Baltic Classifieds shares slide despite full-year growth

(Sharecast News) - Baltic Classifieds Group shares were sliding on Thursday morning, even after it reported a solid performance across its core online platforms drove double-digit revenue and profit growth. Revenue rose 15% to €82.8m, with business-to-consumer and consumer-to-consumer segments - together accounting for 90% of total revenue - growing by 17% and 13% respectively.

EBITDA rose 17% to €64.4m, expanding the EBITDA margin to 78%, while operating profit surged 40% to €53.5m.

Adjusted net income climbed 21% to €54.4m, while statutory profit for the year increased 40% to €44.8m.

The group said it maintained high cash conversion at 99% and reduced net debt to €3.6m, aided by a voluntary €25m debt repayment.

Chief executive Justinas Šimkus hailed the year as one of "strong financial, operational, and strategic execution.

"We remain in the early stages of our monetisation journey, which is demonstrated by resilience of both our top-line and EBITDA growth," he said.

He also cited a "favourable macroeconomic environment" across the EU and Lithuania in particular, reinforcing long-term growth prospects.

The group said product improvements and pricing changes helped boost engagement and yields across all major verticals.

Notable gains in average revenue per user (ARPU) were reported across auto, up 15%; real estate, ahead 20%; and jobs, which was 12% higher, while the group also acquired Lithuanian property valuation platform Untu.lt, bolstering its data and lead generation capabilities.

Although the Estonian auto market remains under pressure following the introduction of new vehicle taxes, which led to a sustained 40% decline in used car transactions, the group recorded strong gains in ad volumes and business customer activity elsewhere.

Average monthly traffic across BCG's platforms reached 57 million visits.

The board proposed a final dividend of 2.6 euro cents per share, a 24% increase year-on-year, bringing the total dividend for the year to 3.8 cents per share.

It said it returned €29.4m to shareholders through dividends and share buybacks.

Looking ahead, BCG said it expected revenue growth in 2026 to be broadly in line with the prior year, led by real estate, jobs, services and its Lithuanian auto business.

The Estonian auto unit was not expected to return to year-on-year growth until early 2026.

BCG said it expected to maintain its EBITDA margin and complete its transition to a debt-free position, with excess cash continuing to be returned to shareholders.

At 0848 BST, shares in Baltic Classifieds Group were down 8.77% at 322.5p.

Reporting by Josh White for Sharecast.com.