AS Ekspress Grupp: Consolidated unaudited interim report for the fourth quarter and 12 months of 2018

  MANAGEMENT'S COMMENTS The business volumes of AS Ekspress Grupp increased both in the fourth quarter as well as over the 12-month period. The consolidated revenue for the fourth increased by 11% amounting to EUR 19.5 million and the  revenue for 12 months increased by 8% amounting to EUR 69...

 

MANAGEMENT'S COMMENTS

The business volumes of AS Ekspress Grupp increased both in the fourth quarter as well as over the 12-month period. The consolidated revenue for the fourth increased by 11% amounting to EUR 19.5 million and the  revenue for 12 months increased by 8% amounting to EUR 69.1 million. The consolidated digital revenue over for 12 months increased by 23% (2017: 16%) as compared to the same period last year and made up 38% (2017: 33%) of total revenue. 

Consolidated profit before interest, tax, depreciation and amortization (EBITDA) amounted to EUR 1.2 million in the fourth quarter and EUR 4.2 million over the 12-month period. As compared to the same period in 2017, EBITDA decreased by EUR 0.3 million in the fourth quarter and EUR 2.5 million over 12 months. The continued fast growth of digital revenue, especially in Estonia and Lithuania, had a positive impact on profitability Performance was under pressure due to strong price competition and growth of input prices in the printing services segment as well as for paper periodicals in media segments. The Group's printing company is under a strong price pressure due to falling circulations, leading to a higher-than-expected decline in the segment's profitability. The performance was also impacted by higher input prices, including primarily labour, electricity and paper costs. The latter has also had an impact on the Group's publishing companies Ekspress Meedia and Õhtuleht Kirjastus.

The results of the second half of the year include significant amount of one-off costs related to the reorganisation of the work of the areas of activity of AS Ajakirjade Kirjastus both in the organisations of AS Ekspress Meedia as well as AS Õhtuleht Kirjastus. At the end of 2018, the Group witnessed efficiency growth, and its other web platforms positively complemented the content of paper magazines, therefore we see an increase in efficiency here in 2019

In addition, in the fourth quarter the Group had to write off part of the carrying amount of the book warehouse taken over from AS Ajakirjade Kirjastus at the end of 2017 which was higher as compared to the actual realisable value of the books. The effect of one-off costs over the 12 months of 2018 amounts to ca EUR 0.9 million.

The Group's strategy is aimed at increasing its digital revenue while continuing to create high-quality content that is well received by readers. We will also continue to increase our efficiency in all areas. Revenue growth is increasingly negatively impacted by the fact that two global groups, Facebook and Google, have grown to a noticeable market share of the Baltic advertising markets. However, the local states have no overview of the advertising volumes sold to these countries. The advertising competition is also complicated by the fact that unlike local media companies, the advertising giants do not have to pay taxes on their advertising revenue in Estonia, Latvia or Lithuania, because they reportedly sell their internet advertising to our markets via their Irish subsidiaries.

The Group is in a situation where alleviation of the problems stemming from social media falls on the shoulders of local media while advertising revenue is shifting tax-free to large foreign companies. Neither of the large platforms fosters or takes into account the interests of local state.

In the fourth quarter, Group's biggest media company  AS Ekspress Meedia organised several concerts, among which it is worth mentioning:  Kadri Voorand's concert in Saku Suurhall, year's best star Nublu concert In Tartu and among sports events, the ice hockey games of Helsingin Jokerit for the first time took place in Estonia. Delfi Latvia implemented important special projects such as "100 years in 100 days, "Founders of Latvia" and launched several charity campaigns. Delfi Lithuania published a book related to the project "Pravieniskiu Mafija" that reached to TOP3 bestseller list in Lithuania.

Despite the increase of business volumes, the Group's profitability is under pressure and this primarily due to the intensifying competition in the media and printing services segment. In the upcoming periods, the management is going to pay attention to and is looking for additional opportunities to improve profitability and enhance efficiency.

