Ekspress Grupp
AS Ekspress Grupp: Consolidated Interim Report for the Fourth Quarter and 12 Months of 2014
DGAP-News: Ekspress Grupp 2015-02-27 / 09:31 --------------------------------------------------------------------- Tallinn, Estonia, 2015-02-27 09:31 CET (GLOBE NEWSWIRE) -- The year 2014 was a successful year for Ekspress Group. In year-on-year comparison, the consolidated EBITDA of the Group increased by 22% to almost EUR 9 million. Consolidated net profit was 30% higher and amounted to EUR 4.6 million. The EBITDA margin was 14.5%. The actual results were also higher compared to our cautiously budgeted EBITDA of EUR 8 million and net profit of EUR 3.8 million. In the 4th quarter, the EBITDA increased by 37% to EUR 2.8 million, the net profit was 53% higher amounting to EUR 1.6 million. The EBITDA margin of the year's final quarter amounted to 16.4%. The above figures include all our joint ventures (AS SL Õhtuleht, AS Ajakirjade Kirjastus and AS Express Post) consolidated 50% line-by-line. Starting from 2014, in consolidated financial reports 50% joint ventures are recognised under the equity method, in compliance with new international financial reporting standards (IFRS). The change in this accounting policy does not affect the net profit, but decreases the fourth-quarter sales revenue by approximately EUR 2.3 million and the EBITDA by approximately EUR 0.35 million (annual sales revenue is approximately EUR 8.6 million lower and EBITDA approximately EUR 1.0 million lower). In its monthly reports, the management has continued to monitor the Group's performance on a basis of proportional consolidation of joint ventures and the syndicated loan contract also determines the calculation of 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% as previously and the other where joint ventures are recognised under the equity method and their net result is presented as financial income in one line. In Note 3 of the financial statements, the impact of every joint venture on the respective line of the income statement and balance sheet is described in more detail. The income statement includes financial income in the amount of EUR 1.9 million resulting from the acquisition of shares of AS Ajakirjade Kirjastus and AS SL Õhtuleht from AS Eesti Meedia, their sale to OÜ Suits Meedia and subsequent restructuring. In essence, joint ventures with AS Eesti Meedia were sold and new joint ventures were acquired together with OÜ Suits Meedia. In addition, as a result of these transactions, trademarks, other intangible assets and goodwill in the acquired joint ventures are now recognised at their fair value in both the balance sheet of the joint ventures themselves and the Group (where joint ventures are 50% consolidated). In the income statement, the depreciation cost of these trademarks and other assets is recognised subsequently thus decreasing the net profit. In addition to the above, the net profit was influenced by the impairment of goodwill related to Delfi Latvia in the amount of EUR 1.4 million. It is partly attributable to the decision made in the first half of 2014 to invest in the strengthening of the editorial office of Delfi Latvia which has had an impact on the entity's financial results and partly to the downturn of the economic climate, caused mainly by the events in Ukraine. The Group's financial leverage improved notably during the year. The Group's total debt to EBITDA ratio (based on 50% proportional consolidation of joint ventures) decreased down to 2.61 by the end of the year and the debt service coverage ratio increased up to 1.90. Today our balance sheet allows us to look very aggressively towards new investment opportunities. Media segment which includes 50% joint ventures achieved EBITDA growth of 42% compared to last year, totalling EUR 4.0 million. In the 4th quarter, EBITDA was 19% higher, totalling EUR 1.4 million. Starting from the third quarter when the Lithuanian magazine publisher UAB Ekspress Leidyba was merged with Delfi Lithuania, we no longer separate online media from periodicals, and talk about one media segment which represents both online and print media. The online revenue of Delfi Lithuania continues to be reported separately. In the media segment, the biggest EBITDA growth was achieved by Delfi Estonia, exceeding last year's result by 95% and amounting to EUR 0.6 million. This included fourth-quarter EBITDA in the amount of EUR 0.2 million which is 36% higher than a year earlier. The strong result of Delfi Estonia is due to excellent work of the editorial office in increasing the readership of the portal that has enabled the advertising sales team to increase the revenue faster than the market in average. The rapid growth of new products, especially online topical portals and video solutions played an important role in increasing the revenue. Although Delfi Latvia saw the EBITDA decrease 32% compared to year ago, it still earned a profit of EUR 0.1 million. In the 4th quarter, the result remained the level of previous year. In all three Baltic States, the competition in Latvia is the toughest. Acquisitions made by competitors to increase their market share have essentially equalled the readership of the three largest portals in Latvia, although Delfi remains the country's largest news portal and for a few months in the autumn was also Latvia's largest internet environment. In such a tough competitive situation we decided not to invest in acquisitions, but in the development of our own product, increasing editorial office and opening new topical portals. For this reason, costs in Delfi Latvia in 2014 were higher than we had planned at the start of the year. EBITDA of Delfi Lithuania increased 23% in a year to EUR 1.3 million. Fourth-quarter EBITDA remained on the same level as year before. The result of Delfi Lithuania was most affected by the merger with other group company Ekspress Leidyba, the Lithuanian magazine publisher, as a result of which we managed to optimise the organisational structure, while creating better possibilities for selling online and print advertising together. It was also a good year for publishers. Although advertising income was largely in a downward trend, subscription income increased. AS Eesti Ajalehed that publishes newspapers Eesti Ekspress, Eesti Päevaleht and Maaleht improved its result by 46% and earned EUR 0.5 million in EBITDA. At the same time the fourth-quarter result was 19% weaker than a year earlier and the profit was only EUR 0.15 million. Additional contribution to the result during the year came from the series of Estonian children's films that were produced in cooperation with a group's book publisher Hea Lugu, and a series of detective novels, a cooperation project with third party book publisher Varrak. Our book publishing company Hea Lugu provided a positive surprise by earning an annual profit of EUR 0.1 million which is an increase of 71% from a year earlier. The strong annual result was attributable to the series of children's films in the first half of the year and to several bestsellers published. AS SL Õhtuleht increased its EBITDA result by 61% in a year to EUR 0.7 million. Fourth-quarter profit, at the same time, was 142% higher. The EBITDA result of AS Ajakirjade Kirjastus also improved this year, increasing by 49% and totalling EUR 0.5 million by the end of the year. In the 4th quarter, the result was 39% better. The result of both AS SL Õhtuleht and AS Ajakirjade Kirjastus was influenced positively by smaller printing costs resulting from entering into new printing contracts with AS Kroonpress and AS Printall. Express Post, a home delivery service provider, grew its EBITDA by 33% in a year, earning EUR 0.7 million. Fourth-quarter result improved 57% year-on-year. Since only the net profit of our joint ventures is recognised in the Group's consolidated income statement prepared in accordance with new IFRS, the direct positive impact on consolidated results will be smaller due to amortisation of the trademarks and customer relations which now appear at their fair value in the balance sheet of the joint ventures of AS SL Õhtuleht and AS Ajakirjade Kirjastus as a result of ownership restructuring. However the positive impact is reflected in the EBITDA of the joint ventures themselves. One of the most significant events in 2014 was the ending of the court dispute over the ownership of AS SL Õhtuleht and AS Ajakirjade Kirjastus. As a result of the dispute, OÜ Suits Meedia replaced AS Eesti Meedia as a shareholder in those two joint ventures. The immediate positive impact of the change in ownership was a significant decrease in