2024-03-25 23:48:38
Eletromidia has just published its best quarter in history – both in growth and profitability.
The largest media company out of home from the country had net revenue of R$337 million in the fourth quarter, a growth of 22.9% in the annual comparison, practically in line with the consensus Refinitive, which was R$338 million.
Adjusted EBITDA was above expectations: R$ 165.9 million, an increase of 34% in the annual comparison and 17% above consensus.
The margin was 49.2% — an increase of 4.1 points and the highest in the company’s history.
CEO Alexandre Guerrero told Brazil Journal that the main reasons for the result were the increased digitalization of the equipment the company has on the streets, a strong Black Friday, and the sale of advertising based on data and audience metrics on the platform.
As a result, the last line of the balance sheet increased by 27% and reached R$93.4 million. This number, from the fourth quarter, is equivalent to practically 90% of last year’s profit.
Guerrero said that this year started with significant growth, especially driven by Carnival and activations at Lollapalooza. The company also expects that events such as Rock in Rio and Madonna’s show in Copacabana will help boost results in the coming quarters.
The partnership with Globo, which purchased 27% of the company’s capital last year, is another vector of growth and should already impact the results of the first quarter, according to Guerrero.
“We have integrated the platforms and the first commercial projects are already being commercialized together,” he said.
One of the first steps of the partnership was to promote Big Brother Brasil.
One of the market’s doubts is whether Globo might increase its stake in the company, which might trigger a takeover bid – given that the poison pill of Electromidia is 27.5%.
Guerrero says there are no conversations in this regard and signals a potential follow-on.
“We see the value of the share as far from what we believe to be the fair price and we can go to the market both to increase liquidity and to make a large acquisition or invest in a large concession,” he said.
Eletromidia will also increase its focus on the small and medium-sized companies segment. The company launched the first version of products for this audience in December and so far has earned just R$3 million from SMEs.
“It’s a market worth R$20 billion per year that we’re going to start accessing,” said Guerrero.
Eletromídia rose 9.6% in the last twelve months and is worth R$2.3 billion on the stock market.
André Jankavski
1711427990
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