APG SGA (APGN) H2 2024 earnings summary

Executive summary

• Consolidated net income rose significantly to CHF 30.3 million, up 12.9% year-over-year.

• Advertising revenue increased slightly by 0.4% to CHF 326.9 million despite a challenging market and loss of SBB promotional space.

• Digital Out of Home segment saw robust growth, with over 250 new digital panels and a 38% increase in programmatic campaign revenues.

• Dividend of CHF 12 per share proposed for 2024, with plans to distribute 100% of net income for 2025 and 2026, minimum CHF 12 per share.

• NZZ became the largest shareholder with a 25% stake, joining JCDecaux SE and Pargesa Asset Management as key shareholders.

Financial highlights

• EBIT increased by 14.9% to CHF 36.5 million; EBIT margin improved to 11.0% from 9.7%.

• EBITDA rose 10.0% to CHF 46.2 million; EBITDA margin at 13.9%.

• Free cash flow grew 19.2% to CHF 37.3 million; operating cash flow up 17.0% to CHF 41.0 million.

• Investments in property, plant, and equipment surged 75.6% to CHF 9.3 million, mainly for digital expansion.

• Earnings per share increased 12.8% to CHF 10.10.

Outlook and guidance

• Positive outlook for Out of Home Media, with continued digital portfolio expansion and focus on data and adtech solutions.

• Dividend policy to remain shareholder-friendly, targeting 100% payout of net income for 2025 and 2026.

• Company expects to maintain strong operational performance and market leadership despite competitive and economic challenges.