Readly: Q1 2024: Continued revenue growth and positive EBITDA
For the third consecutive quarter, Readly International AB (publ) reports a positive EBITDA. The number of fully paying subscribers increased by 1.1 per cent to 458,670 (453,631) compared to the same period last year. Total revenue increased by 9.8 per cent to SEK 174.0 million (158.4) and ARPU rose to SEK 121 (112), an increase of 8.1 per cent, largely as a result of the well-received price increases and currency effects. The gross margin increased to 39.1 (35.1) per cent and the adjusted EBITDA margin was 5.1 per cent compared to -5.7 per cent last year.
- Q1 2024 is the third consecutive quarter with positive EBITDA. Revenue growth increased in the quarter to 8.3 per cent from 5.5 per cent in Q4 2023, adjusted for VAT and currency effects. The improved revenue can mainly be attributed to price adjustments in Sweden and Germany. We strive to sustain this positive trend, focusing on reaching an audience with a demonstrated willingness to pay for editorial content. Positive unit economics is a central aspect of our strategy to achieve robust profitability and cash flow, says Philip Lindqvist, president and CEO of Readly.
1 January - 31 March 2024- Total revenues amounted to SEK 174.0 (158.4) million, corresponding to an increase of 9.8 per cent compared to the first quarter of 2023.
- Net sales increased by 9.9 per cent to SEK 173.9 (158.3) million compared to the first quarter last year.
- The number of fully paying subscribers increased by 1.1 per cent to 458,670 (453,631) at the end of the quarter.
- Gross profit increased by 22.5 per cent to SEK 68.1 (55.6) million, corresponding to a gross margin of 39.1 (35.1) per cent.
- The gross contribution margin for the period was 28.1 (19.6) per cent.
- Adjusted operating profit (EBITDA) before items affecting comparability amounted to SEK 9.0 (-9.0) million, corresponding to an adjusted EBITDA margin of 5.1 (-5.7) per cent.
- Adjusted operating profit (EBIT) before items affecting comparability amounted to SEK 1.3 (-20.2) million, corresponding to an adjusted operating margin of 0.7 (-12.7) per cent.
- Operating profit (EBIT) amounted to SEK -0.4 (-33.3) million, corresponding to an operating margin of -0.2 (-21.0) per cent.
- Net financial items for the quarter amounted to SEK 2.2 (-1.0) million, which consists of exchange rate effects and other financial items.
- Earnings per share were SEK 0.1 (-0.9), before and after dilution.
Significant events during the period
There are no significant events during the reporting period.
Significant events after the end of the period
The Board of Directors issued a notice on 10 April 2024 for the Annual General Meeting on 15 May 2024.
The financial update will be available for download on: https://corporate.readly.com/investors/financial-reports-and-presentations/
For more information, please contact:
Linnéa Aguero, Head of PR & Communications, +46 725 03 32 31, linnea.aguero@readly.com
This information constitutes inside information that Readly International AB (publ) is obliged to publish in accordance with EU Market Abuse Regulation 596/2014. The information in this press release has been published by the above contact person, at the time specified by the Company's news distributor Cision at the time of publication of this press release.
About Readly
Readly is the European category leader for digital magazines and newspapers. The company offers a digital subscription service where customers have unlimited access to 7,700 national and international titles - all in one app and at a fixed monthly fee. Readly has subscribers in 50 countries and content available in 17 different languages. In collaboration with around 1,200 publishers worldwide, Readly is digitising the newspaper and magazine industry. In 2023, revenues amounted to SEK 677 million. The Readly share is listed on Nasdaq First North Growth Market and FNCA Sweden AB is the company's Certified Advisor. For more information, please visit https//corporate.readly.com