AS Ekspress Grupp: Consolidated unaudited interim report for the third quarter and 9 months of 2019

The revenue of AS Ekspress Grupp totalled EUR 16.8 million in the 3 rdquarter and EUR 53.6 million in the first nine months of 2019. Revenue growth continued to be strong and it increased by 8% in the 3 rdquarter as compared to last year. Growth was primarily driven by digital revenue which increased by 17% as compared to last year and made up already 58% of the Group's media segment revenue at the end of September.The revenue of the Group's media companies increased by over 12% in...

The revenue of AS Ekspress Grupp totalled EUR 16.8 million in the 3^rd quarter and EUR 53.6 million in the first nine months of 2019. Revenue growth continued to be strong and it increased by 8% in the 3^rd quarter as compared to last year. Growth was primarily driven by digital revenue which increased by 17% as compared to last year and made up already 58% of the Group's media segment revenue at the end of September.

The revenue of the Group's media companies increased by over 12% in the first 9 months of the year. In the 3^rd quarter, most media companies were successful in advertising sale. In Estonia, the share of digital subscriptions also continued to increase. As an important innovation, Delfi Lithuania launched the sale of paid content in the 3^rd quarter under the name of "DELFI plius". The launch of DELFI's own linear television channel in collaboration with Telia was also important in the Lithuanian market. The sale of paid content launched in Latvia in the 2^nd quarter has been well received in the market, meeting our expectations. It should be kept in mind that the sale of paid content is a long-term process and it takes time to change consumer habits, primarily in Latvia and Lithuania where consumers have previously had no experience with paid content of local media.

The Group's earnings before interest, tax, depreciation and amortisation (EBITDA) totalled EUR 1.41 million in the 3^rd quarter and EUR 3.88 million in the first 9 months of the year. The 3^rd quarter's EBITDA increased by 117% as compared to the same period last year and by 30% in the first 9 months of the year. Despite strong EBITDA growth, the Group still incurred a consolidated loss in the amount of EUR 0.24 million in the first 9 months of the year due to two previous weak quarters. In the 3^rd quarter, the Group earned a profit in the amount of EUR 0.02 million.

At the beginning of October, the wholly-owned Latvian subsidiary of AS Ekspress Grupp, i.e. A/S Delfi, concluded a contract to acquire 25.5% of the shares SIA Altero, that operates a comparison and brokerage portal for financial products in Latvia and Lithuania (Altero.lv and Altero.lt). More than 90,000 Altero clients have compared financial offers of consumer loans, car loans and other products since the launch in June 2016, which makes the company a leading provider of financial comparison services in Latvia and Lithuania. The aim of the acquisition is to increase the share of Group's digital revenues and develop its diversified digital business. Altero activity has clear synergies with our media business where movement of the final consumer has a similar pattern. 

At the beginning of October, the Group issued 5000 notes with the nominal value of 1000 euros, interest rate of 6% per year and the maturity date on 7 October 2027 in a private placement for the pension funds managed by AS LHV Varahaldus. The notes were subscribed in the total amount of EUR 5 million. The Group used the proceeds from the issuance of the notes for stable long-term refinancing of the latest major capital expenditures and further expansion of the activities to foster the Group in its implementation of a digital change.

In collaboration with other media organisations and the Association of Media Companies, the Group has started to increase the awareness in Estonia regarding  on the topic of fairer taxation, with the goal of establishing a tax for provision of digital services in Estonia. 

Explosive growth of digital services (social media networks, sharing platforms, various mobile applications, online advertising, etc.) over the last ten years has significantly impacted the structure of traditional economy, providing completely new ways for making virtual transactions. On the other hand, this has led to major changes in the economy: reducing the tax base and transferring the profits of large information technology groups to the countries with a low tax rate.

In Estonia, the fast development of digital economy has created the similar problems as elsewhere in the European Union and the world: large digital services companies are capable of generating significant revenue from digital services targeted at Estonian users without a permanent place of operation in Estonia, but such digital revenue is generally not taxed in Estonia. Both the Group and other media organisations are of opinion that it is unilaterally possible to legally establish a digital services tax.

SUMMARY OF THE RESULTS OF THE THIRD QUARTER AND NINE MONTHS

In the Group's reporting, the management monitors the performance on the basis of proportional consolidation of joint ventures. The loan contract also determines the calculation of some loan covenants while taking into account proportional consolidation.

