AS EKSPRESS GRUPP The revenue and operating profit before depreciation and amortisation (EBITDA) of the leading Baltic media group, AS Ekspress Grupp, increased strongly on a year-over year basis. However, it failed to show similar growth in its net profit, primarily due to higher interest expenses, the company informed the stock exchange in its third quarter interim report.
The revenue of Ekspress Grupp for the first 9 months of 2023 increased by 15% and totalled EUR 51.8 million. Digital revenue increased by 24% year-over-year and made up 83% of the Group's total revenue.
The Group's profit before interest, tax, depreciation and amortisation (EBITDA) for the first 9 months increased by 18% to EUR 6.0 million. The revenue for the 3rd quarter increased by 9% to EUR 16.5 million and EBITDA by 8% to EUR 2.4 million.
The Group's net profit for first 9 months of 2023 totalled EUR 1.2 million, decreasing by 28% year-over-year, excluding one-off extraordinary expenses. The net profit for the 3rd quarter totalled EUR 0.9 million. Including one-off extraordinary expenses, the Group earned a profit of EUR 0.8 million in the first 9 months.
According to the Chairman of Ekspress Grupp, Mari-Liis Rüütsalu, digital advertising revenue increased both in Estonia and Lithuania, but decreased slightly in Latvia. "The revenue from digital subscriptions of the Group's media companies and the number of people with digital subscriptions grew solidly in all three countries. The revenue of ticket platforms and the advertising revenue of outdoor screens have shown solid growth ", explained Rüütsalu.
Rüütsalu added that profitability was primarily higher due to the successful sales of online advertising and digital subscriptions in Estonia and Lithuania, as well as the volume growth of ticket sales platforms and digital outdoor screens. Net profit was negatively impacted primarily by higher interest rates due to the increase in Euribor and higher depreciation expenses due to the Group's investments, as well as the one-off expenses related to the liquidation of the home delivery service of Express Post and unprofitable operations in the first half of the year in the total amount of EUR -0.6 million.
Over the past year, the Group has gained nearly 42 thousand readers with digital subscriptions in the Baltic States, or 30% more than at the end of September last year. The total number of digital subscriptions reached 180 thousand at the end of the quarter.
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 provides the outdoor screen service in Estonia and Latvia. Ekspress Grupp launched its operations in 1989 and employs almost 1100 people.
Additional information:
Mari-Liis Rüütsalu
AS Ekspress Grupp
Chairman of the Management Board
Phone: +372 512 2591
mariliis.ryytsalu@egrupp.ee
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AS Ekspress Grupp published this content on 31 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2023 10:18:28 UTC.
