Stroeer (SAX) Q3 2024 earnings summary

Executive summary

• Achieved record revenue of €1,460.9m for the first nine months of 2024, with strong growth in Out-of-Home (OOH) and Digital Out-of-Home (DOOH) segments, partially offset by a decline in E-Commerce.

• Adjusted EBITDA rose to €419.8m, and adjusted consolidated profit increased to €96.2m, reflecting robust operating performance.

• Free cash flow before M&A surged to €224.1m, with significant improvement in operating performance and normalized investment levels.

• The acquisition of RBL Media for €106.6m expanded the digital portfolio in key German cities, with integration underway and expected midterm earnings contribution of over €17m by 2027.

• CMD was postponed to combine with 2024 results, reflecting a focus on integrating RBL Media and optimizing 2025 plans.

Financial highlights

• Q3 2024 revenues reached €495.9m (+3% YoY), with organic growth at 7.8%; adjusted EBITDA increased 6% to €156.5m.

• 9M 2024 revenues were €1,460.9m (+8% YoY); adjusted EBITDA grew 12% to €419.8m; adjusted net income up 22% to €96.2m.

• Free cash flow for the first nine months improved to €78.3m (adjusted) and €224.1m before M&A, up from negative prior-year levels.

• CapEx for the first nine months was €62m, 37% below the prior year.

• Leverage ratio decreased to 2.10x at September 30, 2024, from 2.54x at year-end 2023.

Outlook and guidance

• Q4 Out-of-Home revenue expected to grow in the high single digits, driven by strong DOOH momentum.

• Digital & Dialog segment guided to mid-single digit growth; Data as a Service (DaaS) and e-commerce to accelerate, led by Statista.

• Full-year 2024 guidance remains unchanged, with EBIT growth outpacing revenue and a higher EBITDA margin than prior year.

• Strong free cash flow expected in Q4, though not at last year's exceptional level.