REVENUE

The consolidated revenue for the 3^rd quarter of 2019 totalled EUR 16.8 million (3^rd quarter 2018: EUR 15.6 million) and for the first 9 months of the year, it totalled EUR 53.6 million (9 months 2018: EUR 49.6 million). In the 3^rd quarter revenue increased by 8% as compared to the previous year. Revenue growth is primarily attributable to the advertising revenue growth both in Estonia and Lithuania. The share of the Group's digital revenue made up 40% of total revenue and 58% of media segment revenue at the end of the 3^rd quarter. In the first 9 months of 2019, the Group's digital revenue increased by 17% as compared to the same period last year.

PROFITABILITY

In the 3^rd quarter of 2019, consolidated EBITDA totalled EUR 1.41 million (3^rd quarter 2018: EUR 0.65 million) and in the first 9 months of 2019, it totalled EUR 3.88 million (9 months 2018: EUR 2.99 million). EBITDA increased by 30% as compared to the previous year, of which EUR +0.64 million was related to the effect of the new accounting standard IFRS 16 Leases entered into force on 1 January 2019 on EBITDA. The EBITDA margin increased to 7.2% (9 months 2018: 6.0%). In the 3^rd quarter, the Group earned a profit in the amount of EUR 0.02 million. In the first 9 months of 2019, the consolidated net loss was EUR -0.24 million (9 months 2018: profit EUR 0.27 million). The decline in profitability was primarily related to the intensifying competition in the printing services segment and the increase in input prices. In addition, it was related to the decline in the revenue of print media as well as higher home delivery and labour costs. In the first 9 months of 2019, the additional loss of EUR 0.1 million was related to the interests in associates and other financial investments.

From 1 January 2019, the Group has applied the new mandatory accounting standard IFRS 16 Leases. Due to this, the leased assets and lease liabilities are recognised at the present value of lease payments in the balance sheet. Depreciation on leased assets and the estimated interest expense on lease liabilities are recognised in the income statement.

The effect of IFRS 16 on the consolidated balance sheet and income statement as at 30 September 2019 is disclosed on page 18 of the financial statements.

CASH POSITION

At the end of the reporting period, the Group had available cash by proportional consolidation in the amount of EUR 3.4 million and equity in the amount of EUR 49.9 million (54% of total assets, without taking into account the effect of IFRS 16 - 56%). The comparative figures as of 30 September 2018 were EUR 2.2 million and EUR 50.4 million (64% of total assets), respectively. As of 30 September 2019, the Group's net debt totalled EUR 16.4 million. Without taking into account the effect of IFRS 16, the Group's net debt totalled EUR 13.4 million (30 September 2018: EUR 13.3 million).

BUSINESS OPERATIONS

In the consolidated financial reports 50% joint ventures are recognised under the equity method, in compliance with International Financial Reporting Standards (IFRS). In its monthly reports, the management monitors the Group's performance on the basis of proportional consolidation of joint ventures and the syndicated loan contract also determines the calculation of some loan covenants by proportional consolidation.

For the purpose of clarity, the management report shows two sets of indicators: one where joint ventures are consolidated line-by-line and the other where joint ventures are recognised under the equity method and their net result is presented as financial income in one line.

The effect of the new standard IFRS 16 "Leases" that entered into force on 1 January 2019 is described on page 18 and in Note 1 of the financial statements.

FINANCIAL INDICATORS AND RATIOS – joint ventures consolidated 50% line-by-line

Performance indicators – joint ventures consolidated 50% (EUR thousand)	Q3 2019	Q3 2018	Change %	9 months 2019	9 months 2018	Change %	12 months 2018
For the period
Sales	16 800	15 596	8%	53 585	49 606	8%	69 096
EBITDA	1 405	647	117%	3 880	2 991	30%	4 206
EBITDA margin (%)	8.4%	4.1%		7.2%	6.0%		6.1%
Operating profit /(loss)	324	(195)	267%	594	695	-15%	944
Operating margin (%)	1.9%	-1.2%		1.1%	1.4%		1.4%
Interest expenses	(240)	(111)	-115%	(562)	(317)	-77%	(458)
Net profit /(loss) for the period	20	(387)	105%	(238)	266	-189%	25
Net margin (%)	0.1%	-2.5%		-0.4%	0.5%		0.0%
Return on assets (ROA) (%)	0.0%	-0.5%		-0.3%	0.3%		0.0%
Return on equity (ROE) (%)	0.0%	-0.8%		-0.5%	0.5%		0.0%
Earnings per share (EPS)	0.00	(0.01)		(0.01)	0.01		0.00

