Believe (BLV) H2 2024 earnings summary

Executive summary

• FY 2024 revenues reached €988.8 million, up 12.3% year-over-year, with organic growth of 11.5% and adjusted organic growth of 13.9%, despite currency headwinds impacting digital sales.

• Strongest regional growth in Europe (excluding France & Germany, +23.3%) and Americas (+18.0%), with France up 10.3% and Asia/Pacific/Africa up 3.5%.

• Digital sales remained robust, driven by paid streaming and market share gains, though ad-funded streaming in emerging markets lagged.

• Adjusted EBITDA rose 33.5% to €67.1 million (margin 6.8%, up 110bps), reflecting value optimization and operating leverage.

• Net income turned positive at €0.6 million, and free cash flow was €7.1 million, supported by disciplined advances and M&A activity.

Financial highlights

• Premium Solutions revenue grew 12.0% to €924.2 million; Automated Solutions up 17.0% to €64.6 million.

• Adjusted EBITDA pre-Central Platform increased 20.7% to €155.0 million (15.7% margin).

• Operating income (EBIT) improved to -€2.1 million from -€18.1 million, despite €10.1 million in other operating expenses related to an offer process.

• Net cash at year-end was €139.8 million, down from €214.2 million, mainly due to M&A outflows.

Outlook and guidance

• FY 2025 organic growth expected above 13.0%, assuming stable currency headwinds and no major DSP price increases.

• Adjusted EBITDA margin targeted at approximately 8.0%, with at least 35% growth in Adjusted EBITDA.

• Positive free cash flow anticipated to exceed FY'24 level, with continued focus on value optimization, automation, and selective external growth.