Overview

  • Baltics online classifieds group's full-yr revenue rose 7% but missed analyst expectations

  • Adjusted net income for the year slightly beat consensus, rising 7% yr/yr

  • Company returned €101.1 mln to shareholders via buybacks and dividends, accelerating repurchases

Outlook

  • Company expects revenue growth of around 10% in 2027

  • Real Estate, Auto and Jobs seen as main growth contributors; Generalist expected to remain flat

  • Company expects full-year margin to be in line with medium-term guidance of mid-70s

Result Drivers

  • REAL ESTATE AND JOBS & SERVICES GROWTH - Revenue gains were led by 17% growth in Real Estate and 9% in Jobs & Services, driven by product improvements, pricing actions and healthy economic conditions

  • AUTO SEGMENT PRESSURE - Auto revenue was flat as B2C growth was offset by a 9% decline in C2C, reflecting continued weakness in Estonia due to vehicle tax changes and severe winter weather

  • PRICING AND PACKAGING CHANGES - Adjustments to B2C and C2C pricing and packaging, along with higher market prices for advertised goods and services, drove ARPU and yield growth across major business lines

Company press release:

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

FY Revenue

Miss

EUR 88.50 mln

EUR 89.41 mln (11 Analysts)

FY Adjusted Net Income

Slight Beat*

EUR 58.10 mln

EUR 57.74 mln (10 Analysts)

FY Net Income

EUR 50.90 mln

FY Basic EPS

EUR 0.11

FY Operating Profit

EUR 60.40 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the online services peer group is "buy"

  • Wall Street's median 12-month price target for Baltic Classifieds Group PLC is GBp260.00, about 29.6% above its July 1 closing price of GBp200.60

  • The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact .