AS Ekspress Grupp: Consolidated unaudited interim report for the
Third Quarter and Nine Months of 2022
In the 3rd quarter of 2022, the consolidated
revenue of AS Ekspress Grupp totalled EUR 15.1 million and the net
profit totalled EUR 0.86 million. The total revenue for the first
nine months reached EUR 45.0 million, increasing by 20%
year-over-year. The net profit for the first nine months totalled
EUR 1.62 million, decreasing by EUR 0.2 million as compared to last
year. Digital revenue increased by 25% as compared to the same
period last year and digital revenue contributed 77% to the Group’s
total revenue at the end of September.
The Group’s revenue for the 3rd quarter
continued its growth as expected. The consolidated revenue for the
quarter totalled EUR 15.1 million (Q3 2021: EUR 13.3 million),
increasing by 14% as compared to last year. The Group’s online
advertising sales continued to grow at the time when the total
market did not significantly grow. The Group’s media companies
managed to successfully grow at the expense of their competitors,
providing the best solutions to their advertising customers in
reaching consumers. Ad buyers direct an increasingly larger share
of their marketing budget into online channels, ensuring the
sustainability of the Group’s key type of revenue. Nine-month
revenue totalled EUR 45.0 million, increasing by 20% as compared to
last year. In addition to advertising sales, better nine-month
performance was attributable to a higher number of digital
subscriptions and the growth in the average price of both paper and
digital products.
The number of the digital subscriptions of AS
Ekspress Grupp increased by 21% by the end of September as compared
to the same period last year and totalled 151.4 thousand
subscriptions. The number of digital subscriptions of Õhtuleht
increased the most, indicating that the customer groups that until
now had preferred print periodicals are also more willing to
consumer more digital media. In percentage terms, the number of
digital subscribers demonstrated the highest growth in Lithuania
and Latvia where the transition to the digital subscription model
started later than in Estonia and where the Group is expecting to
see further growth potential in the near future.
The earnings before interest, tax, depreciation
and amortisation (EBITDA) of Ekspress Grupp totalled EUR 2.26
million in the 3rd quarter and EUR 5.1 million in the first nine
months. EBITDA grew by 1% both in the 3rd quarter as well as in the
first nine months as compared to last year. Due to the growth in
input prices (primarily paper, printing and energy costs) and the
pressure of the overall economic environment on wages, the Group’s
EBITDA margin for the first nine months fell from 13% to 11%. The
Group is aware of the higher risks related to the weakening of the
economic environment and the potential economic cooldown over the
next 12 months. We have already reduced our cost base in the areas
where revenue has not met the Group’s expectations. The effect of
cost reductions will be evident in the next quarters. In addition,
we are looking for opportunities in the new economic environment
for more efficient management of processes and increasing sales
revenue.
In the 3rd quarter of 2022, the consolidated
revenue totalled EUR 0.86 million and the net profit for the first
nine months totalled EUR 1.62 million. In the first nine months,
the net profit decreased by EUR 0.2 million (-11%) as compared to
the previous year. Lower profit was attributable to higher losses
of AS Express Post that is engaged in home delivery of print media
and the growth in the depreciation charge due to higher capital
expenditures as compared to the same period last year.
The Management Board of Ekspress Grupp considers
the Group's 9-month results as positive: the Group was able to grow
the digital revenue base (both the turnover and share of digital
revenues as well as the number of digital subscribers) and maintain
good profitability despite the unstable business environment and
the increase in input prices and salary expenses. This shows that
over the last two years, Ekspress Grupp has been able to adapt
quickly and efficiently to changed business environment, but
contradictory future forecasts require to stay flexible and react
quickly also in the upcoming quarters.