SEGMENT OVERVIEW

The Group's activities are divided into two large segments - media segment and printing services segment

The media segment includes the Group's activities in Estonia, Latvia and Lithuania. It comprises the operations of online portal Delfi, several other news portal providing online advertising network and programmatic sales solutions, digital outdoor advertising in Estonia and Latvia, publishing of the Estonian weekly newspapers Maaleht, Eesti Ekspress and LP, publishing of the daily newspaper Päevaleht and tabloid Õhtuleht, publishing of the freesheet Linnaleht, publishing of books and magazines in Estonia and providing home delivery services. The media segment also includes organisation of the technology and innovation conference Login in Lithuania (since March 2019), operation of the electronic ticket sales platform (bilesuparadize.lv), ticket sales sites in Latvia (since June 2019), selling through them tickets to various entertainment events on behalf of event organisers and production studio for content creation.

The printing services segment includes AS Printall which one of the largest is printing companies in Estonia. We are able to print high-quality magazines, newspapers, advertising materials, product and service catalogues, yearbooks, paperback books and other publications in our printing plant.

Segment EBITDA does not include one-off write-downs for goodwill and trademarks. Volume-based fees and other fees payable to agencies have been deducted from the segment's advertising revenue.

The effect of the new standard IFRS 16 Leases entered into effect on 1 January 2019 on the income statement is described on page 18 and Note 1 to the financial statements.

Key financial indicators for segments

(EUR thousand)	Sales
	Q3 2019	Q3 2018	Change %	9 months 2019	9 months 2018	Change %	12 months 2018
Media segment (under equity method)	9 908	8 593	15%	30 777	26 002	18%	37 248
incl. revenue from all digital and online channels	6 987	5 555	26%	20 815	17 468	19%	24 561
Printing services segment	5 608	5 614	0%	18 789	18 190	3%	25 242
Corporate functions	512	615	-17%	1 558	2 004	-22%	2 341
Inter-segment eliminations	(1 043)	(1 052)		(3 353)	(3 104)		(4 342)
TOTAL GROUP under equity method	14 985	13 770	9%	47 771	43 091	11%	60 489
Media segment (by proportional consolidation)	11 877	10 573	12%	37 084	33 208	12%	46 716
incl. revenue from all digital and online channels	7 204	5 875	23%	21 598	18 471	17%	25 954
Printing services segment	5 608	5 614	0%	18 789	18 190	3%	25 242
Corporate functions	512	615	-17%	1 558	2 004	-22%	2 341
Inter-segment eliminations	(1 197)	(1 206)		(3 846)	(3 795)		(5 204)
TOTAL GROUP by proportional consolidation	16 800	15 596	8%	53 585	49 606	8%	69 096

(EUR thousand)	EBITDA
	Q3 2019	Q3 2018	Change %	9 months 2019	9 months 2018	Change %	12 months 2018
Media segment (under equity method)	1 188	625	90%	2 988	2 022	48%	3 355
Media segment (by proportional consolidation)	1 277	616	107%	3 292	2 108	56%	3 329
Printing services segment	357	440	-19%	1 465	1 924	-24%	2 403
Corporate functions	(219)	(409)	47%	(854)	(1 042)	18%	(1 492)
Inter-segment eliminations	(10)	0		(23)	1		(2)
TOTAL GROUP under equity method	1 317	656	101%	3 576	2 905	23%	4 263
TOTAL GROUP by proportional consolidation	1 405	647	117%	3 880	2 991	30%	4 206

EBITDA margin	Q3 2019	Q3 2018	9 months 2019	9 months 2018	12 months 2018
Media segment (under equity method)	12%	7%	10%	8%	9%
Media segment (by proportional consolidation)	11%	6%	9%	6%	7%
Printing services segment	6%	8%	8%	11%	10%
TOTAL GROUP under equity method	9%	5%	7%	7%	7%
TOTAL GROUP by proportional consolidation	8%	4%	7%	6%	6%

 

MEDIA SEGMENT

ONLINE MEDIA

Important progress and significant accomplishments per country are listed below.

