Sparks

Baltic Classifieds is benefiting from supportive macroeconomic conditions, boosted by its own continued investment in its product and service offering. Revenues were up 15% on prior year, with growth very slightly dampened by changes to Estonian vehicle taxes. The customer base has expanded across both B2C and C2C , but the real boost has been from continued enhancements to the offering and price increases helping drive average revenues per user. Real Estate showed a particularly good performance, with the Jobs and Auto segments also doing well. EBITDA margins expanded by 1% over the year, as guided at the half year.

The outlook is broadly for more of the same, with volume growth in both B2C and C2C markets, product enhancements and pricing pushing the top line ahead, and ongoing investment leading to maintained margins.

The group is highly cash generative and expects to become debt free in the current year, subject to M&A opportunities. A continuing programme of dividends and cash buybacks is set to return excess cash to shareholders.