AS Ekspress Grupp: Consolidated Interim Report for the Second Quarter and First Half-Year of 2016 29.07

In the second quarter of 2016, the revenue of the Group increased 3% as compared to the year before amounting to EUR 16.5 million. Considering only the Group’s core business and excluding the revenue earned from the Titanic exhibition, the revenue increased even more impressively by 6%. Revenue grew  both in the media and printing services segments. In comparison with the forecast, the actual result was 2% lower, mainly in the printing services segment that continues to be influenced by strong price competition in Scandinavia caused by sanctions imposed against Russia. In the second quarter, the Group’s EBITDA increased 57% year on year, totalling EUR 2.3 million. Including elimination of the loss of EUR 1.1 million in connection with the Titanic exhibition, our profit in the core business was 11% lower than a year earlier and 12% lower than our forecast. The decrease in core business’ EBITDA and net profit by EUR 0.3 million in a year are mainly attributable to the decision to deliberately increase the cost basis in the highly competitive media segment, lower page prices in advertising and strong price pressure in the printing services segment. The above figures include all our joint ventures (AS SL Õhtuleht, AS Ajakirjade Kirjastus and AS Express Post) consolidated 50% line-by-line.

In the second quarter revenue in the media segment amounted to EUR 11.2 million and increased 7% year on year, whereas revenue from digital and online channels increased 15%. EBITDA totalled EUR 1.4 million, decreasing 12% or by approximately EUR 0.2 million compared to the second quarter of 2015. In the second quarter, Delfi Lithuania increased advertising revenue by 8% and EBITDA by 15% as compared to the year earlier, but the shortfall of the first quarter was not yet offset fully. In the second quarter, online advertising revenue grew strongly by 15%, but the Lithuanian magazine market continues to shrink. During the quarter, Ekspress Meedia posted strong growth in advertising sales in both online (16%) and in print (3%). The latter figure is significant, especially when taking into consideration the overall negative trend in the print market. This was achieved as a result of strong and efficient sales team, the increasingly versatile portfolio and innovative approach to advertising products and activities in the sales department. Subscription and retail sales revenue were both up by 3%, despite decreasing circulations. The decrease of EBITDA by EUR 0.3 million was attributable mainly to additional marketing costs of the new LP book series (last year’s advertising costs related to Maaleht book series were recognised in the first quarter), increased personnel and growth in printing and delivery costs resulting from growth in advertising volumes. Of various projects, one should mention the arrangement of the historic basketball game Kalev25 that was sold out and that was viewed by a record number of people via Delfi TV. Ekspress Meedia also signed a new contract with the Estonian Basketball Federation, under which Delfi was granted three-year exclusive rights for web broadcasts. The Latvian Internet market has also shown good growth this year and in the second quarter Delfi Latvia increased its revenue by 14%. The competition situation between Internet portals remains tough which forces to continue investments in strong editorial offices. Despite that, Delfi Latvia managed to increase EBITDA 40% up to EUR 0.1 million in the second quarter.


The priority in the media segment continues to be innovation in developing different products and technical platforms. In all three countries, several new topical portals were launched, various new multimedia projects carried out, e-commerce services developed, and various advertising sales channels and solutions specific to target groups developed. Activities in social media also continue.


The revenue and profit growth of Ajakirjade Kirjastus 12% and 23%, respectively, were mainly attributable to the increase of our product portfolio. At the beginning of April, the company acquired from OÜ Presshouse Estonian largest women’s weekly magazine Naisteleht, as well as the rights and obligations related to the publication of magazines Nipiraamat and Müstiline Ajalugu. As a result of the transaction, existing magazine Naised and new acquired Naisteleht were merged and reached significant synergy that has enabled to increase both revenue and profit.


In the second quarter, SL Õhtuleht increased its revenue 6%. The growth was attributable to advertising revenue, circulation sales revenue and new projects. The book about Estonian football player Raio Piiroja and the magazine dedicated to the UEFA European Championships were published. Structural changes in the advertising department have had a particularly good impact on the print advertising sale. In May and June, advertising sales of Õhtuleht increased 5% and in May Linnaleht posted the best revenue of recent six years. Web advertising sales are growing at similar pace as print advertising. May was record month in web advertising sales of Õhtuleht. The number of digital subscribers has doubled since beginning of the year.

