Tallinn, Estonia, 2018-02-28 15:36 CET (GLOBE NEWSWIRE) --
The year 2017 was primarily a year of adaption for the Group. At the beginning
of the year, changes took place in the managements of the parent company and
three media companies domiciled in Estonia.
The trend of users of all ages moving to Internet has become the new normality,
creating new possibilities for our products on the one hand while leading to a
decline of interest in printed newspapers, magazines and advertising products.
All this requires an innovative approach and entry into new lines of business
in order to keep pace with the changing needs and requirements of consumers.
Constant and bold innovation has become the cornerstone of our activities, it
offers excitement and enables us to survive and grow in a more competitive
business environment.
As the market leader of news portals in the Baltic States, Delfi continues to
invest in new technology and IT solutions with the goal of improving the user
experience of its readers and advertisers in various channels and platforms. In
2017, innovative technology was developed further, enabling to pay for
fee-based content with one click. We believe that this technology will also
have international success and in addition to taking part in the pilot project,
we are also co-investors in Zlick Ltd.
We have launched ad-free Delfi, enabling to read ad-free Delfi portal for a
monthly fee. New separate mobile applications of our digital newspapers,
various product packages as well as Delfi verticals have been introduced.
The content produced by our companies has almost 75 000 digital subscribers
with an access to content in all channels. It marks a strong entry into the
market of digital subscribers. We are undoubtedly pioneers in our region,
paving the way for the growth of paid content consumption in the Baltic States.
This will help us offset the decline in paper revenue.
Since last year, our media companies offer customers an option to buy
advertising services ranging from the idea and execution to media space. We
also provide programmatic advertising sales and in addition to online
advertising, we offer the possibility to buy advertising in other local or
international channels. At the year-end, we acquired the remaining 51% holding
in Adnet Media, the largest online advertising multi-channel and advertising
network in the Baltic States.
As a new trend we have entered the event organising market. In addition to
traditional media we are moving more into the entertainment sector, offering
our current and new consumers also possibility to experience different events
in addition to journalistic content. The greatest success stories include the
Game of the Stars of the Estonian Basketball League in February; Ruja's reunion
concert at Tallinn Song Festival Grounds dedicated to the day of regaining
independence of Estonia (attended by 14 000 people which was second best result
in terms of the concert audience in Estonia in 2017); Kadri Voorand's sold-out
concerts in Nordea Concern Hall and preparations for the large-scale project
"Idea for Lithuania" arranged by Delfi Lithuania in February 2018.
We are taking major steps in the business line of digital outdoor advertising.
We have actively increased our reach by developing the network of digital
billboards. It will be easy to continue from here and focus on sales
activities.
In 2017, the activities of the Group's media branch were supported by strong
macroeconomic indicators in the Baltic States (primarily in Latvia). On the
other hand we are also competing with large global giants such as Facebook and
Google that grab a larger share of the market growth.
The printing services sector experienced a downturn where the price pressure is
extremely strong and the printing company with a focus on quality needs to
aggressively expand its products and customer portfolio.
In 2017, the Group's consolidated revenue increased by 1% as compared to last
year and totalled EUR 63.7 million. EBITDA was 21% lower than last year's
level, totalling EUR 6.7 million and the net profit totalled EUR 3.1 million.
The management proposes to pay dividends for 2017 seven euro cents per share in
total amount EUR 2.1 million.
Ever-increasing price competition in the printing services segment, declining
margins, lower delivery volumes of the home delivery company and increasing
staff costs played a role in it. Significant impairment loss of books in the
balance sheet of Ajakirjade Kirjastus, that had been published a few years
earlier and whose circulations had been way too optimistic, had to be
recognised.
As the market of books is in a continuous downturn, the department of the book
publishing of Ajakirjade Kirjastus was merged with the Group's separate book
publishing company Hea Lugu in the 4th quarter. Investments have been made in
the online capability of Ajakirjade Kirjastus which has increased staff costs
and which have had negative impact on the company's last year's profit.
