Consolidated unaudited interim report for Q4 and 12 months of 2022

Within the 4^th quarter of 2022, the income of AS Ekspress Grupp totalled EUR 19.2 million and internet revenue totalled EUR 2.4 million. The income for the 12-month interval totalled EUR 64.1 million, rising by 20% as in comparison with the earlier 12 months. The online revenue for the 12-month interval totalled EUR 4.1 million which is on the identical degree as within the earlier 12 months. Digital income elevated by 23% and digital income made up 78% of the Group’s complete income on the finish of December.

The Group’s efficiency in 2022 was strong, regardless of the extraordinarily unstable setting and the associated results within the economic system. The Group’s income within the 4^th quarter grew strongly as in comparison with the identical interval in 2021. The consolidated income for the quarter totalled EUR 19.2 million (This fall 2021: EUR 15.9 million), rising by 20% as in comparison with the earlier 12 months. The Group’s internet advertising gross sales continued to develop on the time when the overall market didn’t improve. The Group’s media corporations managed to efficiently improve their gross sales versus their rivals by providing higher options to their promoting clients in reaching shoppers. 12-month income totalled EUR 64.1 million, additionally rising by 20% as in comparison with the earlier 12 months. Along with promoting gross sales, 12-month income was additionally boosted by the upper variety of digital subscriptions and the expansion within the common value of each paper in addition to digital merchandise. Demand for the occasions provided via the Group’s ticket enterprise platforms additionally picked up. The gross sales volumes of outside screens elevated because of the extra intensive digital outside display community the place 27 new screens have been added.

The variety of digital subscriptions of AS Ekspress Grupp elevated by 12% year-over-year by the top of December 2022 and totalled 146.6 thousand subscriptions. The variety of digital subscriptions continued to develop quickly, which is a proof that the paid content material mannequin is sustainable and has an more and more extra necessary position on the income aspect of the Group’s media corporations. Even though the bills of the folks within the Baltic States are being extra scrutinized on account of inflation and common value rally, reader’s curiosity in impartial journalism remained excessive due to the disturbing occasions final 12 months. Delfi’s strong market management place in all Baltic States makes readers want the portal with essentially the most complete content material.

The earnings earlier than curiosity, tax, depreciation and amortisation (EBITDA) of Ekspress Grupp totalled EUR 3.8 million within the 4^th quarter and EUR 8.9 million over the 12-month interval. EBITDA elevated each within the 4^th quarter in addition to over the 12-month interval, by 19% and eight%, respectively. The Group has discovered it difficult to take care of its EBITDA margin because of the progress in enter costs (primarily paper, printing and power prices) and the overall stress from the financial setting on wage prices. Nonetheless, given the price pressures, we’re happy that on account of income progress, we managed to take care of the 12-month EBITDA margin at round 14% (12 months 2021: 15%). The power to take care of profitability and react shortly, particularly if market developments are long run than proven by present forecasts, will stay key subjects for the Group in subsequent intervals.

The consolidated internet revenue within the 4^th quarter of 2022 totalled EUR 2.4 million and 12-month internet revenue totalled EUR 4.1 million. 12-month internet revenue remained on the identical degree (12 months 2021: EUR 4.1 million). Regardless of the Group demonstrating average, 8% EBITDA progress, internet revenue stayed on the identical degree as in 2021. The upper lack of the three way partnership AS Categorical Publish for the interval and the rise of the Group’s depreciation cost on account of larger capital expenditures as in comparison with the identical interval final 12 months had a damaging affect on the Group’s internet revenue in 2022. As well as, the income for 2021 included one-off finance earnings within the quantity of EUR 0.4 million for honest worth adjustment of the long run dedication associated the acquisition value of the ticket gross sales platform.

In December 2022, the Group acquired a 100% possession curiosity in one of the well-liked Lithuanian information portals lrytas.lt. The acquisition of the information portal Lrytas varieties an natural a part of the Group’s technique. The principle goal for the acquisition is the expansion of the digital media enterprise within the area’s largest market. The information portal has a mean of 420 000 day by day readers (supply: Gemius) and the portal’s promoting income totals about EUR 3 million per 12 months. The widespread aim of Lrytas and Ekspress Grupp is to offer fascinating and impartial content material for its readers. After the transaction, Lrytas will proceed to function as an impartial media firm.

