Half Year 2026 Baltic Classifieds Group PLC Earnings Call Transcript
Key Points
- Baltic Classifieds Group PLC (FRA:983) reported a 7% increase in revenue, reaching nearly EUR45 million, with EBITDA also growing by 7% to exceed EUR35 million, maintaining an industry-leading margin of 78%.
- The company achieved a net cash positive position with a surplus of EUR5 million, demonstrating strong cash conversion close to 100%.
- The real estate business delivered exceptional results for the second consecutive year, contributing significantly to the company's performance.
- The company returned almost EUR20 million to shareholders through dividends and share buybacks, and voluntarily repaid EUR10 million of debt.
- Baltic Classifieds Group PLC (FRA:983) maintained a strong lead over competitors across all major portals, with websites attracting an average of 58 million visits per month.
- The Estonian auto segment faced challenges due to tax changes, resulting in a 50% drop in auto transactions and adding pressure on inventory.
- Ancillary revenue, primarily from auto financial intermediation, declined by 8% due to decreased auto market transactions in Estonia.
- The company anticipates some EBITDA margin compression due to lower revenue growth and continued investment into products.
- The number of listed C2C ads in the automotive market dropped by 29%, primarily due to headwinds in Estonia and higher adoption of longer duration packages.
- The company faces uncertainty in inventory trends, particularly in the Estonian auto market, which could impact future revenue growth.
Good morning. Our performance in the first half of the year is close to updated guidance shared after AGM in September. Revenue grew by 7%, reaching nearly EUR45 million. EBITDA also increased by 7%, exceeding EUR35 million and delivering an industry leading margin of 78%. Cash conversion was close to 100%, and we moved into net cash positive position with a surplus of EUR5 million. We remained committed to our capital allocation policy. Almost EUR20 million was returned to shareholders through the dividend and share buybacks, and we voluntarily repay EUR10 million of debt. The Board has declared an interim dividend of EUR0.013 Cents per share, an 8% increase from the last year to be paid in January. Aside from the tax affected Estonian auto segment, we delivered double-digit revenue growth. Our core revenue streams performed well, with B2C up 15% and C2C up 8%. This strong performance was supported in particularly by another outstanding year in our real estate business, making its second consecutive year of exceptional results. Our
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