Q3 AND 9 MONTHS RESULTS
REVENUE
In the 3rd quarter of 2022, the consolidated
revenue totalled EUR 15.1 million (Q3 2021: EUR 13.3 million). The
revenue for the 3rd quarter increased by 14% year-over-year. The
consolidated revenue for the first 9 months of 2022 totalled EUR
45.0 million (9 months 2021: EUR 37.6 million). The revenue for the
first 9 months increased by 20% year-over-year. This growth was
attributable to both online advertising revenue as well as digital
subscriptions revenue. The share of the Group’s digital revenue in
total revenue was 77% at the end of the 3rd quarter of 2022 (at the
end of the 3rd quarter 2021: 74% of total revenue). Digital revenue
for the first 9 months of 2022 increased by 25% as compared to the
same period last year.
PROFITABILITY
In the 3rd quarter of 2022, the consolidated
EBITDA totalled EUR 2.26 million (Q3 2021: EUR 2.25 million). In
the 3rd quarter of 2022, EBITDA increased by 1% as compared to the
previous year and the EBITDA margin was 15% (Q3 2021: 17%). The
consolidated EBITDA for the first 9 months of 2022 totalled EUR
5.10 million (9 months 2021: EUR 5.05 million). In the first 9
months of 2022, EBITDA increased by 1% as compared to the previous
year and the EBITDA margin was 11% (9 months 2021: 13%).
The consolidated net profit for the 3rd quarter
of 2022 totalled EUR 0.86 million (Q3 2021: EUR 1.15 million). In
the 3rd quarter of 2022, the net profit decreased by 25% as
compared to the previous year. The consolidated net profit for the
first 9 months of 2022 totalled EUR 1.62 million (9 months 2021:
EUR 1.82 million). In the first 9 months of 2022, the net profit
decreased by 11% as compared to the previous year. This decline is
primarily related to the higher loss of AS Express Post for the
period and the increase of the Group’s depreciation charge due to
higher capital expenditures as compared to the same period last
year.
EXPENSES
In the first 9 months of 2022, the cost of goods
sold, marketing, and general and administrative costs totalled EUR
43.29 million (9 months 2021: EUR 35.56 million). In the first 9
months of the year, operating expenses increased by EUR 7.73
million (+22%). Staff costs in the amount of EUR 4.39 million
(+23%) increased the most. The significant growth in input expenses
is linked to the outsourcing of the printing service related to
print media as well as the home delivery service, the total growth
was EUR 0.66 million (+16%).
As of 30 September 2022, the Group employed 861
employees which is 132 more as compared to the same period last
year (30.09.2021: 729 employees). This growth is attributable to 56
employees who were transferred from OÜ Geenius Meedia acquired at
the end of 2021 and the ELTA news agency acquired in the summer of
2022. 76 employees were hired in other companies in Estonia, Latvia
and Lithuania. Given the general economic situation, we have
selectively adjusted employee salaries in order to retain the best.
In addition, we have started with cost reductions and layoffs,
especially in Latvia where advertising sales have failed to meet
the Group’s internal targets. These activities will have an impact
in the upcoming quarters.
In the first 9 months of the year, the one-off
expenditure includes donations to Ukraine in the total amount of
EUR 0.20 million (Q3 2022: additional donations of EUR 0.06
million).
The war in Ukraine has had a major negative
effect on the GDP growth in the Baltic States. As a result, the
economy has slowed down and created a high inflation environment
(in September 2022, inflation was 24.1% in Estonia, 22.5% in
Lithuania and 22% in Latvia as compared to the previous year) which
is one of the highest in the Eurozone. The Group has neither any
operations nor any assets in Ukraine and Russia, and therefore, the
war has only an indirect impact on the Group.
CASH POSITION
At the end of the reporting period, the Group
had available cash in the amount of EUR 6.1 million and equity in
the amount of EUR 53.0 million (57% of total assets). The
comparable data as of 30 September 2021 were EUR 12.4 million and
EUR 54.4 million (61% of total assets), respectively. As of 30
September 2022, the Group’s net debt was EUR 15.8 million (31
December 2021: EUR 11.3 million).
