AS Ekspress Grupp: Consolidated unaudited interim report for the Second Quarter and First Half-Year of 2019
Comunicato Precedente
Comunicato Successivo
The revenue of AS Ekspress Grupp totalled EUR 19.5 million in the 2nd quarter and EUR 36.8 million in the first six months of 2019. Revenue growth continued to be strong and it increased by 8% as compared to last year. Growth was primarily driven by digital revenue which increased by 14% as compared to last year and made up already 57% of the Group's media segment revenue
Despite intense competition, in the first half-year the Group increased its market share in all markets and achieved a strong leadership position in Latvia. In the 2nd quarter, the Estonian and Lithuanian media companies continued to be successful both in the sale of advertisements as well as subscriptions. Advertising sales were also temporarily boosted by the election of the European Parliament. In Estonia, the growth in the share of digital subscriptions continued. In the 2nd quarter, we launched sales of paid content in Latvia under the name “Delfi Plus" which similarly to the Estonian market will take time to change consumer habits and is therefore, a long-term process.
The number of people visiting Delfi portals in all Baltic States has grown more than that of our competitors. Our journalists in Estonia, Latvia and Lithuania managed to bring major socially relevant topics to readers which were well received by both readers and professionals in their field.
The Group's earnings before interest, tax, depreciation and amortisation (EBITDA) totalled EUR 1.80 million in the 2nd quarter and EUR 2.47 million in the first six months of the year, growing by almost 6% as compared to the same period last year. In the first half of the year, the Group's consolidated net loss totalled EUR 0.26 million.
In the 2nd quarter, the Group managed to grow media segment profit to EUR 1.5 million as compared to EUR 1.2 million in the same period of 2018. Profitability growth in the media sector was primarily attributable to the growth in advertising sales and efficiency attained from cost savings. In the printing services segment, profits continued to fall by almost 29% as compared to last year. In a situation where the volumes in the printing segment are falling in Estonia mostly due to the decline in the share of the print media and advertising brochures of large store chains, we have nevertheless managed to maintain our level of exports that made up 62% of the total portfolio of printing services.
In the 2nd quarter, the Group acquired a 100% ownership interest in the Latvian ticket sales portal SIA Biļešu Paradīze that manages the electronic ticket sales platform (bilesuparadize.lv) and ticket sales sites, selling through them tickets to various entertainment events on behalf of event organisers.
The purpose of the acquisition is to expand into new business sectors, by focusing on increasing the Group's share of digital revenue, increasing the Group's return on equity and using the synergy between the new business acquired and media activities. We also wish to enhance our current core activities and support the Group in its digital transformation as well as develop the diverse digital footprint of the Group's business.
At the beginning of June, the technology and innovation conference Login took place in Vilnius. The Group acquired an ownership interest in the latter in order to enter the conference market. The purpose of the acquisition of the ownership interest is to make this innovation and technology conference into one of the most well-known innovation events in the Baltic States. The conference "Julgus teha teisiti" ("The Audacity to Do Things Differently") of Eesti Ekspress that took place for the first time in Tallinn was also well received by its participants.
In the 2nd quarter, the Group's largest media company AS Ekspress Meedia organised several other major entertainment events, such as the 95th jubilee concert of magazine Eesti Naine in Alexela concert hall, Kroonika's Entertainment Awards Gala in the Russian Cultural Centre, 10 performances of the play Hakkame, mehed minema (Men, Let's Get Going) based on the life of choir conductor and composer Gustav Ernesaks, and Delfi Rally Day. The two latter are a good example of how Ekspress Meedia uses its potential to address a wide audience and find current topics, thereby increasing the Company's revenue base.
SUMMARY OF THE RESULTS OF THE SECOND QUARTER AND FIRST HALF-YEAR
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 2nd quarter of 2019 totalled EUR 19.5 million (Q2 2018: EUR 17.7 million) and for 1st half-year 2019, it totalled EUR 36.8 million (1st half-year 2018: EUR 34.0 million). 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 39% of total revenue and 57% of media segment revenue. In the 1st half-year 2019, the Group's digital revenue increased by 14% as compared to the same period last year.
