First-half revenue, earnings rise for Baltic Classifieds Group
By Josh White
Date: Thursday 05 Dec 2024
(Sharecast News) - Baltic Classifieds Group reported a 17% improvement in first-half revenue on Thursday, to €41.8m, with core B2C and C2C classifieds streams, which account for 90% of revenue, also growing 17%.
The FTSE 250 company said EBITDA rose 18% in the six months ended 31 October, to €32.9m, maintaining a high margin of 79%.
Operating profit climbed 36% to €26.4m, while adjusted basic earnings per share improved 24% to 5.7 euro cents.
Cash generation remained strong, with operating cash flow up 17% to €34.2m, achieving a 99% conversion rate.
The group returned €13.5m to shareholders through its ongoing share buyback programme, and declared an interim dividend of 1.2 euro cents per share, a 20% increase.
Net debt was reduced to €25.6 million, with leverage at a low 0.4x.
BCG said its leadership across its core verticals remained solid, with significant gains in market position for its largest platforms.
Traffic across its sites averaged 55.8 million monthly visits, equivalent to the entire Baltic population visiting nine times per month.
Strategic pricing and packaging changes in its C2C and B2C segments supported double-digit growth in yields and average revenue per user across all business lines, including a 19% rise in ARPU for real estate and 17% for auto.
Operationally, BCG said it introduced enhancements across its platforms.
Innovations included a market demand assessment tool and car history checks for auto platforms, segmentation and tailored packages for real estate, and AI-driven job matching technology.
The upgrades, alongside improvements in fraud prevention and user experience, positioned BCG to capture increasing demand in its end markets, particularly in auto and real estate, where macroeconomic recovery bolstered activity.
Looking ahead, the board said it expected full-year revenue growth of at least 15%, supported by continued momentum in B2C ARPU and C2C yield expansion.
EBITDA margins were anticipated to expand by one percentage point for the 2025 financial year.
"The first half of the year delivered a solid financial performance, laying a strong foundation for our full-year results," said chief executive officer Justinas Šimkus.
"The compounding effect of sustained strong growth has led to our EBITDA doubling in just 3.5 years after our IPO, which is a remarkable achievement of which I am very proud.
"All three vertical business lines have excelled, achieving record numbers of advertisers, an enhanced competitive position, and increased yields across our portfolio."
Šimkus said that while growth in the generalist segment had been slower, its "unique contribution" to achieving synergies across the portfolio remained invaluable.
"Our core revenue streams, which contribute 90% of our total revenue - B2C and C2C - have achieved remarkable growth, with both segments reporting a 17% increase.
"The improving macroeconomic environment, particularly in real estate markets, has bolstered customer profitability and fueled increased demand for our services.
"These outcomes reaffirm the reliability and effectiveness of our platform in driving successful transactions for our clients."
Strategic pricing and packaging initiatives were "instrumental" to the company's success, Justinas Šimkus added.
"Adjustments to C2C pricing at the start of the financial year and enhancements to B2C pricing toward the end of the reporting period have positioned us to sustain this momentum into the second half of the year."
At 0957 GMT, shares in Baltic Classifieds Group were down 2.6% at 337.5p.
Reporting by Josh White for Sharecast.com.
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