The printing segment has managed to halt the decrease of revenue and profit from last year. While in the first quarter the result was similar to the period a year earlier, the second-quarter revenue already increased 4%. While growth in the amount of orders and work volume was positive, continued price pressure does not allow revenue to increase at the same rate. In addition to competition in the export markets, Printall’s print prices outside of euro-zone are negatively affected also by the strengthening of the euro. For us, the positive news has been the closure of printing houses in the first half of 2016 and the decrease in capacities on the Scandinavian print market as this is already having an impact in the more stable and improved price levels. Thanks to consistent sales work, we have attained new products and customers in Scandinavia. Awareness about Printall is also growing in other printing sectors than newspapers and magazines. The objective is to further expand from periodicals to the B2B segment that produces for own use product catalogues and other specific products that are suitable for our sheet-fed machines. The 10% decrease in EBITDA is attributable to the growth in labour costs resulting from increased volumes and, in particular, growth in salaries of lower-level positions.

In July, we signed a contract to acquire 50% holding in OÜ Linna Ekraanid, which is engaged in the sale of digital outdoor advertising in Estonia. In the second quarter of 2019, AS Ekspress Grupp will acquire the remaining 50% of the shares of OÜ Linna Ekraanid and thereby will become the company’s sole shareholder.

The purpose of the acquisition is to create preconditions for the Group to set off a new business line and thereby expand the Group’s portfolio of business areas. The objective of AS Ekspress Grupp is to develop the business line of digital outdoor advertising in all three Baltic countries and take the leading role in this business segment.

The financial position of the Group remains strong, the ratio of total debt and EBITDA is already approaching 2.0 and the debt service coverage ratio is almost 2.4.


Our outlook for the next quarter and the whole year remains modest. However, we expect the online media and print media to continue stable growth and the printing services segment to recover. We believe that the second half will be more positive than the start of the year. In the third quarter we expect the revenue of our core business to grow approximately 8% and EBITDA to remain on last year’s level.


Our mission remains to offer new and interesting experiences both on paper and in digital media, without ever compromising on news quality, choice of topics and journalistic objectivity.

The Group’s goal is to be a truly modern media group with a strong foothold in all markets where actively present, with a leading position in online media.

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

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 a 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 50% and the other where joint ventures are recognised under the equity method and their net result is presented as financial income in one line.



Performance indicators – joint ventures 50%
consolidated (EUR thousand)
Q2 2016Q2 2015Change %Q2 2014Q2
For the period      
Sales16 54515 9983%16 00715 11515 763
EBITDA2 3321 48857%2 9352 3842 525
EBITDA margin (%)14.1%9.3% 18.3%15.8%16.0%
Operating profit1 546745107%2 1801 7421 670
Operating margin (%)9.3%4.7% 13.6%11.5%10.6%
Interest expenses(134)(146)8%(181)(178)(553)
Net profit /(loss) for the period1 324481175%1 8581 398972
Net margin (%)8.0%3.0% 11.6%9.3%6.2%
Return on assets ROA (%)1.7%0.6% 2.4%1.8%1.1%
Return on equity ROE (%)2.7%1.0% 4.3%3.3%2.5%
Earnings per share (EPS)0.050.02




Performance indicators – joint ventures consolidated 50% (EUR thousand)1st Half year 20161st Half year 2015Change %1st Half year 20141st Half year
1st Half year
For the period      
Sales30 94730 1783%30 77328 92529 982
EBITDA3 5743 00519%4 3893 8884 140
EBITDA margin (%)11.5%10.0% 14.3%13.4%13.8%
Operating profit2 0221 50734%2 8712 5822 426
Operating margin (%)6.5%5.0% 9.3%8.9%8.1%
Interest expenses(269)(320)16%(357)(374)(1 041)
Net profit /(loss) for the period1 6361 03758%2 3612 0361 151
Net margin (%)5.3%3.4% 7.7%7.0%3.8%
Return on assets ROA (%)2.1%1.3% 3.1%2.6%1.3%
Return on equity ROE (%)3.4%2.2% 5.5%4.9%3.1%
Earnings per share (EPS)0.060.03