At the year-end, the unprofitable business line of magazines was sold in
Lithuania which will enable to focus primarily on online activities and other
lines of business that continue growing.
On a positive note, online revenues grew in all countries and by 16% in Group
total. Digital subscription revenue has increased by almost 50%. Online revenue
now makes up almost 33% of the Group's total revenue.
The year 2018 will be a year of new hopes and expectations in several segments.
Last year we made major investment decisions and this year should show the
first results. In the media sector we are witnessing steady growth in all our
companies. This year we will focus on increasing the revenue from digital
subscribers. The business line of event organising has proven its viability in
Estonia while Lithuania is also gaining momentum. In Latvia, the business of
outdoor advertising is strongly underway. In the printing services segment we
are expecting stabilisation and witness the effect of new investments on
revenue and EBITDA. At the same time we are planning to increase the share of
digital revenue in our portfolio - both from the basis of current media
business as well as new ideas.
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.
FINANCIAL INDICATORS AND RATIOS - joint ventures consolidated 50% line-by-line
Performance indicators - joint Q4 Q4 Change Q4 Q4 Q4 2013
ventures 50% 2017 2016 % 2015 2014
consolidated (EUR thousand)
For the period
Sales 17 606 17 409 1% 17 181 16 778 16 526
EBITDA 1 512 2 981 -49% 2 720 2 757 2 015
EBITDA margin (%) 8.6% 17.1% 15.8% 16.4% 12.2%
Operating profit* 630 2 113 -70% 1 936 1 895 1 348
Operating margin* (%) 3.6% 12.1% 11.3% 11.3% 8.2%
Interest expenses (104) (123) 16% (141) (186) (185)
Net profit/(loss) for the 508 1 868 -73% 1 660 1 614 1 057
period*
Net margin* (%) 2.8% 10.7% 9.7% 9.6% 6.4%
Net profit for the period in 703 1 868 -62% 460 1 149 (1 410)
financial statements (incl.
write-downs and gain from
change in ownership interest)
Net margin (%) 4.0% 10.7% 2.7% 6.8% -8.5%
Return on assets ROA (%) 0.9% 2.4% 0.6% 1.4% -1.8%
Return on equity ROE (%) 1.3% 3.7% 0.9% 2.4% -3.2%
Earnings per share (EPS) 0.02 0.06 0.02 0.04 (0.05)
Performance indicators - joint 12 12 Change 12 12 12
ventures 50% months months % months months months
consolidated (EUR thousand) 2017 2016 2015 2014 2013
For the period
Sales 63 699 62 793 1% 61 528 61 384 58 427
EBITDA 6 713 8 487 -21% 7 869 8 878 7 264
EBITDA margin (%) 10.5% 13.5% 12.8% 14.5% 12.4%
Operating profit* 3 526 5 221 -32% 4 866 5 638 4 647
Operating margin* (%) 5.5% 8.3% 7.9% 9.2% 8.0%
Interest expenses (427) (518) 17% (618) (732) (763)
Net profit/(loss) for the 2 952 4 406 -33% 3 907 4 620 3 548
period*
Net margin* (%) 4.6% 7.0% 6.4% 7.5% 6.1%
Net profit for the period in 3 146 4 406 -29% 2 707 5 110 1 081
financial statements (incl.
write-downs and gain from
change in ownership interest)
Net margin (%) 4.9% 7.0% 4.4% 8.3% 1.9%
Return on assets ROA (%) 4.1% 5.8% 3.5% 6.6% 1.4%
Return on equity ROE (%) 6.1% 8.9% 5.6% 11.4% 2.5%
Earnings per share (EPS) 0.11 0.15 0.09 0.17 0.04
* The results reflect the outcome of regular business activities and do not
include impairment losses on goodwill, profit arised from the changes in
ownership interests in our joint ventures etc.
