2021 Summary
Group’s key figures 2021

Key results in 2021

revenue (+20%)
EBITDA (+39%)
net profit (+61%)
the share of digital revenue of group's revenue
digital subscriptions throughout the Baltic States
digital subscriptions growth
dividends per share (cents)
employees

Statement of the chairman of the management board

The year 2021 was successful for Ekspress Grupp. The prolonged Covid-19 pandemic and heightened attention to what was going on in the society increased the interest in classical journalism. The investments made in previous years in journalists and creation of high-quality content have brought us success. This primarily manifests itself in continued growth in the number of digital subscriptions.
By the end of the year, the various companies of Ekspress Grupp had almost 135 000 digital subscriptions. Estonia has the most subscriptions of digital content with Ekspress Meedia attaining the highest number of digital subscriptions. The number of digital subscriptions of Õhtuleht Kirjastus demonstrated very good growth in 2021. It is evident that readers in the market are keenly interested in periodicals with varied content which gives us courage to experiment with various formats in order to grow the number of digital subscriptions in coming years.
Overall, the year 2021 was successful for the Group: despite the ongoing pandemic and the economic uncertainty due to the coronavirus, the Group managed to reinforce its market position and significantly improve its profitability. As compared to 2020, the 12-month revenue increased by 20% to 53.5 million and the net profit increased by 61% to EUR 4.1 million. The share of the Group’s digital revenue was 76% of the total revenue at the end of December.

– Mari-Liis Rüütsalu, Chairman of the Management Board

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Major business results

Summary of business results (continuing operations)

Sales revenue and EBITDA
60
50
40
30
20
10
0
2017
2018
2019
2020
2021
mEur
% of digital revenue from total sales revenue
EBITDA
Sales
Revenue
In 2021, the consolidated revenue from continuing operations totalled EUR 53.5 million (2020: EUR 44.5 million). Revenue increased by 20% year-over-year in 2021. Both advertising as well as digital subscription revenue increased. At the end of 2021, the share of the Group's digital revenue accounted for 76% of total revenue (at the end of 2020: 70% of total revenue). Digital revenue increased by 31% as compared to the last year.
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Profitability
In 2021, the consolidated EBITDA of continuing operations totalled EUR 8.24 million (2020: EUR 5.92 million). In 2021, EBITDA increased by 39% as compared to the previous year and the EBITDA margin was 15.4% (2020: 13.3%). Strong sales of online advertising, digital subscriptions and tight cost controls in all Baltic States have helped to improve profitability. In 2021, the Group received a one-off state subsidy in Latvia in the amount of EUR 0.41 million related to the ticket sales platform where events had been cancelled during the period of almost 7 months. In 2020, one-off COVID-19 pandemic-related state subsidies totalled EUR 0.9 million in Estonia and Latvia.
In 2021, the consolidated net profit from continuing operations totalled EUR 4.13 million (2020: EUR 2.57 million), which is EUR 1.57 million and 61% better as compared to 2020. The net profit for 2021 was impacted by one-off finance income for fair value adjustment of the outstanding commitment related the purchase price of the ticket sales platform in the amount of EUR 0.4 million (2020: EUR 0.7 million).
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Cash position
At the end of the reporting period, the Group had available cash in the amount of EUR 11.0 million and equity in the amount of EUR 53.7 million (57% of total assets). The comparable data as of 31 December 2020, including the printing services segment, were EUR 6.3 million and EUR 54.6 million (58% of total assets), respectively. As of 31 December 2021, the Group's net debt was EUR 11.3 million (31 December 2020: EUR 15.9 million). As of 31 December 2021, the cash position was positively impacted by net cash proceeds from the sale of the ownership interest in Printall AS in the amount of EUR 6.3 million (incl. premature payment of the outstanding loan balance of Printall AS to AS SEB Pank under the loan contract in the amount of EUR 2.06 million, see Note 18) in September. Proceeds have been partially used for the extraordinary dividend payment (EUR 3.03 million) and for the acquisition of Geenius Meedia in the last quarter.
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Dividends and dividend policy
In conjunction with the sale of Printall AS, the group paid the extraordinary dividends of 10 euro cents per share in the total amount of EUR 3.03 million in November 2021.
The Management Board proposes to pay dividends from the net profit for the 2021 financial year to the shareholders in the amount of 5 euro cents per share, in the total amount of EUR 1.51 million, resulting in a dividend rate of 37% (calculated on the net profit from continuing operations) and dividend yield of 3.2%. The Supervisory Board of AS Ekspress Grupp has approved the group's dividends policy, according to which Ekspress Grupp will pay at least 30% of the annual profit as dividends starting from 2022.
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Summary of business results (continuing operations)

