Solocal Group (LOCAL) Trading Update summary

Key events and strategic initiatives

• Completed decisive financial restructuring, resulting in a solid balance sheet and positive net cash position of €26.6 million at year-end 2024.

• New governance established with Ycor as controlling shareholder and a refreshed executive committee.

• Launched a comprehensive action plan focused on organization, product offerings, business development, IT, and AI to drive sustainable growth.

• Relocated HQ, overhauled sales approach, and simplified product offerings to enhance operational efficiency.

• AI integration advanced, especially in content creation and data analysis, leveraging Ycor's expertise.

Financial performance

• Group revenue for 2024 was €334.5 million, down 7% year-on-year (11% like-for-like).

• Recurring EBITDA fell to €44.4 million (13.3% margin), down from €63.5 million (17.6%) in 2023.

• Consolidated net income reached €119.9 million, a significant turnaround from a €45.9 million loss in 2023, mainly due to financial restructuring.

• Free cash flow remained positive at €6.6 million, with cash and equivalents rising to €70.9 million.

• Net financial debt improved to a positive net cash position of €26.6 million, compared to €197.4 million debt at end-2023.

Operational highlights

• Customer base declined 9% to 237k, with churn rate improving to 20.0% from 21.5%.

• ARPA increased to €1,360, reflecting improved revenue per account.

• PagesJaunes audience grew 13% in visits and added 2.2 million unique visitors, supporting the group's strategic focus.

• Product simplification reduced offers from 70 to 44, with new launches planned for 2025.

• Order backlog rose to €209.6 million, bolstered by Regicom integration.