the cost of printing services. In addition to a direct economic effect, this decision also has a long-term positive impact on the companies which have now more possibilities to compete in the market. Very important event for the media segment was the growth in the number of paid digital subscriptions which exceeded 10,000 subscribers at the end of the year both for newspaper Eesti Ekspress and Eesti Päevaleht. It is also worth mentioning that weekly newspaper Eesti Ekspress celebrated its 25th birthday in autumn and at the same time Delfi celebrated its 15th birthday. For online media companies, one of the most significant projects in 2014 was the development of the discount price portal Zave. By the end of the year, approximately 150 different merchants in the three Baltic States participated in this project. The printing services segment increased its revenues by 5% and EBITDA by 1% last year and earned approximately EUR 6 million EBITDA. In 2014, the key event in the printing services segment was the decision to acquire a new printing machine and its arrival in the last month of the year. The new sheet fed machine starts production at the beginning of 2015. At the end of the year we decided to launch a new business line - arrangement of entertainment events. The first project will be an exhibition in Riga about M/S Titanic that sank on her maiden voyage. The exhibition will open in the first half of 2015. After the Titanic exhibitions we will decide our further steps in terms of developing the business line of entertainment events. In 2015 we expect the Group's business to gather pace and increase of our financial capability. We expect to increase the consolidated revenue by 5% and the EBITDA by 7% at least. This includes 50% of the results of our joint ventures. At the start of January we announced a merger between AS Eesti Ajalehed and AS Delfi into one entity. The objective of this step is to cut administrative bureaucracy in joint transactions between the two closely linked companies, to increase journalistic quality through further cooperation of editorial offices of both media entities and to provide paper and digital newspapers direct access to the marketing capacity of Estonian largest portal. For our advertising customers we wish to provide access to all our platforms from a single sales organisation. We continue to develop the discount price portal Zave, a new innovative customer communication tool for retail merchants. We have also set a goal to increase the number of paid digital subscriptions up to 20 thousand by the end of the year. We have also started the project in investing into Baltic startup companies with the objective of supporting young businesses that could develop their business with the help of the Group's marketing power in Baltic states and prepare expanding to larger international markets. Our mission remains to offer new and interesting experiences both on paper and in digital media, without ever compromising on news quality, choice of topics and journalistic objectivity. FINANCIAL INDICATORS AND RATIOS - joint ventures consolidated 50% line-by-line Starting from 2014, in consolidated financial reports 50% joint ventures are recognised under the equity method, in compliance with new international financial reporting standards (IFRS). In its monthly reports, the management has continued to monitor the Group's performance on a basis of proportional consolidation of joint ventures and the syndicated loan contract also determines the calculation of 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% as previously and the other where joint ventures are recognised under the equity method and their net result is presented as financial income in one line. Q4 Q4 Change Q4 Q4 style 2014 2013 % 2012 2011 ='font -size: 9pt;'> Perfor mance indic ators - joint ventu res conso lidate d 50% (EUR thous and) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- For the perio d 16 778 16 526 2% 16 447 16 313 style ='font -size: 9pt;'> Sales< /span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 2 757 2 015 37% 2 246 1 986 style ='font -size: 9pt;'> EBITDA 16.4% 12.2% 13.7% 12.2% style ='font -size: 9pt;'> EBITDA margi n (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 1 894 1 348 41% 1 496 1 037 style ='font -size: 9pt;'> Operat ing profi t* 11.3% 8.2% 9.1% 6.4% style ='font -size: 9pt;'> Operat ing margi n* (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- (186) (185) -1% (206) (523) style ='font -size: 9pt;'> Intere st expen ses -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 1 614 1 057 53% 1 269 535 style ='font -size: 9pt;'> Profit /(los s) for the perio d* 9.6% 6.4% 7.7% 3.3% style ='font -size: 9pt;'> Net margi n* (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 1 149 (1 181% 1 112 (215) style 410) ='font -size: 9pt;'> Net profi t /(los s) for the perio d in the finan cial state ments (incl. impai rments and gain on chang e of owner ship inter est) span> 6.8% -8.5% 6.8% -1.3% style ='font -size: 9pt;'> Net margi n (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 1.4% -1.8% 1.4% -0.3% style ='font -size: 9pt;'> Return on asset s ROA (%) span> 2.4% -3.2% 2.7% -0.6% style ='font -size: 9pt;'> Return on equit y ROE (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 0.04 (0.05) (0.04) (0.01) style ='font -size: 9pt;'> Earnin gs per share (EPS) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- * The results exclude allowances on impairments and one-off gains in relation to the acquisition in Eesti Päevalehe AS in 2011 and the change in ownership structure in joint ventures AS Ajakirjade Kirjastus and AS SL Õhtuleht in 2014. More information is disclosed in the Note 5 to the financial statements. 12 months 12 months Change 12 months 12 months style 2014 2013 % 2012 2011 ='font -size: 9pt;'> Perfor mance indic ators - joint ventu res conso lidate d 50% (EUR thous and) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- For the perio d 61 384 58 427 5% 59 706 57 391 style ='font -size: 9pt;'> Sales< /span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 8 878 7 264 22% 7 882 6 968 style ='font -size: 9pt;'> EBITDA 14.5% 12.4% 13.2% 12.1% style ='font -size: 9pt;'> EBITDA margi n (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 5 638 4 647 21% 4 596 3 443 style ='font -size: 9pt;'> Operat ing profi t* 9.2% 8.0% 7.7% 6.0% style ='font -size: 9pt;'> Operat ing margi n* (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- (732) (763) 4% (1 (2 style 549) 212) ='font -size: 9pt;'> Intere st expen ses -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 4 620 3 548 30% 2 682 893 style ='font -size: 9pt;'> Profit /(los s) for the perio d* 7.5% 6.1% 4.5% 1.6% style ='font -size: 9pt;'> Net margi n* (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 5 110 1 081 373% 2 525 1 683 style ='font -size: 9pt;'> Net profi t for the perio d in the finan cial state ments (incl. impai rments and gain on chang e of owner ship inter est) span> 8.3% 1.9% 4.2% 2.9% style ='font -size: 9pt;'> Net margi n (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 6.6% 1.4% 3.2% 2.0% style ='font -size: 9pt;'> Return on asset s ROA (%) span> 11.4% 2.5% 6.4% 4.4% style ='font -size: 9pt;'> Return on equit y ROE (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 0.17 0.04 0.08 0.06 style ='font -size: 9pt;'> Earnin gs per share (EPS) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- * The results exclude allowances on impairments and one-off gains in relation to the acquisition in Eesti Päevalehe AS in 2011 and the change in ownership structure in joint ventures AS Ajakirjade Kirjastus and AS SL Õhtuleht in 2014. More information is disclosed in the Note 5 to the financial statements. 