PROFITABILITY
In the 2nd quarter of 2019, consolidated EBITDA totalled EUR 1.80 million (Q2 2018: EUR 1.68 million) and for the 1st half-year 2019, it totalled EUR 2.47 million (1st half-year 2018: EUR 2.34 million). EBITDA increased by 6% as compared to the previous year, of which EUR +0,43 million was related to the effect of the new accounting standard IFRS 16 Leases on EBITDA entered into force on 1 January 2019. The EBITDA margin declined to 6.7% (1st half-year 2018: 6.9%). In the 1st half-year 2019, the net loss totalled EUR -0.26 million (1st half-year 2018: EUR 0.65 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 1st half-year, the additional loss of EUR 0.1 million was related to 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 June 2019 is disclosed on page 19 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 2.5 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 June 2018 were EUR 1.4 million and EUR 51.1 million (64% of total assets), respectively. As of 30 June 2019, the Group's net debt totalled EUR 18.6 million. Without taking into account the effect of IFRS 16, the Group's net debt totalled EUR 15.3 million (30 June 2018: EUR 14.0 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.
The effect of the new standard IFRS 16 "Leases" that entered into force on 1 January 2019 is described on page 19 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) |
Q2 2019 | Q2 2018 | Change % | 1st Half year 2019 | 1st Half year 2018 | Change % | 12 months 2018 |
| For the period | |||||||
| Sales | 19 471 | 17 659 | 10% | 36 784 | 34 010 | 8% | 69 096 |
| EBITDA | 1 796 | 1 676 | 7% | 2 474 | 2 344 | 6% | 4 206 |
| EBITDA margin (%) | 9.2% | 9.5% | 6.7% | 6.9% | 6.1% | ||
| Operating profit /(loss) | 674 | 1 050 | -36% | 269 | 890 | -70% | 944 |
| Operating margin (%) | 3.5% | 5.9% | 0.7% | 2.6% | 1.4% | ||
| Interest expenses | (166) | (102) | -62% | (284) | (205) | -38% | (458) |
| Net profit /(loss) for the period | 356 | 893 | -60% | (258) | 653 | -139% | 25 |
| Net margin (%) | 1.8% | 5.1% | -0.7% | 1.9% | 0.0% | ||
| Return on assets (ROA) (%) | 0.4% | 1.1% | -0.3% | 0.8% | 0.0% | ||
| Return on equity (ROE) (%) | 0.7% | 1.7% | -0.5% | 1.2% | 0.0% | ||
| Earnings per share (EPS) | 0.01 | 0.03 | (0.01) | 0.02 | 0.00 |
Financial indicators and ratios under the equity method are disclosed on pages 18-19 of the financial statements.
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), management of the electronic ticket sales platform (bilesuparadize.lv) and ticket sales sites in Latvia (since June 2019), selling through them tickets to various entertainment events on behalf of event organisers.
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 19 and Note 1 to the financial statements.
Key financial indicators for segments
| (EUR thousand) | Sales | ||||||
| Q2 2019 | Q2 2018 | Change % | 1st Half year 2019 | 1st Half year 2018 | Change % | 12 months 2018 | |
| Media segment (under equity method) | 11 512 | 9 314 | 24% | 20 869 | 17 409 | 20% | 37 248 |
| incl. revenue from all digital and online channels | 7 775 | 6 492 | 20% | 13 829 | 11 913 | 16% | 24 561 |
| Printing services segment | 6 610 | 6 355 | 4% | 13 180 | 12 576 | 5% | 25 242 |
| Corporate functions | 508 | 697 | -27% | 1 046 | 1 388 | -25% | 2 341 |
| Inter-segment eliminations | (1 155) | (1 062) | (2 310) | (2 052) | (4 342) | ||
| TOTAL GROUP under equity method | 17 475 | 15 304 | 14% | 32 785 | 29 321 | 12% | 60 489 |
| Media segment (by proportional consolidation) | 13 684 | 11 926 | 15% | 25 207 | 22 635 | 11% | 46 716 |
| incl. revenue from all digital and online channels | 8 030 | 6 870 | 17% | 14 394 | 12 597 | 14% | 25 954 |
| Printing services segment | 6 610 | 6 355 | 4% | 13 180 | 12 576 | 5% | 25 242 |
| Corporate functions | 508 | 697 | -27% | 1 046 | 1 388 | -25% | 2 341 |
| Inter-segment eliminations | (1 330) | (1 320) | (2 649) | (2 589) | (5 204) | ||
| TOTAL GROUP by proportional consolidation | 19 471 | 17 659 | 10% | 36 784 | 34 010 | 8% | 69 096 |
| (EUR thousand) | EBITDA | ||||||
