AS Ekspress Grupp: Consolidated unaudited interim report for Q1 of 2025

The revenue of AS Ekspress Grupp for the 1 stquarter of 2025 increased by 5% year-over-year to EUR 17.0 million. However, EBITDA decreased by EUR 0.2 million. Digital revenue also increased by 5% and the share of digital revenue remained at 84% of the Group's total revenue in the first quarter.As expected, the Group's first quarter's results were most affected by the expected seasonality, due to which the company's profitability is under the greatest pressure in the 1 stquarter each...

The revenue of AS Ekspress Grupp for the 1^st quarter of 2025 increased by 5% year-over-year to EUR 17.0 million. However, EBITDA decreased by EUR 0.2 million. Digital revenue also increased by 5% and the share of digital revenue remained at 84% of the Group's total revenue in the first quarter.

As expected, the Group's first quarter's results were most affected by the expected seasonality, due to which the company's profitability is under the greatest pressure in the 1^st quarter each year. In addition, lower demand due to the weak economic environment in the Baltic States, was reflected in the advertising revenue of the 1^st quarter.

In the 1^st quarter, Ekspress Grupp's revenue amounted to EUR 17.0 million, an increase of 5% as compared to the same period last year. The increase is mainly due to the increase in digital subscription revenue and the increase in the volumes of ticket platforms and digital outdoor screens. The business operations of Eesti Koolitus- ja Konverentsikeskus (the Estonian Training and Conference Centre), acquired by Delfi Meedia in July 2024 as well as external cooperation projects also made a positive contribution. The company's operations were affected by the general downturn in the business environment in Estonia, as well as in other Baltic countries, which was reflected in a 4% decrease in advertising revenue.

The digital subscription revenue and the number of people with digital subscriptions of the Group's media companies increased strongly in all three countries.  In a year, the Group received more than 25 000 new digital subscriptions (+12%) in the Baltic States, reaching 236 000 subscriptions at the end of the 1^st quarter of 2025. Thus, the Group's digital revenue is increasingly based on digital subscription revenue and makes up an increasingly larger recurring revenue base without the need for additional sales activity (and costs). We have enhanced the quality and volume of content offered by the Group's media companies to be the leader in the digital subscription field in all Baltic States. The Group is gradually moving towards its financial strategic goals and wishes to offer paid digital content to at least 340 000 subscribers by the year 2026.

The revenue of ticket sales platforms increased by 10% in a year. The outdoor screen business also demonstrated significant 19% growth, supported by the extension of the network to 156 screens as well as the increase in the average price per screen. With this, the Group has increased its presence in the Latvian market, where the number of screens increased from 105 to 109 in a year, while we have 47 screens in Estonia. These two areas have shown resilience also in the conditions of slower economic growth.

In the 1^st quarter, Ekspress Grupp's profit before interest, tax, depreciation and amortisation (EBITDA) totalled EUR 0.2 million, decreasing by 45%. Behind the decline in profitability is the decline in the advertising market due to the general weak economic environment in the Baltic States and increasing pressure on input costs. The net loss for the 1^st quarter of 2025 was EUR 1.6 million, which is 31% higher than last year. The increase in net loss is mainly influenced by higher depreciation costs due to the Group's investments.

The Group's liquidity continues to be strong. The Management Board considers it important to maintain liquidity reserves both for potential new acquisitions and for situations related to further cooling of the economy. As of 31 March 2025, the Group had EUR 8.4 million (31.03.2024: EUR 8.8 million) in cash. The ordinary general meeting of shareholders to be held on 23 May 2025 shall vote on the profit allocation proposal, according to which shareholders will be paid regular dividends of 6 euro cents per share in the total amount of EUR 1.86 million.

 

Q1 RESULTS

 

REVENUE

In the 1^st quarter of 2025, the consolidated revenue totalled EUR 17.0 million (Q1 2024: EUR 16.2 million). The revenue for the 1^st quarter increased by 5% year-over-year. The growth is primarily attributable to the increase in digital subscription revenue as well as increase in the volume of ticket sales platforms and digital outdoor screens. The business operations of Eesti Koolitus- ja Konverentsikeskus (the Estonian Training and Conference Centre), acquired by Delfi Meedia in July 2024 as well as external cooperation projects also made a positive contribution. Revenues from external projects will be affected by the development of Delfi UAB's artificial intelligence module for the automatic identification of false information. The project, which began in the 1^st quarter of 2025 and is scheduled to conclude in the 2^nd quarter of 2026, is expected to generate revenue of 3 million euros. The model will be publicly available to all artificial intelligence developers.

