Finnish Marketplace Operator Alma Media Releases Q4 Results: Housing Revenue Down But Group Performance Remains Steady

The Finnish online classifieds operator Alma Media has released its financial statement for Q4 2023, announcing increased profitability

Highlights include:

• Revenues steady at €78M (€78.7M last year)
• Adjusted operating profit €16.7M (€15.2M last year)
• Cash reserves of €156.8M justify a proposed dividend of €0.45 per share, up one penny from last year
• Full-year revenue for 2023 was €304.9M
• Adjusted operating profit for 2023 was €73.6M
• Preliminary outlook suggests 2024 will be similar to 2023

Alma Media owns and operates Finland's leading real estate portal Etuovi, and the country's largest rentals marketplace, Vuokraovi.

Housing segment revenues were hit hard by a low market cycle, a YoY decrease of 7.1% to €4.1M (€4.5M). Alma Media pointed to a "decline in advertising in marketplaces and lower revenue from systems sales in the housing vertical." Full-year revenues for housing were also down 3.8%.

The firm also highlighted lower demand, a lower number of searches, and record-long transaction times (98 days to complete a sale).

Operating profits were down compared to last year, to €1.2M, a 31% decrease from the same quarter in 2022 (€1.7M).

Full-year Housing revenues were also affected, from €8.4M in 2022 to €6.9M in 2023, an 18% decrease YoY.

Alma Media also highlighted a slow housing market in its comments. Housing transactions fell 24.5% in 2023, the second consecutive year of sharp decline. Nevertheless, the number of new listings on rentals specialist Vuokraovi.com increased by 19.6%.

However, overall marketplace revenue for the quarter improved slightly year-on-year, up 0.8% to €34.3M (€34.1M).

Kai Telanne, CEO and President at Alma Media, commented:

"Alma Media’s business developed well in the fourth quarter in spite of the economic uncertainty. Revenue was on a par with the comparison period at MEUR 78.0, but adjusted operating profit increased by 9.7% to MEUR 16.7.

"We performed well in spite of the economic cycle. Most of our revenue streams derive from digital businesses with strong market positions and robust competitiveness. We are in an excellent position to achieve strong value creation over the long term."