Media segment sales revenue and EBITDA
60
55
50
45
40
35
30
25
20
15
10
5
0
80%
75%
65%
55%
45%
35%
25%
15%
5%
2017
2018
2019
2020
2021
mEur
EBITDA
Sales
% of digital revenue from total sales revenue
Digital subscriptions
150
125
100
75
50
25
0
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
thousands
Delfi UAB (Lithuania)
Delfi AS (Latvia)
AS Õhtuleht Kirjastus
AS Ekspress Meedia
Ekspress Group (Baltic) total
Media Segment
AS Ekspress Grupp as the leading media group in the Baltic States is influenced not only by what is happening in the region but also by global trends. The media sector in general is being impacted by three larger global trends.
1. Digitalisation is one of the most important and fastest-growing megatrends. It is a major challenge to all group companies in terms of technological capacity, staff competence as well as meeting reader and customer expectations. Media publications must constantly offer readers newer and more exciting solutions and formats for presenting journalistic content in smart devices, investments in technology must ensure uninterrupted availability of products/services and employees are challenged by growing need for competence.
2. Polarisation in the society. In the last couple of years, the polarisation of the society has become clearer than ever before. Debates take place on very rigid positions and people are under growing pressure to take a side in terms of their worldview. This trend has been shaped by politics (liberals vs. conservatives), the COVID pandemic (vaccinated vs not vaccinated) and social issues (e.g. same-sex marriage, prohibition of abortion, etc.) in the home markets of the group companies as well as in the region, in the neighbouring countries and globally. In 2021, these trends had real consequences for media houses as more people cancelled their digital subscriptions because they did not agree with the views and opinions published by the media outlet. This is also a challenge for the media in making sure that the content is balanced and that everybody has an opportunity to present their side of the story.
3. Paid digital media content. The whole digital media is moving towards paid content. Paid digital subscriptions have become the new normal and people are increasingly willing to pay for quality journalism. Paid digital subscribers are highly valued and offered additional products and services that fit their profile.
In 2021, media segment revenue totalled EUR 52.1 million (2020: EUR 43.7 million). Revenue increased by 19% as compared to the last year. Revenue growth is attributable to active online advertising market which continues to growth as compared to traditional media outlets. In the 4th quarter, the Baltic online advertising market increased by more than 20% as compared to the same period last year. Paper media advertising has been struggling and we believe will not reach its previous pre-Covid levels going forward. All-in-all the advertising market has not grown in the Baltics. The digital channels have gained momentum at the expense of other advertising channels which we believe will be a continuing trend in the future.
At the end of 2021, the share of the Group's digital revenue made up 76% of total revenue (31.12.2020: 70%).
In 2021, the EBITDA totalled EUR 8.9 million (2020: EUR 6.6 million). As compared to the previous year, EBITDA increased by 35%. This was positively impacted by a strong sales of online advertising, digital subscriptions and tight cost controls carried out throughout the Group. In 2021, the EBITDA was also positively impacted by a one-off state subsidy in Latvia in the amount of EUR 0.41 million related to the ticket sales platform where events had been cancelled during the period of almost 7 months (2020: EUR 0.9 million in Estonia and Latvia).
The state of emergency related to COVID-19 has had the most profound impact on the Latvian ticket sales platform. In the 4th quarter of 2020, a state of emergency was imposed and all events were cancelled. The state of emergency in Latvia lasted until 4 April 2021 but strong restrictions remained in place until mid-June 2021. While most events took place in the 3rd quarter, starting from 11 October 2021 a state of emergency was reinstated in Latvia and from 21 October until 15 November 2021, all concerts were cancelled and theatres were closed in Latvia as additional restrictions. As from 15 November 2021, public events can be held, but there are still significant restrictions. In view of the spread of the Omicron variant and related developments in other countries, as well as the forecasts by epidemiologists, on 6 January 2022, Latvia took a decision to extend the state of emergency until 28 February 2022. It is expected that restrictions in Latvia will be relaxed from 1 March 2022 and events for up to 1,000 visitors are allowed indoors.
Starting from April 2021 the Group also entered the Estonian market with the ticket sales platform Piletitasku in Estonia. With the expansion of the ticket sales business into Estonia, the Group will continue its current strategy, the purpose of which is to increase the share of digital revenue and identify synergies between new business lines and existing media activities. We wish to provide the most convenient platform both for ticket buyers as well as event organisers. The platform has been well received during 2021 and group continues with its strategy by increasing the market share in 2022.
The Latvian outdoor media company SIA D Screens that won a public tender granting it the right to rent the real estate properties owned by the City of Riga in the first half of the year, will actively continue developing the outdoor screen network. The contract enables the company to expand its network to more than 100 screens and participate in the market with both large and small screen networks that cover the most important roads in Riga. New screens will be installed by end of 2022.
In December 2021, AS Ekspress Grupp acquired a 100% of shares in the media company Geenius Meedia OÜ. The purpose of the acquisition was to grow the digital media business and expand into a niche that the publications of Ekspress Grupp do not yet regularly cover. The shared goal of Ekspress Grupp and Geenius Meedia is to continue offering attractive content for the readers of geenius.ee. After the transaction, Geenius Meedia OÜ continues to operate as a separate media company. As a group, Ekspress Grupp offers Geenius Meedia synergy in functions supporting the media business, providing notably bigger growth potential for the fast-growing company. The results of Geenius Meedia OÜ will be included in the Group's consolidated reports from 2022.
The joint venture Õhtuleht Kirjastus AS, a key media company on the Estonian market is recognised under the equity method and included as one line item within finance income in the Group's results. In 2021, the revenue totalled EUR 13.9 million (2020: EUR 13.4 million).
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Digital subscriptions
The number of digital subscriptions of AS Ekspress Grupp increased by 62% year-over-year across the Baltic States and totalled 134 947 at the end of December.
  • The number of digital subscriptions of AS Ekspress Meedia that publishes the news portal Delfi, newspapers Eesti Päevaleht, Maaleht, Eesti Ekspress and several popular magazines increased by 51% year-over-year and totalled 74 873.
  • The number of digital subscriptions of AS Õhtuleht, 50% of which is owned by Ekspress Grupp, increased by 52% year-over-year and totalled 20 992.
  • The number of digital subscriptions of Geenius Meedia OÜ, that has been part of Ekspress Grupp since 17 December 2021, more than doubled year-over-year and totalled 4 100.
  • In Latvia, the number of digital subscriptions of Delfi A/S increased by 57% year-over-year and totalled 17 549.
  • In Lithuania, the number of digital subscriptions of Delfi more than doubled year-over-year and totalled 17 433.

