In the third quarter of 2020, the revenue of
In the 3rd quarter, the Group's revenue recovered well from the downturn caused by the state of emergency and was at the same level as the year before. The revenue for the first 9 months of the year was ca 6% lower than in 2019, primarily related to the state of emergency in the 2nd quarter. While the revenue drop in 2nd quarter was clearly attributable to cautiousness of customers, in the 3rd quarter we witnessed revenue recovery, especially relating to the data of online advertising.
In the 3rd quarter, the digital revenue of Ekspress Grupp increased and accounted for 70% of the Group's media segment revenue and 48% of the Group's total revenue. In the 3rd quarter, growth was propelled by the steadily increasing volume of digital subscriptions of periodicals of Ekspress Grupp and reached 71 thousand subscribers in the Baltic States, growing by more than 12% in a quarter and being 42% higher than at the year-end 2019. The growth in digital subscriptions has accelerated following the extraordinary events in the world, demonstrating clearly that readers appreciate edited content and they are willing to pay for it. Digital revenue increased in
Earnings before interest, tax, depreciation and amortisation (EBITDA) of Ekspress Grupp were
The Group's net profit in the 3rd quarter totalled
The Group continued to operate in the cost-cutting mode and searched for ways to increase efficiency. In the crisis months, the Group immediately took action by cutting costs and the cost base has been reduced by ca
The state of emergency related to COVID-19 has impacted the activities of the Latvian ticket sales network the most. The Latvian State has set a 50% limit on the occupancy rate of movie theatres and the company's activities are therefore considerably more restricted than the year before. At the same time, the ticket sales platform has been able to focus on the development of its web platform and launched a new and more modern solution for its end users. New technological opportunities, including requirements for the customer profile of the ticket platform set by the state where each customer can be identified and that we have successfully developed in our systems, have helped to almost double our market share. However, due to the government restrictions, the activities will still be significantly impaired in the coming months.
At the beginning of September, the new season of Delfi TV was launched in
The Group’s liquidity continues to be strong. As of
SUMMARY OF THE RESULTS OF THE THIRD QUARTER AND NINE MONTHS
In accordance with International Financial Reporting Standards (IFRS), 50% joint venture should be recognised under the equity method in the consolidated financial statements. To provide a clearer uniform overview of the financial statements to the readers of the financial statements, from the 1st quarter of 2020, only the information relating to the joint ventures recognised under the equity method is presented in the financial statements and their results are shown as one line in the finance income.
REVENUE
The consolidated revenue for the 3rd quarter of 2020 totalled
PROFITABILITY
In the 3rd quarter of 2020, the consolidated EBITDA totalled
CASH POSITION
At the end of the reporting period, the Group had available cash in the amount of
Key financial indicators for segments
(EUR thousand) | Sales | ||||||
Q3 2020 | Q3 2019 | Change % | 9 months 2020 | 9 months 2019 | Change % | 12 months 2019 | |
Media segment | 10 709 | 9 908 | 8% | 30 572 | 30 777 | -1% | 44 218 |
incl. revenue from all digital and online channels | 7 812 | 6 987 | 12% | 21 338 | 20 815 | 3% | 30 534 |
incl. % of revenue from all digital and online channels | 73% | 71% | 70% | 68% | 69% | ||
Printing services segment | 4 901 | 5 608 | -13% | 15 714 | 18 789 | -16% | 25 695 |
Corporate functions | 693 | 512 | 35% | 1 728 | 1 558 | 11% | 2 076 |
Inter-segment eliminations | (1 125) | (1 043) | (3 243) | (3 353) | (4 533) | ||
TOTAL GROUP | 15 179 | 14 985 | 1% | 44 771 | 47 771 | -6% | 67 456 |
incl. % of revenue from all digital and online channels | 51% | 47% | 48% | 44% | 45% |
(EUR thousand) | EBITDA | ||||||
Q3 2020 | Q3 2019 | Change % | 9 months 2020 | 9 months 2019 | Change % | 12 months 2019 | |
Media segment | 1 729 | 1 188 | 45% | 3 491 | 2 988 | 17% | 5 966 |
Printing services segment | 603 | 357 | 69% | 1 434 | 1 465 | -2% | 2 032 |
Corporate functions | (90) | (219) | 59% | (325) | (854) | 62% | (1 150) |
Inter-segment eliminations | (11) | (10) | (43) | (23) | (75) | ||
TOTAL GROUP | 2 231 | 1 317 | 69% | 4 556 | 3 576 | 27% | 6 772 |
EBITDA margin | Q3 2020 | Q3 2019 | 9 months 2020 | 9 months 2019 | 12 months 2019 |
Media segment | 16% | 12% | 11% | 10% | 13% |
Printing services segment | 12% | 6% | 9% | 8% | 8% |
TOTAL GROUP | 15% | 9% | 10% | 7% | 10% |
Consolidated balance sheet (unaudited)
(EUR thousand) | ||
ASSETS | ||
Current assets | ||
Cash and cash equivalents | 5 760 | 3 647 |