Balance sheet – joint ventures 50% consolidated (EUR thousand)30.06.201631.12.2015Change %
As of the end of the period   
Current assets16 01915 5533%
Non-current assets60 79261 588-1%
Total assets76 81177 1410%
       incl. cash and bank4 8584 6664%
       incl. goodwill38 23238 2320%
Current liabilities13 36712 5397%
Non-current liabilities15 20915 928-5%
Total liabilities28 57628 4670%
       incl. borrowings17 52018 787-7%
 Equity48 23548 674-1%




 Financial ratios (%) – joint ventures consolidated  50%30.06.201631.12.2015
Equity ratio (%)63%63%
Debt to equity ratio (%)36%39%
Debt to capital ratio (%)21%22%
Total debt /EBITDA ratio2.082.39
Debt service coverage ratio2.391.79
Liquidity ratio1.201.24



FINANCIAL INDICATORS AND RATIOS – joint ventures recognised                      under the equity method

Performance indicators – joint ventures under the equity method (EUR thousand)Q2 2016Q2
Change %Q2 
For the period      
Sales (only subsidiaries)14 12013 7653%13 76412 99813 570
EBITDA (only subsidiaries)1 9621 11376%2 6642 1962 345
EBITDA margin (%)13.9%8.1% 19.4%16.9%17.3%
Operating profit (only subsidiaries)1 249429191%1 9361 5761 516
Operating margin (%)8.8%3.1% 14.1%12.1%11.2%
Interest expenses (only subsidiaries)(121)(130)7%(181)(178)(553)
Profit of joint ventures by equity method224225-1%1908264
Net profit for the period1 324481175%1 8581 398972
Net margin (%)9.4%3.5% 13.5%10.8%7.2%
Return on assets ROA (%)1.8%0.6% 2.5%1.8%1.2%
Return on equity ROE (%)2.7%1.0% 4.2%3.3%2.5%
Earnings per share (EPS)0.050.02




Performance indicators – joint ventures under equity method  (EUR thousand)1st Half year 20161st Half year 2015Change %1st Half year 
1st Half year
1st Half year 2012
For the period      
Sales (only subsidiaries)26 37525 8582%26 49824 81125 748
EBITDA (only subsidiaries)2 9872 35127%3 9933 6123 893
EBITDA margin (%)11.3%9.1% 15.1%14.6%15.1%
Operating profit (only subsidiaries)1 57397262%2 5292 3542 236
Operating margin (%)6.0%3.8% 9.5%9.5%8.7%
Interest expenses (only subsidiaries)(241)(285)15%(357)(374)(1 042)
Profit of joint ventures by equity method356419-15%288146104
Net profit for the period1 6361 03758%2 3612 0361 151
Net margin (%)6.2%4.0% 8.9%8.2%4.5%
Return on assets ROA (%)2.2%1.4% 3.2%2.7%1.5%
Return on equity ROE (%)3.4%2.2% 5.5%4.9%3.0%
Earnings per share (EPS)0.060.03




Balance sheet– joint ventures under equity method 
(EUR thousand)
30.06.201631.12.2015Change %
As of the end of the period   
Current assets13 40212 3868%
Non-current assets59 91760 794-1%
Total assets73 31973 1800%
       incl. cash and bank3 6632 92725%
       incl. goodwill36 95336 9530%
Current liabilities10 7189 03319%
Non-current liabilities14 36715 473-7%
Total liabilities25 08524 5062%
       incl. borrowings16 57017 687-6%
Equity48 23548 674-1%




  Financial ratios (%) – joint ventures by equity method30.06.201631.12.2015
Equity ratio (%)66%67%
Debt to equity ratio (%)34%36%
Debt to capital ratio (%)21%23%
Total debt /EBITDA ratio2.262.65
Debt service coverage ratio2.301.67
Liquidity ratio1.251.37




All operating areas of the Group are characterised by cyclicality and fluctuation, related to the changes in the overall economic conditions and consumer confidence. The Group’s revenue can be adversely affected by an economic slowdown or recession in home and export markets. It can appear in lower advertising costs in retail, preference of other advertising channels (e.g. preference of internet rather than print media) and changes in consumption habits of retail consumers (following current news in news portals versus reading printed newspapers, preference of the younger generation to use mobile devices and other communication channels, etc.).