31.12.2014 31.12.2013 Change style % ='font -size: 9pt;'> Balanc e sheet - joint ventu res conso lidate d 50% (EUR thous and) span> -------------------------------------------------------------------------------- --------------------------------------------------------------- As of the end of the perio d 15 189 14 447 6% style ='font -size: 9pt;'> Curren t asset s 65 665 63 019 4% style ='font -size: 9pt;'> Non-cu rrent asset s 80 854 77 466 5% style ='font -size: 9pt;'> Total asset s -------------------------------------------------------------------------------- --------------------------------------------------------------- -------------------------------------------------------------------------------- --------------------------------------------------------------- 6 788 4 501 51% style ='font -size: 9pt;'> incl. cash and bank< /span> 39 432 40 052 -2% style ='font -size: 9pt;'> incl. goodw ill -------------------------------------------------------------------------------- --------------------------------------------------------------- -------------------------------------------------------------------------------- --------------------------------------------------------------- 14 110 14 468 -2% style ='font -size: 9pt;'> Curren t liabi lities 19 569 20 673 -5% style ='font -size: 9pt;'> Non-cu rrent liabi lities 33 679 35 141 -4% style ='font -size: 9pt;'> Total liabi lities -------------------------------------------------------------------------------- --------------------------------------------------------------- -------------------------------------------------------------------------------- --------------------------------------------------------------- 24 592 24 432 1% style ='font -size: 9pt;'> incl. borro wings< /span> 47 175 42 325 12% style ='font -size: 9pt;'> Equity -------------------------------------------------------------------------------- --------------------------------------------------------------- Financial t;'>31.12.201431.12.2013 n> -------------------------------------------------------------------------------- Equity style='font-size:9p style='font-size:9p t;'>58% t;'>55% Debt to style='font-size:9p style='font-size:9p t;'>52% t;'>58% Debt to style='font-size:9p style='font-size:9p t;'>27% t;'>32% Total t;'>2.61 t;'>3.36 Debt style='font-size:9p style='font-size:9p t;'>1.90 t;'>1.66 Liquidity style='font-size:9p style='font-size:9p t;'>1.08 t;'>1.00 -------------------------------------------------------------------------------- FINANCIAL INDICATORS AND RATIOS - joint ventures recognized under the equity method Q4 Q4 Change Q4 Q4 style 2014 2013 % 2012 2011 ='font -size: 9pt;'> Perfor mance indic ators - joint ventu res under the equit y metho d (EUR thous and) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- For the perio d 14 454 14 291 1% 14 165 13 995 style ='font -size: 9pt;'> Sales (only subsi diarie s) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 2 413 1 815 33% 2 017 1 740 style ='font -size: 9pt;'> EBITDA (only subsi diarie s) 16.7% 12.7% 14.2% 12.4% style ='font -size: 9pt;'> EBITDA margi n (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 1 661 1 175 41% 1 293 822 style ='font -size: 9pt;'> Operat ing profi t* (only subsi diarie s) 11.5% 8.2% 9.1% 5.9% style ='font -size: 9pt;'> Operat ing margi n* (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- (158) (185) 14% (206) (524) style ='font -size: 9pt;'> Intere st expen ses (only subsi diarie s) 182 174 4% 202 208 style ='font -size: 9pt;'> Profit of joint ventu res by equit y metho d -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 1 601 1 057 52% 1 269 535 style ='font -size: 9pt;'> Profit for the perio d* 11.1% 7.4% 9.0% 3.8% style ='font -size: 9pt;'> Net margi n* (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 1 136 (1 181% 1 112 (215) style 410) ='font -size: 9pt;'> Net profi t/(los s) for the perio d in the finan cial state ments (incl. impai rments and gain on chang e of owner ship inter est) span> 7.9% -9.9% 7.8% -1.5% style ='font -size: 9pt;'> Net margi n (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 1.5% -1.8% 1.4% -0.3% style ='font -size: 9pt;'> Return on asset s ROA (%) span> 2.4% -3.2% 2.7% -0.6% style ='font -size: 9pt;'> Return on equit y ROE (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 0.04 (0.05) (0.04) (0.01) style ='font -size: 9pt;'> Earnin gs per share (EPS) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- * The results exclude allowances on impairments and one-off gains in relation to the acquisition in Eesti Päevalehe AS in 2011 and the change in ownership structure in joint ventures AS Ajakirjade Kirjastus and AS SL Õhtuleht in 2014. More information is disclosed in the Note 5 to the financial statements. 12 months 12 months Change 12 months 12 months style 2014 2013 % 2012 2011 ='font -size: 9pt;'> Perfor mance indic ators - joint ventu res under the equit y metho d (EUR thous and) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- For the perio d 52 793 50 086 5% 51 290 49 027 style ='font -size: 9pt;'> Sales (only subsi diarie s) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 7 894 6 591 20% 7 345 6 311 style ='font -size: 9pt;'> EBITDA (only subsi diarie s) 15.0% 13.2% 14.3% 12.9% style ='font -size: 9pt;'> EBITDA margi n (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 4 973 4 071 22% 4 173 2 930 style ='font -size: 9pt;'> Operat ing profi t* (only subsi diarie s) 9.4% 8.1% 8.1% 6.0% style ='font -size: 9pt;'> Operat ing margi n* (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- (689) (763) 10% (1 (2 style 550) 219) ='font -size: 9pt;'> Intere st expen ses (only subsi diarie s) 557 494 13% 339 421 style ='font -size: 9pt;'> Profit of joint ventu res by equit y metho d -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 4 621 3 548 30% 2 682 893 style ='font -size: 9pt;'> Profit for the perio d* 8.8% 7.1% 5.2% 1.8% style ='font -size: 9pt;'> Net margi n* (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 5 110 1 081 373% 2 525 1 683 style ='font -size: 9pt;'> Net profi t / (loss ) for the perio d in the finan cial state ments (incl. impai rments and gain on chang e of owner ship inter est) span> 9.7% 2.2% 4.9% 3.4% style ='font -size: 9pt;'> Net margi n (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 6.8% 1.4% 3.2% 2.0% style ='font -size: 9pt;'> Return on asset s ROA (%) span> 11.4% 2.5% 6.4% 4.4% style ='font -size: 9pt;'> Return on equit y ROE (%) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 0.17 0.04 0.08 0.06 style ='font -size: 9pt;'> Earnin gs per share (EPS) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- * The results exclude allowances on impairments and one-off gains in relation to the acquisition in Eesti Päevalehe AS in 2011 and the change in ownership structure in joint ventures AS Ajakirjade Kirjastus and AS SL Õhtuleht in 2014. More information is disclosed in the Note 5 to the financial statements. 31.12.2014 31.12.2013 Change style % ='font -size: 9pt;'> Balanc e sheet - joint ventu res under equit y metho d (EUR thous and) span> -------------------------------------------------------------------------------- ---------------------------------------------------------------- As at the end of the perio d 12 303 11 357 8% style ='font -size: 9pt;'> Curren t asset s 64 292 63 899 1% style ='font -size: 9pt;'> Non-cu rrent asset s 76 595 75 256 2% style ='font -size: 9pt;'> Total asset s -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 5 275 2 209 139% style ='font -size: 9pt;'> incl. cash and bank< /span> 38 153 39 596 -4% style ='font -size: 9pt;'> incl. goodw ill -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 11 481 12 259 -6% style ='font -size: 9pt;'> Curren t liabi lities 17 939 20 672 -13% style ='font -size: 9pt;'> Non-cu rrent liabi lities 29 420 32 931 -11% style ='font -size: 9pt;'> Total liabi lities -------------------------------------------------------------------------------- ---------------------------------------------------------------- -------------------------------------------------------------------------------- ---------------------------------------------------------------- 23 152 24 432 -5% style ='font -size: 9pt;'> incl. borro wings< /span> 47 175 42 325 11% style ='font -size: 9pt;'> Equity -------------------------------------------------------------------------------- ---------------------------------------------------------------- Financial t;'>31.12.201431.12.2013 n> -------------------------------------------------------------------------------- Equity style='font-size:9p style='font-size:9p t;'>62% t;'>56% Debt to style='font-size:9p style='font-size:9p t;'>49% t;'>58% Debt to style='font-size:9p style='font-size:9p t;'>27% t;'>34% Total style='font-size:9p style='font-size:9p t;'>2.93 t;'>3.71 Debt style='font-size:9p style='font-size:9p t;'>1.77 t;'>1.50 Liquidity style='font-size:9p style='font-size:9p t;'>1.07 t;'>0.93 -------------------------------------------------------------------------------- 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. It can appear in lower advertising costs in retail, preference of other advertising channels (e.g. preference of internet rather than print media) and changes in consumption habits of retail consumers (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 increase in subscriptions and retail sale which usually continues until next summer holiday period. Formulas used to calculate the financial ratios -------------------------------------------------------------------------------- - EBITDA margin style='font-size:9pt;'>(%) -------------------------------------------------------------------------------- Operating margin* style='font-size:9pt;'>(%) -------------------------------------------------------------------------------- Net margin* Net (%) profit*/sales x100 -------------------------------------------------------------------------------- Net margin (%) Net profit /sales x100 -------------------------------------------------------------------------------- Earnings per Net share profit / average number of shares -------------------------------------------------------------------------------- Equity ratio Equity (%) / (liabilities + equity) x100 -------------------------------------------------------------------------------- Debt to equity style='font-size:9pt;'>Interest bearing liabilities /equity x 100 -------------------------------------------------------------------------------- Debt to style='font-size:9pt;'>Interest bearing liabilities - cash and cash equivalents (net debt)/ (net debt +equity) x 100 -------------------------------------------------------------------------------- Total style='font-size:9pt;'>Interest bearing borrowings /EBITDA -------------------------------------------------------------------------------- Debt service style='font-size:9pt;'>EBITDA/loan and interest payments for the period -------------------------------------------------------------------------------- Liquidity style='font-size:9pt;'>Current assets / current liabilities -------------------------------------------------------------------------------- Return on Net assets ROA (%) profit /average assets x 100 -------------------------------------------------------------------------------- Return on Net equity ROE (%) profit /average equity x 100 -------------------------------------------------------------------------------- * The results exclude allowances on impairments and one-off gains in relation to the acquisition in Eesti Päevalehe AS in 2011 and the change in ownership structure in joint ventures AS Ajakirjade Kirjastus and AS SL Õhtuleht in 2014. More information is disclosed in the Note 5 to the financial statements. SEGMENT OVERVIEW From the 3rd quarter of the current year when the Group's Lithuanian subsidiaries were merged, the Group's activities are divided into the media segment and the printing services segment. Previously, the entities of the media segment were divided into online media and periodicals segments. The segments' EBITDA does not include intragroup management fees, and 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 2011-2014 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------- Sales Sales style ='font -size: 9pt;'> (EUR thous and) span> ------- Q4 2014 Q4 Change Q4 Q4 2013 % 2012 2011 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- --------------------------------------------------------------- 7 535 7 617 -1% 7 049 6 550 style ='font -size: 9pt;'> media segme nt (by equit y metho d) 4 015 3 389 18% 3 029 2 618 style ='font -size: 9pt;'> incl. reven ue from all digit al and onlin e chann els 8 083 7 566 7% 8 046 8 143 style ='font -size: 9pt;'> printi ng servi ces segme nt 459 393 17% 308 71 style ='font -size: 9pt;'> corpor ate funct ions span> (1 624) (1 -26% (1 (769) style 286) 238) ='font -size: 9pt;'> inters egment elimi nation s -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- --------------------------------------------------------------- 14 454 14 1% 14 13 style 291 165 995 ='font -size: 10pt;' >TOTAL GROUP by equit y metho d -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- --------------------------------------------------------------- 10 141 10 043 1% 9 532 9 030 style ='font -size: 9pt;'> media segme nt by propo rtiona l conso lidati on -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- --------------------------------------------------------------- 4 257 3 584 19% 3 184 2 773 style ='font -size: 9pt;'> incl. reven ue from all digit al and onlin e chann els -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- --------------------------------------------------------------- 8 083 7 566 7% 8 046 8 143 style ='font -size: 9pt;'> printi ng servi ces segme nt -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- --------------------------------------------------------------- 459 393 17% 308 71 style ='font -size: 9pt;'> corpor ate funct ions span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- --------------------------------------------------------------- (1 905) (1 29% (1 (931) style 476) 439) ='font -size: 9pt;'> inters egment elimi nation s -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- --------------------------------------------------------------- 16 778 16 2% 16 16 style 526 447 313 ='font -size: 10pt;' >TOTAL GROUP by propo rtiona l conso lidati on -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- --------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------------------------------------------------------ EBITDA EBITDA style ='font -size: 9pt;'> (EUR thous and) span> ------- Q4 Q4 Change Q4 Q4 2014 2013 % 2012 2011 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------------------------------------------------------------- 1 103 1 014 9% 611 511 style ='font -size: 9pt;'> media segme nt by equit y metho d 1 448 1 214 19% 839 758 style ='font -size: 9pt;'> media segme nt by propo rtiona l conso lidati on 1 623 1 604 1% 1 650 1 495 style ='font -size: 9pt;'> printi ng servi ces segme nt (313) (763) 59% (242) (267) style ='font -size: 9pt;'> corpor ate funct ions span> 0 (40) 100% (1) 1 style ='font -size: 9pt;'> inters egment elimi nation s -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------------------------------------------------------------- 2 413 1 33% 2 1 style 815 017 740 ='font -size: 10pt;' >TOTAL GROUP by equit y metho d -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------------------------------------------------------------- 2 757 2 37% 2 1 style 015 246 986 ='font -size: 10pt;' >TOTAL GROUP by propo rtiona l conso lidati on -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------- Q4 Q4 Q4 Q4 style 2014 2013 2012 2011 ='font -size: 9pt;'> EBITDA margi n ------- 15% 13% 9% 8% style ='font -size: 9pt;'> media segme nt by equit y metho d 14% 12% 9% 8% style ='font -size: 9pt;'> media segme nt by propo rtiona l conso lidati on 20% 21% 21% 18% style ='font -size: 9pt;'> printi ng servi ces segme nt -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------- 17% 13% 14% 12% style ='font -size: 10pt;' >TOTAL GROUP by equit y metho d -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------- 16% 12% 14% 12% style ='font -size: 10pt;' >TOTAL GROUP by propo rtiona l conso lidati on -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------- Key financial data of the segments 12 months 2011-2014 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ----------------------------------------------------------- Sales Sales style ='font -size: 9pt;'> (EUR thous and) span> ------- 12 months 12 months Change 12 months 12 months 2014 2013 % 2012 2011 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------------------------------------------------------------------ -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------------------------------------------------------------------ 27 459 25 842 6% 25 562 23 789 style ='font -size: 9pt;'> media segme nt (by equit y metho d) 13 449 11 595 16% 10 561 9 111 style ='font -size: 9pt;'> incl. reven ue from all digit al and onlin e chann els 28 951 27 462 5% 29 167 27 736 style ='font -size: 9pt;'> printi ng servi ces segme nt 1 731 1 530 13% 996 209 style ='font -size: 9pt;'> corpor ate funct ions span> (5 347) (4 13% (4 435) (2 707) style 748) ='font -size: 9pt;'> inters egment elimi nation s -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------------------------------------------------------------------ 52 793 50 5% 51 290 49 027 style 086 ='font -size: 10pt;' >TOTAL GROUP by equit y metho d -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------------------------------------------------------------------ -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------------------------------------------------------------------ 36 930 34 955 6% 34 773 32 771 style ='font -size: 9pt;'> media segme nt by propo rtiona l conso lidati on 14 306 12 226 17% 11 147 9 673 style ='font -size: 9pt;'> incl. reven ue from all digit al and onlin e chann els 28 951 27 462 5% 29 167 27 736 style ='font -size: 9pt;'> printi ng servi ces segme nt 1 731 1 530 13% 996 209 style ='font -size: 9pt;'> corpor ate funct ions span> (6 228) (5 13% (5 230) (3 325) style 520) ='font -size: 9pt;'> inters egment elimi nation s -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------------------------------------------------------------------ 61 384 58 5% 59 706 57 391 style 427 ='font -size: 10pt;' >TOTAL GROUP by propo rtiona l conso lidati on -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------------------------------------------------------------------ -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------------------------------------------------------ EBITDA EBITDA style ='font -size: 9pt;'> (EUR thous and) span> ------- 12 12 months Change 12 months 12 months months 2013 % 2012 2011 2014 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------------------------------------------------------------- 3 025 2 123 42% 2 089 1 325 style ='font -size: 9pt;'> media segme nt by equit y metho d 4 013 2 792 44% 2 624 1 977 style ='font -size: 9pt;'> media segme nt by propo rtiona l conso lidati on 5 944 5 862 1% 6 052 5 959 style ='font -size: 9pt;'> printi ng servi ces segme nt (1 (1 21% (797) (980) style 076) 356) ='font -size: 9pt;'> corpor ate funct ions span> 0 (38) 101% 1 7 style ='font -size: 9pt;'> inters egment elimi nation s -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------------------------------------------------------------- 7 894 6 20% 7 6 style 591 345 311 ='font -size: 10pt;' >TOTAL GROUP by equit y metho d -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------------------------------------------------------------- 8 878 7 22% 7 6 style 264 882 968 ='font -size: 10pt;' >TOTAL GROUP by propo rtiona l conso lidati on -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------- 2014 2013 2012 2011 style ='font -size: 9pt;'> EBITDA margi n ------- 11% 8% 8% 6% style ='font -size: 9pt;'> media segme nt by equit y metho d 11% 8% 8% 6% style ='font -size: 9pt;'> media segme nt by propo rtiona l conso lidati on 21% 21% 21% 21% style ='font -size: 9pt;'> printi ng servi ces segme nt -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------- 15% 13% 14% 13% style ='font -size: 10pt;' >TOTAL GROUP by equit y metho d -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------- 15% 12% 13% 12% style ='font -size: 10pt;' >TOTAL GROUP by propo rtiona l conso lidati on -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------- MEDIA SEGMENT The media segment includes Delfi operations in Estonia, Latvia and Lithuania as well as the parent company Delfi Holding. Starting from 1 March 2014, the operations of Delfi in Ukraine have been terminated. The nine-month EBITDA of Delfi Ukraine also includes expenses related to the termination of operations. The media segment also includes AS Eesti Ajalehed (publisher of Maaleht, Eesti Ekspress and Eesti Päevaleht), book publisher OÜ Hea Lugu as well as magazine publisher UAB Ekspress Leidyba in Lithuania, the latter having been merged into Delfi Lithuania on 1 July 2014. This segment also includes joint ventures AS SL Õhtuleht (publisher of Õhtuleht and Linnaleht), magazine publisher AS Ajakirjade Kirjastus and home delivery company AS Express Post. News portals owned by the Group Owner 9pt;'>PortalOwner 9pt;'>Portal > -------------------------------------------------------------------------------- Delfi 9pt;'>www.delfi.ee pt;'>AS Eesti 9pt;'>www.ekspress Estonia Ajalehed .ee -------------------------------------------------------------------------------- rus.delfi.ee 9pt;'>www.maaleht. ee -------------------------------------------------------------------------------- Delfi 9pt;'>www.delfi.lv 9pt;'>www.epl.ee Latvia span> -------------------------------------------------------------------------------- rus.delfi.lv -------------------------------------------------------------------------------- Delfi 9pt;'>www.delfi.lt pt;'>AS SL 9pt;'>www.ohtuleht Lithuania Õhtuleht .ee -------------------------------------------------------------------------------- ru.delfi.lt< /span> -------------------------------------------------------------------------------- Classified portals owned by the Group Owner 9pt;'>PortalOwner pt;'>Portal > -------------------------------------------------------------------------------- Delfi 9pt;'>www.alio.lt pt;'>AS Eesti pt;'>www.ej.ee Ajalehed n> -------------------------------------------------------------------------------- www.ekspressau to.ee -------------------------------------------------------------------------------- ------- Sales style ='font -size: 9pt;'> (EUR thous and) span> -------------------------------------------------------------------------------- ---------------------------------------------------- Q4 2014 Q4 2013 Change % -------------------------------------------------------------------------------- ----------------------------------------------------------- 1 460 1 217 20% style ='font -size: 9pt;'> Delfi Eston ia 786 683 15% style ='font -size: 9pt;'> Delfi Latvi a 2 250 2 085 8% style ='font -size: 9pt;'> Delfi Lithu ania (incl . Ekspr ess Leidy ba) 1 679 1 416 19% style ='font -size: 9pt;'> incl. onlin e reven ue of Delfi Lithu ania span> 0 17 -100% style ='font -size: 9pt;'> Delfi Ukrai ne 2 905 3 288 -12% style ='font -size: 9pt;'> AS Eesti Ajale hed 202 431 -53% style ='font -size: 9pt;'> OÜ Hea Lugu 0 0 - style ='font -size: 9pt;'> Other compa nies (Delf i Holdi ng) (68) (104) 34% style ='font -size: 9pt;'> Inters egment elimi nation s -------------------------------------------------------------------------------- ----------------------------------------------------------- 7 535 7 617 -1% style ='font -size: 10pt;' >TOTAL (subs idiari es) -------------------------------------------------------------------------------- ----------------------------------------------------------- -------------------------------------------------------------------------------- ----------------------------------------------------------- 1 022 964 6% style ='font -size: 9pt;'> AS SL Õhtul eht* span> 1 205 1 136 6% style ='font -size: 9pt;'> AS Ajaki rjade Kirja stus*< /span> 654 605 8% style ='font -size: 9pt;'> AS Expre ss Post* (275) (279) 1% style ='font -size: 9pt;'> Inters egment elimi nation s -------------------------------------------------------------------------------- ----------------------------------------------------------- 2 606 2 426 7% style ='font -size: 9pt;'> TOTAL (join t ventu res) span> -------------------------------------------------------------------------------- ----------------------------------------------------------- 10 141 10 043 1% style ='font -size: 10pt;' >TOTAL segme nt by propo rtiona l conso lidati on -------------------------------------------------------------------------------- ----------------------------------------------------------- -------------------------------------------------------------------------------- ------------------------------------------------- EBITDA style ='font -size: 9pt;'> (EUR thous and) span> ------- Q4 Q4 Change 2014 2013 % -------------------------------------------------------------------------------- -------------------------------------------------------- 230 169 36% style ='font -size: 9pt;'> Delfi Eston ia 95 96 -1% style ='font -size: 9pt;'> Delfi Latvi a 461 464 -1% style ='font -size: 9pt;'> Delfi Lithu ania (incl . Ekspr ess Leidy ba) incl. onlin e reven ue of Delfi Lithu ania span> 0 (40) 100% style ='font -size: 9pt;'> Delfi Ukrai ne 149 184 -19% style ='font -size: 9pt;'> AS Eesti Ajale hed 23 20 15% style ='font -size: 9pt;'> OÜ Hea Lugu 145 122 19% style ='font -size: 9pt;'> Other compa nies (Delf i Holdi ng) (0) (0) - style ='font -size: 9pt;'> Inters egment elimi nation s -------------------------------------------------------------------------------- -------------------------------------------------------- 1 103 1 014 9% style ='font -size: 10pt;' >TOTAL (subs idiari es) -------------------------------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------- 127 53 142% style ='font -size: 9pt;'> AS SL Õhtul eht* span> 104 75 39% style ='font -size: 9pt;'> AS Ajaki rjade Kirja stus*< /span> 114 73 57% style ='font -size: 9pt;'> AS Expre ss Post* (0) (0) -38% style ='font -size: 9pt;'> Inters egment elimi nation s -------------------------------------------------------------------------------- -------------------------------------------------------- 344 200 72% style ='font -size: 9pt;'> TOTAL (join t ventu res) span> -------------------------------------------------------------------------------- -------------------------------------------------------- 1 448 1 214 19% style ='font -size: 10pt;' >TOTAL