The share of the Group's digital revenue in total revenue was 84% at the end of the 1^st quarter of 2025 (at the end of Q1 2024: 84% of total revenue). Digital revenue for the 1^st quarter of 2025 increased by 5% as compared to the same period last year.

EXPENSES

In the 1^st quarter of 2025, the cost of goods sold, marketing, and general and administrative costs, excluding depreciation and amortisation totalled EUR 16.9 million (Q1 2024: EUR 15.9 million). Operating expenses increased by EUR 1.0 million (+6%) as compared to the same period last year. Labour costs increased the most, by EUR 0.3 million (+3%).

PROFITABILITY

In the 1^st quarter of 2025, the consolidated EBITDA totalled EUR 0.2 million (Q1 2024: EUR 0.4 million). EBITDA decreased by 45% as compared to last year and the EBITDA margin was 1.4% (Q1 2024: 2.7%). The decrease in profitability is impacted by the decline in the advertising market due to the general weak economic environment in the Baltic States and the increasing pressure of input costs.

The consolidated net loss for the 1^st quarter of 2025 totalled EUR -1.6 million (Q1 2024: EUR -1.2 million), an increase of 31%. In addition to the decrease in EBITDA, higher net loss is also primarily related to higher depreciation expenses arising from the Group's investments.

CASH POSITION

At the end of the reporting period, the Group had available cash in the amount of EUR 8.4 million and equity in the amount of EUR 56.8 million (50% of total assets). The comparable data as of 31 March 2024 were EUR 8.8 million and EUR 55.7 million (53% of total assets), respectively. As of 31 March 2025, the Group's net debt was EUR 20.0 million (31 March 2024: EUR 16.8 million). The increase in net debt is mainly due to the financing of the acquisitions of business operations of Eesti Koolitus- ja Konverentsikeskus (the Estonian Training and Conference Centre) and UAB Kenton Baltic (conference business in Lithuania).

In the 1^st quarter of 2025, the Group's cash flows from operating activities totalled EUR 0.7 million (Q1 2024: EUR 0.9 million), which was negatively affected by the decrease in EBITDA in the first quarter compared to the same period last year.

In the 1^st quarter of 2025, the Group's cash flows from investing activities totalled EUR -0.7 million (Q1 2024: EUR -0.9 million), of which EUR -1.0 million was related to development and acquisition of property, plant and equipment and intangible assets, of which the largest investments were in the development of Delfi platform and Delfi TV.

In the 1^st quarter of 2025, the Group's cash flows from financing activities totalled EUR -0.5 million (Q1 2024: EUR -0.8 million, of which EUR +0.3 million were proceeds from the sale of treasury shares within the framework of the exercise of share options). Financing activities include a net change in borrowings in the amount of EUR +0.2 million (Q1 2024: EUR -0.6 million) and lease liabilities in the amount of EUR -0.6 million (Q1 2024: EUR -0.6 million) due to the normal reduction of the remaining lease term.

DIVIDENDS

In April 2025, the Group's Management Board proposed to pay 6 euro cents per share as dividends to shareholders from the net profit of the financial year 2024 in the total amount of EUR 1.86 million. The profit allocation proposal will be made at the ordinary general meeting of shareholders on 23 May 2025.

 

SEGMENT OVERVIEW

 

Key financial indicators for segments

(EUR thousand)	Sales
	Q1 2025	Q1 2024	Change %	12 months 2024
Media segment	16 983	16 205	5%	76 071
advertising revenue	8 489	8 800	-4%	42 234
subscriptions (incl. single-copy sales)	5 196	5 043	3%	20 457
ticket sales platforms	1 000	910	10%	4 157
outdoor screens	929	783	19%	4 445
sale of other goods and services	1 369	669	105%	4 778
Corporate functions	196	170	15%	752
Inter-segment eliminations	(176)	(155)		(653)
TOTAL GROUP	17 003	16 220	5%	76 170
incl. revenue from all digital channels	14 335	13 668	5%	65 786
% of revenue from all digital channels	84%	84%		86%

 

(EUR thousand)	EBITDA
	Q1 2025	Q1 2024	Change %	12 months 2024
Media segment	626	914	-32%	12 364
Corporate functions	(383)	(477)	20%	(1 699)
Inter-segment eliminations	2	4		11
TOTAL GROUP	244	442	-45%	10 677

 

EBITDA margin	Q1 2025	Q1 2024	12 months 2024
Media segment	4%	6%	16%
TOTAL GROUP	1%	3%	14%

 

Consolidated statement of financial position (unaudited)