In 2021, digital subscription growth of the key periodicals and in the key markets of Ekspress Grupp continued. Additional digital growth is primarily attributable to new customers. Latvia and Lithuania where until now the number of digital subscribers was lower demonstrated the fastest growth. The Estonian market also continued its fast growth in a year-over-year comparison. However, in the last quarter growth decelerated in the outlets with the highest number of subscribers. Still, the Group is witnessing continuation of moderate growth also in Estonia.
The addition of digital subscriptions will have a positive impact on the results of operations of Ekspress Grupp as it provides a stable revenue base in addition to online advertising sales and confirms that the group’s long-term strategic direction is appropriate.
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Performance indicators (EUR thousand) 2021 2020 Change % 2019 2018 2017
Continuing operations
Sales revenue 53,516 44,514 20% 44,717 37,879 32,180
EBITDA 8,240 5,924 39% 4,904 2,041 2,528
EBITDA margin (%) 15.4% 13.3% 11.0% 5.4% 7.9%
Operating profit /(loss) 4,864 3,071 58% 2,337 850 1,766
Operating margin (%) 9.1% 6.9% 5.1% 2.0% 4.9%
Interest expenses (709) (860) 18% (1,085) (721) (653)
Profit (loss) of joint ventures under equity method (281) 102 -376% (38) (273) (2)
Net profit from continuing operations 4,133 2,566 61% 755 (614) 991
Net margin (%) - continuing operations 7.7% 5.8% 1.7% -1.6% 3.1%
Return on assets ROA (%) 2.4% 2.7% 1.6% 0.0% 4.2%
Return on equity ROE (%) 4.1% 4.9% 2.8% 0.0% 6.1%
Earnings per share (euro) - continuing operations
Basic earnings per share 0.14 0.09 0.03 (0.02) 0.03
Diluted earnings per share 0.13 0.08 0.03 (0.02) 0.03
* For years 2020-2017 the return on capital employed (ROCE) (%) ratio is calculated on the basis of EBIT, which also includes EBIT from discontinued operations.
Balance sheet (EUR thousand) 31.12.2021 31.12.2020 Change % 31.12.2019 31.12.2018 31.12.2017
As of the end of the period
Current assets 20,553 18,482 11% 19,472 13,831 13,827
Non-current assets 73,705 75,695 -3% 75,935 62,907 62,130
Total assets 94,258 94,177 0% 95,407 76,738 75,957
incl. cash and cash equivalents 10,962 6,269 75% 3,647 1,268 1,073
incl. goodwill 45,576 43,085 6% 42,628 37,969 37,969
Current liabilities 20,947 18,945 11% 21,647 12,186 8,372
Non-current liabilities 19,619 20,613 -5% 22,137 14,118 15,091
Total liabilities 40,566 39,558 3% 43,784 26,304 23,463
incl. borrowings 22,219 22,202 0% 24,342 15,474 15,257
Equity 53,692 54,619 -2% 51,622 50,434 52,494
Financial ratios (%) 31.12.2021 31.12.2020 31.12.2019 31.12.2018 31.12.2017
Equity ratio (%) 57% 58% 54% 66% 69%
Debt to equity ratio (%) 41% 41% 47% 31% 29%
Debt to capital ratio (%) 17% 23% 29% 22% 21%
Total debt/EBITDA ratio 2.70 3.17* 3.59* 3.63* 2.44*
Liquidity ratio 0.98 0.98 0.90 1.13 1.65
* For years 2020-2017 total debt/EBITDA ratio is calculated on the basis of EBITDA, which also includes EBITDA from discontinued operations.
Main events of 2021
January
February
March
April
May
June
July
August
September
October
November
December

