In This Article:
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Revenue Growth: Increased by 4% in the last quarter.
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Adjusted Operating Profit: Increased by almost 17% from 15.2 million to 19.5 million in the last quarter.
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Full Year Revenue: 330 million.
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Full Year Adjusted EBIT: 77 million, close to 25% EBIT margin.
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Digital Business Share: Close to 84% by the end of the year.
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Leverage Ratio: 1.5 net EBITDA ratio.
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Equity Ratio: Close to 49%.
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Advertising Revenue Decline: 8.4% decline in advertising revenue.
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Digital Content Revenue Growth: Increased by almost 4%.
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Profitability by Segment: Carrier at 40%, Marketplace close to 30%, News Media close to 20%.
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Interest Bearing Net Debt: 140 million at the end of 2024.
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Operative Cash Flow: Improved by 1.6 million in Q4.
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Full Year Cash Flow Improvement: More than 10 million, ending at 73.88 million in 2024.
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Return on Equity and Investments: Maintained at a good level.
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Earnings Per Share: Increased by two Eurocents in Q4, full year at 64 Eurocents.
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Dividend Proposal: 0.46 per share for 2024.
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Long-term Revenue Growth Target: At least 5%.
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Long-term Adjusted EBITDA Margin Target: Increased to 30%.
Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Alma Media Oyj (FRA:A4M) reported a 4% increase in revenue for the last quarter of 2024.
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The company's adjusted operating profit rose by almost 17%, reaching 19.5 million.
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The transformation from print to digital has progressed well, with digital business now comprising close to 84% of total operations.
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The balance sheet is healthy, with a leverage ratio of 1.5 net EBITDA and an equity ratio close to 49%, allowing room for future investments.
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The company has a solid plan to reach a 30% adjusted EBITDA margin target within three years, supported by AI-driven efficiency improvements.
Negative Points
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The advertising market saw an 8.4% decline, reflecting broader market challenges, particularly in Finland.
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The Finnish recruitment market experienced a significant downturn, with a more than 30% decline.
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Print media revenues declined by over 9%, highlighting ongoing challenges in traditional media segments.
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The macroeconomic environment remains uncertain, with slow recovery signs in key markets like Finland and the Baltics.
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The company's cautious outlook for 2025 reflects a slow start to market recovery and potential cost increases as previous cost-saving measures may not be sustainable.
Q & A Highlights
Q: Can you discuss how Alma Media plans to reach its new long-term profitability target in three years? A: Kai Telanne, CEO, explained that each segment has its own profitability improvement targets. The growth will primarily come from the most profitable businesses, such as classified and digital inside services. The company is not relying on rapid growth in the advertising market but aims to improve profitability through cost efficiency and AI deployment.