Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- elumeo SE (XTER:ELB, Financial) successfully reduced costs by 5.3% in Q1 2025, with expectations of further savings throughout the year.
- The company's web business maintained stable revenue levels despite a 9% reduction in online marketing expenses.
- Internationalization efforts are showing positive growth, with a 12-month run rate of approximately €1 million per year.
- The customer lifetime value for new international customers is increasing, indicating strong customer retention and profitability.
- The AI-based internationalization strategy is expanding, with plans to enter new markets such as Poland and the Netherlands.
Negative Points
- Revenue decreased by 2.2% in Q1 2025 compared to the same period in 2024.
- Gross profit margin declined from 48.5% to 44.7% due to increased gold prices and intensive sales activities.
- The adjusted EBITDA fell to minus €0.6 million from €0.1 million in the previous year.
- The TV business experienced an 8% revenue decline, partly due to the loss of connected cable TV households.
- The company's target of achieving €100 million in annual revenue has been delayed by approximately three years.
Q & A Highlights
Q: Can you provide an overview of the financial performance for Q1 2025?
A: Florian Spatz, CEO, reported that revenue decreased by 2.2% to €11.1 million, down from €11.3 million in Q1 2024. The gross profit margin fell to 44.7% from 48.5% due to increased gold prices and an intensive sale in March. Adjusted EBITDA was at minus €0.6 million, compared to minus €0.1 million last year.
Q: What are the key factors affecting the TV business revenue?
A: The CEO explained that the ending of the cable TV service charge privilege led to a 29% loss in connected cable TV households, resulting in an 8% drop in TV revenue. However, measures taken in 2024, such as increased airtime for higher price points, helped mitigate the impact.
Q: How is the web business performing amidst reduced online marketing expenses?
A: Despite a 9% reduction in online marketing expenses, the web business maintained stable revenue at €4.1 million. The average revenue per piece sold increased by 14%, and revenue per customer rose by 26%, indicating improved profitability.
Q: Can you elaborate on the internationalization strategy and its progress?
A: The CEO highlighted that international channels in Spain and Italy grew by 18% from Q4 2024 to Q1 2025, reaching a 12-month run rate of about €1 million per year. The company plans to expand to Poland and the Netherlands, leveraging an AI-based multi-language platform for international shows.
Q: What is the outlook for 2025, and how does the company plan to achieve profitability?
A: CFO Riad Nourallah confirmed the outlook for a 10-15% revenue decrease, with a gross profit margin between 47% and 49%, and an adjusted EBITDA of minus 0.5% to €0 million. The company aims to achieve profitability through cost reduction programs, AI implementation, and focusing on higher price points and more profitable customers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