Balance sheet - joint ventures 50% 31.12.2017 31.12.2016 Change %
consolidated (thousand EUR)
As of the end of the period
Current assets 16 725 16 250 3%
Non-current assets 62 597 61 507 2%
Total assets 79 322 77 757 2%
incl. cash and bank 2 818 4 572 -38%
incl. goodwill 39 920 38 904 3%
Current liabilities 11 081 12 223 -9%
Non-current liabilities 15 747 14 462 9%
Total liabilities 26 828 26 684 1%
incl. borrowings 15 791 16 603 -5%
Equity 52 494 51 073 3%
Financial ratios (%) - joint ventures consolidated 50% 31.12.2017 31.12.2016
Equity ratio (%) 66% 66%
Debt to equity ratio (%) 30% 33%
Debt to capital ratio (%) 20% 19%
Total debt/EBITDA ratio 2.35 1.96
Liquidity ratio 1.51 1.33
FINANCIAL INDICATORS AND RATIOS - joint ventures recognised under the equity
method
Performance indicators - joint Q4 Q4 Change Q4 Q4 Q4 2013
ventures under equity method 2017 2016 % 2015 2014
(thousand EUR)
For the period
Sales (only subsidiaries) 15 016 14 743 2% 14 811 14 454 14 291
EBITDA (only subsidiaries) 1 590 2 660 -40% 2 440 2 413 1 815
EBITDA margin (%) 10.6% 18.0% 16.5% 16.7% 12.7%
Operating profit* (only 840 1 889 -56% 1 718 1 661 1 175
subsidiaries)
Operating margin* (%) 5.6% 12.8% 11.6% 11.5% 8.2%
Interest expenses (only (97) (114) 15% (125) (158) (185)
subsidiaries)
Profit of joint ventures by (233) 210 -211% 196 182 174
equity method
Net profit for the period* 508 1 868 -73% 1 660 1 601 1 057
Net margin* (%) 3.4% 12.7% 11.2% 11.1% 7.4%
Net profit for the period in 703 1 868 -62% 460 1 136 (1 410)
financial statements (incl.
write-downs and gain from
change in ownership interest)
Net margin (%) 4.7% 12.7% 3.1% 7.9% -9.9%
Return on assets ROA (%) 0.9% 2.5% 0.6% 1.5% -1.8%
Return on equity ROE (%) 1.3% 3.7% 0.9% 2.4% -3.2%
Earnings per share (EPS) 0.02 0.06 0.02 0.04 (0.05)
Performance indicators - joint 12 12 Change 12 12 12
ventures under equity method months months % months months months
(thousand EUR) 2017 2016 2015 2014 2013
For the period
Sales (only subsidiaries) 54 070 53 324 1% 52 773 52 793 50 086
EBITDA (only subsidiaries) 6 261 7 280 -14% 6 680 7 894 6 591
EBITDA margin (%) 11.6% 13.7% 12.7% 15.0% 13.2%
Operating profit* (only 3 475 4 328 -20% 3 920 4 973 4 071
subsidiaries)
Operating margin* (%) 6.4% 8.1% 7.4% 9.4% 8.1%
Interest expenses (only (400) (471) 15% (550) (689) (763)
subsidiaries)
Profit of joint ventures by (2) 772 -100% 785 557 494
equity method
Net profit for the period* 2 952 4 406 -33% 3 907 4 621 3 548
Net margin* (%) 5.5% 8.3% 7.4% 8.8% 7.1%
Net profit for the period in 3 146 4 406 -29% 2 707 5 110 1 081
financial statements (incl.
write-downs and gain from
change in ownership interest)
Net margin (%) 5.8% 8.3% 5.1% 9.7% 2.2%
Return on assets ROA (%) 4.2% 6.1% 3.7% 6.8% 1.4%
Return on equity ROE (%) 6.1% 8.9% 5.6% 11.4% 2.5%
Earnings per share (EPS) 0.11 0.15 0.09 0.17 0.04
* The results reflect the outcome of regular business activities and do not
include impairment losses on goodwill, profit arised from the changes in
ownership interests in our joint ventures etc.