| Q2 2019 | Q2 2018 | Change % | 1st Half year 2019 | 1st Half year 2018 | Change % | 12 months 2018 | |
| Media segment (under equity method) | 1 364 | 1 151 | 19% | 1 800 | 1 397 | 29% | 3 355 |
| Media segment (by proportional consolidation) | 1 519 | 1 202 | 26% | 2 015 | 1 492 | 35% | 3 329 |
| Printing services segment | 558 | 783 | -29% | 1 108 | 1 484 | -25% | 2 403 |
| Corporate functions | (273) | (309) | 12% | (636) | (633) | 0% | (1 492) |
| Inter-segment eliminations | (7) | 1 | (13) | 1 | (2) | ||
| TOTAL GROUP under equity method | 1 643 | 1 626 | 1% | 2 259 | 2 248 | 0% | 4 263 |
| TOTAL GROUP by proportional consolidation | 1 796 | 1 676 | 7% | 2 474 | 2 344 | 6% | 4 206 |
| EBITDA margin | Q2 2019 | Q2 2018 | 1st Half year 2019 | 1st Half year 2018 | 12 months 2018 |
| Media segment (under equity method) | 12% | 12% | 9% | 8% | 9% |
| Media segment (by proportional consolidation) | 11% | 10% | 8% | 7% | 7% |
| Printing services segment | 8% | 12% | 8% | 12% | 10% |
| TOTAL GROUP under equity method | 9% | 11% | 7% | 8% | 7% |
| TOTAL GROUP by proportional consolidation | 9% | 9% | 7% | 7% | 6% |
MEDIA SEGMENT
ONLINE MEDIA
Important progress and significant accomplishments per country are listed below.
Estonia
- Ekspress Meedia launched a new Delfi IOS application and a new web platform of Eesti Päevaleht.
- The annual photography competition of Ekspress Media's Reisijuht.ee and Turist.ee received a new visual appearance.
- Eesti Päevaleht and LP launched a joint Friday edition with a new design and concept.
- Maakodu arranged a charity project at the recently opened family house for the people with special needs in Pärnu, celebrating the magazine's jubilee.
- Delfi published longread-type analysis of the elections.
- Ekspress Meedia launched the social campaign Roolis ei loe (Don't Read While Driving).
- Ekspress Meedia relaunched the summer paperboy project.
- Ekspress Meedia organised several major events, such as Eesti Ekspress conference "The Audacity to Do Things Differently", the 95th jubilee concert of magazine Eesti Naine in Alexela concert hall, Kroonika's Entertainment Awards Gala in the Russian Cultural Centre, Delfi Rally Day, and 10 performances of the play Hakkame, mehed minema (Men, Let's Get Going) based on the life of choir conductor and composer Gustav Ernesaks.
- Õhtuleht Kirjastus launched new mobile applications and revamped the web platform kalale.ee.
Latvia
- Delfi Latvia finished the quarter as the biggest online news outlet in Latvia by total audience, page views and user time-share.
- Delfi Latvia introduced paid digital subscription service Delfi Plus to the market.
- During Q2, Delfi podcast center got a number of content additions and was growing rapidly.
- Delfi Latvia launched web platform refresh for vertical content portals.
- Delfi Latvia covered Ice Hockey World, European women basketball and Wimbledon championships in tennis (including local coverage from Wimbledon).
- Viņa.lv launched of multimedia series "Against a flow" – stories about Latvians who have moved from city to countryside.
- Delfi Latvia served as main media partner for: Muse (band), Lampa talk festival, Dentsu Digital Camp, Sound poets band, Rally Liepāja, EBIT conference, Sound Poets band, Musiqq band.
- Delfi Latvia organised 'uz:RUNA', a conference of public speaking.
- During talk festival LAMPA Delfi Latvia participated in 17 different sessions and panel discussions.
Lithuania
- Delfi Lithuania became a member of The International Fact-Checking Network, IFCN.
- Delfi Lithuania relaunched English information channel.
- Longread-type multimedia projects such as „Events, that changed the world“, „Forest Brothers“ and a project to commemorate the twentieth anniversary of Žalgiris victory in Euroleague were published.
- Delfi Lithuania together with partner companies launched a social initiative “do not squint” to draw attention on the issue of mobile phone use while driving.
- Delfi Lithuania improved top of mind awareness among users, also spontaneous awareness, recognition of being users main information portal as well as recognition of becoming a TV platform.