Estonia

• Ekspress Meedia stood out with several large campaigns, such as "Don't Read While Driving" (Delfi), "Series of Lake Races“ (Delfi), "Forest“ (Maaleht), "The Baltic Way 30“ (Maaleht), "The Newspaper of Tomorrow" (Eesti Päevaleht), and the campaign of newspaper boys and girls of Eesti Ekspress.
• Several major longread articles were published, such as "Look Back at the Song Festival", a longread related to the shipwreck of MS Estonia and a long-read Mähkmeer.
• In Delfi, the block "breaking news" was revamped both in online and mobile versions.
• Delfi launched a special environment for Basketball World Championship 2019.
• Ekspress Meedia had a successful quarter of events, the highlights including the opening party of the magazine Anne ja Stiil; Zalgiris basketball evening, Maaleht trips and Olustvere fair of home-canned foods.
• Ekspress Meedia launched a new major portal Delfi Lood.
• Ekspress Meedia launched a new DelfiTV video block with a revamped structure and design.
• Õhtuleht Kirjastus launched revamped mobile apps for both platforms (Android ja iOS).
• Õhtuleht Kirjastus launched an option to buy articles using mobile payments and reached a new record in the revenue of digital products.

Latvia

• Latvian Delfi continued to be the biggest online news outlet by total audience.
• Latvian Delfi plus digital subscriptions continued to grow quicker than expected.
• Latvian Delfi served as main media partner for: Rammstein, Father John Misty, Positivus (music festival), Fono Cēsis (music festival), Prāta Vētra (band), Instrumenti (band), Dagamba (band), Jelgava 94 (Latvian movie).
• Latvian Delfi launched multiple significant projects such as "Izlaušanās 94" (the biggest escape in the history of Latvian prisons), "Stay brutal" (youth subcultures in 90'ties), “1989: Back to Freedom”, "The Threshold of Pain" (about palliative care), DELFI Campus (new portal about STEM education).
• Delfi TV launched new regular video show “You must know to judge”.
• Delfi Verticals continued to post strong results, for example Tasty and Vina reached their largest audience in history.
• Latvian Delfi launched a comprehensive program for optimizations and portal improvements.

Lithuania

• Lithuanian Delfi launched Delfi Plius digital subscriptions and the Open Monetization Platform both of which were well received by the market.
• DELFI TV linear channel was launched on Telia platform in Lithuania.
• Lithuanian Delfi launched 4th year in a row its traditional Influentials project.
• Lithuanian Delfi launched a donations based initiative „responsible standpoint“.
• Debunk.eu project got even more international attention and recognition: The Independent wrote favorably about the project and European Council shared a video story about Debunk initiative across its social media accounts on Facebook, Instagram, Twitter and LinkedIn which explains how the Lithuanian tool empowers journalists in a fight against disinformation.

PRINT MEDIA

Based on the data of the Estonian Newspaper Association, the daily newspaper with the largest circulation in Estonia for the last 12 months continues to be Õhtuleht. In January and December, the newspaper with the largest circulation was Maaleht.

In the 3^rd quarter of 2019, media segment revenue totalled EUR 11.9 million (3^rd quarter 2018: EUR 10.6 million) and in the first nine months of 2019, it totalled EUR 37.1 million (first nine months of 2018: EUR 33.2 million). Revenue increased by 12% as compared to the previous year. Revenue growth is primarily attributable to the advertising revenue growth both in Estonia and Lithuania.

Digital media keeps growing and despite tough competition, we have not lost market share and our revenue is increasing. By the end of the 3^rd quarter, the Group's digital revenue made up 40% of total revenue and 58% of media segment revenue. The Group's digital revenue in the first 9 months of 2019 increased by 17% as compared to the same period last year.

The EBITDA of the media segment in the 3^rd quarter of 2019 totalled EUR 1.3 million (3^rd quarter 2018: EUR 0.6 million) and in the first 9 months of 2019, it totalled EUR 3.3 million (first 9 months of 2018: EUR 2.1 million). As compared to the previous year, EBITDA increased by 56%, of which EUR +0.57 million was the effect of the new accounting standard IFRS 16 Leases entered into force on 1 January 2019 on EBITDA.

