Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Fnac Darty SA (FRA:1FN, Financial) achieved solid sales growth and market share gains, driven by strong performance during major commercial events.
- The company's omnichannel strategy proved successful, with omnichannel sales accounting for 52% of online sales.
- Subscription services experienced double-digit growth, supporting a customer base of 11 million.
- The acquisition of UNI EUR in Italy is expected to strengthen Fnac Darty's European leadership and provide growth opportunities.
- The company maintained strong cash flow generation, exceeding its target with EUR195 million in operating free cash flow.
Negative Points
- The macroeconomic environment remained lackluster, impacting overall market conditions.
- The gaming business faced unfavorable impacts, affecting the editorial products category.
- There was a slight increase in churn for subscription services due to price increases.
- The Belgian business experienced a goodwill impairment charge of EUR15 million.
- The exit from the ticketing business is expected to impact recurring operating income by around EUR10 million.
Q & A Highlights
Q: Can Fnac Darty reach 2 million Darty customers in 2025?
A: Jean-brieuc Le Tinier, CFO, stated that reaching 2 million customers is a target for 2025. Despite inflation-induced price increases causing some churn, the company remains optimistic due to innovations and new offers.
Q: What are the drivers for the stable margin guidance for 2025, excluding Uni EUR?
A: Jean-brieuc Le Tinier, CFO, explained that the exit from the ticketing business, which had a low sales volume but significant impact on operating income, will be offset. The company expects to perform better than in 2024 despite this exit.
Q: How does Fnac Darty view the market and integration with Uni EUR for 2025?
A: Enrique Martinez, CEO, expressed optimism for 2025, citing a recovering real estate market and innovation cycles in AI and gaming. The integration with Uni EUR is progressing well, with new governance and synergies being explored.
Q: What is the impact of the ticketing business exit on gross margins for 2025?
A: Enrique Martinez, CEO, noted that the exit will impact gross margins by 40 basis points. However, growth in services is expected to increase gross margins, offsetting the impact.
Q: How is the integration of Uni EUR progressing, and what are the expected synergies?
A: Jean-brieuc Le Tinier, CFO, stated that the integration is going well with new governance in place. Synergies are expected in purchasing and brand integration, with further opportunities in services and advertising.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