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. During the last 12 months, the circulation of the five largest newspapers has declined by 7 600 copies.
In the 2nd quarter of 2019, the revenue in the media segment totalled EUR 13.7 million (Q2 2018: EUR 11.9 million) and in the 1st half-year 2019, it totalled EUR 25.2 million (1st half-year 2018: EUR 22.6 million). Revenue increased by 11% as compared to the previous year. Revenue growth is primarily attributable to the advertising revenue growth 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 1st half-year 2019, the Group's digital revenue made up 39% of total revenue and 57% of the media segment revenue. The Group's digital revenue in the 1st half-year 2019 increased by 14% as compared to the same period last year.
The EBITDA of the media segment in the 2nd quarter of 2019 totalled EUR 1.5 million (2nd quarter 2018: EUR 1.2 million) and in the 1st half-year 2019, it totalled EUR 2.0 million (1st half-year 2018: EUR 1.5 million). As compared to the previous year, EBITDA increased by 35%, of which EUR +0,38 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.
By the end of the 2nd quarter of 2019, Kinnisvara24.ee still surpasses its key competitor, real estate portal City24. As of 30 June 2019, there were 22 548 advertisements in the portal Kinnisvara24.ee which is 5.4% more than the portal City24 had. Due to intense competition, from February 2019 the competitors kv.ee and City24 do not publish the data on the number of people visiting their sites. In the 2nd quarter of 2019, the average number of browsers of Kinnisvara24.ee was 89 821 on average.
As of 30 June 2019, there were 519 active real estate companies and 661 regular users with active ads in the portal Kinnisvara24.ee. The number of brokers who had joined the portal was 1 614.
The Group will continue 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 properties).
At the competition "Real Estate Deal of the Year", 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 2nd quarter of 2019, the revenue of AS Printall totalled EUR 6.6 million (Q2 2018: EUR 6.4 million) and in the 1st half-year 2019, it totalled EUR 13.2 million (1st half-year 2018: EUR 12.6 million). Revenue increased by 5% 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 printed media and advertising brochures of large store chains. In the 2nd quarter of 2019, EBITDA totalled EUR 0.6 million (Q2 2018: EUR 0.8 million) and in the 1st half-year 2019, it totalled EUR 1.1 million (1st half-year 2018: EUR 1.5 million). EBITDA decreased by 25% as compared to the previous year. This was primarily impacted by higher input prices (paper, labour, electricity, natural gas, etc.) as well as tighter 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 1st half-year 2019, the revenue of AS Printall in other countries is 62% (1st half-year 2018: 61%).
FINANCIAL INDICATORS AND RATIOS
| Performance indicators - joint ventures under equity method (EUR thousand) |
Q2 2019 | Q2 2018 | Change % | 1st Half year 2019 | 1st Half year 2018 | Change % | 12 months 2018 |
| For the period | |||||||
| Sales | 17 475 | 15 304 | 14% | 32 785 | 29 321 | 12% | 60 489 |
| EBITDA | 1 643 | 1 626 | 1% | 2 259 | 2 248 | 0% | 4 263 |
| EBITDA margin (%) | 9.4% | 10.6% | 6.9% | 7.7% | 7.0% | ||
| Operating profit /(loss) | 621 | 897 | -31% | 264 | 790 | -67% | 1 211 |
| Operating margin (%) | 3.6% | 5.9% | 0.8% | 2.7% | 2.0% | ||
| Interest expenses | (166) | (99) | -68% | (282) | (196) | -44% | (443) |
| Profit /(loss) of joint ventures under equity method | 51 | 152 | -67% | 0 | 91 | -100% | (273) |
| Net profit /(loss) for the period | 356 | 893 | -60% | (258) | 653 | -140% | 25 |
| Net margin (%) | 2.0% | 5.8% | -0.8% | 2.2% | 0.0% | ||
| Return on assets (ROA) (%) | 0.4% | 1.2% | -0.3% | 0.9% | 0.0% | ||
| Return on equity (ROE) (%) | 0.7% | 1.7% | -0.5% | 1.2% | 0.0% | ||
| Earnings per share (EPS) | 0.01 | 0.03 | (0.01) | 0.02 | 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 19 and Note 1 of the financial statements.