 

SUMMARY OF THE RESULTS FOR THE FOURTH QUARTER AND 12 MONTHS

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

REVENUE

The consolidated revenue for the 4th quarter of 2018 totalled EUR 19.5 million (Q4 2017: EUR 17.6 million) and the revenue for the 12 months of 2018 totalled EUR 69.1 million (12 months 2017: EUR 63.7 million). Revenue increased by 8% as compared to last year. Revenue growth is primarily attributable to the acquisition of the majority holding of the provider of an advertising network and programmatic sales solutions Adnet Media in November 2017 which together with Delfi entities has significantly increased the Group's online revenue and its share in total revenue. By the end of the 4th quarter, the share of the Group's digital revenue increased to 38% of total revenue which is by far the highest percentage. The Group's digital revenue for the 12 months of 2018 increased by 23% as compared to the same period last year.

PROFITABILITY

In the 4th quarter of 2018, the consolidated EBITDA totalled EUR 1.22 million (Q4 2017: EUR 1.51 million) and over the 12 months of 2018, EBITDA was EUR 4.21 million (12 months 2017: EUR 6.71 million). EBITDA decreased by 37% as compared to last year. The EBITDA margin declined to 6.1% (12 months 2017: 10.5%). The consolidated net profit for the 12 months of 2018 was EUR 0.03 million (12 months 2017: EUR 3.15 million) and the net margin totalled 0.0% (12 months 2017: 4.9%). The decline in profitability was primarily related to the intensifying competition of the printing services segment and the increase in input prices. In addition, it was related to the decline in the revenue of print media and higher home delivery and labour costs (growth +8% vs 12 months 2017) as well as one-off costs (12 months 2018: EUR 0.90 million), which mainly related to reorganisation and extraordinary allowance of books booked in 4th quarter. There is additional loss on shares of associates and from other financial investments in the 4th quarter (12 months 2018: EUR 0.27 million).

CASH POSITION

At the end of the reporting period, the Group had available cash by proportional consolidation in the amount of EUR 2.2 million and equity in the amount of EUR 50.4 million (64% of total assets). The comparative information as of 31 December 2017 were EUR 2.8 million and EUR 52.5 million (66% of total assets), respectively. As of 31 December 2018, the Group's net debt totalled EUR 13.3 million (31 December 2017: EUR 13.0 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.

 

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

 

Performance indicators – joint ventures consolidated 50% (EUR thousand)	Q4 2018	Q4 2017	Change %	12 months 2018	12 months 2017	Change %
For the period
Sales revenue	19 490	17 606	11%	69 096	63 699	8%
EBITDA	1 215	1 512	-20%	4 206	6 713	-37%
EBITDA margin (%)	6.2%	8.6%		6.1%	10.5%
Operating profit*	249	630	-60%	944	3 526	-73%
Operating margin* (%)	1.3%	3.6%		1.4%	5.5%
Interest expenses	(141)	(104)	-36%	(458)	(427)	-7%
Net profit/(loss)* for the period	(240)	508	-148%	25	2 952	-99%
Net margin* (%)	-1.2%	2.8%		0.0%	4.6%
Net profit (-loss) for the period in the financial statements (incl. write-downs and gain from change in ownership interest)	(240)	703	-134%	25	3 146	-99%
Net margin (%)	-1.2%	4.0%		0.0%	4.9%
Return on assets ROA (%)	-0.3%	0.9%		0.0%	4.1%
Return on equity (%)	-0.5%	1.3%		0.0%	6.1%
Earnings per share (EPS)	(0.01)	0.02		0.00	0.11

* The results reflect the outcome of regular business activities and do not include impairment losses on goodwill, gains from the changes in ownership interests in joint ventures, etc.

 

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, outdoor digital screen advertising in Estonia and Latvia, publishing of the Estonian weekly newspapers Maaleht, Eesti Ekspress and LP, the daily newspaper Päevaleht, tabloid Õhtuleht, freesheet Linnaleht, publishing of books and magazines in Estonia, publishing of magazines in Lithuania until December 2017 and providing home delivery services.

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 and other fees payable to advertising agencies are deducted from the advertising sales of segments.