In the first 9 months of 2022, the Group’s cash
flows from operating activities totalled EUR 3.89 million (9 months
2021: EUR 4.41 million, incl. printing services segment) that were
positively impacted by the ticket sales platforms in Estonia and
Latvia. The sales activity of the Latvian ticket sales platform has
recovered and is in a better position due to higher ticket prices
as compared to the pre-Covid-19 period.
In the first 9 months of 2022, the Group’s cash
flows from investing activities totalled EUR -4.76 million (9
months 2021: EUR 4.98 million, incl. the sale of a discontinued
operation in the amount of EUR 6.33 million), of which EUR -2.89
million was related to development and acquisition of property,
plant and equipment and intangible assets, indicating higher
investments in products and technologies. In the first 9 months of
the year, the Group invested EUR -1.56 million in new LED screens,
to be funded with a finance lease in the last quarter of 2022.
In the first 9 months of 2022, the Group’s cash
flows from financing activities totalled EUR -4.01 million (9
months 2021: EUR -3.29 million), of which EUR -2.43 million was the
dividend payment to the shareholders of AS Ekspress Grupp.
Financing activities also include a net change in borrowings and
principal lease payments, where the changes made to SEB loan
contracts entered into in summer 2021 had a positive impact. In the
first 9 months of 2021, treasury shares were purchased in the
amount of EUR 0.45 million.
DIVIDENDS
At the regular General Meeting of Shareholders
of AS Ekspress Grupp held on 2 May 2022, it was decided to pay a
dividend of 8 euro cents per share in the total amount of EUR 2.43
million. Dividends were paid to shareholders on 20 May 2022.
Key financial indicators for segments
(EUR thousand) |
Sales |
|
Q3 2022 |
Q3 2021 |
Change % |
9 months 2022 |
9 months 2021 |
Change % |
12 months 2021 |
Media segment |
14 743 |
12 925 |
14% |
43 887 |
36 485 |
20% |
52 093 |
incl. revenue from all digital and online channels |
12 006 |
10 061 |
19% |
34 586 |
27 664 |
25% |
40 453 |
% of revenue from all digital and online channels |
81% |
78% |
|
79% |
76% |
|
78% |
Corporate functions |
1 161 |
999 |
16% |
3 343 |
3 106 |
8% |
4 118 |
Inter-segment eliminations |
(784) |
(660) |
|
(2 274) |
(2 018) |
|
(2 695) |
TOTAL GROUP |
15 120 |
13 265 |
14% |
44 956 |
37 573 |
20% |
53 516 |
% of revenue from all digital and online channels |
79% |
76% |
|
77% |
74% |
|
76% |
(EUR thousand) |
EBITDA |
|
Q3 2022 |
Q3 2021 |
Change % |
9 months 2022 |
9 months 2021 |
Change % |
12 months 2021 |
Media segment |
2 614 |
2 401 |
9% |
6 007 |
5 478 |
10% |
8 927 |
Corporate functions |
(311) |
(134) |
-132% |
(802) |
(423) |
-90% |
(669) |
Inter-segment eliminations |
(39) |
(16) |
|
(109) |
(3) |
|
(18) |
TOTAL GROUP |
2 264 |
2 251 |
1% |
5 096 |
5 051 |
1% |
8 240 |
EBITDA margin |
Q3 2022 |
Q3 2021 |
9 months 2022 |
9 months 2021 |
12 months 2021 |
Media segment |
18% |
19% |
14% |
15% |
17% |
TOTAL GROUP |
15% |
17% |
11% |
13% |
15% |
Consolidated balance sheet (unaudited)
(EUR thousand) |
30.09.2022 |
31.12.2021 |
ASSETS |
|
|
Current assets |
|
|
Cash and cash equivalents |
6 077 |
10 962 |
Trade and other receivables |