| Balance sheet (EUR thousand) |
joint ventures 50% consolidated | joint ventures under equity method | ||||
| 30.06.2019 | 31.12.2018 | Change % | 30.06.2019 | 31.12.2018 | Change % | |
| As of the end of the period | ||||||
| Current assets | 17 777 | 15 631 | 14% | 16 283 | 13 831 | 18% |
| Non-current assets | 74 616 | 63 286 | 18% | 74 113 | 62 907 | 18% |
| Total assets | 92 393 | 78 917 | 17% | 90 396 | 76 738 | 18% |
| incl. cash and bank | 2 450 | 2 228 | 10% | 1 507 | 1 268 | 19% |
| incl. goodwill | 43 347 | 39 799 | 9% | 42 303 | 37 969 | 11% |
| Current liabilities | 20 203 | 14 207 | 42% | 18 400 | 12 186 | 51% |
| Non-current liabilities | 22 276 | 14 276 | 56% | 22 038 | 14 118 | 56% |
| Total liabilities | 42 479 | 28 483 | 49% | 40 439 | 26 304 | 54% |
| incl. borrowings | 21 027 | 15 554 | 35% | 20 745 | 15 474 | 34% |
| Equity | 49 914 | 50 434 | -1% | 49 957 | 50 434 | -1% |
| Financial ratios (%) | joint ventures 50% consolidated | joint ventures under equity method | ||||
| 30.06.2019 | 30.06.2019 without the effect of IFRS 16 |
30.06.2019 | 30.06.2019 without the effect of IFRS 16 |
30.06.2019 | 30.06.2019 without the effect of IFRS 16 |
|
| Equity ratio (%) | 54% | 56% | 64% | 55% | 57% | 66% |
| Debt to equity ratio (%) | 42% | 35% | 31% | 42% | 35% | 31% |
| Debt to capital ratio (%) | 27% | 23% | 21% | 28% | 24% | 22% |
| Total debt/EBITDA ratio | 4.85 | 4.09 | 3.70 | 4.85 | 4.15 | 3.63 |
| Liquidity ratio | 0.88 | 0.90 | 1.10 | 0.88 | 0.99 | 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 30.06.2019, the effect of IFRS 16 on the consolidated balance sheet and income statement is as follows:
| Balance sheet (EUR thousand) | joint ventures 50% consolidated 30.06.2019 |
joint ventures under equity method 30.06.2019 |
| Right of use of buildings | 3 045 | 2 801 |
| Lease liability (short-term) | 412 | 368 |
| Lease liability (long-term) | 2 883 | 2 646 |
| Retained earnings | (263) | (219) |
| Income statement (EUR thousand) | joint ventures 50% consolidated 1st Half year 2019 |
joint ventures under equity method 1st Half year 2019 |
| Decrease in operating expenses | 462 | 388 |
| Increase in depreciation | 391 | 351 |
| Estimated interest expense on lease liabilities | 38 | 34 |
| 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 |
Consolidated balance sheet (unaudited)
| (EUR thousand) | 30.06.2019 | 31.12.2018 |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 1 507 | 1 268 |
| Trade and other receivables | 11 174 | 9 154 |
| Corporate income tax prepayment | 143 | 27 |
| Inventories | 3 459 | 3 382 |
| Total current assets | 16 283 | 13 831 |
| Non-current assets | ||
| Trade and other receivables | 1 004 | 1 588 |
| Deferred tax asset | 49 | 44 |
| Investments in joint ventures | 1 585 | 2 345 |
| Investments in associates | 337 | 319 |
| Property, plant and equipment | 15 061 | 11 921 |
| Intangible assets | 56 077 | 46 691 |
| Total non-current assets | 74 113 | 62 907 |
| TOTAL ASSETS | 90 396 | 76 738 |
| LIABILITIES | ||
| Current liabilities | ||
| Borrowings | 4 291 | 1 356 |
| Trade and other payables | 14 002 | 10 801 |
| Corporate income tax payable | 107 | 29 |
| Total current liabilities | 18 400 | 12 186 |
| Non-current liabilities | ||
| Long-term borrowings | 16 454 | 14 118 |
| Other long-term liabilities | 5 584 | 0 |
| Total non-current liabilities | 22 038 | 14 118 |
| TOTAL LIABILITIES | 40 439 | 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 | 16 044 | 16 526 |
| Total capital and reserves attributable to equity holders of parent company | 49 865 | 50 347 |
| TOTAL EQUITY | 49 957 | 50 434 |
| TOTAL LIABILITIES AND EQUITY | 90 396 | 76 738 |
