Believe (BLV) H1 2024 earnings summary

Executive summary

• Revenues reached €474.1 million in H1'24, up 14.1% year-over-year, with organic growth of 12.3% despite currency headwinds; adjusted organic growth was 15.4%.

• Strongest growth recorded in France (+17.9%), Europe excl. France & Germany (+24.7%), and Americas (+21.8%); Asia/Oceania/Africa saw softer growth at 3.7%.

• Adjusted EBITDA rose 29.3% to €31.3 million, with margin improving to 6.6% (+80bps YoY), reflecting value optimization and operating leverage.

• Free cash flow improved to negative €19.4 million from negative €32.9 million in H1'23; net cash at June 2024 was €183.6 million.

• Upbeat Bidco consortium completed its tender offer, now holding 96.02% of share capital, prompting a shift to semi-annual reporting.

Financial highlights

• Premium Solutions revenue grew 13.5% to €440.9 million; Automated Solutions up 23.4% to €33.2 million.

• Adjusted EBITDA pre-Central Platform increased 18.9% to €73.4 million (15.5% margin).

• Operating income (EBIT) was negative €7.0 million, impacted by higher D&A and €7.3 million in offer-related costs.

• Digital sales accounted for 89% of H1'24 revenues; non-digital sales grew 40.7% YoY, now 11% of total.

Outlook and guidance

• FY'24 adjusted EBITDA margin now expected to be at least 6.5%, above initial guidance.

• Organic growth guidance revised to ~12% (from ~18%), adjusted organic growth to 14–16% (from ~20%), due to fading DSP price effects and softer ad-funded streaming.

• Slightly positive free cash flow expected for FY'24.