10 496 |
9 323 |
Corporate income tax prepayment |
246 |
2 |
Inventories |
317 |
266 |
Total current assets |
17 136 |
20 553 |
Non-current assets |
|
|
Other receivables and investments |
1 586 |
1 671 |
Deferred tax asset |
42 |
42 |
Investments in joint ventures |
895 |
1 011 |
Investments in associates |
2 255 |
2 210 |
Property, plant and equipment |
8 829 |
7 964 |
Intangible assets |
61 497 |
60 807 |
Total non-current assets |
75 104 |
73 705 |
TOTAL ASSETS |
92 240 |
94 258 |
LIABILITIES |
|
|
Current liabilities |
|
|
Borrowings |
1 865 |
3 201 |
Trade and other payables |
16 630 |
17 664 |
Corporate income tax payable |
136 |
82 |
Total current liabilities |
18 631 |
20 947 |
Non-current liabilities |
|
|
Long-term borrowings |
20 023 |
19 018 |
Other long-term liabilities |
601 |
601 |
Total non-current liabilities |
20 624 |
19 619 |
TOTAL LIABILITIES |
39 255 |
40 566 |
EQUITY |
|
|
Minority interest |
141 |
140 |
Capital and reserves attributable to equity holders of parent
company: |
|
|
Share capital |
18 478 |
18 478 |
Share premium |
14 277 |
14 277 |
Treasury shares |
(334) |
(384) |
Reserves |
2 057 |
1 920 |
Retained earnings |
18 365 |
19 261 |
Total capital and reserves attributable to equity holders of
parent company |
52 843 |
53 552 |
TOTAL EQUITY |
52 984 |
53 692 |
TOTAL LIABILITIES AND EQUITY |
92 240 |
94 258 |
Consolidated statement of comprehensive income
(unaudited)
(EUR thousand) |
Q3 2022 |
Q3 2021 |
9 months 2022 |
9 months 2021 |
12 months 2021 |
Continuing operations |
|
|
|
|
|
Sales |
15 120 |
13 265 |
44 956 |
37 573 |
53 516 |
Cost of sales |
(11 272) |
(9 849) |
(34 712) |
(28 543) |
(39 674) |
Gross profit |
3 849 |
3 415 |
10 243 |
9 030 |
13 842 |
Other income |
209 |
291 |
526 |
609 |
929 |
Marketing expenses |
(695) |
(494) |
(2 133) |
(1 593) |
(2 359) |
Administrative expenses |
(2 125) |
(1 799) |
(6 442) |
(5 422) |
(7 435) |
Other expenses |
(54) |
(13) |
(139) |
(62) |
(113) |
Operating profit /(loss) |
1 183 |
1 401 |
2 056 |
2 563 |
4 864 |
Interest income |
9 |
9 |
28 |
25 |
35 |
Interest expenses |
(183) |
(175) |
(529) |
(537) |
(709) |
Other finance income/(costs) |
(3) |
(67) |
194 |
(62) |
339 |
Net finance cost |
(177) |
(233) |
(308) |
(574) |
(335) |
Profit/(loss) on shares of joint ventures |
(107) |
42 |
(327) |
(128) |
(281) |
Profit/(loss) on shares of associates |
53 |
16 |
326 |
83 |
161 |
Profit /(loss) before income tax |
953 |
1 226 |
1 747 |
1 944 |
4 409 |
Income tax expense |
(94) |
(81) |
(129) |
(120) |
(276) |
Net profit /(loss) from continuing operations |
859 |
1 145 |
1 618 |
1 823 |
4 133 |
Net profit /(loss) from discontinued operation |
0 |
(2 180) |
0 |
(1 876) |
(1 876) |
Net profit /(loss) for the reporting period |
859 |
(1 035) |
1 618 |
(53) |
2 257 |
Net profit /(loss) for the reporting period attributable
to |
|
|
|
Equity holders of the parent company |
857 |
(1 037) |
1 617 |
(57) |
2 243 |
Minority interest |
2 |
2 |
1 |
4 |
14 |
Total comprehensive income /(loss) |
859 |
(1 035) |
1 618 |
(53) |
2 257 |
Comprehensive income /(loss) for the reporting period
attributable to |
Equity holders of the parent company |
857 |
(1 037) |
1 617 |
(57) |
2 243 |
Minority interest |
2 |
2 |
1 |
4 |
14 |
