Readly: Significantly improved results and good revenue growth

2022-08-11 07:30:00

Readly International AB (publ) presents a second quarter with significantly improved results and good revenue growth. Gross profit increased by 30.8 percent to SEK 48.8 (37.3) million, corresponding to a gross margin of 33.8 percent. Adjusted for items affecting comparability of SEK -2.5 million, the EBITDA margin improved to -13.7 (-46.5) percent and the operating margin to -17.8 (-49.0) percent in the quarter. Gross contribution improved to SEK 29.0 (-11.5) million, corresponding to a positive gross contribution margin of 20.1 (-10.4) percent. The number of fully paying subscribers increased by 6 percent to 447,196 (420,135) compared with the second quarter of 2021, and total revenue by 30.0 percent to SEK 144.1 (110.8) million.

- We delivered a quarter with significantly improved results and good revenue growth. For the fifth quarter in row we improved results and the transition to becoming a profitable company is proceeding according to plan. Total revenue increased by 30 per cent, mainly driven by continued stable performance in the DACH region. As previously announced, we expected a lower subscriber growth rate than in the preceding year in favour of improved results. At the same time, we increased our focus on product development to improve the customer experience and to increase growth, says Mats Brandt, President and CEO at Readly.

1 April - 30 June 2022

●        Revenue for the period totalled SEK 144.1 million (110.8), an increase of 30.0 per cent compared with the second quarter of 2021.

●        The number of full-paying subscribers (FPS) increased by 6.4 per cent to 447,196 (420,135) at the end of the quarter.

●        Gross profit increased by 30.8 per cent to SEK 48.8 million (37.3), corresponding to a gross profit margin of 33.8 per cent (33.7).

●        The gross contribution margin for the period was 20.1 per cent (-10.4).

●        Operating result was SEK -28.2 million (-54.3), corresponding to an operating margin of -19.6 per cent (-49.0).

●        Earnings per share were SEK -0.7 (-1.6) before and after dilution.

1 January - 30 June 2022

●        Revenue for the period totalled SEK 287.9 million (212.7), an increase of 35.4 per cent compared with the first six months of 2021.

●        The number of full-paying subscribers (FPS) increased by 6.4 per cent to 447,196 (420,135) at the end of the quarter.

●        Gross profit increased 37.2 per cent to SEK 97.6 million (71.2), corresponding to a gross profit margin of 33.9 per cent (33.5).

●        The gross contribution margin for the period was 16.7 per cent (-13.1).

●        Adjusted operating result (excl. IAC) was SEK -63.0 million (-111.2), corresponding to an operating margin of -21.9 per cent (-52.3).

●        Operating result was SEK -72.6 million (-111.2), corresponding to an operating margin of -25.2 per cent (-52.3).

●        Earnings per share were SEK -1.9 (-3.2) before and after dilution.

Significant events during the period

●        At the Extraordinary General Meeting on 21 June, it was resolved, in accordance with the proposal of the Board of Directors, to establish an employee stock option programme for senior executives and other employees in the company and in the Group outside Sweden.

●        On 20 May, Mats Brandt took on the role as the permanent President and CEO of Readly. Mats Brandt had been serving as acting CEO since 31 January 2022, when he succeeded Maria H edengren, whose employment as President and CEO ended on that same date.

●        The Annual General Meeting on 10 May resolved, in accordance with the proposal of the Nomination Committee, to re-elect Board members Patrick Svensk, Nathan Medlock and Malin Stråhle. Patrick Svensk was re-elected as Chairman of the Board, and Nicolas Adlercreutz was elected as a new Board member. Viktor Fritzén and Alexandra Whelan declined re-election.

●        Marie-Sophie von Bibra was appointed Chief Marketing Officer and Managing Director for Germany and was made a new member of Group management.

●        Cecilia von Krusenstierna, Chief Growth Officer and member of Group management terminated her employment and will leave Readly during the third quarter.

Significant events after the end of the period

●        No significant events occurred after the end of the reporting period.

Q2 presentation today at 9:00 CET

Readly published its interim report for the second quarter 2022 today at 07:30 CET.

The report will be presented in an audio cast and tele conference at 09.00 CET the same day.

Mats Brandt, CEO and Johan Adalberth, CFO, will present the report and answer questions.
The presentation will be held in English.
To listen to the conference by phone, please call:
SE: +46 8 505 163 86
UK: +44 20 3198 4884
US: +1 412 317 6300
Pin code: 5426959#
Follow the presentation live on:
Link to audiocast (https://tv.streamfabriken.com/readly-q2-2022/register)
Report and presentation will be available for download on:
https://corporate.readly.com/investors/financial-reports-and-presentations/
For more information, please contact:
Rasmus Blomqvist, Head of Investor Relations
+46 70 233 53 67, rasmus.blomqvist@readly.com
Johan Adalberth, CFO
+46 72 727 50 70, johan.adalberth@readly.com
This information constitutes inside information that Readly International AB (publ) is obliged to publish in accordance with EU Market Abuse Regulation 596/2014. The information in this press release has been published by the above contact persons, at the time specified by the Company's news distributor Cision at the time of publication of this press release.

About Readly
Readly is the European category leader for digital magazines. The company offers a digital subscription service that lets customers have unlimited access to 7,500 national and international magazines - all in one app and at a fixed monthly fee. Readly has subscribers in 50 countries and content available in 17 different languages. In collaboration with around 1,200 publishers worldwide, Readly is digitising the magazine industry. In 2021, revenues amounted to SEK 466 million. Since September 2020, the Readly share is listed on Nasdaq Stockholm Midcap. For more information, please visit https://corporate.readly.com.

Cision