Consolidated statement of comprehensive income (unaudited)
| (EUR thousand) | Q2 2019 | Q2 2018 | 1st Half year 2019 | 1st Half year 2018 | 12 months 2018 |
| Sales | 17 475 | 15 304 | 32 785 | 29 321 | 60 489 |
| Cost of sales | (14 126) | (12 027) | (27 223) | (23 591) | (48 874) |
| Gross profit | 3 349 | 3 278 | 5 562 | 5 731 | 11 615 |
| Other income | 170 | 121 | 289 | 160 | 394 |
| Marketing expenses | (894) | (718) | (1 625) | (1 485) | (3 108) |
| Administrative expenses | (1 969) | (1 766) | (3 906) | (3 582) | (7 609) |
| Other expenses | (35) | (18) | (56) | (34) | (82) |
| Operating profit /(loss) | 621 | 897 | 264 | 790 | 1 211 |
| Interest income | 6 | 44 | 12 | 87 | 143 |
| Interest expenses | (166) | (99) | (282) | (196) | (443) |
| Other finance income and costs | (42) | (15) | (79) | (34) | (103) |
| Net finance cost | (202) | (70) | (349) | (142) | (403) |
| Profit (loss) on shares of joint ventures | 51 | 152 | 0 | 91 | (273) |
| Profit (loss) on shares of associates | (16) | 0 | (75) | 0 | (234) |
| Profit /(loss) before income tax | 454 | 979 | (160) | 740 | 302 |
| Income tax expense | (97) | (86) | (98) | (86) | (276) |
| Net profit /(loss) for the reporting period | 356 | 893 | (258) | 653 | 25 |
| Net profit /(loss) for the reporting period attributable to | |||||
| Equity holders of the parent company | 354 | 894 | (263) | 654 | 6 |
| Minority shareholders | 2 | (1) | 5 | (1) | 19 |
| Total comprehensive income | 356 | 893 | (258) | 653 | 25 |
| Comprehensive income for the reporting period attributable to | |||||
| Equity holders of the parent company | 354 | 894 | (263) | 654 | 6 |
| Minority shareholders | 2 | (1) | 5 | (1) | 19 |
| Basic and diluted earnings per share | 0.01 | 0.03 | (0.01) | 0.02 | 0.00 |
Consolidated cash flow statement (unaudited)
| (EUR thousand) | 1st Half year 2019 | 1st Half year 2018 |
| Cash flows from operating activities | ||
| Operating profit /(loss) for the reporting year | 264 | 790 |
| Adjustments for: | ||
| Depreciation, amortisation and impairment | 1 977 | 1 458 |
| (Gain)/loss on sale and write-down of property, plant and equipment | 2 | (7) |
| Cash flows from operating activities: | ||
| Trade and other receivables | (1 902) | (274) |
| Inventories | (77) | (814) |
| Trade and other payables | 2 182 | 960 |
| Cash generated from operations | 2 446 | 2 113 |
| Income tax paid | (140) | (245) |
| Interest paid | (317) | (196) |
| Net cash generated from operating activities | 1 989 | 1 672 |
| Cash flows from investing activities | ||
| Purchase of subsidiaries (less acquired cash) | (4 960) | 0 |
| Purchase of other investments | 0 | (1 000) |
| Interest received | 12 | 67 |
| Purchase of property, plant and equipment | (1 352) | (1 212) |
| Proceeds from sale of property, plant and equipment (Note 5) | 4 | 25 |
| Loans granted | (78) | (476) |
| Loan repayments received | 301 | 574 |
| Net cash used in investing activities | (6 073) | (2 022) |
| Cash flows from financing activities | ||
| Finance lease payments made | (410) | (37) |
| Change in overdraft | 67 | (92) |
| Loans received / Repayments of bank loans | 4 667 | 0 |
| Net cash used in financing activities | 4 324 | (129) |
| NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS | 240 | (479) |
| Cash and cash equivalents at the beginning of the year | 1 268 | 1 073 |
| Cash and cash equivalents at the end of the year | 1 507 | 595 |
Additional information:
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_II_kvartal_2019_ENG
Ufficio Stampa
Nasdaq GlobeNewswire (Leggi tutti i comunicati)
2321 Rosecrans Avenue. Suite 2200
90245 El Segundo Stati Uniti
