Ekspress Grupp’s revenues increase but profits fall 31.10

In the first 9 months of the year, the sales volume of the media group Ekspress Grupp increased by almost 10 per cent but its profits fell as reported in the interim report for the 3rd quarter released today.

Over the 9-month period, the revenue of AS Ekspress Grupp increased by 8% and totalled EUR 49.6 million. The Group’s digital revenue increased by 25% and made up 37 per cent of the company’s total sales. The Group’s EBITDA totalled EUR 3.0 million over the 9-month period. EBITDA fell by EUR 2.2 million year-on-year.  

According to Mari-Liis Rüütsalu, Chairman of the Management Board of Ekspress Grupp, the fast growth of digital revenue was unable to compensate for the weaker-than-expected performance in the printing services segment, the growth of several input prices as well as one-off expenses related to the reorganisation of the business of Ajakirjade Kirjastus.

“Despite higher sales volumes, the Group’s profitability is under pressure primarily due to the intensifying competitive situation in the media and printing services segments. The performance is additionally impacted by higher input prices, especially higher labour, electricity and paper costs. We keep looking for additional opportunities to improve our profitability and increase efficiency,” noted Rüütsalu.

In the future, Ekspress Grupp will continue to focus on the growth of digital revenue.  “Media consumption habits of consumers are changing. More consumers opt for digital content while many of them are still not used to paying for digital content. We are making constant efforts in this area to increase the number of digital subscribers as this represents a significant growth opportunity for us,” said Rüütsalu.

In the 3rd quarter, the marketing and sales activities of Ekspress Grupp’s real estate portal Kinnisvara24.ee were fully launched. “The first active months of operation may be considered successful for the portal - as of the end of September, we have caught up with the second-largest portal in the market City24.ee both in terms of the number of advertisements as well users,” noted Rüütsalu.

In the 3rd quarter, Ekspress Grupp arranged several important events in the experience marketing area. The largest one was an entertainment event with more than 25 000 participants in Kaunas, Lithuania.

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 owns leading web media portals in the Baltic States and publishes the most popular weekly and daily newspapers as well as the majority of the most popular magazines in Estonia. 

More precise in Stock Exchange Release.

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