Eletromidia (ELMD3) Q2 2024 earnings summary

Executive summary

• Gross revenue reached R$286.2 million in 2Q24, up 34.8–35% year-over-year, and R$564.1 million in 1H24, up 38.1% year-over-year, driven by digital expansion, new concessions, and major events.

• Adjusted EBITDA for 2Q24 was R$83.4 million (33.4% margin), up 66.6–67% year-over-year; 1H24 EBITDA totaled R$160 million.

• Adjusted net income for 1H24 was R$58 million, up 54.5–55% year-over-year, with a net margin of 11.7–12%.

• Operating cash flow before tax and fees was R$168.2 million in 1H24, with 105% EBITDA conversion.

• Achieved milestones in technology, sustainability, and innovation, including international awards and major immersive projects.

Financial highlights

• Net revenue in 2Q24 was R$249.8 million (+34.2% YoY); 1H24 net revenue was R$491.9 million (+31.8% YoY).

• Adjusted gross profit in 2Q24 was R$106.4 million (+45.9% YoY) with a margin of 42.6%.

• EBITDA margin improved to 33–33.4% in 2Q24, up 6.5 p.p. year-over-year.

• Net debt at period end was R$518.4 million, 1.3x LTM EBITDA, down from 1.8x YoY.

• Cash and equivalents at period end were R$335.7 million.

Outlook and guidance

• Expects continued digitization and expansion in street furniture and digital panels, with significant room to grow in key markets.

• Management highlights a 50% increase in digital street screens and a 3x rise in programmatic bids versus 1H23.

• Strategic focus on automation, new SME product launches, and cross-media projects integrating OOH and TV.

• M&A remains a strategic possibility, with a dedicated team monitoring opportunities.

• S&P upgraded the company’s rating to 'brAA-' with a stable outlook.