 

Key financial indicators for segments

 

(EUR thousand)	Revenue
	Q4 2018	Q4 2017	Change %	12 months 2018	12 months 2017	Change %
Media segment (under equity method)	11 246	8 862	27%	37 248	31 753	17%
incl. revenue from all digital and online channels	7 093	5 944	19%	24 561	19 963	23%
Printing services segment	7 052	6 496	9%	25 242	23 879	6%
Corporate functions	338	686	-51%	2 341	2 486	-6%
Inter-segment eliminations	(1 238)	(1 029)		(4 342)	(4 048)
TOTAL GROUP under equity method	17 398	15 016	16%	60 489	54 070	12%
Media segment (by proportional consolidation)	13 509	11 782	15%	46 716	42 604	10%
incl. revenue from all digital and online channels	7 482	6 272	19%	25 954	21 024	23%
Printing services segment	7 052	6 496	9%	25 242	23 879	6%
Corporate functions	338	686	-51%	2 341	2 486	-6%
Inter-segment eliminations	(1 409)	(1 358)		(5 204)	(5 270)
TOTAL GROUP by proportional consolidation	19 490	17 606	11%	69 096	63 699	8%

 

(EUR thousand)	EBITDA
	Q4 2018	Q4 2017	Change %	12 months 2018	12 months 2017	Change %
Media segment (under equity method)	1 333	1 168	14%	3 355	3 729	-10%
Media segment (by proportional consolidation)	1 221	1 089	12%	3 329	4 181	-20%
Printing services segment	479	952	-50%	2 403	3 734	-36%
Corporate functions	(450)	(529)	15%	(1 492)	(1 201)	-24%
Inter-segment eliminations	(3)	0		(2)	0
TOTAL GROUP under equity method	1 359	1 590	-15%	4 263	6 261	-32%
TOTAL GROUP by proportional consolidation	1 215	1 512	-20%	4 206	6 713	-37%

 

EBITDA margin	Q4 2018	Q4 2017	12 months 2018	12 months 2017
Media segment (under equity method)	12%	13%	9%	12%
Media segment (by proportional consolidation)	9%	9%	7%	10%
Printing services segment	7%	15%	10%	16%
TOTAL GROUP under equity method	8%	11%	7%	12%
TOTAL GROUP by proportional consolidation	6%	9%	6%	11%

 

MEDIA SEGMENT

ONLINE MEDIA

Related to Gemius changes to online readership survey methodology in the Baltic states, we continue to revise our coverage of online media (readership statistics are not comparable to earlier data).

Important progress and significant accomplishments per country are listed below.

Estonia

Significant developments and accomplishments during the quarter:

• Ekspress Meedia renewed versions of Eesti Ekspress web portal and mobile app.
• Ekspress Meedia organised several successful events such as concerts of Kadri Voorand, 2 Quick Start and Nublu as well as hockey weekend with Helsingin Jokerit.
• Ekspress Meedia launched new Delfi platform.
• Ekspress Meedia posted all-time highest results in digital subscriptions.
• Ekspress Meedia launched a new platform for podcasts called Delfi Tasku. Podcasts are enjoying good listenership numbers.
• Õhtuleht launched new layout of the entire ohtuleht.ee portal.
• Õhtuleht grew strongly in digital subscriptions and during the quarter posted highest results in 2018.

Latvia

Significant developments and accomplishments during the quarter:

• Delfi carried out successful special projects "100 years in 100 days", "10 years after Parex bank crash", "Founders of Latvia", "Top: 2018 Year in Review" among others.
• Cālis got an appreciation prize from the Ombudsman of Latvia for support of disabled persons, especially children.
• Delfi was represented on Digital Freedom festival with Delfi Media Lab Stage featuring international guest speakers.
• Delfi launched successful social and charity campaign for caregivers of disabled relatives.
• Delfi media partnerships included Latvian National Film Award "Lielais Kristaps", Latvian National Theater Award and Techchill conference.
• Delfi launched a renewed version of its news portal.
• Delfi launched a new subsection of popular podcasts providing the biggest collection of Latvian podcasts in one place.