The revenue from the Group’s advertising sales as well as in the printing services segment is impacted by major seasonal fluctuations. The level of both types of revenue is the highest in the 2nd and 4th quarter of each year and the lowest in the 3rd quarter. Revenue is higher in the 4th quarter because of higher consumer spending during the Christmas season, accompanied by the increase in advertising expenditure. Advertising expenditure is usually the lowest during the summer months, as well as during the first months of the year following Christmas and New Year’s celebrations. Book sales are the strongest in the last quarter of the year. Subscriptions and retail sales of periodicals do not fluctuate as much as advertising revenue. However the summer period is always more quiet and at the beginning of the school year in September there is an increase in subscriptions and retail sales which usually continues until next summer holiday period.



Formulas used to calculate the financial ratios
EBITDAEarnings before interest, tax, depreciation and amortization. EBITDA does not include any impairment losses recognized during the period or result from restructuring. 
EBITDA margin (%) EBITDA/sales x 100
Operating margin* (%) Operating profit*/sales x100
Net margin (%) Net profit/sales x100
Earnings per share Net profit / average number of shares
Equity ratio (%)Equity/ (liabilities + equity) x100
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 ratioInterest bearing borrowings /EBITDA
Debt service coverage ratioEBITDA/loan and interest payments for the period
Liquidity ratioCurrent assets / current liabilities
Return on assets ROA (%)Net profit /average assets x 100
Return on equity ROE (%)Net profit /average equity x 100


The Group’s activities are divided into two large segments - media segment and printing services segment. Last year, there was also an entertainment segment

The segments’ EBITDA does not include intragroup management fees, impairment of goodwill and trademarks. Volume-based and other fees payable to advertising agencies have not been deducted from the advertising sales of segments, because the management monitors gross advertising sales. Discounts and rebates are reduced from the Group’s sales and are included in the combined line of eliminations.

Key financial data of the segments Q2 2012-2016


(EUR thousand)SalesSales
Change %Q2
media segment  (by equity method)8 5117 9847%7 4926 7517 040
       incl. revenue from all digital and online channels4 7404 11615%3 7303 2572 984
printing services segment6 6636 3864%7 2107 1317 482
entertainment segment392----
corporate functions59348822%423385279
intersegment eliminations(1 648)(1 485) (1 361)(1 270)(1 231)
TOTAL GROUP by equity method14 12013 7653%13 76412 99813 570
media segment by proportional consolidation11 23110 5077%9 9509 0829 443
       incl. revenue from all digital and online channels5 0674 40015%3 9633 4223 158
printing services segment6 6636 3864%7 2107 1317 482
entertainment segment392----
corporate functions59348822%423385279
intersegment eliminations(1 943)(1 775) (1 576)(1 483)(1 441)
TOTAL GROUP by proportional consolidation16 54515 9983%16 00715 11515 763




Change %Q2
media segment by equity method1 0591 256-16%1 261800956
media segment by proportional consolidation1 4301 631-12%1 5329891 138
printing services segment1 1481 271-10%1 5371 5991 563
entertainment segment-(1 129)----
corporate functions(246)(285)14%(134)(204)(175)
intersegment eliminations00 011
TOTAL GROUP by equity method1 9621 11376%2 6642 1962 345
TOTAL GROUP by proportional consolidation2 3321 48857%2 9352 3842 525




EBITDA marginQ2
media segment  by equity method12%16%17%12%14%
media segment  by proportional consolidation13%16%15%11%12%
printing services segment17%20%21%22%21%
TOTAL GROUP by equity method14%8%19%17%17%
TOTAL GROUP by proportional consolidation14%9%18%16%16%