Balance sheet - joint ventures under equity 31.12.2017 31.12.2016 Change %
method
(thousand EUR)
As of the end of the period
Current assets 13 827 13 094 6%
Non-current assets 62 130 61 074 2%
Total assets 75 957 74 169 2%
incl. cash and bank 1 073 2 856 -62%
incl. goodwill 37 969 36 953 3%
Current liabilities 8 372 9 591 -13%
Non-current liabilities 15 091 13 504 12%
Total liabilities 23 463 23 095 2%
incl. borrowings 15 257 15 784 -3%
Equity 52 494 51 073 3%
Financial ratios (%) - joint ventures consolidated 31.12.2017 31.12.2016
under equity
Equity ratio (%) 69% 69%
Debt to equity ratio (%) 29% 31%
Debt to capital ratio (%) 21% 20%
Total debt/EBITDA ratio 2.44 2.17
Liquidity ratio 1.65 1.37
Formulas used to calculate the financial ratios
EBITDA Earnings before interest, tax, depreciation and amortization.
EBITDA does not include any impairment losses recognized during
the period or result from restructuring.
EBITDA EBITDA/sales x 100
margin (%)
Operating Operating profit*/sales x100
margin*
(%)
Net margin* Net profit*/sales x100
(%)
Net margin Net profit /sales x100
(%)
Earnings Net profit / average number of shares
per share
Equity Equity/ (liabilities + equity) x100
ratio (%)
Debt to Interest bearing liabilities /equity x 100
equity
ratio (%)
Debt to Interest bearing liabilities - cash and cash equivalents (net debt)
capital /(net debt +equity) x 100
ratio (%)
Total Interest bearing borrowings /EBITDA
debt/EBITD
A ratio
Debt EBITDA/loan and interest payments for the period
service
coverage
ratio
Liquidity Current assets / current liabilities
ratio
Return on Net profit /average assets x 100
assets ROA
(%)
Return on Net profit /average equity x 100
equity ROE
(%)
* The results reflect the outcome of regular business activities and do not
include impairment losses on goodwill, profit arised from the changes in
ownership interests in our joint ventures etc.
Cyclicality
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
like preference of internet rather than print media and changes in consumption
habits of retail consumers e.g. following current news in news portals versus
reading printed newspapers, preference of the younger generation to use mobile
devices and other communication channels, etc.
Seasonality
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 sale which usually continues until next
summer holiday period.
SEGMENT OVERVIEW
The Group's activities are divided into two large segments - media segment and
printing services 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 Q4 2013-2017
(thousand EUR) Sales Sales
Q4 Q4 Change Q4 Q4 Q4
2017 2016 % 2015 2014 2013
media segment (by equity 9 449 8 861 7% 8 399 7 535 7 617
method)
incl. revenue from all 5 944 4 993 19% 4 544 4 015 3 389
digital and online
channels
printing services segment 6 496 6 952 -7% 7 386 8 083 7 566
entertainment segment 0 0 - 0 0 0
corporate functions 686 566 21% 543 459 393
intersegment eliminations (1 616) (1 635) (1 517) (1 624) (1 286)
TOTAL GROUP under equity 15 016 14 743 2% 14 811 14 454 14 291
method
media segment (by 12 391 11 836 5% 11 042 10 141 10 042
proportional
consolidation)
incl. revenue from all 6 272 5 286 19% 4 841 4 257 3 584
digital and online
channels
printing services segment 6 496 6 952 -7% 7 386 8 083 7 566
entertainment segment 0 0 - 0 0 0
corporate functions 686 566 21% 543 459 393
intersegment eliminations (1 967) (1 944) (1 790) (1 905) (1 477)
TOTAL GROUP by proportional 17 606 17 409 1% 17 181 16 778 16 525
consolidation