Lithuania

Significant developments and accomplishments during the quarter:

• Delfi launched a physical book related to the “Pravieniskiu Mafia” project, that reached TOP3 best-selling book status.
• Delfi together with 100 children took a plane to Lapland and met with the Santa Claus, deers and huskies: https://www.delfi.lt/apps/laplandija/.
• Delfi journalists Edgaras Savickas and Tomas Janonis were recognised for anticorruption publications by Lithuanian Journalists' Union and Transparency International.
• Delfi launched a new podcasts platform https://www.delfi.lt/klausyk/
• Delfi launched a renewed version of its IOS app.

 

PRINT MEDIA

Based on Estonian Newspaper Association data, the daily newspaper with the largest circulation in Estonia for 2018 full year continues to be Õhtuleht. For January and December, the largest newspaper was Maaleht. During the last 12 months, 5 largest newspapers have declined in circulation in total by ca 10 600 copies.

In the 4th quarter of 2018, the revenue in the media segment totalled EUR 13.5 million (Q4 2017: EUR 11.8 million) and in the 12 months of 2018, the revenue totalled EUR 46.7 million (12 months 2017: EUR 42.6 million). Revenue increased by 10% as compared to last year. Revenue growth is primarily attributable to the acquisition of the majority holding of the provider of an advertising network and programmatic sales solutions Adnet Media last November which together with Delfi entities has significantly increased the Group's online revenue and its share in total revenue.

Digital media is in growth and despite of hard competition we haven't lost market share and revenues are increasing. By the end of the 4th quarter, the share of the Group's digital revenue increased to 38% of total revenue. The Group's digital revenue for the 12 months of 2018 increased by 23% as compared to the same period last year.

In the 4th quarter of 2018, the media segment's EBITDA was EUR 1.2 million (Q4 2017: EUR 1.1 million) and in the 12 months of 2018, the EBITDA was EUR 3.3 million (12 months 2017: EUR 4.2 million), decreasing by 20% as compared to last year. Lower profitability is related to the decline in print media and higher printing, home delivery and labour costs, EUR 0.5 million one-off costs related to reorganisation (AS Ajakirjade Kirjastus) and EUR 0.1 million related to write-off books.

On 1 June 2018, the reorganisation of the joint venture Ajakirjade Kirjastus took place. The publishing of monthly magazines was primarily moved to Ekspress Meedia and that of weekly magazines to Õhtuleht Kirjastus (former name SL Õhtuleht). From the same date, Ajakirjade Kirjastus and SL Õhtuleht were considered as merged and it carries the name of Õhtuleht Kirjastus now.

 

REAL ESTATE PORTAL

By the end of the 4th quarter, with its marketing and sales activities the real estate portal Kinnisvara24.ee managed to surpass its main competitor city24.ee both in terms of the number of advertisements as well as the number of visitors. 

At the end of December, there were 23 660 advertisements on the site Kinnisvara24.ee which was 3% more than those of the portal city24.ee. In December, it had 8% more unique visitors than its competitor.

As of the end of December, 315 real estate companies and 635 regular users had published their advertisements in the portal. The number of brokers that had joined the portal totalled 1 780.

 

PRINTING SERVICES SEGMENT

In the 4th quarter of 2018, the revenue of AS Printall totalled EUR 7.1 million (Q4 2017: EUR 6.5 million) and in the 12 months of 2018, the revenue totalled EUR 25.2 million (12 months 2017: EUR 23.9 million). Revenue increased by 6% as compared to last year that is mainly impacted by a higher paper prices. Printing revenues have decreased In Estonia partially due to decline in printing media and promotional leaflets used by large supermarket chains. In the 4th quarter of 2018, EBITDA was EUR 0.5 million (Q4 2017: EUR 1.0 million) and in the 12 months of 2018, it was EUR 2.4 million (12 months 2017: EUR 3.7 million). EBITDA declined by 36% as compared to last year. This is manily impacted by increased input prices (paper, labour, electricity and gas etc) and also tightened competition where sales margins are under pressure. 

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 of labour, paper and electricity is another major challenge.