segme nt by propo rtiona l conso lidati on -------------------------------------------------------------------------------- -------------------------------------------------------- *Proportional share of joint ventures ------- Sales style ='font -size: 9pt;'> (EUR thous and) span> -------------------------------------------------------------------------------- ------------------------------------------------- 12 months 12 months Change 2014 2013 % -------------------------------------------------------------------------------- -------------------------------------------------------- 5 020 4 101 22% style ='font -size: 9pt;'> Delfi Eston ia 2 562 2 378 8% style ='font -size: 9pt;'> Delfi Latvi a 8 047 7 439 8% style ='font -size: 9pt;'> Delfi Lithu ania (incl . Ekspr ess Leidy ba) 5 557 4 806 16% style ='font -size: 9pt;'> incl. onlin e reven ues of Delfi Lithu ania span> 2 53 -96% style ='font -size: 9pt;'> Delfi Ukrai ne 11 330 11 235 1% style ='font -size: 9pt;'> AS Eesti Ajale hed 792 987 -20% style ='font -size: 9pt;'> OÜ Hea Lugu 0 0 - style ='font -size: 9pt;'> Other compa nies span> (294) (351) 16% style ='font -size: 9pt;'> Inters egment elimi nation s -------------------------------------------------------------------------------- -------------------------------------------------------- 27 25 6% style 459 842 ='font -size: 10pt;' >TOTAL (subs idiari es) -------------------------------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------- 3 909 3 734 5% style ='font -size: 9pt;'> AS SL Õhtul eht* span> 4 224 4 036 5% style ='font -size: 9pt;'> AS Ajaki rjade Kirja stus*< /span> 2 415 2 351 3% style ='font -size: 9pt;'> AS Expre ss Post* (1 (1 -7% style 077) 008) ='font -size: 9pt;'> Additi onal elimi nation s -------------------------------------------------------------------------------- -------------------------------------------------------- 9 471 9 112 4% style ='font -size: 9pt;'> TOTAL (join t ventu res) span> -------------------------------------------------------------------------------- -------------------------------------------------------- 36 34 6% style 930 955 ='font -size: 10pt;' >TOTAL segme nt by propo rtiona l conso lidati on -------------------------------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------------------------------- ----------------------------------------------- EBITDA style ='font -size: 9pt;'> (EUR thous and) span> ------- 12 months 12 months Change 2014 2013 % -------------------------------------------------------------------------------- ------------------------------------------------------ 575 291 98% style ='font -size: 9pt;'> Delfi Eston ia 90 133 -32% style ='font -size: 9pt;'> Delfi Latvi a 1 295 1 056 23% style ='font -size: 9pt;'> Delfi Lithu ania (incl . Ekspr ess Leidy ba) incl. onlin e reven ues of Delfi Lithu ania span> (51) (195) 74% style ='font -size: 9pt;'> Delfi Ukrai ne 539 369 46% style ='font -size: 9pt;'> AS Eesti Ajale hed 94 55 71% style ='font -size: 9pt;'> OÜ Hea Lugu 479 421 14% style ='font -size: 9pt;'> Other compa nies span> 3 (7) - style ='font -size: 9pt;'> Inters egment elimi nation s -------------------------------------------------------------------------------- ------------------------------------------------------ 3 2 42% style 025 123 ='font -size: 10pt;' >TOTAL (subs idiari es) -------------------------------------------------------------------------------- ------------------------------------------------------ -------------------------------------------------------------------------------- ------------------------------------------------------ 356 221 61% style ='font -size: 9pt;'> AS SL Õhtul eht* span> 257 172 49% style ='font -size: 9pt;'> AS Ajaki rjade Kirja stus*< /span> 372 279 33% style ='font -size: 9pt;'> AS Expre ss Post* 2 (3) 168% style ='font -size: 9pt;'> Additi onal elimi nation s -------------------------------------------------------------------------------- ------------------------------------------------------ 987 670 47% style ='font -size: 9pt;'> TOTAL (join t ventu res) span> -------------------------------------------------------------------------------- ------------------------------------------------------ 4 2 44% style 013 792 ='font -size: 10pt;' >TOTAL segme nt by propo rtiona l conso lidati on -------------------------------------------------------------------------------- ------------------------------------------------------ *Proportional share of joint ventures Delfi EstoniaEstonian online readership 2013-2014 In the third quarter 2014, TNS Emor changed the methodology of its TNS Metric survey, which explains the sharp increase in the number of users. The main essence of the change is more accurate measurement and separate reporting of the number of mobile users. As a result of this change, Delfi remains the largest news portal in Estonia. This applies both to the number of PC and mobile users who visit the news portals. The increase of the usres in Estonian internet market can be also explained by the increasing number of mobile users using smartphones. This will remain the key priority for news organisations to serve mobile users. Delfi Latvia
- Further development of Delfi TV on a standalone new platform and the increasing number of live webcasts under the Delfi TV brand. Major projects included, already for the second year events dedicated to the anniversary of the Republic of Estonia, reports from Olympic Games, FIBA World Cup, Song and Dance Festival, visit of US President Barack Obama in Estonia, streams from basketball matches abroad and webcasts from games of 5 different Estonian leagues etc.
- Websites for weather and jokes were renewed. The latter was re-named www.igav.ee.
- A new verticals were launched: www.kasulik.ee aimed at regular consumers, www.elutark.ee directed to elderly people, www.catwalk.ee intended for people with interest on fashion.
- Cooperation with the New Age portal www.alkeemia.ee.
- Cross Baltic development of portal www.zave.ee, intented for information about discount offers in the city.
- Launching of a new comments' section which has increased the number of comments posted by registered users.
- Delfi's mobile application was renewed.
- Delfi celebrated it's 15th birthday in November. 'A day with Delfi' was presented for showing to the users how Delfi everyday work is being done and news produced.
- Latvian Music Awards 'The Great Music Award' - Positivus Festival and several Latvian music bands - Baltic Pearl Film and International Film Festival - Marketing Festival 'Password' and international advertising festival 'Golden Hammer 2014' - Riga Fashion Week - Riga Marathon - Latvian national ice-hockey team - Award of the year in Sports etc. Latvian online readership 2013-2014 In July and August 2014, Delfi.lv became Latvia's largest online portal for the first time, exceeding the readership of inbox.lv. In September, however, Inbox.lv had again more users than Delfi.lv. In spite of the merger of tvnet.lv and apollo.lv in the 2nd quarter, their readership has not exceeded that of Delfi. In addition, the first available data on the number of users of mobile equipment are very favourable for Delfi.lv. Delfi is exceeding Latvian competitors in terms of mobile equipment by more than 20%. During the 4th quarter competitive situation remained stable with inbox.lv holding the first position in readership numbers. Delfi has been holding the second position and has been the most read newsportal in Latvia. Starting from January 2014, the method of the Gemius online survey has changed. The readership in 2014 includes only results for computer users (PC) and excludes all mobile equipment. Separate statistics on mobile equipment will be created in the beginning of 2015. Delfi Lithuania
- In July and August, Delfi was the largest online portal in Latvia succeding also the local e-mail provider inbox.lv.
- Delfi TV streams based on a new platform from such events as matches of the Latvian basketball league and ice hockey league, an exclusive cabaret show from Concert Hall Palladium, opening of the National Library, etc.
- During the year many new verticals have been launched: travel site www.turismagids.lv both in Latvian and Russian, humour website www.loli.lv, new weather portal www.laika-zinas.lv, home and garden portal www.majadarzs.lv, new portal for women www.vina.lv, Russian portals covering politics www.spektr.lv, easy reading portals aimed at younger generation in Latvian www.skats.lv and Russian www.tchk.lv, health portal www.rutks.lv.
- Cross Baltic development of portal www.zave.lv, intented for getting overview about discount offers in the city.