Key financial data of the segments in the first half-year 2012-2016


(EUR thousand)SalesSales
 1st Half year
1st Half year
Change %1st Half year
1st Half year
1st Half year 2012
media segment  (by equity method)15 28214 5655%13 90612 67412 673
       incl. revenue from all digital and online channels8 2987 46611%6 5175 7275 217
printing services segment13 00412 7042%14 27213 74914 858
entertainment segment453----
corporate functions1 13296018%844740420
intersegment eliminations(3 043)(2 823) (2 524)(2 353)(2 202)
TOTAL GROUP by equity method26 37525 8582%26 49824 81125 748
media segment by proportional consolidation20 42819 4695%18 58817 04416 300
       incl. revenue from all digital and online channels8 9067 96612%6 9496 0225 528
printing services segment13 00412 7042%14 27213 74914 858
entertainment segment453----
corporate functions1 13296018%844740420
intersegment eliminations(3 617)(3 408) (2 931)(2 752)(2 608)
TOTAL GROUP by proportional consolidation30 94730 1783%30 77328 92529 982




 1st Half year
1st Half year 2015Change %1st Half year
1st Half year
1st Half year 2012
media segment by equity method1 0941 535-29%1 5991 0071 148
media segment by proportional consolidation1 6812 189-23%1 9971 2831 397
printing services segment2 3302 432-4%2 9953 0133 093
entertainment segment(1)(1 105)100%000
corporate functions(436)(511)15%(601)(410)(349)
intersegment eliminations00 021
TOTAL GROUP by equity method2 9872 35127%3 9933 6123 893
TOTAL GROUP by proportional consolidation3 5743 00519%4 3893 8884 140




EBITDA margin1st Half year
1st Half year
1st Half year
1st Half year
1st Half year
media segment  by equity method7%11%12%8%9%
media segment by proportional consolidation8%11%11%8%9%
printing services segment18%19%21%22%21%
TOTAL GROUP by equity method11%9%15%15%15%
TOTAL GROUP by proportional consolidation12%10%14%13%14%




The media segment includes Delfi operations in wholly-owned subsidiaries in Estonia, Latvia and Lithuania, publishing of Estonian newspapers Maaleht, Eesti Ekspress and Eesti Päevaleht, book publishing in Estonia, magazine publishing in Lithuania, activities of the retail offer portal Zave and holding company Delfi Holding. This segment also includes 50% joint ventures AS SL Õhtuleht (publisher of Õhtuleht and Linnaleht), magazine publisher AS Ajakirjade Kirjastus and home delivery company AS Express Post.

The entities’ EBITDA is presented before the trademark royalty fees that were paid to the direct parent company Delfi Holding until April 2015. In May 2015, Delfi group was restructured to better reflect the management structure that had changed over the years and as a consequence of which Delfi’s local companies are directly owned by AS Ekspress Grupp.

In July 2015 AS Delfi and newspaper publisher AS Eesti Ajalehed were merged in Estonia. New company continued to operate under name of AS Ekspress Meedia. In 2014, Delfi UAB and magazine publisher Ekspress Leidyba UAB were merged in Lithuania.

News portals owned by the Group


Ekspress Meediawww.delfi.eeEkspress
Delfi Lithuaniawww.delfi.ltAS SL Õ




(EUR thousand)Sales
 Q2 2016Q2 2015Change  %
Ekspress Meedia AS (Delfi Eesti + Eesti Ajalehed)5 2185 0084%
        incl. Delfi Estonia online revenue1 9061 64716%
Delfi Latvia89378514%
Delfi Lithuania (incl. Ekspress Leidyba)2 3052 1368%
        incl. Delfi Lithuania online revenue1 8191 57815%
OÜ Hea Lugu97124-22%
OÜ Zave Media00-
Other companies (Delfi Holding)0-
Intersegment eliminations(2)(69) 
TOTAL subsidiaries8 5117 9847%
AS SL Õhtuleht*1 1341 0746%
AS Ajakirjade Kirjastus*1 2181 08812%
AS Express Post*6806269%
Intersegment eliminations(312)(265) 
TOTAL joint ventures2 7202 5238%
TOTAL segment by proportional consolidation11 23110 5077%