REAL ESTATE PORTAL

According to the survey on the recognition of real estate companies that was conducted by Turu-uuringute AS in the 2nd quarter of 2019, the recognition of Kinnisvara24.ee that was launched just one year ago has reached almost the same level as that of the market leaders kv.ee and City24. In just one year, Kinnisvara24.ee has become the most popular real estate search channel for 39% of the respondents.

In the 3^rd quarter of 2019, the portal Kinnisvara24.ee laid a great emphasis on branding - in addition to regular advertising channels, ads ran also on TV, radio, outdoor billboards, magazines and newspapers and thus, the organic growth in the number of visits reached 25% in the 3^rd quarter.

A new portal subsite was completed which today has more than 170 new real estate development projects. Close cooperation was launched with Inbank in order to provide repair and interior decoration loans to visitors that can be conveniently applied for through the real estate portal.

As of 30 September 2019, the portal Kinnisvara24.ee had 506 active real estate companies and 560 regular users with active ads. The number of brokers who had joined the portal was 1716.

In the 3^rd quarter of 2019, the revenue increased by 7% as compared to the 2nd quarter.

The Group continues to actively develop the portal to attain the leadership position in the market. The first-class search engine developed for Kinnisvara24.ee enables to search real estate properties by such criteria as "house with a pool" and "pets allowed" (rental apartments).

At the competition "Real Estate Deal of the Year 2018", the Estonian Real Estate Agents' Association awarded the first prize to the development of the real estate portal Kinnisvara24.ee.

 

PRINTING SERVICES SEGMENT

In the 3^rd quarter of 2019, the revenue of AS Printall totalled EUR 5.6 million (3^rd quarter 2018: EUR 5.6 million) and in the first 9 months of 2019, it totalled EUR 18.8 million (first 9 months of 2018: EUR 18.2 million). Revenue increased by 3% as compared to the previous year and it was primarily impacted by higher paper prices. The revenue of printing services has declined in Estonia due to the decline of the share of print media and advertising brochures of large store chains. In the 3^rd quarter of 2019, EBITDA totalled EUR 0.4 million (3^rd quarter 2018: EUR 0.4 million) and in the first nine months of 2019, it totalled EUR 1.5 million (first nine months of 2018: EUR 1.9 million). EBITDA decreased by 24% as compared to the previous year. This was primarily impacted by higher input prices (paper, labour, electricity, natural gas, etc.) as well as stronger competition which put negative pressure on sales margins. 

For several consecutive years, the printing services segment has been under pressure due to continued digitalisation of regular journalism and increasing popularity of Internet as compared to printed products. Competition concerning sales prices continues to be intense. The sales volumes of print circulations have declined which in turn leads to higher printing costs. In addition, appreciation of input prices (incl. labour, paper and electricity) is another major challenge.

In the first 9 months of the year, the share of revenue of AS Printall in other countries was 62% (9 months 2018: 60%).

FINANCIAL INDICATORS AND RATIOS

Performance indicators  - joint ventures under equity method (EUR thousand)	Q3 2019	Q3 2018	Change %	9 months 2019	9 months 2018	Change %	12 months 2018
For the period
Sales	14 985	13 770	9%	47 771	43 091	11%	60 489
EBITDA	1 317	656	101%	3 576	2 905	23%	4 263
EBITDA margin (%)	8.8%	4.8%		7.5%	6.7%		7.0%
Operating profit /(loss)	339	(90)	477%	603	700	-14%	1 211
Operating margin (%)	2.3%	-0.7%		1.3%	1.6%		2.0%
Interest expenses	(239)	(109)	-119%	(555)	(305)	-82%	(443)
Profit /(loss) of joint ventures under equity method	(16)	(103)	84%	(17)	(12)	-44%	(273)
Net profit /(loss) for the period	20	(387)	105%	(238)	266	-190%	25
Net margin (%)	0.1%	-2.8%		-0.5%	0.6%		0.0%
Return on assets (ROA) (%)	0.0%	-0.5%		-0.3%	0.3%		0.0%
Return on equity (ROE) (%)	0.0%	-0.8%		-0.5%	0.5%		0.0%
Earnings per share (EPS)	0.00	(0.01)		(0.01)	0.01		0.00

Financial indicators and profitability ratios by proportional consolidation are disclosed on page 11 of the financial statements.

The effect of the new standard IFRS 16 "Leases" that entered into effect on 1 January 2019 on the income statement and balance sheet is described on page 18 and Note 1 of the financial statements.