(thousand EUR) EBITDA EBITDA
Q4 Q4 Change Q4 Q4 Q4
2017 2016 % 2015 2014 2013
media segment (by equity method) 1 168 1 618 -28% 1 299 1 103 1 014
media segment by proportional 1 089 1 939 -44% 1 580 1 447 1 214
consolidation
printing services segment 952 1 329 -28% 1 355 1 623 1 604
entertainment segment 0 0 - (4) 0 0
corporate functions (529) (287) 85% (210) (313) (763)
intersegment eliminations 0 0 0 0 (40)
TOTAL GROUP under equity method 1 590 2 660 -40% 2 440 2 413 1 815
TOTAL GROUP by proportional 1 512 2 981 -49% 2 720 2 757 2 015
consolidation
EBITDA margin Q4 Q4 Q4 Q4 Q4
2017 2016 2015 2014 2013
media segment (by equity method) 12% 18% 15% 15% 13%
media segment by proportional consolidation 9% 16% 14% 14% 12%
printing services segment 15% 19% 18% 20% 21%
TOTAL GROUP under equity method 11% 18% 16% 17% 13%
TOTAL GROUP by proportional consolidation 9% 17% 16% 16% 12%
Key financial data of the segments 12 months 2013-2017
(thousand EUR) Sales Sales
12 12 Change 12 12 12
months months % months months months
2017 2016 2015 2014 2013
media segment (by equity 33 498 31 579 6% 30 063 27 459 25 842
method)
incl. revenue from all 19 963 17 307 15% 15 555 13 449 11 595
digital and online
channels
printing services segment 23 879 25 585 -7% 25 842 28 951 27 462
entertainment segment 0 0 - 517 0 0
corporate functions 2 486 2 233 11% 1 937 1 731 1 530
intersegment eliminations (5 793) (6 073) (5 586) (5 347) (4 748)
TOTAL GROUP under equity 54 070 53 324 1% 52 773 52 793 50 086
method
media segment (by 44 429 42 231 5% 39 942 36 930 34 954
proportional
consolidation)
incl. revenue from all 21 024 18 094 16% 16 619 14 306 12 226
digital and online
channels
printing services segment 23 879 25 585 -7% 25 842 28 951 27 462
entertainment segment 0 0 - 517 0 0
corporate functions 2 486 2 233 11% 1 937 1 731 1 530
intersegment eliminations (7 095) (7 255) (6 710) (6 228) (5 520)
TOTAL GROUP by proportional 63 699 62 793 1% 61 528 61 384 58 426
consolidation
(thousand EUR) EBITDA EBITDA
12 12 Change 12 12 12
months months % months months months
2017 2016 2015 2014 2013
media segment (by equity 3 729 3 572 4% 3 724 3 026 2 124
method)
media segment by 4 181 4 779 -13% 4 913 4 010 2 796
proportional consolidation
printing services segment 3 734 4 645 -20% 4 966 5 944 5 862
entertainment segment 0 (2) -76% (1 110) 0 0
corporate functions (1 201) (936) 28% (899) (1 076) (1 356)
intersegment eliminations 0 0 0 0 (38)
TOTAL GROUP under equity 6 261 7 280 -14% 6 680 7 894 6 591
method
TOTAL GROUP by proportional 6 713 8 487 -21% 7 869 8 878 7 264
consolidation
EBITDA margin 12 12 12 12 12
months months months months months
2017 2016 2015 2014 2013
media segment (by equity 11% 11% 12% 11% 8%
method)
media segment by proportional 9% 11% 12% 11% 8%
consolidation
printing services segment 16% 18% 19% 21% 21%
TOTAL GROUP under equity method 12% 14% 13% 15% 13%
TOTAL GROUP by proportional 11% 14% 13% 14% 12%
consolidation
MEDIA SEGMENT
The media segment includes Group's activities in Estonia, Latvia and Lithuania.
It comprises online portal Delfi operations, other different news portals,
providing online advertising network and programmatic sales, providing outdoor
digital screen advertising in Estonia and Latvia, publishing of Estonian weekly
newspapers Maaleht, Eesti Ekspress and LP, publishing daily newspapers Eesti
Päevaleht and tabloid Õhtuleht, publishing freesheet Linnaleht, publishing
books and magazines in Estonia and Lithuania, providing home delivery services.
