Solocal Group (LOCAL) H1 2024 earnings summary

Executive summary

• H1 2024 revenue declined 12% year-over-year to €163.8 million, with recurring EBITDA down 27% to €24.8 million.

• Q2 2024 revenue was €80.5 million, down 13% compared to Q2 2023.

• Customer base decreased to 246k as of June 30, 2024, with churn rate at 19.8%.

• Financial restructuring completed in July 2024, with Ycor becoming controlling shareholder and new board appointments.

Financial highlights

• H1 2024 recurring EBITDA margin was 15.1%, a 3-point decrease year-over-year.

• Net income for H1 2024 was -€34 million, compared to -€23.6 million in H1 2023.

• Operating free cash flow (excluding rents) was €3.2 million in H1 2024, down from €9.8 million in H1 2023.

• Net financial debt increased to €217 million as of June 30, 2024.

• Cash position at June 30, 2024 was €43.6 million, down from €55.7 million at year-end 2023.

Outlook and guidance

• 2024 revenue expected to be about 10% lower than 2023 on a like-for-like basis.

• Consolidated revenue could reach €340 million with a 5-month contribution from Regicom.

• EBITDA margin targeted at around 15% for 2024.

• Strategic focus on salesforce productivity, product investments, and customer experience to limit churn.