Half Year 2024 Stroeer SE & Co KgaA Earnings Call Transcript
Key Points
- Stroeer SE & Co KGaA (SOTDF) achieved a record sales growth of 12% in H1 2024, reaching EUR965 million.
- The digital out-of-home segment grew by 29%, showcasing strong market momentum.
- Adjusted EBITDA increased by 16%, from EUR227 million to EUR263 million, indicating effective cost management.
- The company reported a significant improvement in free cash flow, from a negative EUR16 million in H1 2023 to a positive EUR22 million.
- Stroeer's investment in digital infrastructure is paying off, with digital out-of-home expected to comprise over 50% of the business by 2026.
- The Asam segment faced challenges, with reduced trading and wholesale distribution impacting performance.
- Higher interest rates led to increased financial costs, affecting the financial result.
- The company faces continued headwinds in certain sectors, such as tourism and transport.
- Despite strong growth, the visibility of future bookings is reduced due to shorter planning cycles of national advertisers.
- The ongoing volatility in the China market poses challenges for the Asam business segment.
Ladies and gentlemen, dear analysts, thank you for participating in today's call for the publication of our Q2 H1 figures. I'll begin the presentation with a brief overview of the key figures. Afterwards, I'd like to look at the strong momentum of our core out-of-home business and especially digital out-of-home, a key value driver of our company. Henning will then comment on the developments and effects of our Q2 figures in more detail.
This will be followed by remarks on what we expect for the third quarter and the remainder of the year. As always, we are looking forward to your questions after our presentation. With that, let us start the call with a short overview of H1 2024 and the Q2 market dynamics. We've already shown you this chart in a similar form in the previous quarters.
In principle, they all had in common that the German advertising market is gaining more momentum again in the last quarters and that Stroer has clearly outperformed the market, the competing advertising
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