Eletromidia (ELMD3) Q3 2024 earnings summary

Executive summary

• Achieved strong growth in 2024, with gross revenue reaching R$908 million for 9M24, up 36% year over year, and EBITDA of R$272 million, up 51%, driven by innovation in out-of-home advertising, digital expansion, and major event partnerships.

• Secured a 20-year exclusive concession for all bus shelters and street clocks in Rio de Janeiro, starting in 2027, expanding reach in Brazil's second-largest advertising market.

• Announced and completed the acquisition of 4YouSee to strengthen SaaS, digital content management, and analytics capabilities.

• Globo agreed to acquire a 47.1% controlling stake, valuing the company at R$4 billion, with plans to take it private pending regulatory approval.

• Completed 100% of contractual installation obligations in São Paulo and Campinas, and achieved full occupancy at major events like Rock in Rio.

Financial highlights

• 3Q24 gross revenue was R$343.9 million, up 32.9% year over year; 9M24 gross revenue reached R$908 million, up 36.1% year over year.

• Adjusted EBITDA for 3Q24 was R$112.5 million (margin 37.1%, up 2.2 p.p. YoY); 9M24 EBITDA was R$272 million (margin 34.3%, up 4.3 p.p. YoY).

• Adjusted net profit for 3Q24 was R$48.5 million (margin 16.0%, up 3.6 p.p. YoY); 9M24 net income was R$106 million (margin 13.4%, up 2.4 p.p. YoY).

• Operating cash generation for 9M24 was R$307 million, representing 113% of EBITDA.

• Asset base expanded to 68,306 screens, 74% of which are digital.

Outlook and guidance

• Anticipates short-term increase in leverage due to upfront payment for Rio de Janeiro concession, with positive impact expected from 2027 onward.

• Management expects continued growth from digital transformation, new concessions, and expanded omnichannel solutions.

• Strategic focus for 2025 includes new projects such as Summer and Carnival, TikTok Out of Home, and Football initiatives.