Earnings per share (euro) - continuing operations |
Basic earnings per share |
0.0282 |
0.0377 |
0.0533 |
0.0602 |
0.1362 |
Diluted earnings per share |
0.0273 |
0.0364 |
0.0515 |
0.0581 |
0.1316 |
Earnings per share (euro) |
Basic earnings per share |
0.0282 |
(0.0343) |
0.0533 |
(0.0019) |
0.0742 |
Diluted earnings per share |
0.0273 |
(0.0331) |
0.0515 |
(0.0018) |
0.0716 |
Consolidated cash flow statement (unaudited)
(EUR thousand) |
9 months 2022 |
9 months 2021* |
12 months 2021* |
Cash flows from operating activities |
|
|
|
Operating profit /(loss) for the reporting year |
2 056 |
709 |
3 060 |
Adjustments for (non-cash): |
|
|
|
Depreciation and amortisation |
3 039 |
3 349 |
4 162 |
(Gain)/loss on sale, write-down and impairment of property, plant
and equipment |
30 |
35 |
(10) |
Change in value of share option |
27 |
27 |
36 |
Loss on sale of discontinued operation |
0 |
2 077 |
2 077 |
Cash flows from operating activities: |
|
|
|
Trade and other receivables |
(1 168) |
(1 370) |
(1 599) |
Inventories |
(51) |
(79) |
(33) |
Trade and other payables |
607 |
337 |
1 464 |
Income tax paid |
(319) |
(272) |
(281) |
Interest paid |
(327) |
(405) |
(803) |
Net cash generated from operating activities |
3 892 |
4 409 |
8 073 |
Cash flows from investing activities |
|
|
|
Acquisition of subsidiaries/ associates (less cash acquired) and
other investments /cash paid-in equity-accounted investees |
(2 600) |
(201) |
(3 325) |
Disposal of discontinued operation, net of cash disposed of |
0 |
6 326 |
6 326 |
Receipts of other investments |
10 |
51 |
51 |
Interest received |
1 |
3 |
3 |
Purchase of property, plant and equipment and intangible
assets |
(2 891) |
(1 901) |
(2 786) |
Proceeds from sale of property, plant and equipment and intangible
assets |
60 |
3 |
3 |
Loans granted |
(30) |
(130) |
(212) |
Loan repayments received |
86 |
0 |
156 |
Dividends received |
601 |
828 |
828 |
Net cash used in investing activities |
(4 763) |
4 978 |
1 044 |
Cash flows from financing activities |
|
|
|
Dividends paid |
(2 425) |
0 |
(3 028) |
Payment of lease liabilities |
(1 305) |
(1 389) |
(1 814) |
Loans received / Repayments of bank loans |
(284) |
(1 455) |
864 |
Purchases of treasury shares |
0 |
(446) |
(446) |
Net cash used in financing activities |
(4 014) |
(3 290) |
(4 424) |
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS |
(4 885) |
6 096 |
4 693 |
Cash and cash equivalents at the beginning of the period |
10 962 |
6 269 |
6 269 |
Cash and cash equivalents at the end of the period |
6 077 |
12 364 |
10 962 |
*No adjustments have been made to the
consolidated cash flows for 2021 in accordance with the
requirements of IFRS. Cash flows related to the printing services
segment are still consolidated line-by-line.
Signe KukinGroup CFOAS Ekspress Grupp Telephone:
+372 669 8381E-mail address: signe.kukin@egrupp.ee
AS Ekspress Grupp is the leading Baltic media group whose key
activities include web media content production, publishing of
newspapers, magazines and books. The Group also operates an
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)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Ekspress Grupp As (LSE:0JPX)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024