Stroeer (SAX) Q4 2024 earnings summary

Executive summary

• Achieved record revenues of €2.05 billion in 2024, up 7% year-over-year, surpassing €2 billion for the first time, with strong operational leverage and cash flow generation.

• Adjusted EBITDA rose 10% to €626 million, adjusted EBIT up 20% to €320 million, and adjusted net income up 20% to €171 million; adjusted EPS increased 25% to €2.77.

• Free cash flow (adjusted) nearly doubled to €158 million, driven by higher earnings and lower CapEx.

• Out-of-Home (OOH) and Digital OOH (DOOH) segments outperformed the broader ad market, with DOOH revenue up 23% organically.

Financial highlights

• Reported EBIT increased by €56 million to €287 million; reported net income rose 31% to €148 million.

• CapEx for the year was €94 million, 27% below the prior year, supporting higher cash conversion.

• Leverage ratio improved to 2.1x (1.9x excluding RBL acquisition), with net debt up €67 million year-over-year to €837 million.

• Q4 2024 revenues grew 4% year-over-year to €586 million; adjusted EBITDA up 6% to €205.8 million.

• Bank leverage ratio improved due to higher cash earnings, despite increased net debt from RBL Media acquisition.

Outlook and guidance

• Q1 2025 expected top-line growth of 13%-14% in core OOH, with digital and programmatic DOOH anticipated to grow over 30%.

• Classic Out-of-Home projected to grow mid-single digit; digital and dialogue segment to see low to mid-single digit growth.

• CapEx for 2025 guided to a slight increase, with 500 new DOOH screens planned.