Preliminary Q4 2024 Stroeer SE & Co KgaA Earnings Call Transcript
Key Points
- Stroeer SE & Co KGaA (SOTDF) achieved a significant milestone by surpassing the EUR2 billion revenue mark for the first time, with a 7% increase in total revenue.
- Digital out of home (DOOH) revenue grew by over 23%, significantly boosting the group margin and demonstrating strong performance in the fastest-growing advertising category.
- EBITDA adjusted increased by 10% to EUR626 million, reflecting effective cost management and operational leverage in the core out of home segment.
- Free cash flow adjusted nearly doubled from EUR81 million to EUR158 million, driven by positive business development, lower capital expenditure, and tax expenses.
- The company has a strong order book for Q1 2025, expecting top-line growth between 13% and 14%, with digital out of home projected to grow in the mid to high-20% range.
- The Christmas advertising season in November and December was softer than expected, impacted by the unclear political situation in Germany.
- Classic out of home advertising experienced a decline of 6.8% in Q4, indicating challenges in the traditional advertising segment.
- The financial result decreased due to higher interest costs and currency effects, impacting overall earnings.
- Sales growth in the digital and dialogue segment was somewhat muted, with digital revenues only increasing by 4.5% in Q4.
- The Asam business faced challenges due to reduced trading and wholesale distribution in China, affecting overall segment performance.
Ladies and gentlemen, welcome to the Stroeer Preliminary Co KgaA Q4 and fiscal year 2024 conference call. I am Yusuf, the conferences call operator. I would like to remind you that all participants will be in listen-only more than at the conferences being recorded. (Operator Instructions)
At this time, it's my pleasure to hand over to Christian Schmalzl. Please go ahead.
Ladies and gentlemen, the analysts, let me welcome you to our call on our Q4 and preliminary and un audited full year results for 2024. We start the call with a short overview of the key numbers and our key strategic achievements in the context of the current market dynamics.
In total, revenue were up by 7% reported or 6.4% on an organic basis from 1.9% to EUR2.05 billion a new milestone in the success story to break through the $2 billion barrier for the first time. The most important thing to take away from this, however, is that with our core business out of home, we
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