- Media partner for several cooperation projects and teams:
Lithuanian online readership 2013-2014 Delfi continues to be the largest online portal in Lithuania. In the 4th quarter, there were no major changes in preferences of Internet users in Lithuania. The initial data about the users of mobile equipment shows that the competition in this segment in Lithuania is very tough and other portals are closer to Delfi in readership than in computer users (PC). Delfi ended year with a new record of monthly real users - 1.198.737 and reached the highest gap between Delfi and 15min.lt - 19,45%. Starting from January 2014, the method of the Gemius online survey has changed. The readership in 2014 includes only results for computer users (PC) and excludes all mobile equipment. Separate statistics on mobile equipment will be created in the beginning of 2015. Print-media in Estonia Estonian newspaper circulation 2013-2014 Circulations of Estonian newspapers have remained stable or are falling moderately. The circulation of daily newspapers is falling faster than that of weekly newspapers. As of the 4th quarter 2014, there has also been a significant development in the market - Õhtuleht has been the newspaper with the largest circulation in Estonia for three consecutive months. Other Group publications also performed well during the second half of the year, with all Eesti Päevaleht, Maaleht and Eesti Ekspress increasing circulation. One also needs to add to these figures the number of subscribers of digital newspapers which totalled more than 10 thousand for both Eesti Ekspress and Eesti Päevaleht, as of the end of the 2014. Estonian newspaper readership 2013-2014 Over the recent two years, newspaper readership has been fairly stable. Õhtuleht has been one of the most successful newspaper brand, that has been growing it's readership. Other two daily newspapers, Postimees and Eesti Päevaleht, has been losing readers. Weekly newpapers are also in a stable readership trend. The number of readers of digital newspapers of the Group is not included in the above figures and the number of readers of all publications of the Group is higher than shown in the graph above. PRINTING SERVICES SEGMENT All printing services of the Group are provided by AS Printall which is one of the largest printing companies in Estonia. Printall is able to print both newspapers (coldset) and magazines (heatset). -------------- Sales style='font- size:9pt;'>(E UR thousand) ------------------------------------------------------------------ Change style='font- style='font % size:9pt;'>Q -size:9pt;' 4 >Q4 2014 2013 -------------------------------------------------------------------------------- 7% style='font- style='font- style='font size:9pt;'>AS size:9pt;'>8 -size:9pt;' Printall >7 an> 566 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- --------------------------------------------- EBITDA style ='font -size: 9pt;'> (EUR thous and) span> ------- Q4 Q4 Change 2014 2013 % -------------------------------------------------------------------------------- ---------------------------------------------------- 1 623 1 604 1% style ='font -size: 9pt;'> AS Print all -------------------------------------------------------------------------------- ---------------------------------------------------- ------- Sales style ='font -size: 9pt;'> (EUR thous and) span> -------------------------------------------------------------------------------- ----------------------------------------------- 12 months 12 months Change 2014 2013 % -------------------------------------------------------------------------------- ------------------------------------------------------ 28 951 27 462 5% style ='font -size: 9pt;'> AS Print all -------------------------------------------------------------------------------- ------------------------------------------------------ -------------------------------------------------------------------------------- ---------- EBITDA style ='font -size: 9pt;'> (EUR thous and) span> ------- 12 months Change style= 2013 % 'font- size:9 pt;'>1 2 months 2014 span> -------------------------------------------------------------------------------- ----------------- 5 862 1% style style= ='font 'font- -size: size:9 9pt;'> pt;'>5 AS 944 all -------------------------------------------------------------------------------- ----------------- In 2014 AS Printall managed to increase its revenues 5%, out of which 5.7% is allocated to increase of services provided and 5.2% sales of paper. Due to changes in political landscape there have been changes in the structure of export markets where the share of Russia continues to decrease. In June, AS Printall signed a contract for the acquisition of a new sheetfed printing machine. The machine will be used for printing magazine covers, small-circulation magazines and advertising products. The production will start at the beginning of 2015. Approximately 2/3 of the acquisition cost is financed with a long-term loan. Printing services and the environment In addition to its very strong financial position, Printall also focuses on environmentally conscious production. Printall has been granted ISO 9001 management and ISO 14001 environmental certificates. The Minister of the Environment of the Republic of Estonia and the waste managing company AS Ragn-Sells awarded Printall with the title of the Top Recycler of the Year, because the company recycles 95% of its waste. The Nordic Council of Ministers has awarded Printall with the environmental label 'The Nordic Ecolabel', used to acknowledge the companies in the Nordic countries that use environmentally efficient production. Printall also has FSC and PEFC Chain of Custody (COC) certificates, which the company uses to promote a green way of thinking in the printing industry. Both of those certificates indicate compliance with monitoring and product production process requirements which are issued to businesses that comply with the requirements established by the FSC (Forest Stewardship Council) and the PEFC (Programme for the Endorsement of Forest Certification). A business that is issued these certificates helps to support the environmentally friendly, socially fair and economically viable management of the world's forests. Printall cares about the environment and uses green energy. The POWERED BY GREEN certificate is a proof that the company buys electricity, 70% of which has been generated by renewable sources of energy. Consolidated balance sheet (unaudited) 31.12.2014 31.12.2013 style ='font -size: 9pt;'> (EUR thous and) span> -------------------------------------------------------------------------------- ---------------------- -------------------------------------------------------------------------------- --------------- ASSETS Curren t asset s 3 656 2 111 style ='font -size: 9pt;'> Cash and cash equiv alents 19 98 style ='font -size: 9pt;'> Term depos it 6 519 6 774 style ='font -size: 9pt;'> Trade and other recei vables 37 45 style ='font -size: 9pt;'> Corpor ate incom e tax prepa yment< /span> 2 072 2 329 style ='font -size: 9pt;'> Invent ories< /span> 12 303 11 357 style ='font -size: 9pt;'> Total curre nt asset s -------------------------------------------------------------------------------- ---------------------- -------------------------------------------------------------------------------- ---------------------- Non-cu rrent asset s 1 600 0 style ='font -size: 9pt;'> Term depos it 1 170 269 style ='font -size: 9pt;'> Trade and other recei vables 65 130 style ='font -size: 9pt;'> Deferr ed tax asset 500 1 543 style ='font -size: 9pt;'> Invest ments in joint ventu res 164 0 style ='font -size: 9pt;'> Invest ments in assoc iates< /span> 14 506 13 595 style ='font -size: 9pt;'> Proper ty, plant and equip ment 46 287 48 362 style ='font -size: 9pt;'> Intang ible asset s 64 292 63 899 style ='font -size: 9pt;'> Total non-c urrent asset s -------------------------------------------------------------------------------- ---------------------- 76 595 75 256 style ='font -size: 9pt;'> TOTAL ASSET S -------------------------------------------------------------------------------- ---------------------- -------------------------------------------------------------------------------- ---------------------- LIABIL ITIES Curren t liabi lities 5 213 3 760 style ='font -size: 9pt;'> Borrow ings 6 249 8 436 style ='font -size: 9pt;'> Trade and other payab les 19 63 style ='font -size: 9pt;'> Corpor ate incom e tax payab le 11 481 12 259 style ='font -size: 9pt;'> Total curre nt liabi lities Non-cu rrent liabi lities 17 939 20 672 style ='font -size: 9pt;'> Long-t erm borro wings 17 939 20 672 style ='font -size: 9pt;'> Total non-c urrent liabi lities -------------------------------------------------------------------------------- ---------------------- 29 420 32 931 style ='font -size: 9pt;'> TOTAL LIABI LITIES -------------------------------------------------------------------------------- ---------------------- -------------------------------------------------------------------------------- ---------------------- EQUITY 17 878 17 878 style ='font -size: 9pt;'> Share capit al 14 277 14 277 style ='font -size: 9pt;'> Share premi um (64) 0 style ='font -size: 9pt;'> Treasu ry share s 1 440 1 250 style ='font -size: 9pt;'> Reserv es 13 644 8 848 style ='font -size: 9pt;'> Retain ed earni ngs 0 72 style ='font -size: 9pt;'> Curren cy trans lation reser ve 47 175 42 325 style ='font -size: 9pt;'> TOTAL EQUIT Y -------------------------------------------------------------------------------- ---------------------- 76 595 75 256 style ='font -size: 9pt;'> TOTAL LIABI LITIES AND EQUIT Y -------------------------------------------------------------------------------- ---------------------- Consolidated statement of comprehensive income (unaudited) Q4 Q4 2013 12 months 12 months style 2014 2014 2013 ='font -size: 10pt;' >(EUR thous and) span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------- 14 454 14 291 52 793 50 086 style ='font -size: 9pt;'> Sales reven ue (10 (10 852) (40 (39 style 781) 688) 195) ='font -size: 9pt;'> Cost of sales 3 673 3 439 12 105 10 891 style ='font -size: 9pt;'> Gross profi t 132 201 470 542 style ='font -size: 9pt;'> Other incom e (600) (622) (2 011) (1 style 864) ='font -size: 9pt;'> Market ing expen ses (1 495) (1 813) (5 438) (5 style 396) ='font -size: 9pt;'> Admini strati ve expen ses (49) (30) (153) (102) style ='font -size: 9pt;'> Other expen ses -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------- 978 0 1 933 0 style ='font -size: 9pt;'> Gain from chang e in owner ship inter est in joint ventu res -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------- (1 443) (2 467) (1 443) (2 style 467) ='font -size: 9pt;'> Impair ment of goodw ill and trade marks< /span> -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------- 1 196 (1 292) 5 463 1 604 style ='font -size: 9pt;'> Operat ing profi t/(los s) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- ------------------- 22 1 27 5 style ='font -size: 9pt;'> Intere st incom e (158) (185) (689) (763) style ='font -size: 9pt;'> Intere st expen se (3) (46) 33 (71) style ='font -size: 9pt;'> Foreig n excha nge gains /(loss es) 42 16 (90) (58) style ='font -size: 9pt;'> Other finan ce costs (181) (246) (719) (887) style ='font -size: 9pt;'> Total finan ce incom e/cost s 182 174 557 494 style ='font -size: 9pt;'> Profit on share s of joint ventu res 39 20 23 20 style ='font -size: 9pt;'> Profit (loss ) on share s of assoc iates< /span> 1 236 (1 344) 5 324 1 231 style ='font -size: 9pt;'> Profit befor e incom e tax span> (100) (66) (214) (150) style ='font -size: 9pt;'> Income tax expen se -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------- 1 136 (1 410) 5 110 1 081 style ='font -size: 9pt;'> Net profi t /(los s) for the repor ting perio d -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------- Net profi t/(los s) for the repor ting perio d attri butabl e to
- In November and December DELFI news portal achieved its all time high readership records.