(EUR thousand)EBITDA
 Q2 2016Q2 2015Change %
Ekspress Meedia AS (Delfi Eesti + Eesti Ajalehed)479743-36%
Delfi Latvia956840%
Delfi Lithuania (incl. Ekspress Leidyba)50544015%
OÜ Hea Lugu(9)6-250%
OÜ Zave Media(10)0-
Other companies (Delfi Holding)(1)(1)0%
Intersegment eliminations(0)(0) 
TOTAL subsidiaries1 0591 256-16%
AS SL Õhtuleht*150166-10%
AS Ajakirjade Kirjastus*15712723%
AS Express Post*6482-21%
Intersegment eliminations(0)(0) 
TOTAL joint ventures371375-1%
TOTAL segment by proportional consolidation1 4301 631-12%




(EUR thousand)Sales
 1st Half year 20161st Half year 2015Change  %
Ekspress Meedia AS (Delfi Eesti + Eesti Ajalehed)9 4309 1183%
        incl. Delfi Estonia online revenue3 3423 00511%
Delfi Latvia1 6271 46011%
Delfi Lithuania (incl. Ekspress Leidyba)4 0263 8754%
        incl. Delfi Lithuania online revenue3 0612 78710%
OÜ Hea Lugu201241-17%
OÜ Zave Media10-
Other companies (Delfi Holding)0-
Intersegment eliminations(3)(129) 
TOTAL subsidiaries15 28214 5655%
AS SL Õhtuleht*2 1622 0884%
AS Ajakirjade Kirjastus*2 2592 1067%
AS Express Post*1 3211 2644%
Intersegment eliminations(596)(554) 
TOTAL joint ventures5 1464 9045%
TOTAL segment by proportional consolidation20 42819 4695%




(EUR thousand)EBITDA
 1st Half year 20161st Half year 2015Change %
Ekspress Meedia AS (Delfi Eesti + Eesti Ajalehed)677861-21%
Delfi Latvia92111-17%
Delfi Lithuania (incl. Ekspress Leidyba)402556-28%
OÜ Hea Lugu(17)11-255%
OÜ Zave Media(60)0-
Other companies (Delfi Holding)(1)(4)75%
Intersegment eliminations1(0) 
TOTAL subsidiaries1 0941 535-29%
AS SL Õhtuleht*247284-13%
AS Ajakirjade Kirjastus*2032002%
AS Express Post*137170-19%
Intersegment eliminations(0)(0) 
TOTAL joint ventures587654-10%
TOTAL segment by proportional consolidation1 6812 189-23%


*Proportional share of joint ventures


DELFI and related products

As a market leader Delfi continues to invest into new technologies and IT solutions to improve user experience of its readers and advertisers. Last year, new Delfi mobile applications for both IOS and Android devices were launched, enabling to use more creative solutions in the mobile environment. Programmatic advertising sales will be further developed in all three countries. Delfi TV platforms will continue to be enhanced and developed. The clients of Levira and Starman in Estonia are now able to watch Delfi TV broadcasts and programmes on television screens.

Starting from this year, our advertising sales departments are offering in addition to online advertising in our own portals also the possibility to buy advertising in other local or international channels. We also offer our customers a full advertising service from the idea to execution and booking media space.

In Lithuania, Delfi was the first publisher that introduced Facebook messenger bots. Bot covered the whole information need and provided reminders in connection with the UEFA European Championship including the schedule, team rosters, results, news, etc. Delfi was also the first in Lithuania to use Facebook Live streaming. The solution to use Facebook Instant Article was completed and preparations are underway to launch AdFree Delfi in all Baltic countries.

The range of vertical products continues to expand. In the second quarter, Delfi launched in Latvia two video sub-verticals and In Lithuania, in cooperation with the Lithuanian Marketing Association (LiMA), a new unique website for marketing professionals was launched aimed at promoting communication between them. As a new e-commerce service, was launched in Estonia that accumulates and mediates jobseekers and people looking for handymen.

In all three Baltic countries the focus is on writing more long-read analytical articles in order to increase the value of Delfi to users. In Estonia this has been provided in co-operation with editorial teams of our daily and weekly newspapers Eesti Päevaleht, Eesti Ekspress and Maaleht. In the second quarter, an interactive multimedia project was presented in all Baltic countries that was dedicated to the 30th anniversary of the Chernobyl nuclear disaster. In Latvia, there was a longer project about Positivus music festival.