January

  • Latvian company SIA D Screens purchased an outdoor screen network with five screens in Riga from DIMAXI. This transaction increased the screen network of D Screens to 14 screens. The Group continues to actively invest in its outdoor media network both in Latvia and in Estonia.
  • Peeter Saks, member of the Supervisory Board of AS Ekspress Grupp, submitted his resignation. The Supervisory Board of AS Ekspress Grupp will continue with four members: Priit Rohumaa (Chairman), Hans H. Luik, Indrek Kasela and Aleksandras Česnavičius.
  • AS Ekspress Grupp published the results of digital subscriptions for the fourth quarter of 2020, according to which in 2020 the number of digital subscriptions increased by 73% across all Baltic States and totalled 81,254 subscriptions at the end of the year.
  • Delfi Lithuania set up a department of special solutions that offers customers advertising services both on the Google Ads platform and in social media networks for reaching a bigger target group. The department is managed by Romuald Nareiko, a well-known expert in this field.

February

  • AS Ekspress Grupp publishes the consolidated unaudited interim report for the fourth quarter and 12 months 2020.
  • Delfi Lithuania celebrated its 21th anniversary with the event Delfi Titans 2021 that could be viewed both in the Delfi news portal and in the Delfi TV channel.

March

  • Delfi Estonia launched a portal with new re-engineered and re-designed visual layout. In addition, also the technological platform and internal tools of the editorial office were upgraded.
  • Subscribers of Delfi Latvia who had two different subscriptions previously were transferred to a more comprehensive subscription Delfi+ that includes several products.
  • In the first quarter of 2021, all cultural events in Latvia were cancelled due to the coronavirus pandemic, mainly affecting the activities of the Group’s Latvian ticket sales platform.

