Stroeer (SAX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues rose 5% year-over-year to EUR 475.5 million, driven by strong growth in Digital Out-of-Home and Programmatic segments, outperforming the broader advertising market.

• Adjusted EBITDA increased 8% to EUR 117.4 million, with adjusted net income up 30% to EUR 16.2 million, and consolidated profit for the period at EUR 12.7 million.

• Out-of-Home Media led growth, with high customer retention and low churn, while AsamBeauty's revenue declined due to a strong prior-year quarter.

• Ströer outperformed the German ad market and legacy media, maintaining robust digital transformation and programmatic DOOH momentum.

• Net debt increased to EUR 864.2 million, with a leverage ratio of 2.18, mainly due to acquisitions and seasonal effects.

Financial highlights

• Adjusted EBITDA rose to EUR 117.4 million (+8% YoY); adjusted EBIT increased 15% to EUR 40 million; adjusted net income grew 30% to EUR 16.2 million.

• Free cash flow adjusted was EUR -35 million, reflecting typical Q1 seasonality and higher lease repayments; free cash flow before M&A was EUR 21.4 million.

• CapEx was EUR 18 million, 8% below the prior year, as focus shifted to optimizing digital inventory utilization.

• ROCE improved to 21.3% from 19.1% a year earlier.

• Leverage ratio improved to 2.18x from 2.24x year-over-year, despite higher net debt.

Outlook and guidance

• Q2 2025: Core Out-of-Home Media revenue expected to grow up to 5%, with continued strong momentum in Programmatic and Digital Out-of-Home.

• Full-year 2025 guidance remains unchanged, with expectations for double-digit CAGR in the core business and accelerating growth in the second half.

• EBITDA and profitability are expected to accelerate further down the P&L, with improving free cash flow generation in H2.

• Digital & Dialog Media revenues expected to remain stable; DaaS & E-Commerce to see single-digit growth.

• Mid/long-term: Double-digit average topline growth targeted in core Out-of-Home Media.