Readly International AB (publ) reports full-year profitability for the first time, underpinned by significant revenue growth, improved margins and free cash flows. In the fourth quarter, revenues grew by 7.2 per cent to SEK 182.8 million (170.6), adjusted operating profit (EBIT) was SEK 11.8 million (9.2) and free cash flow was SEK 21.3 million (-1.2). For the full year, revenues increased by 9.4 per cent to SEK 725.3 million (663.2), with underlying growth of 16.1 per cent when adjusted for VAT, currency effects, and divestments. Annual gross profit reached SEK 292.4 million (250.3), with an improved gross margin of 40.3 per cent (37.7). Full year adjusted operating margin (EBIT) was 5.1 per cent (-4.4). Adjusted for divestments, the number of FPS decreased 1.9 per cent to 427,227 (435,562) and was in line with expectations following this year's price increases.
- In 2024, Readly achieved full-year profitability for the first time with an adjusted EBITDA margin of 8.7 per cent (2.4) and positive free cash flow of SEK 58.4 million (-59.9). This milestone underscores the scalability of our business and with it, Readly demonstrates the viability and profitability of the all-you-can-read business model. As we look ahead our focus remains on product development and balanced growth while maintaining solid profitability. With an efficient and driven team, we are ready to build on this success and move forward with high ambitions, says Philip Lindqvist, president and CEO of Readly.
1 October - 31 December 2024
- Revenue for the period totalled SEK 182.8 million (170.6), an increase of 7.2 per cent compared with the fourth quarter of 2023. Revenue for the period adjusted for divestments, VAT and FX totalled SEK 180.3 million (153.3), an increase of 17.6 per cent compared with the fourth quarter of 2023.
- The number of full-paying subscribers (FPS) decreased 8.0 per cent to 427,227 (464,494) compared to last year. Adjusted for divestments, the number of full-paying subscribers decreased 1.9 per cent to 427,227 (435,562) compared to last year.
- Gross profit increased 13.7 per cent to SEK 75.1 million (66.1), corresponding to a gross profit margin of 41.1 per cent (38.7).
- The gross contribution margin for the period was 29.8 per cent (29.6).
- Adjusted operating result (EBITDA, excl. IAC) was SEK 17.4 million (14.7), corresponding to an EBITDA margin of 9.5 per cent (8.6).
- Adjusted operating result (EBIT, excl. IAC) was SEK 11.8 million (9.2), corresponding to an adjusted operating margin of 6.5 per cent (5.4).
- Operating result (EBIT) was SEK 9.7 million (3.7), corresponding to an operating margin of 5.3 per cent (2.2).
- Earnings per share were SEK 0.3 (0.1) before and after dilution.
- Free cash flow was SEK 21.3 million (-1.2)
1 January - 31 December 2024
- Revenue for the period totalled SEK 725.3 million (663.2), an increase of 9.4 per cent compared with 2023. Revenue for the period adjusted for divestments, VAT and FX totalled SEK 691.5 million (595.4), an increase of 16.1 per cent compared with 2023.
- Gross profit increased 16.8 per cent to SEK 292.4 million (250.3), corresponding to a gross profit margin of 40.3 per cent (37.7).
- The gross contribution margin for the period was 28.9 per cent (25.9).
- Adjusted operating result (EBITDA, excl. IAC) was SEK 63.0 million (16.1), corresponding to an adjusted EBITDA margin of 8.7 per cent (2.4).
- Adjusted operating result (EBIT, excl. IAC) was SEK 36.8 million (-29.2), corresponding to an adjusted operating margin of 5.1 per cent (-4.4).
- Operating result (EBIT) was SEK 31.3 million (-55.1), corresponding to an operating margin of 4.3 per cent (-8.3).
- Earnings per share were SEK 2.7 (-1.4) before and after dilution.
- Free cash flow was SEK 58.4 million (-59.9)
- The board of directors proposes a dividend of SEK 1.0 (-) per share.
Significant events during the period
On 18 October the Board announced the decision to remove the dividend policy and proposed an extra dividend of SEK 1.75 per share.
The Extraordinary General Meeting on 25 November resolved, in accordance with the proposal of the board of directors, an extra dividend of SEK 1.75.
Significant events after the end of the period
There are no significant events after the end of the period.
The year-end-report 2024 will be available for download on: https://corporate.readly.com/investors/financial-reports-and-presentations/
For more information, please contact:
Linnéa Aguero, Head of PR & Communications, +46 725 03 32 31, linnea.aguero@readly.com
This information constitutes inside information that Readly International AB (publ) is obliged to publish in accordance with EU Market Abuse Regulation 596/2014. The information in this press release has been published by the above contact person, at the time specified by the Company's news distributor Cision at the time of publication of this press release.
About Readly
Readly is a European category leader for digital magazines and newspapers. The company offers a digital subscription service where customers have unlimited access to 8,000 national and international titles - all in one app and at a fixed monthly fee. Readly has subscribers in 50 countries and content available in 17 different languages. In collaboration with around 1,000 publishers worldwide, Readly is digitising the newspaper and magazine industry. In 2024, revenues amounted to SEK 725 million. The Readly share is listed on Nasdaq First North Growth Market and FNCA Sweden AB is the company's Certified Advisor. For more information, please visit https://corporate.readly.com