- Delfi TV was launched on a new platform and has produced live webcast and streams from such events as Login, the largest tech conference in the Baltic states, ideas conference Tedx Vilnius, Davis Cup tennis match between Lithuania and Norway, various fashion and theatre events, Geneva Automotive Show, etc. DELFI signed long lasting contracts with National Basketball League and Lithuanian Basketball Federation and got an exclusive internet streaming rights to broadcast more than 700 sport streams in 2015.
- Delfi TV launched a daily TV programme with news in brief that in 2 minutes wraps up the most important and interesting news and produced several documentary series.
- New TV channels 'Moteris TV' ('Lithuanian Woman') and 'Mano namai TV' ('My Home') were launched.
- Several new verticals were launched and existing sub-sites were renewed. New jokes site www.galjuokauji.lt, a special co-site kablys.delfi.lt dedicated to fisherman audience, a new Delfi English Channel.
- Co-operation projects such as: special co-site dedicated to auto fans in a partnership with Top Gear magazine, two major on-line automotive projects with the partners 'Top Gear Awards' and 'Car of the Year' to attract more male audience, special project with www.Kur.lt Lithuanian entertainment guide aimed at young city audience, a food order platform lekste.lt was integrated into Delfi recipes vertical www.1000receptu.lt.
- The layout of the mobile application was renewed and information was added, making Delfi the most popular newsportal in mobile phones and tablet PCs.
- DELFI changed social media strategy and dedicated additional resources within organization. Due to those activities significatly increased effectiviness in working with social media.
- Delfi and the Lithuanian magazine publisher Ekspress Leidyba were merged into one media house enabling further synergies between those two companies.
: 1 136 (1 410) 5 110 1 081 style ='font -size: 9pt;'> Equity holde rs of the paren t compa ny Other compr ehensi ve incom e (expe nse)1 136 (1 365) 5 076 1 139 style ='font -size: 9pt;'> Total other compr ehensi ve incom e (expe nsethat may be subse quentl y recla ssifie d to profi t or loss 0 45 (34) 58 style ='font -size: 9pt;'> Curren cy trans lation diffe rences) Compre hensiv e incom e6 371 style ='font -size: 9pt;'> Cash gener ated from opera tions< /span> (185) (240) style ='font -size: 9pt;'> Income tax paid< /span> (692) (794) style ='font -size: 9pt;'> Intere st paid< /span> -------------------------------------------------------------------------------- ----- 5 494 style ='font -size: 9pt;'> Net cash gener ated from opera ting activ ities -------------------------------------------------------------------------------- ------------ -------------------------------------------------------------------------------- ------------ Cash flows from inves ting activ ities (1 0 style 600) ='font -size: 9pt;'> Term depos it (plac ement) /relea se 2 354 0 style ='font -size: 9pt;'> Receiv ed on restr ucturi ng of joint ventu res (3) 0 style ='font -size: 9pt;'> Invest ments in joint ventu res (135) 0 style ='font -size: 9pt;'> Acquis ition of assoc iate span> 0 (327) style ='font -size: 9pt;'> Acquis ition of subsi diary< /span> 0 (15) style ='font -size: 9pt;'> Purcha se of other inves tments 6 34 style ='font -size: 9pt;'> Intere st recei ved (3 (769) style 101) ='font -size: 9pt;'> Purcha se of prope rty, plant and equip ment 13 107 style ='font -size: 9pt;'> Procee ds from sale of prope rty, plant and equip ment span> (24) (3) style ='font -size: 9pt;'> Loans grant ed 7 6 style ='font -size: 9pt;'> Loan repay ments recei ved -------------------------------------------------------------------------------- ----- (2 (967) style 483) ='font -size: 9pt;'> Net cash used in inves ting activ ities -------------------------------------------------------------------------------- ------------ -------------------------------------------------------------------------------- ------------ Cash flows from finan cing activ ities< /span> (298) (298) style ='font -size: 9pt;'> Divide nds paid< /span> 203 312 style ='font -size: 9pt;'> Divide nd recei ved from joint ventu res (75) (25) style ='font -size: 9pt;'> Financ e lease repay ments< /span> 1 117 (745) style ='font -size: 9pt;'> Change in use of overd raft span> 1 346 0 style ='font -size: 9pt;'> Loan recei ved (3 (3 style 695) 600) ='font -size: 9pt;'> Repaym ents of bank loans (64) 0 style ='font -size: 9pt;'> Purcha se of treas ury share s -------------------------------------------------------------------------------- ------------ (1 (4 style 466) 357) ='font -size: 9pt;'> Net cash used in finan cing activ ities -------------------------------------------------------------------------------- ------------ 1 545 918 style ='font -size: 9pt;'> NET (DECR EASE)/ INCREA SE IN CASH AND CASH EQUIV ALENTS -------------------------------------------------------------------------------- ------------ -------------------------------------------------------------------------------- ----- 2 111 1 193 style ='font -size: 9pt;'> Cash and cash equiv alents at the begin ning of the year< /span> 3 656 2 111 style ='font -size: 9pt;'> Cash and cash equiv alents at the end of the year< /span> -------------------------------------------------------------------------------- ------------ Additional information: Gunnar Kobin Chairman of the Management Board GSM: +372 5188111 e-mail: gunnar@egrupp.ee News Source: NASDAQ OMX --------------------------------------------------------------------- 2015-02-27 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Ekspress Grupp Estonia ISIN: EE3100016965 End of News DGAP News-Service --------------------------------------------------------------------- 327715 2015-02-27(expen se ) for the repor ting perio d 1 136 (1 365) 5 076 1 139 style ='font -size: 9pt;'> Attrib utable toequity holde rs of the paren t compa ny 0.04 (0.05) 0.17 0.04 style ='font -size: 9pt;'> Basic and dilut ed earni ngs per share -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------- Consolidated cash flow statement (unaudited) 12 months 12 months style 2014 2013 ='font -size: 9pt;'> (EUR thous and) span> -------------------------------------------------------------------------------- ------------ Cash flows from opera ting activ ities< /span> -------------------------------------------------------------------------------- ------------ 5 463 1 604 style ='font -size: 9pt;'> Operat ing profi t for the repor ting year< /span> -------------------------------------------------------------------------------- ------------ -------------------------------------------------------------------------------- ------------ Adjust ments for:< /span> 2 921 2 521 style ='font -size: 9pt;'> Deprec iation , amort isatio n and impai rment 1 443 2 467 style ='font -size: 9pt;'> Loss on trade mark and goodw ill impai rment (1 0 style 933) ='font -size: 9pt;'> Gain from chang e in owner ship inter est in joint ventu res 6 (30) style ='font -size: 9pt;'> (Gain) /loss on sale and write -down of prope rty, plant and equip ment span> 136 384 style ='font -size: 9pt;'> Change in value of share optio n Cash flows from opera ting activ ities: 334 72 style ='font -size: 9pt;'> Trade and other recei vables 251 242 style ='font -size: 9pt;'> Invent ories< /span> (2 16 style 250) ='font -size: 9pt;'> Trade and other payab les
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