Revenue of Ekspress Grupp increased by one fifth last year
The revenue of the leading Baltic media group AS Ekspress Grupp increased by one fifth last year, attributable to growth in digital revenue. The company earned a profit of EUR 4.1 million, as shown by the Group’s 12-month consolidated interim report.
The revenue of AS Ekspress Grupp for the 12-month period totalled EUR 64.1 million, increasing by 20% as compared to the previous year. The net profit for the 12-month period totalled EUR 4.1 million which is at the same level as in the previous year. Digital revenue increased by 23% and digital revenue made up 78% of the Group’s total revenue at the end of December. The Group’s revenue in the 4th quarter also increased by 20% and reached EUR 19.2 million and the net profit for the quarter totalled EUR 2.4 million.
According to the Chairman of the Management Board of Ekspress Grupp, Mari-Liis Rüütsalu, the Management Board of Ekspress Grupp considers the Group’s 12-month performance positive: the Group managed to increase its digital revenue base, both turnover and share of digital revenue, as well as the number of digital subscribers. “We maintained decent profitability despite the unstable economic environment and the growth of both input prices and wage costs. This demonstrates that over the last two years, Ekspress Grupp has managed to quickly and efficiently adapt to the changed economic environment while adhering to its chosen strategy. Contradictory future forecasts require us to be flexible and react promptly also in the quarters to come,” commented Rüütsalu.
Rüütsalu pointed out that the Group’s online advertising sales continued to grow at the time when the total market did not increase. Revenue was also boosted by the higher number of digital subscriptions and the growth in the average price of both paper as well as digital products. The number of digital subscriptions of AS Ekspress Grupp increased by 12% year-over-year by the end of December 2022 and totalled 146,600 subscriptions. According to Rüütsalu, the fast growth in the number of digital subscriptions demonstrates that the paid content model is sustainable and has an increasingly more important role on the revenue side of the Group’s media companies.
After the coronavirus crisis subsided, demand for events organised through the Group’s ticket sales platforms increased last year. The sales volumes of outdoor screens increased due to the more extensive digital outdoor screen network where 27 new screens were added in 2022.
The earnings before interest, tax, depreciation and amortisation (EBITDA) of Ekspress Grupp totalled EUR 8.9 million over the 12-month period, increasing by 8% as compared to the same period last year. The consolidated net profit for 2022 totalled EUR 4.1 million which stayed at the same level as in the previous year (2021: EUR 4.1 million).
Ekspress Grupp is currently carrying out a share buyback, during which it offers shareholders from 15 February to 6 March 2023 the opportunity to sell Ekspress Grupp’s shares back to the company at the price of EUR 1.7 per share. The maximum volume of shares to be bought back is up to EUR 1 million.
AS Ekspress Grupp is the leading Baltic media group whose key activities include web media content production as well as publishing of newspapers, magazines and books. The Group also operates an electronic ticket sales platform and ticket offices and provides an outdoor screen service in Estonia and Latvia. Ekspress Grupp launched its operations in 1989 and it employs almost 1600 people.
Additional information:
Mari-Liis Rüütsalu
Chairman of the Management Board
mariliis.ryytsalu@egrupp.ee
Phone: +372 512 2591