Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenue grew by 4% and adjusted profit increased by almost 7%, indicating solid financial performance.
- Digital revenue now constitutes 84% of total revenue, reflecting successful digital transformation.
- Marketplaces segment showed remarkable profitability improvement with a EUR1.5 million increase.
- Strong balance sheet with an equity ratio of 50.5%, supporting strategic investments.
- News Media segment achieved a 17% growth in profitability despite a decline in advertising revenue.
Negative Points
- Advertising revenue declined by 5.5%, negatively impacting the News Media and Marketplaces segments.
- Career segment faced challenges with heavy salary inflation in Central Eastern Europe, affecting profitability.
- The Finnish advertising market has not yet recovered, with an overall decline of 3.6%.
- Discontinuation of operations in Slovenia due to unsuccessful market penetration.
- Uncertainty in the market due to geopolitical factors and trade tariffs, affecting future outlook.
Q & A Highlights
Q: You mentioned seeing positive signs in March. Has this continued despite the trade war and increased uncertainty?
A: We don't have April numbers yet, but it seems the positive trend has continued without signs of decline.
Q: Can you provide details on the decision to discontinue the business in Slovenia?
A: We closed our Slovenian service, Deloglasnik.si, at the end of March. The effort to compete against the market leader was unsuccessful, leading us to withdraw and focus on core markets.
Q: How has the experience in Slovenia impacted your approach to entering new markets?
A: We've learned that going head-to-head with market leaders is demanding. Future market entries will involve different strategies, focusing on technological advancements and complementary acquisitions.
Q: Your guidance suggests sales and adjusted EBIT will remain at last year's level, despite a 7% growth in Q1. Can you clarify this?
A: Yes, our guidance remains that sales and adjusted EBIT will be on last year's level, even with similar growth.
Q: With signs of market recovery, are you sticking to your original cost plan, or have you moved to plan B?
A: We have a segment-wise plan B in place. For example, in Career, costs are being reduced due to market conditions, while in Marketplaces, we are cautious but not rushing cost reductions.
Q: Have you considered passing on cost increases in Career to your pricing?
A: Yes, we are implementing price increases, which will be reflected throughout the year, alongside new product pricing initiatives.
Q: What drove the better-than-expected performance in Marketplaces, and can it continue?
A: The housing volumes picking up was a surprise, indicating pent-up demand. This development is expected to continue if consumer confidence improves.
Q: What level of costs should we expect from AI deployment and development?
A: AI costs are embedded in our cost structure, with around EUR1 million annually for tools. We aim to offset these costs through productivity initiatives.
Q: What is driving the 12% growth in classified sales in Marketplaces, and is it sustainable?
A: Growth is driven by acquisitions and organic growth, including price hikes, new offerings, and increased demand. The growth appears sustainable as market demand picks up.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
