 635 |
|
Total non-current assets |
73 705 |
75 695 |
|
TOTAL ASSETS |
94 258 |
94 177 |
|
LIABILITIES |
|
|
|
Current liabilities |
|
|
|
Borrowings |
3 201 |
3 613 |
|
Trade and other payables |
17 664 |
15 251 |
|
Corporate income tax payable |
82 |
81 |
|
Total current liabilities |
20 947 |
18 945 |
|
Non-current liabilities |
|
|
|
Long-term borrowings |
19 018 |
18 589 |
|
Other long-term liabilities |
601 |
2 024 |
|
Total non-current liabilities |
19 619 |
20 613 |
|
TOTAL LIABILITIES |
40 566 |
39 558 |
|
EQUITY |
|
|
|
Minority interest |
140 |
126 |
|
Capital and reserves attributable to equity holders of
parent company: |
|
|
|
Share capital |
18 478 |
18 478 |
|
Share premium |
14 277 |
14 277 |
|
Treasury shares |
(384) |
(209) |
|
Reserves |
1 920 |
1 758 |
|
Retained earnings |
19 261 |
20 189 |
|
Total capital and reserves attributable to equity holders
of parent company |
53 552 |
54 493 |
|
TOTAL EQUITY |
53 692 |
54 619 |
|
TOTAL LIABILITIES AND EQUITY |
94 258 |
94 177 |
Consolidated statement of comprehensive income
(unaudited)
|
(EUR thousand) |
Q4 2021 |
Q4 2020 |
12 months 2021 |
12 months 2020 |
| Continuing
operations |
|
|
|
|
| Sales |
15 943 |
13 535 |
53 516 |
44 514 |
| Cost of sales |
(11 132) |
(9 139) |
(39 674) |
(34 013) |
| Gross
profit |
4 811 |
4 396 |
13 842 |
10 501 |
| Other income |
320 |
654 |
929 |
1 691 |
| Marketing
expenses |
(766) |
(529) |
(2 359) |
(1 905) |
| Administrative
expenses |
(2 013) |
(2 212) |
(7 435) |
(6 930) |
| Other expenses |
(51) |
(198) |
(113) |
(286) |
| Operating
profit /(loss) |
2 301 |
2 112 |
4 864 |
3 071 |
| Interest income |
9 |
9 |
35 |
28 |
| Interest expenses |
(172) |
(188) |
(709) |
(860) |
| Other finance
income/(costs) |
401 |
680 |
339 |
634 |
| Net finance
cost |
239 |
501 |
(335) |
(198) |
| Profit/(loss) on
shares of joint ventures |
(153) |
(5) |
(281) |
102 |
| Profit/(loss) on
shares of associates |
78 |
(54) |
161 |
(129) |
| Profit /(loss)
before income tax |
2 465 |
2 554 |
4 409 |
2 846 |
| Income tax
expense |
(156) |
(277) |
(276) |
(280) |
| Net profit
from continuing operations |
2 310 |
2 277 |
4 133 |
2 566 |
| Net profit /(loss)
from discontinued operation |
0 |
(663) |
(1 876) |
(30) |
| Net profit
/(loss) for the reporting period |
2 310 |
1 614 |
2 257 |
2 536 |
|
Net profit /(loss) for the reporting period attributable
to |
|
|
|
Equity holders of the parent company |
2 300 |
1 603 |
2 243 |
2 510 |
|
Minority interest |
10 |
11 |
14 |
26 |
| Total
comprehensive income /(loss) |
2 310 |
1 614 |
2 257 |
2 536 |
|
Comprehensive income /(loss) for the reporting period
attributable to |
|
|
Equity holders of the parent company |
2 300 |
1 603 |
2 243 |
2 510 |
|
Minority interest |
10 |
11 |
14 |
26 |
| Earnings per
share (euro) - continuing operations |
|
|
|
|
|
Basic earnings per share |
0.08 |
0.08 |
0.14 |
0.09 |
|
Diluted earnings per share |
0.07 |
0.07 |
0.13 |
0.08 |
| Earnings per
share (euro) |
|
|
|
|
|
Basic earnings per share |
0.08 |
0.05 |
0.07 |
0.08 |
|
Diluted earnings per share |
0.07 |
0.05 |
0.07 |
0.08 |
Consolidated cash flow statement
(unaudited)
|
(EUR thousand) |
12 months 2021 |
12 months 2020 |
|
Cash flows from operating activities |
|
|
|
Operating profit for the reporting year |
3 060 |
3 078 |
|
Adjustments for (non-cash): |
|
|
|
Depreciation and amortisation |
4 162 |
3 968 |
|
(Gain)/loss on sale, write-down and impairment of property, plant
and equipment |
(10) |
986 |
|
Change in value of share option |
36 |
0 |
|
Loss on sale of discontinued operation |
2 077 |
0 |
|
Cash flows from operating activities: |
|
|
|
Trade and other receivables |
(1 599) |
3 274 |
|
Inventories |
(33) |
375 |
|
Trade and other payables |
1 464 |
(1 201) |
|
Cash generated from operations |
9 157 |
10 480 |
|
Income tax paid |
(281) |
(263) |
|
Interest paid |
(803) |
(903) |
|
Net cash generated from operating activities |
8 073 |
9 314 |
|
Cash flows from investing activities |
|
|
|
Acquisition of subsidiaries/ associates (less cash acquired) and
other investments /cash paid-in equity-accounted investees |
(3 325) |
(425) |
|
Disposal of discontinued operation, net of cash disposed of |
6 326 |
0 |
|
Receipts of other investments |
51 |
16 |
|
Interest received |
3 |
2 |
|
Purchase of property, plant and equipment and intangible
assets |
(2 786) |
(2 561) |
|
Proceeds from sale of property, plant and equipment and intangible
assets |
3 |
308 |
|
Loans granted |
(212) |
(331) |
|
Loan repayments received |
156 |
0 |
|
Dividends received |
828 |
150 |
|
Net cash used in investing activities |
1 044 |
(2 841) |
|
Cash flows from financing activities |
|
|
|
Dividends paid |
(3 028) |
0 |
|
Payment of lease liabilities |
(1 814) |
(949) |
|
Change in overdraft |
0 |
(1 018) |
|
Loans received / Repayments of bank loans |
864 |
(1 884) |
|
Proceeds from share issuance |
0 |
600 |
|
Purchases of treasury shares |
(446) |
(600) |
|
Net cash used in financing activities |
(4 424) |
(3 851) |
|
NET (DECREASE)/INCREASE IN CASH AND CASH
EQUIVALENTS |
4 693 |
2 622 |
|
Cash and cash equivalents at the beginning of the period |
6 269 |
3 647 |
|
Cash and cash equivalents at the end of the period |
10 962 |
6 269 |
Signe KukinGroup CFOAS Ekspress Grupp Telephone: +372 669
8381E-mail address: signe.kukin@egrupp.ee
AS Ekspress Grupp is the
leading media group in the Baltic States whose key activities
include web media content production and publishing of newspapers,
magazines and books. The Group also manages the electronic ticket
sales platform and ticket sales sites in Estonia and Latvia.
Ekspress Grupp that launched its operations in 1989 employs more
than 1400 people, owns leading web media portals in the Baltic
States and publishes the most popular daily and weekly newspapers
as well as the majority of the most popular magazines in
Estonia.
Ekspress Grupp As (LSE:0JPX)
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