Credit risk
Credit risk is expressed as a loss which may be incurred by the Group and is caused by the counterparty if the latter fails to perform its contractual financial obligations. Credit risk arises from cash and bank, trade receivables, other short-term receivables and loans granted.
The payment discipline of clients is continuously monitored to reduce credit risk. A credit policy has been established to ensure the sale or services to clients with an adequate credit history and the application of prepayments to clients in a higher risk category. According to the credit policy, different client groups are subject to different payment terms and credit limits. Clients are classified on the basis of their size, reputation, and the results of credit background checks and history of payment behaviour. At the first level, the advertising clients are divided into two groups: advertising agencies and direct clients, they are further grouped according to the above principles. The Group applies the same credit policy in all Baltic States but is aware of different credit behaviour of clients.
In the case of new clients, their credit background is checked with the help of financial information databases such as Krediidiinfo and other similar databases. At the beginning clients’ payment behaviour will be monitored with heightened interest. Upon following the payment discipline, it is possible to receive more flexible credit terms, such as longer payment terms, higher credit limits, etc. Upon violation of the payment discipline, stricter credit terms are applied. In case of large transactions, in particular in the segment of printing services, clients are requested to make prepayment or provide a guarantee letter.
The Group is not aware of any substantial risks related to the concentration of its clients and partners. The management estimates that there is no substantial credit risk in the loans to related parties due to their solid financial position.
The maximum credit risk which arises from the trade and other receivables is provided below:
| 31.12.2022 (EUR thousand) | Due date | Overdue >= 7 days | Overdue >7 days and <=60 days | Overdue > 60 days | Total receivables |
|---|---|---|---|---|---|
| Trade receivables | 6 245 | 945 | 485 | 16 | 7 691 |
| Other short-term receivables | 2 720 | 0 | 0 | 0 | 2 720 |
| Other long-term receivables | 711 | 0 | 0 | 0 | 711 |
| TOTAL | 9 676 | 945 | 485 | 16 | 11 122 |
| 31.12.2021 (EUR thousand) | Due date | Overdue >= 7 days | Overdue >7 days and <=60 days | Overdue > 60 days | Total receivables |
|---|---|---|---|---|---|
| Trade receivables | 5 653 | 958 | 371 | 28 | 7 009 |
| Other short-term receivables | 1 453 | 0 | 0 | 0 | 1 453 |
| Other long-term receivables | 793 | 0 | 0 | 0 | 793 |
| TOTAL | 7 899 | 958 | 371 | 28 | 9 256 |
Kontsern rakendab kõigi ostjate vastu tekkinud nõuete eeldatava krediidikahjumi kajastamisel standardis IFRS 9 sätestatud lihtsustatud meetodit, mis lubab moodustada allahindluse reservi eluea jooksul eeldatavate krediidikahjumite summas. Antud finantsvarade eeldatava krediidikahjumi hindamiseks kasutatakse eraldiste moodustamise maatriksit, mis põhineb kontserni ajaloolisel krediidikahjumi kogemusel, mida korrigeeritakse konkreetsete deebitoridega seotud tegurite, üldiste majandustingimuste, aruandekuupäeval finantsvarale rakenduvate tegelike ja prognoositavate tingimuste ja nende suuna hinnanguga ning vajadusel ka raha ajaväärtusega.
Muude nõuete (sh laenunõuded) osas kajastab kontsern väärtuse langust summas, mis võrdub 12 kuu jooksul eeldatavate krediidikahjumitega, kui krediidirisk ei ole pärast esmast kajastamist märkimisväärselt suurenenud. Kui krediidirisk on märkimisväärselt suurenenud, kajastab kontsern krediidikahjumit summas, mis võrdub eluea jooksul eeldatavate krediidikahjumitega.