Trade and other receivables | 10 871 | 12 705 |
Corporate income tax prepayment | 48 | 0 |
Inventories | 2 906 | 3 120 |
Total current assets | 19 585 | 19 472 |
Non-current assets | ||
Other receivables and investments | 1 041 | 975 |
Deferred tax asset | 38 | 38 |
Investments in joint ventures | 1 629 | 1 254 |
Investments in associates | 2 276 | 2 356 |
Property, plant and equipment | 14 348 | 14 943 |
Intangible assets | 56 583 | 56 369 |
Total non-current assets | 75 915 | 75 935 |
TOTAL ASSETS | 95 499 | 95 407 |
LIABILITIES | ||
Current liabilities | ||
Borrowings | 3 368 | 5 100 |
Trade and other payables | 17 699 | 16 483 |
Corporate income tax payable | 24 | 65 |
Total current liabilities | 21 091 | 21 647 |
Non-current liabilities | ||
Long-term borrowings | 18 933 | 19 242 |
Other long-term liabilities | 2 922 | 2 895 |
Total non-current liabilities | 21 855 | 22 137 |
TOTAL LIABILITIES | 42 947 | 43 784 |
EQUITY | ||
Minority shareholding | 115 | 100 |
Capital and reserves attributable to equity holders of parent company: | ||
Share capital | 17 878 | 17 878 |
Share premium | 14 277 | 14 277 |
(22) | (22) | |
Reserves | 1 758 | 1 688 |
Retained earnings | 18 546 | 17 701 |
Total capital and reserves attributable to equity holders of parent company | 52 437 | 51 522 |
TOTAL EQUITY | 52 552 | 51 622 |
TOTAL LIABILITIES AND EQUITY | 95 499 | 95 407 |
Consolidated statement of comprehensive income (unaudited)
(EUR thousand) | Q3 2020 | Q3 2019 | 9 months 2020 | 9 months 2019 | 12 months 2019 |
Sales | 15 179 | 14 985 | 44 771 | 47 771 | 67 456 |
Cost of sales | (12 255) | (12 161) | (37 325) | (39 384) | (54 044) |
Gross profit | 2 924 | 2 824 | 7 446 | 8 387 | 13 412 |
Other income | 693 | 161 | 1 352 | 450 | 607 |
Marketing expenses | (661) | (685) | (1 949) | (2 311) | (3 124) |
Administrative expenses | (1 658) | (1 962) | (5 153) | (5 868) | (8 024) |
Other expenses | (24) | 1 | (104) | (54) | (148) |
Operating profit /(loss) | 1 274 | 339 | 1 593 | 603 | 2 722 |
Interest income | 7 | 6 | 19 | 18 | 22 |
Interest expenses | (217) | (239) | (658) | (555) | (784) |
Other finance income/(costs) | (33) | 7 | (61) | (37) | (61) |
Net finance cost | (243) | (226) | (700) | (574) | (823) |
Profit/(loss) on shares of joint ventures | 99 | (16) | 107 | (17) | (38) |
Profit/(loss) on shares of associates | (48) | (22) | (75) | (97) | (114) |
Profit /(loss) before income tax | 1 082 | 75 | 924 | (85) | 1 746 |
Income tax expense | (1) | (55) | (3) | (153) | (339) |
Net profit /(loss) for the reporting period | 1 081 | 20 | 921 | (238) | 1 407 |
Net profit /(loss) for the reporting period attributable to | |||||
Equity holders of the parent company | 1 074 | 20 | 906 | (243) | 1 394 |
Minority shareholders | 7 | 0 | 15 | 5 | 13 |
Total comprehensive income /(loss) | 1 081 | 20 | 921 | (238) | 1 407 |
Comprehensive income /(loss) for the reporting period attributable to | |||||
Equity holders of the parent company | 1 074 | 20 | 906 | (243) | 1 394 |
Minority shareholders | 7 | 0 | 15 | 5 | 13 |
Basic earnings per share | 0.04 | 0.00 | 0.03 | (0.01) | 0.05 |
Diluted earnings per share | 0.03 | 0.00 | 0.03 | (0.01) | 0.05 |
Consolidated cash flow statement (unaudited)
(EUR thousand) | 9 months 2020 | 9 months 2019 |
Cash flows from operating activities | ||
Operating profit for the reporting year | 1 593 | 603 |
Adjustments for: | ||
Depreciation, amortisation and impairment | 2 974 | 2 989 |
(Gain)/loss on sale and write-down of property, plant and equipment | (1) | (17) |
Cash flows from operating activities: | ||
Trade and other receivables | 1 880 | (1 463) |
Inventories | 214 | 130 |
Trade and other payables | 327 | 3 347 |
Cash generated from operations | ||
Income tax paid | (91) | (220) |
Interest paid | (453) | (428) |
Net cash generated from operating activities | 6 443 | 4 940 |
Cash flows from investing activities | ||
Acquisition of subsidiaries/ associates (less cash acquired) and other investments / cash paid-in equity-accounted investees | (203) | (4 858) |
Proceeds from other investments | 84 | 323 |
Interest received | 1 | 18 |
Dividends received | 150 | 0 |
Purchase of property, plant and equipment and intangible assets | (1 623) | (2 111) |
Proceeds from sale of property, plant and equipment and intangible assets | 29 | 18 |
Loans granted | (187) | (93) |
Loan repayments received | 0 | 303 |
Net cash used in investing activities | (1 750) | (6 400) |
Cash flows from financing activities | ||
Payment of lease liabilities | (693) | (669) |
Change in overdraft | (1 018) | (267) |
Loans received / Repayments of bank loans | (868) | 3 899 |
Net cash used in financing activities | (2 579) | 2 963 |
2 114 | 1 503 | |
Cash and cash equivalents at the beginning of the year | 3 647 | 1 268 |
Cash and cash equivalents at the end of the year | 5 760 | 2 771 |
Group CFO
Phone: +372 669 8381
E-mail: signe.kukin@egrupp.ee
Attachment
- EG_III_kvartal_2020_ENG
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