Release Date: August 27, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Gtn Ltd (ASX:GTN, Financial) reported a 4% growth in revenues to $184 million for the fiscal year 2024.
- Adjusted EBITDA increased by 15% to $22.3 million, indicating improved operational efficiency.
- Net Profit After Tax (NPAT) saw a significant increase of 115% to $5.7 million.
- The company finished the year with a strong balance sheet, holding $23.6 million in net cash before lease liabilities.
- Brazilian market revenue grew by 42%, showcasing strong international performance.
Negative Points
- Revenue in the Canadian market decreased by 10.7%, reflecting challenges in that region.
- Australia, the largest market, experienced a 3% decline in revenue compared to FY '23.
- The drone business incurred a $1.7 million EBITDA loss, leading to strategic changes and cost reductions.
- The company faced $2.1 million in one-off costs related to the transition of the previous leadership team.
- Future results are highly dependent on economic conditions, adding an element of uncertainty.
Q & A Highlights
Highlights of GTN Ltd (ASX:GTN) Earnings Call
Q: What are the plans for growth and profitability going forward?
A: Peter Tonagh, Non-Executive Director, highlighted several strategies including optimizing existing business through cost management, enhancing sales teams, expanding into new regions like Brazil, and exploring new opportunities adjacent to their current operations.
Q: Can you provide more details on the Australian business and its sellout rate?
A: Victor Lorusso, CEO of Australian Traffic Network, explained that a new national sales director has reinvigorated the sales team, leading to increased sellout rates and spot rates. The team is confident about future growth.
Q: What actions are being taken to address the lagging performance in Canada?
A: Peter Tonagh mentioned reinvigorating the sales team and optimizing inventory. Although the market is tough, improvements are expected through better sales team performance and affiliate agreement optimization.
Q: What is the outlook for the drone business?
A: Peter Tonagh stated that the drone business has been reconfigured, with the Canadian operations closed and the Australian operations significantly downsized. The focus is now on using drones as a marketing tool to attract new clients.
Q: Can you expand on capital management initiatives given the strong balance sheet?
A: Peter Tonagh explained that the company is exploring various capital management strategies, including dividends and share buybacks. The flexibility in their debt facility allows them to consider effective ways to return cash to shareholders or pursue growth opportunities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
