Q1 2025 Stroeer SE & Co KgaA Earnings Call Transcript
Key Points
- Stroeer SE & Co KGaA (SOTDF) reported a 5% increase in total revenues, with organic growth at 3.8%, outperforming the overall advertising market.
- The company's digital out-of-home segment showed significant growth, with a 27% increase, and programmatic digital out-of-home grew by 36%.
- Adjusted EBITDA increased by 8% from EUR108 million to EUR117 million, demonstrating strong operational leverage.
- The company has a strong customer retention rate, with net revenue retention well above 100% and customer churn below 1% over the last 10 years.
- Stroeer SE & Co KGaA (SOTDF) has a robust position in the out-of-home media market, consistently outperforming legacy media and peers, driven by the growing share of digital out-of-home.
- Free cash flow adjusted was negative at EUR35 million-minus, compared to EUR24 million-minus in Q1 2024, impacted by higher working capital contributions and IFRS 16 lease repayments.
- The Dialog business faced challenges, with earnings decline in door-to-door activities due to higher churn in the field force.
- The US market for Statista showed macroeconomic headwinds, impacting growth expectations for the year.
- There is ongoing uncertainty in the advertising market, which could affect future revenue growth, particularly in the second quarter.
- The company faces challenges in the non-German businesses, with Asam's business development impaired by declining trading and wholesale distribution to China.
Dear ladies and gentlemen, dear analysts, welcome back as we've last spoken only one and half months ago to our Q1 2025 call. As has been common practice for many quarters now, I would like to start our presentation with an overview of our key figures, followed by strategic topics we saw in Q1. Henning will then guide you through the financials for the first quarter. Afterwards, we will be happy to answer any questions you may have.
On the main KPI for the quarter, total revenues were up by 5% reported or by 3.8% on an organic basis from EUR453 million to EUR475 million. The most important message here is once again that we outperformed the advertising market as a whole in our core business and confirmed or exceeded the long-term trend with the growth figures for digital out-of-home and programmatic digital out-of-home. This was achieved against the backdrop of a generally rather moderate overall economic environment and a lot of uncertainty in the market.
As Henning explained in
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