Latvian digital screen company ACM LV was acquired in the 3rd quarter of 2017.
100% ownership was acquired in Adnet Media in the 4th quarter of 2017.
News portals owned by the Group
Owner Portal Owner Portal
Ekspress Meedia www.delfi.ee Ekspress Meedia www.ekspress.ee
rus.delfi.ee www.maaleht.ee
Delfi Latvia www.delfi.lv www.epl.ee
rus.delfi.lv
Delfi Lithuania www.delfi.lt SL Õhtuleht www.ohtuleht.ee
ru.delfi.lt www.vecherka.ee
(thousand EUR) Sales EBITDA
Q4 Q4 Change Q4 Q4 Change
2017 2016 % 2017 2016 %
Ekspress Meedia 5 039 5 085 -1% 391 443 -12%
incl. Delfi Estonia online revenue 1 828 1 772 3%
Delfi Latvia 1 086 997 9% 132 262 -50%
Delfi Lithuania 2 786 2 558 9% 628 865 -27%
incl. Delfi Lithuania online 2 328 2 041 14%
revenue
Adnet 384 - - 24 - -
Hea Lugu 241 230 4% 43 50 -13%
Zave Media 0 0 - 0 0 -
ACM LV 33 - - (37) - -
other companies 0 0 - (15) (1) 1078%
intersegment eliminations (120) (9) 2 0
TOTAL subsidiaries 9 449 8 861 7% 1 168 1 618 -28%
SL Õhtuleht* 1 236 1 134 9% 71 65 9%
Ajakirjade Kirjastus* 1 245 1 368 -9% (123) 160 -177%
Express Post* 640 677 -5% (36) 75 -148%
Linna Ekraanid* 85 115 -26% 9 20 -57%
intersegment eliminations (264) (318) 2 0
TOTAL joint ventures 2 942 2 975 -1% (77) 320 -124%
TOTAL segment by proportional 12 391 11 836 5% 1 089 1 939 -44%
consolidation
* Proportional share of joint ventures
(thousand EUR) Sales EBITDA
12 12 Change 12 12 Change
months months % months months %
2017 2016 2017 2016
Ekspress Meedia 19 309 19 116 1% 1 554 1 448 7%
incl. Delfi Estonia online 6 853 6 728 2%
revenue
Delfi Latvia 3 811 3 375 13% 395 413 -4%
Delfi Lithuania 9 544 8 563 11% 1 799 1 741 3%
incl. Delfi Lithuania online 7 831 6 601 19%
revenue
Adnet 384 - - 24 - -
Hea Lugu 523 538 -3% 26 33 -21%
Zave Media 0 1 -1 (0) (61) -100%
ACM LV 54 - - (55) - -
other companies 0 0 - (16) (2) 574%
intersegment eliminations (126) (13) 2 0
TOTAL subsidiaries 33 498 31 579 6% 3 729 3 572 4%
SL Õhtuleht* 4 625 4 329 7% 433 394 10%
Ajakirjade Kirjastus* 4 576 4 765 -4% 69 544 -87%
Express Post* 2 369 2 609 -9% (117) 247 -147%
Linna Ekraanid* 411 166 148% 66 22 195%
intersegment eliminations (1 052) (1 218) 2 0
TOTAL joint ventures 10 931 10 651 3% 453 1 207 -62%
TOTAL segment by 44 429 42 231 5% 4 181 4 779 -13%
proportional consolidation
* Proportional share of joint ventures
ONLINE MEDIA
Estonian online readership 2016-2017
In the third quarter 2016, Gemius changed the methodology of the online
readership survey in Estonia, Latvia and Lithuania, as a result of which the
data on the users of mobile devices and tablet PCs is now added into those of
PC users. The comparable data is available only from September of last year.