(EUR thousand)	31.03.2025	31.12.2024
ASSETS
Current assets
Cash and cash equivalents	8 441	8 971
Trade and other receivables	15 150	14 394
Corporate income tax prepayment	175	170
Inventories	382	373
Total current assets	24 147	23 908
Non-current assets
Other receivables and investments	1 775	1 775
Deferred tax asset	71	71
Investments in joint ventures	917	872
Investments in associates	2 397	2 464
Property, plant and equipment	10 485	10 834
Intangible assets	74 160	74 112
Total non-current assets	89 804	90 128
TOTAL ASSETS	113 951	114 036
LIABILITIES
Current liabilities
Borrowings	5 383	5 309
Trade and other payables	28 617	27 014
Corporate income tax payable	17	36
Total current liabilities	34 017	32 359
Non-current liabilities
Long-term borrowings	23 088	23 232
Other long-term liabilities	5	5
Total non-current liabilities	23 093	23 237
TOTAL LIABILITIES	57 110	55 596
EQUITY
Share capital	18 576	18 576
Share premium	14 295	14 295
Treasury shares	(5)	(5)
Reserves	2 364	2 364
Retained earnings	21 611	23 210
TOTAL EQUITY	56 841	58 440
TOTAL LIABILITIES AND EQUITY	113 951	114 036

 

Consolidated statement of comprehensive income (unaudited)

(EUR thousand)	Q1 2025	Q1 2024	12 months 2024
Sales	17 003	16 220	76 170
Cost of sales	(14 848)	(13 569)	(58 209)
Gross profit	2 155	2 652	17 961
Other income	171	156	959
Marketing expenses	(908)	(858)	(3 369)
Administrative expenses	(2 770)	(2 834)	(10 530)
Other expenses	(48)	(21)	(164)
Operating profit /(loss)	(1 400)	(906)	4 857
Interest income	28	36	117
Interest expenses	(411)	(457)	(1 836)
Other finance income/(costs)	(17)	(11)	(58)
Net finance cost	(400)	(432)	(1 777)
Profit/(loss) on shares of joint ventures	44	39	318
Profit/(loss) on shares of associates	161	80	471
Profit /(loss) before income tax	(1 595)	(1 218)	3 869
Income tax expense	(4)	(4)	(617)
Net profit /(loss) for the reporting period	(1 599)	(1 221)	3 252
Total comprehensive income /(loss)	(1 599)	(1 221)	3 252
Earnings per share (euro)
Basic earnings per share	(0.0517)	(0.0404)	0.1058

 

Consolidated cash flow statement (unaudited)

(EUR thousand)	Q1 2025	Q1 2024	12 months 2024
Cash flows from operating activities
Operating profit /(loss) for the reporting year	(1 400)	(906)	4 857
Adjustments for (non-cash):
Depreciation and amortisation	1 643	1 353	5 823
(Gain)/loss on sale, write-down and impairment of property, plant and equipment	16	4	33
Cash flows from operating activities:
Trade and other receivables	(727)	367	(1 281)
Inventories	(9)	(11)	(52)
Trade and other payables	1 473	469	3 390
Income tax paid	(27)	(73)	(707)
Interest paid	(303)	(336)	(1 875)
Net cash generated from operating activities	664	867	10 188
Cash flows from investing activities
Acquisition of subsidiaries/ associates (less cash acquired) and other investments /sale/ cash paid-in equity-accounted investees	0	0	(5 246)
Interest received	28	36	115
Purchase of property, plant and equipment and intangible assets	(988)	(1 082)	(4 619)
Proceeds from sale of property, plant and equipment and intangible assets	1	3	3
Loans granted	0	0	(12)
Loan repayments received	0	4	4
Dividends received	228	102	379
Net cash used in investing activities	(731)	(937)	(9 376)
Cash flows from financing activities
Dividends paid	0	0	(1 848)
Payment of lease liabilities	(623)	(557)	(2 315)
Change in overdraft	887	0	0
Proceeds from borrowings	0	0	4 640
Repayments of bank loans	(726)	(561)	(2 419)
Proceeds from share issuance	0	0	98
Proceeds from sale of treasury shares	0	343	397
Net cash used in financing activities	(463)	(775)	(1 447)
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS	(530)	(845)	(635)
Cash and cash equivalents at the beginning of the period	8 971	9 606	9 606
Cash and cash equivalents at the end of the period	8 441	8 761	8 971

 

Lili Kirikal
CFO
AS Ekspress Grupp
Email: [email protected]

 

AS Ekspress Grupp is the leading Baltic media group whose key activities include web media content production, and publishing of newspapers, magazines and books. The Group also operates an electronic ticket sales platform and ticket sales offices and offers outdoor screen service in Estonia and Latvia. Ekspress Grupp launched its operations in 1989 and employs almost 1,100 people.

Attachment

• EG_I_kvartal_2025_ENG