  

Balance sheet (EUR thousand)	joint ventures 50% consolidated			joint ventures under equity method
	30.09.2019	31.12.2018	Change %	30.09.2019	31.12.2018	Change %
As of the end of the period
Current assets	18 017	15 631	15%	16 916	13 831	22%
Non-current assets	74 235	63 286	17%	73 487	62 907	17%
Total assets	92 252	78 917	17%	90 403	76 738	18%
incl. cash and bank	3 391	2 228	52%	2 771	1 268	119%
incl. goodwill	43 420	39 799	9%	42 376	37 969	12%
Current liabilities	20 785	14 207	46%	19 131	12 186	57%
Non-current liabilities	21 532	14 276	51%	21 295	14 118	51%
Total liabilities	42 318	28 483	49%	40 426	26 304	54%
incl. borrowings	19 758	15 554	27%	19 498	15 474	26%
Equity	49 934	50 434	-1%	49 977	50 434	-1%

Financial ratios (%)	joint ventures 50% consolidated			joint ventures under equity method
	30.09.2019	30.09.2019 without the effect of IFRS 16	31.12.2018	30.09.2019	30.09.2019 without the effect of IFRS 16	31.12.2018
Equity ratio (%)	54%	56%	64%	55%	57%	66%
Debt to equity ratio (%)	40%	33%	31%	39%	33%	31%
Debt to capital ratio (%)	25%	21%	21%	25%	22%	22%
Total debt/EBITDA ratio	3.88	3.30	3.70	3.95	3.40	3.63
Liquidity ratio	0.87	0.88	1.10	0.88	0.89	1.13

From 1 January 2019, the Group applied the new mandatory accounting standard IFRS 16 "Leases" to recognise rental expenses. Due to this, the leased assets and lease liabilities are recognised at the present value of lease payments and depredation on leased assets and the estimates interest expenses on lease liabilities is recognised in the income statement.

As of 30.09.2019, the effect of IFRS 16 on the consolidated balance sheet and income statement is as follows:

Balance sheet (EUR thousand)	joint ventures 50% consolidated 30.09.2019	joint ventures under equity method 30.09.2019
Right of use of buildings	2 750	2 525
Lease liability (short-term)	197	175
Lease liability (long-term)	2 775	2 537
Retained earnings	(263)	(219)

Income statement (EUR thousand)	joint ventures 50% consolidated 9 months 2019	joint ventures under equity method 9 months 2019
Decrease in operating expenses	693	590
Increase in depreciation	585	525
Estimated interest expense on lease liabilities	55	50

Formulas used to calculate the financial ratios
EBITDA	Earnings before interest, tax, depreciation and amortisation. EBITDA does not include any impairment losses recognised during the period or result from restructuring.
EBITDA margin (%)	EBITDA/sales x 100
Operating margin (%)	Operating profit/sales x100
Net margin (%)	Net margin in financial statements/sales x100
Earnings per share	Net profit / average number of shares
Equity ratio (%)	Equity/ (liabilities + equity) x100
Dividend rate (%)	Total amount of dividends paid / Net profit
Debt to equity ratio (%)	Interest bearing liabilities /equity x 100
Debt to capital ratio (%)	Interest bearing liabilities – cash and cash equivalents (net debt) /(net debt +equity) x 100
Total debt/EBITDA ratio	Interest bearing borrowings /EBITDA
Debt service coverage ratio	EBITDA/loan and interest payments for the period
Liquidity ratio	Current assets / current liabilities
Return on assets ROA (%)	Net profit /average assets x 100
Return on equity ROE (%)	Net profit /average equity x 100
Debt-Service Coverage Ratio (DSCR)	EBITDA/(interest payments + principal repayments)

Consolidated balance sheet (unaudited)