The revenue of AS Printall over the 12 months of 2018 outside of Estonia is 61% (12 months 2017: 57%).

 

FINANCIAL INDICATORS AND RATIOS

 

Performance indicators  - joint ventures under equity method (EUR thousand)	Q4 2018	Q4 2017	Change %	12 months 2018	12 months 2017	Change %
For the period
Sales revenue	17 398	15 016	16%	60 489	54 070	12%
EBITDA	1 359	1 590	-15%	4 263	6 261	-32%
EBITDA margin (%)	7.8%	10.6%		7.0%	11.6%
Operating profit*	511	840	-39%	1 211	3 475	-65%
Operating margin *(%)	2.9%	5.6%		2.0%	6.4%
Interest expenses	(138)	(97)	-43%	(443)	(400)	-11%
Profit (loss) on shares of joint ventures under equity method	(261)	(233)	-12%	(273)	(2)	-16767%
Net profit/(loss) for the period*	(240)	508	-147%	25	2 952	-99%
Net margin* (%)	-1.4%	3.4%		0.0%	5.5%
Net profit /(-loss) in the financial statements (incl. write-downs and gain from a change in ownership interest)	(240)	703	-134%	25	3 146	-99%
Net margin (%)	-1.4%	4.7%		0.0%	5.8%
Return on assets ROA (%)	-0.3%	0.9%		0.0%	4.2%
Return on equity (%)	-0.5%	1.3%		0.0%	6.1%
Earnings per share (EPS)	(0.01)	0.02		0.00	0.11

* The results reflect the outcome of regular business activities and do not include impairment losses on goodwill, gains from the changes in ownership interests in joint ventures, etc.

 

Balance sheet (EUR thousand)	joint ventures consolidated 50%			joint ventures under equity method
	31.12.2018	31.12.2017	Change %	31.12.2018	31.12.2017	Change %
As of the end of the period
Current assets	15 631	16 725	-7%	13 831	13 827	0%
Non-current assets	63 286	62 597	1%	62 907	62 130	1%
Total assets	78 917	79 322	-1%	76 738	75 957	1%
incl. cash and bank	2 228	2 818	-21%	1 268	1 073	18%
incl. goodwill	39 799	39 920	0%	37 969	37 969	0%
Current liabilities	14 207	11 081	28%	12 186	8 372	46%
Non-current liabilities	14 276	15 747	-9%	14 118	15 091	-6%
Total liabilities	28 483	26 828	6%	26 304	23 463	12%
incl. borrowings	15 554	15 791	-2%	15 474	15 257	1%
Equity	50 434	52 494	-4%	50 434	52 494	-4%

 

Financial ratios (%)	joint ventures consolidated 50%		joint ventures under equity method
	31.12.2018	31.12.2017	31.12.2018	31.12.2017
Equity ratio (%)	64%	66%	66%	69%
Debt to equity ratio (%)	31%	30%	31%	29%
Debt to capital ratio (%)	21%	20%	22%	21%
Total debt/EBITDA ratio	3.70	2.35	3.63	2.44
Liquidity ratio	1.10	1.51	1.13	1.65

 

 

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
Net margin* (%)	Net margin*/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

 * The results reflect the outcome of regular business activities and do not include impairment losses on goodwill, gains from the changes in ownership interests in our joint ventures, etc.

 

Consolidated balance sheet (unaudited)

(EUR thousand)	31.12.2018	31.12.2017
ASSETS
Current assets
Cash and cash equivalents	1 268	1 073
Trade and other receivables	9 154	9 918
Corporate income tax prepayment	27	4
Inventories	3 382	2 832
Total current assets	13 831	13 827
Non-current assets
Trade and other receivables	1 588	1 749
Deferred tax asset	44	47
Investments in joint ventures	2 345	2 372
Investments in associates	319	354
Property, plant and equipment	11 921	12 189
Intangible assets	46 691	45 419
Total non-current assets	62 907	62 130
TOTAL ASSETS	76 738	75 957
LIABILITIES
Current liabilities
Borrowings	1 356	166
Trade and other payables	10 801	8 095
Corporate income tax payable	29	111
Total current liabilities	12 186	8 372
Non-current liabilities
Long-term borrowings	14 118	15 091
Total non-current liabilities	14 118	15 091
TOTAL LIABILITIES	26 304	23 463
EQUITY
Minority interest	87	68
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	1 531
Retained earnings	16 526	18 762
Total capital and reserves attributable to equity holders of parent company	50 347	52 426
TOTAL EQUITY	50 434	52 494
TOTAL LIABILITIES AND EQUITY	76 738	75 957

