MANAGEMENT'S COMMENTS
The business volumes of AS Ekspress Grupp increased both in the fourth quarter as well as over the 12-month period. The consolidated revenue for the fourth increased by 11% amounting to EUR 19.5 million and the revenue for 12 months increased by 8% amounting to EUR 69.1 million. The consolidated digital revenue over for 12 months increased by 23% (2017: 16%) as compared to the same period last year and made up 38% (2017: 33%) of total revenue.
Consolidated profit before interest, tax, depreciation and amortization (EBITDA) amounted to EUR 1.2 million in the fourth quarter and EUR 4.2 million over the 12-month period. As compared to the same period in 2017, EBITDA decreased by EUR 0.3 million in the fourth quarter and EUR 2.5 million over 12 months. The continued fast growth of digital revenue, especially in Estonia and Lithuania, had a positive impact on profitability Performance was under pressure due to strong price competition and growth of input prices in the printing services segment as well as for paper periodicals in media segments. The Group's printing company is under a strong price pressure due to falling circulations, leading to a higher-than-expected decline in the segment's profitability. The performance was also impacted by higher input prices, including primarily labour, electricity and paper costs. The latter has also had an impact on the Group's publishing companies Ekspress Meedia and Õhtuleht Kirjastus.
The results of the second half of the year include significant amount of one-off costs related to the reorganisation of the work of the areas of activity of AS Ajakirjade Kirjastus both in the organisations of AS Ekspress Meedia as well as AS Õhtuleht Kirjastus. At the end of 2018, the Group witnessed efficiency growth, and its other web platforms positively complemented the content of paper magazines, therefore we see an increase in efficiency here in 2019
In addition, in the fourth quarter the Group had to write off part of the carrying amount of the book warehouse taken over from AS Ajakirjade Kirjastus at the end of 2017 which was higher as compared to the actual realisable value of the books. The effect of one-off costs over the 12 months of 2018 amounts to ca EUR 0.9 million.
The Group’s strategy is aimed at increasing its digital revenue while continuing to create high-quality content that is well received by readers. We will also continue to increase our efficiency in all areas. Revenue growth is increasingly negatively impacted by the fact that two global groups, Facebook and Google, have grown to a noticeable market share of the Baltic advertising markets. However, the local states have no overview of the advertising volumes sold to these countries. The advertising competition is also complicated by the fact that unlike local media companies, the advertising giants do not have to pay taxes on their advertising revenue in Estonia, Latvia or Lithuania, because they reportedly sell their internet advertising to our markets via their Irish subsidiaries.
The Group is in a situation where alleviation of the problems stemming from social media falls on the shoulders of local media while advertising revenue is shifting tax-free to large foreign companies. Neither of the large platforms fosters or takes into account the interests of local state.
In the fourth quarter, Group's biggest media company AS Ekspress Meedia organised several concerts, among which it is worth mentioning: Kadri Voorand's concert in Saku Suurhall, year's best star Nublu concert In Tartu and among sports events, the ice hockey games of Helsingin Jokerit for the first time took place in Estonia. Delfi Latvia implemented important special projects such as "100 years in 100 days, "Founders of Latvia" and launched several charity campaigns. Delfi Lithuania published a book related to the project "Pravieniskiu Mafija" that reached to TOP3 bestseller list in Lithuania.
Despite the increase of business volumes, the Group's profitability is under pressure and this primarily due to the intensifying competition in the media and printing services segment. In the upcoming periods, the management is going to pay attention to and is looking for additional opportunities to improve profitability and enhance efficiency.
SUMMARY OF THE RESULTS FOR THE FOURTH QUARTER AND 12 MONTHS
In the Group's reporting, the management monitors the performance on the basis of proportional consolidation of joint ventures. The syndicated loan contract also determines the calculation of some loan covenants while taking into account proportional consolidation.