The number of users of Delfi in Estonia has been stable. In July 2017, the
growth in the number of users of Delfi represented a technical measurement
inaccuracy and not an actual result.
Latvian online readership 2016-2017
Delfi continues to be the news portal with the largest online readership in
Latvia. According to the survey commissioned by the Latvian government in
spring 2017, Delfi.lv is Latvia's most trusted media channel and it is trusted
even more than the state-owned TV-station. In July 2017, the growth in the
number of users of Delfi represented a technical measurement inaccuracy and not
an actual result.
Lithuanian online readership 2016-2017
Delfi.lt remains Lithuania's largest online portal with a high visibility in
Lithuania. The Lithuanian online readership has remained stable. In 2017, Delfi
has been able to grow the lead over competition on the market thanks to new
products and good marketing execution, as well as good progress in mobile.
PRINT MEDIA
Estonian newspaper circulations 2016-2017
Since October 2016 and throughout 2017, the daily newspaper with the largest
circulation in Estonia was Õhtuleht. Traditionally, Maaleht was the largest in
January and December. From the total circulation numbers, this graph shows
print circulation only, digital newspaper subscribers are not reflected here.
Circulations of Group newspapers together with digital subscribers 2016-2017
To provide more complete overview of the newspaper market dynamics, the
circulation of paper newspapers needs to be viewed together with the number of
digital subscribers. This shows how the decrease in print subscribers has been
more than compensated by digital subscribers and how for the second half of
2017 the combined growth of print circulation and digital subscribers has been
clearly positive for all our newspapers. Eesti Päevaleht has been the earliest
and most successful in managing the market turnaround and developing its
digital business. Based on the available data, we can show the combined
information of print and digital only for the newspapers of Ekspress Grupp.
Even if other newspapers on the market have digital-only products, there is
currently no available data for digital subscribers of other publishers.
PRINTING SERVICES SEGMENT
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.
(thousand EUR) Sales EBITDA
Q4 Q4 Change Q4 Q4 Change %
2017 2016 % 2017 2016
Printall 6 496 6 952 -7% 952 1 329 -28%
(thousand EUR) Sales EBITDA
12 months 12 months Change 12 months 12 months Change %
2017 2016 % 2017 2016
Printall 23 879 25 585 -7% 3 734 4 645 -20%
Already several years the printing services segment continues to be under
pressure due to continues digitalization of regular journalism and internet
taking its share from printed products. The price pressure is very strong both
in Scandinavia and Estonia including more competitive services provided by
other Baltic States. A sheet-fed machine acquired two years ago has helped to
prevent a steeper revenue decline, and has helped to expand the product range
outside the regular media sector. More active sales approach has been taken
outside of Nordic countries.
Consolidated balance sheet (unaudited)
(thousand EUR) 31.12.2017 31.12.2016
ASSETS
Current assets
Cash and cash equivalents 1 037 2 805
Term deposits 36 51
Trade and other receivables 9 917 7 468
Corporate income tax receivable 4 0
Inventories 2 832 2 770
Total current assets 13 827 13 094
Non-current assets
Trade and other receivables 1 750 982
Deferred tax asset 47 34
Investments in joint ventures 2 372 2 435
Investments in associates 354 591
Property, plant and equipment 12 189 12 722
Intangible assets 45 419 44 310
Total non-current assets 62 130 61 074
TOTAL ASSETS 75 957 74 168
LIABILITIES
Current liabilities
Borrowings 166 2 313
Trade and other payables 8 095 7 170
Corporate income tax payable 111 108
Total current liabilities 8 372 9 591
Non-current liabilities
Long-term borrowings 15 091 13 471
Deferred tax liability 0 33