The Administration Board of Ekspress Grupp charges the Group’s 12-month efficiency as optimistic: the Group managed to extend its digital income base (each turnover and share of digital income, in addition to the variety of digital subscribers) and preserve respectable profitability regardless of the unstable financial setting and the expansion of each enter costs and wage prices. This demonstrates that during the last two years, Ekspress Grupp has managed to shortly and effectively adapt to the modified financial setting whereas adhering to its chosen technique. Contradictory future forecasts require the readiness to be versatile and react promptly within the coming quarters.

On the finish of the reporting interval, the Group had accessible money within the quantity of EUR 7.4 million and fairness within the quantity of EUR 55.4 million (56% of complete property). The comparable information as of 31 December 2021 have been EUR 11.0 million and EUR 53.7 million (57% of complete property), respectively. Given the Group’s money place, at 8 February 2023 the Group introduced a share buyback programme authorized by the shareholders in Could 2022. Within the buyback provide focusing on all shareholders, the Group affords shareholders from 15 February to six March 2023 the chance to promote Ekspress Grupp’s shares again on the value of EUR 1.70 per share. The utmost quantity of shares to be purchased again is as much as EUR 1 million (as much as 588,235 shares). The aim of share buyback is to reap the benefits of enticing market situations to create worth for shareholders by shopping for again personal shares and utilizing them for the discount of share capital or for different functions (e.g. sale of shares or use them for share choice program).

The outcomes of the buyback provide could have an effect on the quantity of dividends paid out of the Group’s 2022 earnings. The Administration Board will make a proposal concerning the dividends to be paid out of the revenue for 2022 together with the discover to name an abnormal common assembly, continuing from the beforehand authorized dividend coverage and the amount of the shares to be purchased again underneath the share buyback provide. The Group pays out a minimum of 30% of the final 12 months’s internet revenue as dividends underneath the situation that there might be ample financial funds accessible to fund key operations and make new strategic investments. In case the financial setting considerably slows down or the money flows are smaller than anticipated for different causes, the Group could decrease the dividend pay-out ratio or determine to not pay dividends.

This fall AND 12 MONTHS RESULTS

REVENUE

Within the 4^th quarter of 2022, the consolidated income totalled EUR 19.2 million (This fall 2021: EUR 15.9 million). The income for the 4^th quarter elevated by 20% year-over-year. The consolidated income for the 12 months of 2022 totalled EUR 64.1 million (12 months 2021: EUR 53.5 million). The income for the 12-month interval elevated by 20% year-over-year. This progress was attributable to each internet advertising income in addition to digital subscription income. The share of the Group’s digital income in complete income was 78% on the finish of the 4^th quarter of 2022 (on the finish of This fall 2021: 76% of complete income). Digital income for the 12 months of 2022 elevated by 23% as in comparison with the identical interval final 12 months.

PROFITABILITY

Within the 4^th quarter of 2022, the consolidated EBITDA totalled EUR 3.8 million (This fall 2021: EUR 3.2 million). Within the 4^th quarter of 2022, EBITDA elevated by 19% as in comparison with final 12 months and the EBITDA margin was 20% (This fall 2021: 20%). The consolidated EBITDA for the 12 months of 2022 totalled EUR 8.9 million (12 months 2021: EUR 8.2 million). Within the 12 months of 2022, EBITDA elevated by 8% as in comparison with the earlier 12 months and the EBITDA margin was 14% (12 months 2021: 15%).

The consolidated internet revenue for the 4^th quarter of 2022 totalled EUR 2.4 million (This fall 2021: EUR 2.3 million). Within the 4^th quarter of 2022, internet revenue elevated by 6% as in comparison with the earlier 12 months. The consolidated internet revenue for the 12 months of 2022 totalled EUR 4.1 million (12 months 2021: EUR 4.1 million). The Group demonstrated modest EBITDA progress of 8% whereas the web revenue stayed on the identical degree as in 2021. The online revenue for 2022 declined due the upper lack of the three way partnership AS Categorical Publish for the interval and the Group’s larger depreciation cost ensuing from larger capital expenditures as in comparison with the identical interval final 12 months. As well as, the comparable base for 2021 is larger on account of recognition of one-off finance earnings within the quantity of EUR 0.4 million for honest worth adjustment of the long run dedication associated to the acquisition value of the ticket gross sales platform.

EXPENSES

Within the 12 months of 2022, the price of items offered, advertising and marketing, and common and administrative prices totalled EUR 60.0 million (12 months 2021: EUR 49.5 million). Within the 12 months of the 12 months, working bills elevated by EUR 10.5 million (+21%). Employees prices within the quantity of EUR 5.4 million (+20%) elevated essentially the most. The numerous progress in enter bills is linked to the outsourcing of the printing service associated to print media in addition to the house supply service, complete progress was EUR 1.0 million (+17%).