REVENUE
The consolidated revenue for the 4th quarter of 2018 totalled EUR 19.5 million (Q4 2017: EUR 17.6 million) and the revenue for the 12 months of 2018 totalled EUR 69.1 million (12 months 2017: EUR 63.7 million). Revenue increased by 8% as compared to last year. Revenue growth is primarily attributable to the acquisition of the majority holding of the provider of an advertising network and programmatic sales solutions Adnet Media in November 2017 which together with Delfi entities has significantly increased the Group's online revenue and its share in total revenue. By the end of the 4th quarter, the share of the Group's digital revenue increased to 38% of total revenue which is by far the highest percentage. The Group's digital revenue for the 12 months of 2018 increased by 23% as compared to the same period last year.
PROFITABILITY
In the 4th quarter of 2018, the consolidated EBITDA totalled EUR 1.22 million (Q4 2017: EUR 1.51 million) and over the 12 months of 2018, EBITDA was EUR 4.21 million (12 months 2017: EUR 6.71 million). EBITDA decreased by 37% as compared to last year. The EBITDA margin declined to 6.1% (12 months 2017: 10.5%). The consolidated net profit for the 12 months of 2018 was EUR 0.03 million (12 months 2017: EUR 3.15 million) and the net margin totalled 0.0% (12 months 2017: 4.9%). The decline in profitability was primarily related to the intensifying competition of the printing services segment and the increase in input prices. In addition, it was related to the decline in the revenue of print media and higher home delivery and labour costs (growth +8% vs 12 months 2017) as well as one-off costs (12 months 2018: EUR 0.90 million), which mainly related to reorganisation and extraordinary allowance of books booked in 4th quarter. There is additional loss on shares of associates and from other financial investments in the 4th quarter (12 months 2018: EUR 0.27 million).
CASH POSITION
At the end of the reporting period, the Group had available cash by proportional consolidation in the amount of EUR 2.2 million and equity in the amount of EUR 50.4 million (64% of total assets). The comparative information as of 31 December 2017 were EUR 2.8 million and EUR 52.5 million (66% of total assets), respectively. As of 31 December 2018, the Group's net debt totalled EUR 13.3 million (31 December 2017: EUR 13.0 million).
BUSINESS OPERATIONS
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 the 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 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 ventures consolidated 50% (EUR thousand) | Q4 2018 | Q4 2017 | Change % | 12 months 2018 | 12 months 2017 | Change % |
For the period | ||||||
Sales revenue | 19 490 | 17 606 | 11% | 69 096 | 63 699 | 8% |
EBITDA | 1 215 | 1 512 | -20% | 4 206 | 6 713 | -37% |
EBITDA margin (%) | 6.2% | 8.6% | 6.1% | 10.5% | ||
Operating profit* | 249 | 630 | -60% | 944 | 3 526 | -73% |
Operating margin* (%) | 1.3% | 3.6% | 1.4% | 5.5% | ||
Interest expenses | (141) | (104) | -36% | (458) | (427) | -7% |
Net profit/(loss)* for the period | (240) | 508 | -148% | 25 | 2 952 | -99% |
Net margin* (%) | -1.2% | 2.8% | 0.0% | 4.6% | ||
Net profit (-loss) for the period in the financial statements (incl. write-downs and gain from change in ownership interest) | (240) | 703 | -134% | 25 | 3 146 | -99% |
Net margin (%) | -1.2% | 4.0% | 0.0% | 4.9% | ||
Return on assets ROA (%) | -0.3% | 0.9% | 0.0% | 4.1% | ||
Return on equity (%) | -0.5% | 1.3% | 0.0% | 6.1% | ||
Earnings per share (EPS) | (0.01) | 0.02 | 0.00 | 0.11 |
* The results reflect the outcome of regular business activities and do not include impairment losses on goodwill, gains from the changes in ownership interests in joint ventures, etc.
SEGMENT OVERVIEW
The Group’s activities are divided into two large segments - media segment and printing services segment
The media segment includes the Group's activities in Estonia, Latvia and Lithuania. It comprises the operations of online portal Delfi, several other news portal providing online advertising network and programmatic sales, outdoor digital screen advertising in Estonia and Latvia, publishing of the Estonian weekly newspapers Maaleht, Eesti Ekspress and LP, the daily newspaper Päevaleht, tabloid Õhtuleht, freesheet Linnaleht, publishing of books and magazines in Estonia, publishing of magazines in Lithuania until December 2017 and providing home delivery services.