Total non-current liabilities 15 091 13 504
TOTAL LIABILITIES 23 463 23 095
EQUITY
Minority interest 68 0
Capital and reserves attributable to equity holders of
parent company:
Share capital 17 878 17 878
Share premium 14 277 14 277
Treasury shares (22) (863)
Reserves 1 531 2 058
Retained earnings 18 762 17 723
Total capital and reserves attributable to equity 52 426 51 073
holders of parent company
TOTAL EQUITY 52 494 51 073
TOTAL LIABILITIES AND EQUITY 75 957 74 168
Consolidated statement of comprehensive income (unaudited)
(thousand EUR) Q4 2017 Q4 2016 12 months 12 months
2017 2016
Sales revenue 15 016 14 743 54 070 53 324
Cost of sales (11 900) (11 163) (42 869) (42 122)
Gross profit 3 115 3 580 11 201 11 202
Other income 471 579 1 189 1 085
Marketing expenses (821) (770) (2 898) (2 488)
Administrative expenses (1 884) (1 446) (5 921) (5 357)
Other expenses (42) (54) (97) (114)
Gain from selling business assets 194 0 194 0
Operating profit 1 034 1 889 3 669 4 328
Interest income 36 7 173 32
Interest expense (97) (114) (400) (471)
Foreign exchange gains (losses) (4) (6) (11) (10)
Other finance costs 174 (10) 129 (56)
Net finance cost 108 (123) (109) (505)
Profit/(loss) on shares of joint (233) 210 (2) 772
ventures
Profit/(loss) from shares of (17) 72 (68) 113
associates
Profit before income tax 892 2 047 3 490 4 708
Income tax expense (190) (180) (344) (302)
Net profit for the reporting period 703 1 868 3 146 4 406
Net profit for the reporting period
attributable to:
Equity holders of the parent company 696 1 868 3 140 4 406
Minority shareholders 6 0 6 0
Other comprehensive income 0 0 0 0
Total comprehensive income 703 1 868 3 146 4 406
Comprehensive income for the reporting
period attributable to:
Equity holders of the parent company 696 1 868 3 140 4 406
Minority shareholders 6 0 6 0
Basic and diluted earnings per share 0.02 0.06 0.11 0.15
Consolidated cash flow statement (unaudited)
(EUR thousand) 12 months 12 months
2017 2016
Cash flows from operating activities
Operating profit for the reporting year 3 669 4 328
Adjustments for:
Depreciation, amortisation and impairment 2 787 2 953
Gain from selling business assets (194) 0
(Gain)/loss on sale and write-down of property, (11) 37
plant and equipment
Change in value of share option 0 136
Cash flows from operating activities:
Trade and other receivables (105) (709)
Inventories (62) (53)
Trade and other payables (497) 484
Cash generated from operations 5 587 7 175
Income tax paid (371) (293)
Interest paid (448) (519)
Net cash generated from operating activities 4 769 6 363
Cash flows from investing activities
Acquisition of subsidiaries (less cash acquired) (546) 0
Acquisition of joint ventures 0 (868)
Acquisition of associate (74) (311)
Purchase and receipts of other investments (785) 5
Proceeds from sale of business assets 130 0
Interest received 169 32
Purchase of property, plant and equipment (2 023) (1 335)
Proceeds from sale of property, plant and equipment 12 39
Loans granted (2 227) (25)
Loan repayments received 1 054 175
Net cash used in investing activities (4 290) (2 289)
Cash flows from financing activities
Dividends paid (1 787) (1 456)
Dividend received from associates and joint ventures 56 246
Finance lease repayments (71) (72)
Change in use of overdraft 92 0
Loan received 0 11
Repayments of bank loans (552) (2 186)
Purchase of treasury shares 0 (687)
Net cash used in financing activities (2 261) (4 144)
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (1 782) (71)
Cash and cash equivalents at the beginning of the 2 856 2 927
year
Cash and cash equivalents at the end of the year 1 073 2 856
Additional information:
Mari-Liis Rüütsalu
Chairman of the Management Board
GSM: +372 512 2591
e-mail: mariliis.ryytsalu@egrupp.ee
Attachment:
https://cns.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=666389Ekspress Grupp: AS Ekspress Grupp: Consolidated Interim Report for the Fourth Quarter and 12-months of 2017
© 2018 GlobeNewswire
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