Wirtualna Polska Holding’s quarterly cash revenues increased by 50.3%. up to PLN 396.86 million. It has become the company’s main business area tourism, in which, with an increase in sales revenues from PLN 76.14 to PLN 185.79 million, the adjusted EBITDA tripled, growing from PLN 27.91 to PLN 83.36 million.
Wirtualna Polska explained in the report that this was an effect “a very strong increase in the revenues of the company offering foreign trip packages Wakacje.pl and taking into account the revenues of the Szallas Group, acquired in November 2022.” For 100 percent shares of the Szallas Group, which owns platforms for booking accommodation in Hungary, the Czech Republic, Romania, Poland and Croatia, WP paid approximately EUR 83 million.
Audio library less profitable than advertising
In the advertising and subscription division, sales revenues increased by 21.4%. up to PLN 164.69 million, including thanks to the acquisition of the Audioteka Group (Wirtualna Polska bought its controlling stake in autumn last year, and the remaining shares for PLN 74.66 million in July this year). However, adjusted EBITDA decreased from PLN 61.46 to PLN 59.83 million.
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– Almost 7 percentage points of decline in the percentage of EBITDA margin results from the strategic change in the mix of segment i areas taking into account the results of the Audioteka Group after the acquisition. Subscription sales of audiobooks are characterized by lower basic profitability compared to advertising sales – explained WP.
The area of consumer finance recorded a decline revenues by 5.8 percent to PLN 47.63 million and adjusted EBITDA from PLN 7.29 to PLN 5.72 million. This is the result of a decline in the share of own cars in the sales of the Superauto platform and an increase in the costs of acquiring its users. However, Totalmoney achieved an increase in commission income from financial institutions.
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In turn, in the category defined as other, revenues decreased by 10.5%. to PLN 9.78 million, and the adjusted EBITDA profitability increased from PLN 838 thousand. PLN loss to PLN 923 thousand PLN profit.
Without acquisitions, an increase of 11%.-
In pro form terms, that is excluding acquisitions made over the last year, Wirtualna Polska Holding increased its quarterly revenues by 11%. and adjusted EBITDA by 8%. The EBITDA margin decreased slightly – from 39 to 38 percent.
The company’s operating profit increased from PLN 66.41 to PLN 109.6 million. However, with an increase in financial costs from PLN 7.14 to 18.65 million and income tax paid from PLN 13.67 to 18.27 million net profit reached PLN 71.7 million, compared to PLN 50.76 million a year ago.
This is a record result in the history of Wirtualna Polska. Previously, it once exceeded PLN 60 million in quarterly net profit (PLN 62.94 million in the fourth quarter of 2021), and twice it earned more than PLN 50 million net. After a series of takeovers company since the beginning of this year. records over PLN 300 million in quarterly revenueswhile three years ago it reached the ceiling of PLN 200 million for the first time (PLN 218.46 million in the fourth quarter of 2020).
In addition to the Szallas Group and Audioteka, in the second half of last year Wirtualna Polska bought the Mediapop company (publishing, among others, Jastrzabpost.pl, Pysznosci.pl and Genialne.pl) for PLN 28 million (plus possibly PLN 9 million), and also paid PLN 12.6 million for 40 percent. shares of the Patronite crowdfunding platform.
In three quarters of this year Wirtualna Polska Holding generated an increase in revenues by 43.2%. up to PLN 1.07 billion. On the cost side, the highest increases were for external services (from PLN 207.91 to PLN 371.81 million), employee salaries and benefits (from PLN 203.62 to PLN 271.88 million) and depreciation (from PLN 71.65 to PLN 116.63 million PLN).
At the operating level, the profit increased from PLN 176.45 to PLN 206.87 million, and with the increase in financial costs from PLN 16.34 to PLN 56.24 million, the company earned PLN 121.6 million, PLN 21.84 million less than a year ago before.
The company’s net debt at the end of September was PLN 545.5 million, and its ratio to pro forma EBITDA for the past 12 months was 1.3x. During the quarter, net debt increased by PLN 128.8 million.