After acquiring a majority stake in Eurozet, Agora’s advertising revenue increased by 40%. This is the second quarter in a row in which the company reports a positive net profit.
In the second quarter of 2023, the advertising revenue of the Agora group increased by 40.2% year-on-year. to PLN 181.8 million. No less than 225.5 percent. PLN 71.6 million was an increase in the radio division, which is related to the acquisition of a controlling interest in the Eurozet Group.
At the end of February, Agora acquired 11% of the company for 9.17 million euros. Eurozet SFS Ventures will become the broadcaster’s majority shareholder (51 percent of the group’s capital). This happened after the ban of the president of UOKiK was legally lifted by the court.
The entire radio division of the Agora group recorded a quarterly turnover increase from PLN 27.5 million to PLN 80 million. Agora’s outdoor advertising sales increased by 12.5%. up to PLN 50.4 million. This is mainly the result of a greater number of actions in the field of street space and communication. However, the company’s profits in the online advertising category fell.
“The decrease in advertising revenue was mainly driven by lower sales of online advertising by Yieldbird, mainly due to changes in the customer base, changes due to the development of the partnership in the SaaS model and the reduction in sales of advertising services” – submits the report.
Profit despite rising operating costs
“The second quarter of this year confirms the upward trend in the Agora Group’s revenues. This was influenced by the good economic situation in the advertising market, particularly visible in outdoor advertising, but also – which we are very pleased with – the return of cinemas to normal operation. We are also noticing the first positive effects of Eurozet Group’s joint sales offer,” says Anna Kryńska-Godlewska, Member of the Board of Directors of Agora. She added that the group managed to make a year-on-year profit, although they faced “increasing costs of doing business” in the last quarter.
The operating costs of the Agora group rose significantly less than revenues in the second quarter – by 19.2 percent. up to PLN 326.2 million. Expenditure on outsourced services (from PLN 87.9 to 112.5 million) and personnel costs (from PLN 91.6 to 105 million) increased the most in terms of amounts.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