(EUR thousand)	30.09.2019	31.12.2018
ASSETS
Current assets
Cash and cash equivalents	2 771	1 268
Trade and other receivables	10 674	9 154
Corporate income tax prepayment	219	27
Inventories	3 253	3 382
Total current assets	16 916	13 831
Non-current assets
Trade and other receivables	986	1 588
Deferred tax asset	49	44
Investments in joint ventures	1 272	2 345
Investments in associates	323	319
Property, plant and equipment	14 702	11 921
Intangible assets	56 155	46 691
Total non-current assets	73 487	62 907
TOTAL ASSETS	90 403	76 738
LIABILITIES
Current liabilities
Borrowings	3 848	1 356
Trade and other payables	15 123	10 801
Corporate income tax payable	159	29
Total current liabilities	19 131	12 186
Non-current liabilities
Long-term borrowings	15 650	14 118
Other long-term liabilities	5 645	0
Total non-current liabilities	21 295	14 118
TOTAL LIABILITIES	40 426	26 304
EQUITY
Minority shareholding	92	87
Capital and reserves attributable to equity holders of parent company:
Share capital	17 878	17 878
Share premium	14 277	14 277
Treasury shares	(22)	(22)
Reserves	1 688	1 688
Retained earnings	16 064	16 526
Total capital and reserves attributable to equity holders of parent company	49 885	50 347
TOTAL EQUITY	49 977	50 434
TOTAL LIABILITIES AND EQUITY	90 403	76 738

 

Consolidated statement of comprehensive income (unaudited)

(EUR thousand)	Q3 2019	Q3 2018	9 months 2019	9 months 2018	12 months 2018
Sales	14 985	13 770	47 771	43 091	60 489
Cost of sales	(12 161)	(11 399)	(39 384)	(34 989)	(48 874)
Gross profit	2 824	2 371	8 387	8 102	11 615
Other income	161	61	450	222	394
Marketing expenses	(685)	(693)	(2 311)	(2 177)	(3 108)
Administrative expenses	(1 962)	(1 816)	(5 868)	(5 398)	(7 609)
Other expenses	1	(14)	(54)	(49)	(82)
Operating profit /(loss)	339	(90)	603	700	1 211
Interest income	6	30	18	118	143
Interest expenses	(239)	(109)	(555)	(305)	(443)
Other finance income and costs	7	(17)	(37)	(51)	(103)
Net finance cost	(226)	(96)	(574)	(238)	(403)
Profit (loss) on shares of joint ventures	(16)	(103)	(17)	(12)	(273)
Profit (loss) on shares of associates	(22)	9	(97)	9	(234)
Profit /(loss) before income tax	75	(280)	(85)	460	302
Income tax expense	(55)	(107)	(153)	(194)	(276)
Net profit /(loss) for the reporting period	20	(387)	(238)	266	25
Net profit /(loss) for the reporting period attributable to
Equity holders of the parent company	20	(386)	(243)	268	6
Minority shareholders	0	(1)	5	(2)	19
Total comprehensive income	20	(387)	(238)	266	25
Comprehensive income for the reporting period attributable to
Equity holders of the parent company	20	(386)	(243)	268	6
Minority shareholders	0	(1)	5	(2)	19
Basic and diluted earnings per share	0,00	(0,01)	(0,01)	0,01	0,00

Consolidated cash flow statement (unaudited)

(EUR thousand)	9 months 2019	9 months 2018
Cash flows from operating activities
Operating profit /(loss) for the reporting year	603	700
Adjustments for:
Depreciation, amortisation and impairment	2 987	2 204
(Gain)/loss on sale and write-down of property, plant and equipment	(17)	(8)
Cash flows from operating activities:
Trade and other receivables	(1 463)	(157)
Inventories	130	(840)
Trade and other payables	3 363	1 287
Cash generated from operations
Income tax paid	(220)	(317)
Interest paid	(428)	(305)
Net cash generated from operating activities	4 954	2 564
Cash flows from investing activities
Purchase of subsidiaries (less acquired cash)	(4 858)	0
Purchase of other investments	0	(1 000)
Proceeds from joint ventures	323	0
Interest received	18	70
Purchase of property, plant and equipment	(2 124)	(1 663)
Proceeds from sale of property, plant and equipment	18	27
Loans granted	(93)	(551)
Loan repayments received	303	1 069
Net cash used in investing activities	(6 414)	(2 047)
Cash flows from financing activities
Dividends paid	0	(2 085)
Lease payments made	(669)	(55)
Change in overdraft	(267)	1 008
Loans received / Repayments of bank loans	3 899	200
Net cash used in financing activities	2 963	(932)
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS	1 503	(415)
Cash and cash equivalents at the beginning of the year	1 268	1 073
Cash and cash equivalents at the end of the year	2 771	658

Signe Kukin
Group CFO
AS Ekspress Grupp 
+372 669 8381
[email protected]

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 employs 1700 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.

Attachment

• EG_III_kvartal_2019_ENG