As of 31 December 2022, the Group employed 884 staff which is 143 extra as in comparison with the identical interval final 12 months (31.12.2021: 741 staff). This progress is attributable to 66 staff who have been transferred from the businesses acquired, incl. OÜ Geenius Meedia, ELTA information company in Lithuania and the information portal lrytas.lt acquired in December 2022. 77 staff have been employed in different corporations in Estonia, Latvia and Lithuania. Given the excessive inflationary and rising rate of interest setting, we now have selectively adjusted the salaries of Group staff and arrange one-off assist measures. As well as, value reductions and particular person redundancies have been carried out in Latvia already within the 3^rd quarter of 2022, as its promoting gross sales have failed to fulfill the Group’s inside targets.

Within the 12 months of the 12 months, the one-off expenditure consists of donations to Ukraine within the complete quantity of EUR 0.2 million.

The warfare in Ukraine has had a serious damaging impact on the GDP progress within the Baltic States. Because of this, the economic system has slowed down and created a excessive inflationary setting (in December 2022, inflation was 17.5% in Estonia, 20.0% in Lithuania and 20.7% in Latvia as in comparison with the earlier 12 months) which is presently one of many highest within the Eurozone. The inflationary setting might be a problem in 2023. Nonetheless, the optimistic information is that it’s in a downward development as in comparison with October information. The Group has neither any operations nor any property in Ukraine and Russia, and subsequently, the warfare has solely an oblique affect on the Group.

CASH POSITION

On the finish of the reporting interval, the Group had accessible money within the quantity of EUR 7.4 million and fairness within the quantity of EUR 55.4 million (56% of complete property). The comparable information as of 31 December 2021 have been EUR 11.0 million and EUR 53.7 million (57% of complete property), respectively. As of 31 December 2022, the Group’s internet debt was EUR 13.3 million (31 December 2021: EUR 6.1 million).

Within the 12 months of 2022, the Group’s money flows from working actions totalled EUR 8.0 million (12 months 2021: EUR 8.1 million, incl. printing providers phase) that have been positively impacted by the ticket gross sales platforms in Estonia and Latvia. The gross sales exercise of the Latvian ticket gross sales platform has recovered and is in a greater place on account of larger ticket costs as in comparison with the pre-Covid-19 interval.

Within the 12 months of 2022, the Group’s money flows from investing actions totalled EUR -10.6 million (12 months 2021: EUR 1.0 million, incl. the sale of a discontinued operation within the quantity of EUR 6.3 million), of which EUR -3.7 million was associated to improvement and acquisition of property, plant and tools and intangible property, indicating larger investments in merchandise and applied sciences. Within the 12 months of the 12 months, the Group invested EUR -1.9 million in new LED screens, which has been partially funded with a finance lease.

Within the 12 months of 2022, the Group’s money flows from financing actions totalled EUR -0.9 million (12 months 2021: EUR -4.4 million), of which EUR -2.4 was the dividend cost to the shareholders of AS Ekspress Grupp. Financing actions additionally embrace a internet change in borrowings within the quantity of EUR 3.3 million and lease liabilities within the quantity of EUR -1.8 million. When making investments in 2022, the Group has used debt in average quantities within the type of financial institution loans.

DIVIDENDS

On the common Normal Assembly of Shareholders of AS Ekspress Grupp held on 2 Could 2022, it was determined to pay a dividend of 8 euro cents per share within the complete quantity of EUR 2.43 million. Dividends have been paid to shareholders on 20 Could 2022.

Key monetary indicators for segments

Consolidated stability sheet (unaudited)

Consolidated assertion of complete earnings (unaudited)

Consolidated money circulation assertion (unaudited)

*No changes have been made to the consolidated money flows for 2021 in accordance with the necessities of IFRS. Money flows associated to the printing providers phase are nonetheless consolidated line-by-line.

Signe Kukin
Group CFO
AS Ekspress Grupp
Phone: +372 669 8381
E-mail handle: [email protected]

AS Ekspress Grupp is the main Baltic media group whose key actions embrace net media content material manufacturing in addition to publishing of newspapers, magazines and books. The Group additionally operates an digital ticket gross sales platform and ticket workplaces and supplies an out of doors display service in Estonia and Latvia. Ekspress Grupp launched its operations in 1989 and it employs virtually 1600 folks.

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