The printing services segment includes AS Printall which one of the largest is printing companies in Estonia. We are able to print high-quality magazines, newspapers, advertising materials, product and service catalogues, yearbooks, paperback books and other publications in our printing plant.
Segment EBITDA does not include one-off write-downs for goodwill and trademarks. Volume-based and other fees payable to advertising agencies are deducted from the advertising sales of segments.
Key financial indicators for segments
(EUR thousand) | Revenue | |||||
Q4 2018 | Q4 2017 | Change % | 12 months 2018 | 12 months 2017 | Change % | |
Media segment (under equity method) | 11 246 | 8 862 | 27% | 37 248 | 31 753 | 17% |
incl. revenue from all digital and online channels | 7 093 | 5 944 | 19% | 24 561 | 19 963 | 23% |
Printing services segment | 7 052 | 6 496 | 9% | 25 242 | 23 879 | 6% |
Corporate functions | 338 | 686 | -51% | 2 341 | 2 486 | -6% |
Inter-segment eliminations | (1 238) | (1 029) | (4 342) | (4 048) | ||
TOTAL GROUP under equity method | 17 398 | 15 016 | 16% | 60 489 | 54 070 | 12% |
Media segment (by proportional consolidation) | 13 509 | 11 782 | 15% | 46 716 | 42 604 | 10% |
incl. revenue from all digital and online channels | 7 482 | 6 272 | 19% | 25 954 | 21 024 | 23% |
Printing services segment | 7 052 | 6 496 | 9% | 25 242 | 23 879 | 6% |
Corporate functions | 338 | 686 | -51% | 2 341 | 2 486 | -6% |
Inter-segment eliminations | (1 409) | (1 358) | (5 204) | (5 270) | ||
TOTAL GROUP by proportional consolidation | 19 490 | 17 606 | 11% | 69 096 | 63 699 | 8% |
(EUR thousand) | EBITDA | |||||
Q4 2018 | Q4 2017 | Change % | 12 months 2018 | 12 months 2017 | Change % | |
Media segment (under equity method) | 1 333 | 1 168 | 14% | 3 355 | 3 729 | -10% |
Media segment (by proportional consolidation) | 1 221 | 1 089 | 12% | 3 329 | 4 181 | -20% |
Printing services segment | 479 | 952 | -50% | 2 403 | 3 734 | -36% |
Corporate functions | (450) | (529) | 15% | (1 492) | (1 201) | -24% |
Inter-segment eliminations | (3) | 0 | (2) | 0 | ||
TOTAL GROUP under equity method | 1 359 | 1 590 | -15% | 4 263 | 6 261 | -32% |
TOTAL GROUP by proportional consolidation | 1 215 | 1 512 | -20% | 4 206 | 6 713 | -37% |
EBITDA margin | Q4 2018 | Q4 2017 | 12 months 2018 | 12 months 2017 |
Media segment (under equity method) | 12% | 13% | 9% | 12% |
Media segment (by proportional consolidation) | 9% | 9% | 7% | 10% |
Printing services segment | 7% | 15% | 10% | 16% |
TOTAL GROUP under equity method | 8% | 11% | 7% | 12% |
TOTAL GROUP by proportional consolidation | 6% | 9% | 6% | 11% |
MEDIA SEGMENT
ONLINE MEDIA
Related to Gemius changes to online readership survey methodology in the Baltic states, we continue to revise our coverage of online media (readership statistics are not comparable to earlier data).
Important progress and significant accomplishments per country are listed below.
Estonia
Significant developments and accomplishments during the quarter:
- Ekspress Meedia renewed versions of Eesti Ekspress web portal and mobile app.
- Ekspress Meedia organised several successful events such as concerts of Kadri Voorand, 2 Quick Start and Nublu as well as hockey weekend with Helsingin Jokerit.
- Ekspress Meedia launched new Delfi platform.
- Ekspress Meedia posted all-time highest results in digital subscriptions.
- Ekspress Meedia launched a new platform for podcasts called Delfi Tasku. Podcasts are enjoying good listenership numbers.