A lot of attention is being paid on socially responsible behaviour and to supporting various charity projects, cultural, sport, social and business events in all Baltic countries.

Estonian online readership 2015-2016

In the first quarter of 2016, Postimees merged two classified portals and owned by Eesti Meedia into its domain. This increased the number of users of by 17%. In the second quarter of 2016, the gap decreased to the minimum and the number of users of and are nearly the same. It was the second quarter in a row when the number of mobile users in Estonia was decreasing.


During 2016, the methodology of the online readership survey in Estonia, Latvia and Lithuania will change, as a result of which the readership of mobile devices and tablet PCs will be added to the above readership of computer users.


Latvian online readership 2015-2016

Since at the beginning of 2016 Gemius changed its method of online survey, the online readership figure decreased in February. This figure shows only the online readership of PC users. remains Latvia’s largest portal among PC users. has increased its lead over The local social network steadily continues to lose users to Facebook. As in other Baltic countries, the main competition in Latvia is for attracting new mobile users. In the second quarter, there were no significant changes in the competition of the three largest portals.


Lithuanian online readership 2015-2016 remains Lithuania’s largest online portal. In the second quarter 2016, there were no major changes in the preferences of online users in Lithuania. has somewhat lost readership, especially in the recent month. As in other markets, development and marketing activities in Lithuania are focused on increasing the number of mobile users. In this segment, Delfi has notably increased its readership.


Print media in Estonia

Estonian newspaper circulation 2015-2016


Circulations of newspapers in Estonia have been falling moderately in the long run. In this respect, 2015 was a pleasant exception since newspaper circulations stabilized. We will probably see similar trends in 2016 – the first half of the year has been quite stable in comparison with earlier periods.


One also needs to add to the above readership the number of subscribers of digital newspapers. At the end of the second quarter 2016, Eesti Päevaleht had ca 18 thousand subscribers, Eesti Ekspress ca 9 thousand and Maaleht ca 6 thousand.


Estonian newspaper readership 2015-2016

Similarly with the circulation of newspapers, the readership of publications also remained relatively stable in the second quarter of 2016. As compared to the second quarter 2015, readership of Eesti Ekspress and Eesti Päevaleht increased, while that of Postimees and Õhtuleht decreased. As this survey does not cover the readership of digital newspapers, it does not represent the complete readership. The number of digital subscriptions of periodicals of the Ekspress Group amounts to ca 30 thousand. Increasing the readership of digital newspapers remains the main task for the Group’s publications.


All printing services of the Group are provided by AS Printall which is one of the largest printing companies in Estonia. We are able to print high-quality magazines, newspapers, advertising materials, product and service catalogues, paperback books and other publications in our printing plant. The new printing machine installed in 2015 has enabled us to further expand the range of printed products.   



(EUR thousand)Sales
AS Printall6 6636 3864%




(EUR thousand)EBITDA
Change %
AS Printall1 1481 271-10%




(EUR thousand)Sales
 1st Half year
1st Half year
AS Printall13 00412 7042%




(EUR thousand)EBITDA
 1st Half year
1st Half year
Change %
AS Printall2 3302 432-4%



The printing services segment continues to be negatively impacted by to the economic sanctions imposed to Russia, the negative impact of which on the Scandinavian printing industry also impacts us. The production volume of Printall continues to increase, but the price pressure is still strong due to the production capacity which has become available in Scandinavia as well as appreciating paper prices. The sales keep increasing, however the profit margin continues to fall due to lower prices. 

Printing services and the environment

In addition to its very strong financial position, Printall also focuses on environmentally conscious production.  Printall has been granted ISO 9001 management and ISO 14001 environmental certificates.

The Minister of the Environment of the Republic of Estonia and the waste managing company AS Ragn-Sells awarded Printall with the title of the Top Recycler of the Year, because the company recycles 95% of its waste.