 

Consolidated statement of comprehensive income (unaudited)

(EUR thousand)	Q4 2018	Q4 2017	12 months 2018	12 months 2017
Sales revenue	17 398	15 016	60 489	54 070
Cost of sales	(13 884)	(11 900)	(48 874)	(42 869)
Gross profit	3 513	3 115	11 615	11 201
Other income	173	666	394	1 383
Marketing expenses	(930)	(821)	(3 108)	(2 898)
Administrative expenses	(2 211)	(1 884)	(7 609)	(5 921)
Other expenses	(33)	(42)	(82)	(97)
Operating profit	511	1 034	1 211	3 669
Interest income	25	36	143	173
Interest expenses	(138)	(97)	(443)	(400)
Other finance income/ (costs)	(52)	170	(103)	117
Net finance cost	(165)	108	(403)	(109)
Profit (loss) on shares of joint ventures	(261)	(233)	(273)	(2)
Profit (loss) on shares of associates	(243)	(17)	(234)	(68)
Profit before income tax	(158)	892	302	3 490
Income tax expense	(83)	(190)	(276)	(344)
Net profit  for the reporting period	(240)	703	25	3 146
Net profit for the reporting period attributable to
Equity holders of the parent company	(262)	696	6	3 140
Minority shareholders	21	6	19	6
Total comprehensive income	(240)	703	25	3 146
Comprehensive income for the reporting period attributable to
Equity holders of the parent company	(262)	696	6	3 140
Minority shareholders	21	6	19	6
Basic and diluted earnings per share	(0.01)	0.02	0.00	0.11

 

Consolidated cash flow statement (unaudited)

(EUR thousand)	12 months 2018	12 months 2017
Cash flows from operating activities
Operating profit for the reporting year	1 211	3 669
Adjustments for:
Depreciation, amortisation and impairment	3 052	2 787
Gain from selling business assets	0	(194)
(Gain)/loss on sale and write-down of property, plant and equipment	(5)	(11)
Cash flows from operating activities:
Trade and other receivables	(397)	(105)
Inventories	(550)	(62)
Trade and other payables	2 449	(497)
Cash generated from operations	5 760	5 587
Income tax paid	(379)	(371)
Interest paid	(462)	(448)
Net cash generated from operating activities	4 920	4 769
Cash flows from investing activities
Acquisition of subsidiaries (less cash acquired)	0	(546)
Acquisition of associate	0	(74)
Purchase and receipts of other investments	(995)	(785)
Proceeds from sale of business assets	0	130
Interest received	127	169
Purchase of property, plant and equipment and intangible assets	(3 082)	(2 023)
Proceeds from sale of property, plant and equipment and intangible assets	29	12
Loans granted	(700)	(2 227)
Loan repayments received	1 763	1 054
Net cash used in investing activities	(2 858)	(4 290)
Cash flows from financing activities
Dividends paid	(2 085)	(1 787)
Dividends received	0	56
Finance lease payments made	(74)	(71)
Change in overdraft	1 191	92
Loans received	1 000	0
Repayments of bank loans	(1 900)	(552)
Net cash used in financing activities	(1 868)	(2 261)
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS	194	(1 782)
Cash and cash equivalents at the beginning of the year	1 073	2 856
Cash and cash equivalents at the end of the year	1 268	1 073

 

Additional information:
         Signe Kukin
         Group CFO
         AS Ekspress Grupp 
         +372 669 8381
         signe.kukin@egrupp.ee

 

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_IV_kvartal_2018_ENG