- Õhtuleht launched new layout of the entire ohtuleht.ee portal.
- Õhtuleht grew strongly in digital subscriptions and during the quarter posted highest results in 2018.
Latvia
Significant developments and accomplishments during the quarter:
- Delfi carried out successful special projects "100 years in 100 days", "10 years after Parex bank crash", "Founders of Latvia", "Top: 2018 Year in Review" among others.
- Cālis got an appreciation prize from the Ombudsman of Latvia for support of disabled persons, especially children.
- Delfi was represented on Digital Freedom festival with Delfi Media Lab Stage featuring international guest speakers.
- Delfi launched successful social and charity campaign for caregivers of disabled relatives.
- Delfi media partnerships included Latvian National Film Award "Lielais Kristaps", Latvian National Theater Award and Techchill conference.
- Delfi launched a renewed version of its news portal.
- Delfi launched a new subsection of popular podcasts providing the biggest collection of Latvian podcasts in one place.
Lithuania
Significant developments and accomplishments during the quarter:
- Delfi launched a physical book related to the “Pravieniskiu Mafia” project, that reached TOP3 best-selling book status.
- Delfi together with 100 children took a plane to Lapland and met with the Santa Claus, deers and huskies: https://www.delfi.lt/apps/laplandija/.
- Delfi journalists Edgaras Savickas and Tomas Janonis were recognised for anticorruption publications by Lithuanian Journalists' Union and Transparency International.
- Delfi launched a new podcasts platform https://www.delfi.lt/klausyk/
- Delfi launched a renewed version of its IOS app.
PRINT MEDIA
Based on Estonian Newspaper Association data, the daily newspaper with the largest circulation in Estonia for 2018 full year continues to be Õhtuleht. For January and December, the largest newspaper was Maaleht. During the last 12 months, 5 largest newspapers have declined in circulation in total by ca 10 600 copies.
In the 4th quarter of 2018, the revenue in the media segment totalled EUR 13.5 million (Q4 2017: EUR 11.8 million) and in the 12 months of 2018, the revenue totalled EUR 46.7 million (12 months 2017: EUR 42.6 million). Revenue increased by 10% as compared to last year. Revenue growth is primarily attributable to the acquisition of the majority holding of the provider of an advertising network and programmatic sales solutions Adnet Media last November which together with Delfi entities has significantly increased the Group's online revenue and its share in total revenue.
Digital media is in growth and despite of hard competition we haven't lost market share and revenues are increasing. By the end of the 4th quarter, the share of the Group's digital revenue increased to 38% of total revenue. The Group's digital revenue for the 12 months of 2018 increased by 23% as compared to the same period last year.
In the 4th quarter of 2018, the media segment's EBITDA was EUR 1.2 million (Q4 2017: EUR 1.1 million) and in the 12 months of 2018, the EBITDA was EUR 3.3 million (12 months 2017: EUR 4.2 million), decreasing by 20% as compared to last year. Lower profitability is related to the decline in print media and higher printing, home delivery and labour costs, EUR 0.5 million one-off costs related to reorganisation (AS Ajakirjade Kirjastus) and EUR 0.1 million related to write-off books.
On 1 June 2018, the reorganisation of the joint venture Ajakirjade Kirjastus took place. The publishing of monthly magazines was primarily moved to Ekspress Meedia and that of weekly magazines to Õhtuleht Kirjastus (former name SL Õhtuleht). From the same date, Ajakirjade Kirjastus and SL Õhtuleht were considered as merged and it carries the name of Õhtuleht Kirjastus now.
REAL ESTATE PORTAL
By the end of the 4th quarter, with its marketing and sales activities the real estate portal Kinnisvara24.ee managed to surpass its main competitor city24.ee both in terms of the number of advertisements as well as the number of visitors.
At the end of December, there were 23 660 advertisements on the site Kinnisvara24.ee which was 3% more than those of the portal city24.ee. In December, it had 8% more unique visitors than its competitor.
As of the end of December, 315 real estate companies and 635 regular users had published their advertisements in the portal. The number of brokers that had joined the portal totalled 1 780.
