3rd Jul 2024 11:06
(Alliance News) - A year of solid growth from Baltic Classifieds Group PLC proves the strength of its business model, analysts on Wednesday said.
In the financial year ended April 30, Baltic Classifieds said pretax profit rose 32% to EUR34.9 million from EUR26.4 million a year prior. Revenue increased 19% to EUR72.1 million from EUR60.8 million.
Core classifieds revenue streams business-to-consumer and consumer-to-consumer, which together comprise 90% of total revenue, grew 22% and 18% respectively. the company said.
"We also saw [unprecedented] growth in the individual advertising volumes on our verticals as numbers of C2C active ads in Auto were up 26%, in Real Estate up 20% and in Services up 32%. Listings on our Generalist platform also grew 5%," the company said.
Adjusted basic earnings per share grew 20% to 9.2 euro cents from 7.7 cents while basic EPS advanced 40% to 6.5 cents from 4.7 cents.
In response, shares in Baltic Classifieds, the online classified ads portal provider in Lithuania, Estonia and Latvia, climbed 3.7% to 250.00 pence each in London.
Peel Hunt analyst Jessica Pok said there "are limited surprises here", with revenue and EPS in line with her expectations.
"BCG delivered another year of solid growth, which proves the strength of its business model, benefiting from dominance in end-markets and diversified revenue streams."
Pok noted the shares are trading on a 25.6x financial 2025 estimated PE, "a premium valuation for a robust business with sustainable growth".
Pok reiterated an 'add' rating on the company.
Jefferies described the results as "solid enough", with the second half performance only marginally behind consensus expectations.
Jefferies reiterated a 'hold' rating.
By Jeremy Cutler, Alliance News reporter
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