3rd Jul 2025 08:45
(Alliance News) - Baltic Classifieds Group PLC on Thursday reported strong growth in annual sales and profit but shares fell on muted guidance with more moderate growth expected in its Generalists business.
Pretax profit rose 46% to EUR51.1 million in the financial year to April 30 from EUR34.9 million a year prior. Earnings before interest, tax, depreciation and amortisation grew 17% to EUR64.4 million from EUR55.3 million with an Ebitda margin of 78%, expanded year-on-year from 77%.
Adjusted basic earnings per share rose 23% to 11.3 euro cents from 9.2c, while basic EPS increased 42% to 9.3c from 6.5c.
Revenue rose 15% to EUR82.8 million from EUR72.1 million.
The firm's core classifieds revenue streams, business to consumer and consumer to consumer, which together comprise 90% of total revenue, grew 17% and 13% respectively.
Baltic Classifieds said 2025 was another year of strong financial and operational performance.
"The strengthening macroeconomic environment is driving demand in the Baltic online classifieds sectors. Combined with the strength of our platforms, this supports our confidence in the outlook for the business," the firm added.
The firm proposed a final dividend of 2.6c per share, up 24% from 2.1c a year ago, taking the total payout to 3.8c, up 23% from 3.1c a year ago.
Despite the growth in sales and profits, shares in the online classified ads portal provider in Lithuania, Estonia and Latvia slumped 9.9% to 318.50 pence each in London on Thursday morning.
Analysts at Jefferies said the results signal a second half financial 2025 performance "tracking behind expectations."
"This is somewhat borne out by a complex FY26 guidance statement and signals of moderating growth and margin expansion," the broker said.
In the results statement, Baltic Classifieds said it expects to deliver revenue growth in the current financial year "close to last year, with the second half performing more strongly than the first half."
"Real Estate, Jobs and Services, and our Lithuanian Auto business together are expected to lead the growth with Generalists growing at a more moderate pace. The Estonian auto market is showing some gradual recovery, but our Auto business in Estonia is unlikely to see year-on-year growth until the start of calendar 2026," the company said.
In 2026, the firm said it expects to "maintain its Ebitda margin while continuing to invest in product development."
In addition, Baltic Classifieds said it will become debt free in the coming financial year.
"In the absence of M&A opportunities, we intend to continue to return meaningfully all our excess cash to shareholders in a timely manner, of which at least one third will be through dividends, and a preference for the remainder through share buybacks," the company added.
By Jeremy Cutler, Alliance News reporter
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