PRINTING SERVICES SEGMENT
In the 4th quarter of 2018, the revenue of AS Printall totalled EUR 7.1 million (Q4 2017: EUR 6.5 million) and in the 12 months of 2018, the revenue totalled EUR 25.2 million (12 months 2017: EUR 23.9 million). Revenue increased by 6% as compared to last year that is mainly impacted by a higher paper prices. Printing revenues have decreased In Estonia partially due to decline in printing media and promotional leaflets used by large supermarket chains. In the 4th quarter of 2018, EBITDA was EUR 0.5 million (Q4 2017: EUR 1.0 million) and in the 12 months of 2018, it was EUR 2.4 million (12 months 2017: EUR 3.7 million). EBITDA declined by 36% as compared to last year. This is manily impacted by increased input prices (paper, labour, electricity and gas etc) and also tightened competition where sales margins are under pressure.
For several consecutive years, the printing services segment has been under pressure due to continued digitalisation of regular journalism and increasing popularity of Internet as compared to printed products. Competition concerning sales prices continues to be intense. The sales volumes of print circulations have declined which in turn leads to higher printing costs. In addition, appreciation of input prices of labour, paper and electricity is another major challenge.
The revenue of AS Printall over the 12 months of 2018 outside of Estonia is 61% (12 months 2017: 57%).
FINANCIAL INDICATORS AND RATIOS
Performance indicators - joint ventures under equity method (EUR thousand) | Q4 2018 | Q4 2017 | Change % | 12 months 2018 | 12 months 2017 | Change % |
For the period | ||||||
Sales revenue | 17 398 | 15 016 | 16% | 60 489 | 54 070 | 12% |
EBITDA | 1 359 | 1 590 | -15% | 4 263 | 6 261 | -32% |
EBITDA margin (%) | 7.8% | 10.6% | 7.0% | 11.6% | ||
Operating profit* | 511 | 840 | -39% | 1 211 | 3 475 | -65% |
Operating margin *(%) | 2.9% | 5.6% | 2.0% | 6.4% | ||
Interest expenses | (138) | (97) | -43% | (443) | (400) | -11% |
Profit (loss) on shares of joint ventures under equity method | (261) | (233) | -12% | (273) | (2) | -16767% |
Net profit/(loss) for the period* | (240) | 508 | -147% | 25 | 2 952 | -99% |
Net margin* (%) | -1.4% | 3.4% | 0.0% | 5.5% | ||
Net profit /(-loss) in the financial statements (incl. write-downs and gain from a change in ownership interest) | (240) | 703 | -134% | 25 | 3 146 | -99% |
Net margin (%) | -1.4% | 4.7% | 0.0% | 5.8% | ||
Return on assets ROA (%) | -0.3% | 0.9% | 0.0% | 4.2% | ||
Return on equity (%) | -0.5% | 1.3% | 0.0% | 6.1% | ||
Earnings per share (EPS) | (0.01) | 0.02 | 0.00 | 0.11 |
* The results reflect the outcome of regular business activities and do not include impairment losses on goodwill, gains from the changes in ownership interests in joint ventures, etc.