The Nordic Council of Ministers has awarded Printall with the environmental label “The Nordic Ecolabel”, used to acknowledge the companies in the Nordic countries that use environmentally efficient production. Printall also has FSC and PEFC Chain of Custody (COC) certificates, which the company uses to promote a green way of thinking in the printing industry. Both of those certificates indicate compliance with monitoring and product production process requirements which are issued to businesses that comply with the requirements established by the FSC (Forest Stewardship Council) and the PEFC (Programme for the Endorsement of Forest Certification). A business that is issued these certificates helps to support the environmentally friendly, socially fair and economically viable management of the world’s forests.

Printall cares about the environment and uses green energy. The POWERED BY GREEN certificate is a proof that the company buys electricity, 70% of which has been generated by renewable sources of energy.


Consolidated balance sheet (unaudited)

(EUR thousand)30.06.201631.12.2015
Current assets  
Cash and cash equivalents3 6582 927
Term deposits50
Trade and other receivables7 2266 741
Corporate income tax prepayment780
Inventories2 4352 718
Total current assets13 40212 386
Non-current assets  
Trade and other receivables1 1441 149
Deferred tax asset4242
Investments in joint ventures1 1511 007
Investments in associates206215
Property, plant and equipment13 03513 791
Intangible assets44 33944 590
Total non-current assets59 91760 794
TOTAL ASSETS73 32073 180
Current liabilities  
Borrowings2 2292 240
Trade and other payables8 4266 679
Corporate income tax payable63114
Total current liabilities10 7189 033
Non-current liabilities  
Long-term borrowings 14 34115 447
Deferred tax liability2626
Total non-current liabilities14 36715 473
Share capital17 87817 878
Share premium14 27714 277
Treasury shares(863)(176)
Reserves1 9901 787
Retained earnings14 95314 908
TOTAL EQUITY48 23548 674

Consolidated statement of comprehensive income (unaudited)

(EUR thousand)Q2 2016Q2 20151st Half year20161st Half year2015
Sales revenue14 12013 76526 37525 857
Cost of sales(10 947)(11 550)(21 146)(21 344)
Gross profit3 1732 2155 2294 513
Other income123138236246
Marketing expenses(684)(579)(1 201)(1 132)
Administrative expenses(1 340)(1 314)(2 649)(2 603)
Other expenses(23)(31)(42)(52)
Operating profit1 2494291 573972
Interest income10111922
Interest expense(121)(130)(241)(285)
Other finance costs (18) (19) (33) (34)
Net finance cost (129) (138) (255) (297)
Profit on shares of joint ventures224225356419
Profit from shares of associates3424169
Profit before income tax1 3785401 6901 103
Income tax expense(54)(59)(54)(66)
Net profit  for the reporting period1 3244811 6361 037
Net profit for the reporting period attributable to:    
Equity holders of the parent company1 3244811 6361 037
Other comprehensive income0000
Total comprehensive income1 3244811 6361 037
Attributable to equity holders of the parent company1 3244811 6361 037
Basic and diluted earnings per share0.

Consolidated cash flow statement (unaudited)

(EUR thousand)1st Half year20161st Half year2015
Cash flows from operating activities  
Operating profit for the reporting year1 573972
Adjustments for:  
Depreciation, amortisation and impairment1 4131 379
(Gain)/loss on sale and write-down of property, plant and equipment(11)(3)
Change in value of share option6864
Cash flows from operating activities:  
Trade and other receivables(497)170
Trade and other payables262521
Cash generated from operations3 0903 134
Income tax paid(184)(66)
Interest paid(241)(285)
Net cash generated from operating activities2 6652 783
Cash flows from investing activities  
Term deposit release01 600
Interest received1933
Purchase of property, plant and equipment(407)(457)
Proceeds from sale of property, plant and equipment1616
Loans granted(9)0
Loan repayments received973
Net cash used in investing activities(372)1 254
Cash flows from financing activities  
Dividends received from joint ventures246278
Finance lease repayments(42)(40)
Change in use of overdraft0(1 117)
Loan received110
Repayments of bank loans(1 086)(3 458)
Purchase of treasury shares(687)(81)
Net cash used in financing activities(1 557)(4 419)
Cash and cash equivalents at the beginning of the year2 9273 656
Cash and cash equivalents at the end of the year3 6633 274


         Additional information:
         Gunnar Kobin
         Chairman of the Management Board
         GSM: +372 5188111


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