Balance sheet (EUR thousand) | joint ventures consolidated 50% | joint ventures under equity method | ||||
31.12.2018 | 31.12.2017 | Change % | 31.12.2018 | 31.12.2017 | Change % | |
As of the end of the period | ||||||
Current assets | 15 631 | 16 725 | -7% | 13 831 | 13 827 | 0% |
Non-current assets | 63 286 | 62 597 | 1% | 62 907 | 62 130 | 1% |
Total assets | 78 917 | 79 322 | -1% | 76 738 | 75 957 | 1% |
incl. cash and bank | 2 228 | 2 818 | -21% | 1 268 | 1 073 | 18% |
incl. goodwill | 39 799 | 39 920 | 0% | 37 969 | 37 969 | 0% |
Current liabilities | 14 207 | 11 081 | 28% | 12 186 | 8 372 | 46% |
Non-current liabilities | 14 276 | 15 747 | -9% | 14 118 | 15 091 | -6% |
Total liabilities | 28 483 | 26 828 | 6% | 26 304 | 23 463 | 12% |
incl. borrowings | 15 554 | 15 791 | -2% | 15 474 | 15 257 | 1% |
Equity | 50 434 | 52 494 | -4% | 50 434 | 52 494 | -4% |
Financial ratios (%) | joint ventures consolidated 50% | joint ventures under equity method | ||
31.12.2018 | 31.12.2017 | 31.12.2018 | 31.12.2017 | |
Equity ratio (%) | 64% | 66% | 66% | 69% |
Debt to equity ratio (%) | 31% | 30% | 31% | 29% |
Debt to capital ratio (%) | 21% | 20% | 22% | 21% |
Total debt/EBITDA ratio | 3.70 | 2.35 | 3.63 | 2.44 |
Liquidity ratio | 1.10 | 1.51 | 1.13 | 1.65 |
Formulas used to calculate the financial ratios | |
EBITDA | Earnings before interest, tax, depreciation and amortisation. EBITDA does not include any impairment losses recognised during the period or result from restructuring. |
EBITDA margin (%) | EBITDA/sales x 100 |
Operating margin* (%) | Operating profit*/sales x100 |
Net margin (%) | Net margin in financial statements/sales x100 |
Net margin* (%) | Net margin*/sales x100 |
Earnings per share | Net profit / average number of shares |
Equity ratio (%) | Equity/ (liabilities + equity) x100 |
Dividend rate (%) | Total amount of dividends paid / Net profit |
Debt to equity ratio (%) | Interest bearing liabilities /equity x 100 |
Debt to capital ratio (%) | Interest bearing liabilities – cash and cash equivalents (net debt) /(net debt +equity) x 100 |
Total debt/EBITDA ratio | Interest bearing borrowings /EBITDA |
Debt service coverage ratio | EBITDA/loan and interest payments for the period |
Liquidity ratio | Current assets / current liabilities |
Return on assets ROA (%) | Net profit /average assets x 100 |
Return on equity ROE (%) | Net profit /average equity x 100 |
* The results reflect the outcome of regular business activities and do not include impairment losses on goodwill, gains from the changes in ownership interests in our joint ventures, etc.
Consolidated balance sheet (unaudited)
(EUR thousand) | 31.12.2018 | 31.12.2017 |
ASSETS | ||
Current assets | ||
Cash and cash equivalents | 1 268 | 1 073 |
Trade and other receivables | 9 154 | 9 918 |
Corporate income tax prepayment | 27 | 4 |
Inventories | 3 382 | 2 832 |
Total current assets | 13 831 | 13 827 |
Non-current assets | ||
Trade and other receivables | 1 588 | 1 749 |
Deferred tax asset | 44 | 47 |
Investments in joint ventures | 2 345 | 2 372 |
Investments in associates | 319 | 354 |
Property, plant and equipment | 11 921 | 12 189 |
Intangible assets | 46 691 | 45 419 |
Total non-current assets | 62 907 | 62 130 |
TOTAL ASSETS | 76 738 | 75 957 |
LIABILITIES | ||
Current liabilities | ||
Borrowings | 1 356 | 166 |
Trade and other payables | 10 801 | 8 095 |
Corporate income tax payable | 29 | 111 |
Total current liabilities | 12 186 | 8 372 |
Non-current liabilities | ||
Long-term borrowings | 14 118 | 15 091 |
Total non-current liabilities | 14 118 | 15 091 |
TOTAL LIABILITIES | 26 304 | 23 463 |
EQUITY | ||
Minority interest | 87 | 68 |
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) | (22) |
Reserves | 1 688 | 1 531 |
Retained earnings | 16 526 | 18 762 |
Total capital and reserves attributable to equity holders of parent company | 50 347 | 52 426 |
TOTAL EQUITY | 50 434 | 52 494 |
TOTAL LIABILITIES AND EQUITY | 76 738 | 75 957 |
Consolidated statement of comprehensive income (unaudited)
(EUR thousand) | Q4 2018 | Q4 2017 | 12 months 2018 | 12 months 2017 |
Sales revenue | 17 398 | 15 016 | 60 489 | 54 070 |
Cost of sales | (13 884) | (11 900) | (48 874) | (42 869) |
Gross profit | 3 513 | 3 115 | 11 615 | 11 201 |
Other income | 173 | 666 | 394 | 1 383 |
Marketing expenses | (930) | (821) | (3 108) | (2 898) |
Administrative expenses | (2 211) | (1 884) | (7 609) | (5 921) |
Other expenses | (33) | (42) | (82) | (97) |
Operating profit | 511 | 1 034 | 1 211 | 3 669 |
Interest income | 25 | 36 | 143 | 173 |
Interest expenses | (138) | (97) | (443) | (400) |
Other finance income/ (costs) | (52) | 170 | (103) | 117 |
Net finance cost | (165) | 108 | (403) | (109) |
Profit (loss) on shares of joint ventures | (261) | (233) | (273) | (2) |
Profit (loss) on shares of associates | (243) | (17) | (234) | (68) |
Profit before income tax | (158) | 892 | 302 | 3 490 |
Income tax expense | (83) | (190) | (276) | (344) |
Net profit for the reporting period | (240) | 703 | 25 | 3 146 |
Net profit for the reporting period attributable to | ||||
Equity holders of the parent company | (262) | 696 | 6 | 3 140 |
Minority shareholders | 21 | 6 | 19 | 6 |
Total comprehensive income | (240) | 703 | 25 | 3 146 |
Comprehensive income for the reporting period attributable to | ||||
Equity holders of the parent company | (262) | 696 | 6 | 3 140 |
Minority shareholders | 21 | 6 | 19 | 6 |
Basic and diluted earnings per share | (0.01) | 0.02 | 0.00 | 0.11 |
Consolidated cash flow statement (unaudited)
(EUR thousand) | 12 months 2018 | 12 months 2017 |
Cash flows from operating activities | ||
Operating profit for the reporting year | 1 211 | 3 669 |
Adjustments for: | ||
Depreciation, amortisation and impairment | 3 052 | 2 787 |
Gain from selling business assets | 0 | (194) |
(Gain)/loss on sale and write-down of property, plant and equipment | (5) | (11) |
Cash flows from operating activities: | ||
Trade and other receivables | (397) | (105) |
Inventories | (550) | (62) |
Trade and other payables | 2 449 | (497) |
Cash generated from operations | 5 760 | 5 587 |
Income tax paid | (379) | (371) |
Interest paid | (462) | (448) |
Net cash generated from operating activities | 4 920 | 4 769 |
Cash flows from investing activities | ||
Acquisition of subsidiaries (less cash acquired) | 0 | (546) |
Acquisition of associate | 0 | (74) |
Purchase and receipts of other investments | (995) | (785) |
Proceeds from sale of business assets | 0 | 130 |
Interest received | 127 | 169 |
Purchase of property, plant and equipment and intangible assets | (3 082) | (2 023) |
Proceeds from sale of property, plant and equipment and intangible assets | 29 | 12 |
Loans granted | (700) | (2 227) |
Loan repayments received | 1 763 | 1 054 |
Net cash used in investing activities | (2 858) | (4 290) |
Cash flows from financing activities | ||
Dividends paid | (2 085) | (1 787) |
Dividends received | 0 | 56 |
Finance lease payments made | (74) | (71) |
Change in overdraft | 1 191 | 92 |
Loans received | 1 000 | 0 |
Repayments of bank loans | (1 900) | (552) |
Net cash used in financing activities | (1 868) | (2 261) |
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS | 194 | (1 782) |
Cash and cash equivalents at the beginning of the year | 1 073 | 2 856 |
Cash and cash equivalents at the end of the year | 1 268 | 1 073 |
Additional information:
Signe Kukin
Group CFO
AS Ekspress Grupp
+372 669 8381
signe.kukin@egrupp.ee
AS Ekspress Grupp is the leading media group in the Baltic States whose key activities include web media content production, publishing of newspapers and magazines and provision of printing services in Estonia, Latvia and Lithuania. Ekspress Grupp that launched its operations in 1989 employs 1700 people, owns leading web media portals in the Baltic States and publishes the most popular daily and weekly newspapers as well as the majority of the most popular magazines in Estonia.
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