April

  • The Supervisory Board of AS Ekspress Grupp approved the Annual Report 2020.
  • AS Ekspress Grupp published the results of digital subscriptions for the first quarter of 2021, according to which in the first quarter the number of digital subscriptions increased by 16% across all Baltic States (year-on-year growth: 74%) and totalled 94,639 subscriptions at the end of March.
  • SIA D Screens won the second auction of lease rights for the real estate owned by Riga's municipality. The lease consists of 91 advertising spaces owned by Riga’s municipality and allows the company to increase its network to more than 100 screens.
  • AS Ekspress Grupp published the consolidated unaudited interim report for the first quarter of 2021.
  • The Group launched Piletitasku – a new ticket sales platform in Estonia that was well received by event organisers and ticket buyers.

May

  • The survey of the Estonian Association of Media Enterprises on Internet users showed that Estonia’s most popular online portal is Delfi that according to the survey is read by 68% of the population. Õhtuleht is read by 24% of the population.
  • Delfi Latvia launched its third project on business news, providing value and extensive news on economy and business to subscribers of the Delfi digital package.
  • Delfi Lithuania organised a five-day innovation and tech conference LOGIN that included presentations from more than 150 experts in their relevant field and could be watched on all larger media portals in Lithuania.

June

  • On June 15 shareholders of AS Ekspress Grupp approved the annual report 2020. The mandate of the member of the Supervisory Board Aleksandras Česnavičius was extended until 16 June 2025.

July

  • AS Ekspress Grupp published the results of digital subscriptions for the second quarter of 2021, according to which the number of digital subscriptions increased by 76% across all Baltic States year-over-year and totalled 110,253 subscriptions at the end of June.
  • AS Ekspress Grupp and AS SEB Pank signed amendments to loan contracts as a result of which loan repayment dates were extended and the amount of monthly repayments was reduced. In addition, the Group entered into a new loan contract with AS SEB Pank to refinance the loan borrowed from AS Citadele Banka in the amount of EUR 2.1 million.
  • The Supervisory Board of AS Ekspress Grupp decided to extend the mandate of Signe Kukin as a Member of the Management Board until 31 December 2024.
  • AS Ekspress Grupp published the consolidated unaudited interim report for the second quarter and first six months 2021.
  • Book publisher Hea Lugu introduced a new platform for its e-store Raamat24.ee, establishing autonomy and independence from group companies.

August

  • KJK Fund SICAV-SIF sold all its holding of 4 002 052 shares of AS Ekspress Grupp to OÜ HHL Rühm. Transferred shares accounted for 13% of the total shares of AS Ekspress Grupp. Pursuant to the transaction, the ownership of Hans Luik in AS Ekspress Grupp increased to 73.23%.

September

  • In accordance with the resolution of the extraordinary general meeting of AS Ekspress Grupp as of 13 July 2021, AS Ekspress Grupp and OÜ Trükitung signed on 3 September 2021 a sales agreement by which Ekspress Grupp sells all its shares of Printall to Trükitung OÜ.
  • Martin Šmutov, Editor-in-Chief of Õhtuleht, was elected as the new chairman of the Press Council.
  • According to a new survey, Delfi Lithuania is the best-known online portal in Lithuania. Delfi was mentioned first by 56% of respondents in the survey. The second was 15min.lt that was named by 24% of respondents.
  • In Latvia, Delfi plus started selling digital subscriptions in the service stations of Circle K.
  • At the Baltic marketing conference Baltic Brands Forum, Delfi Latvia was recognised as the most loved media brand in the Baltic States.

October

  • AS Ekspress Grupp published the results of digital subscriptions for the third quarter of 2021, according to which the number of digital subscriptions increased by 75% across all Baltic States year-over-year and totalled 121 874 subscriptions at the end of September.
  • On October 13, the Supervisory Board of AS Ekspress Grupp approved the Group’s dividend policy according to which the Group will distribute at least 30% of the annual profit as dividends, provided that there are sufficient financial resources for financing core activities and making new strategic investments.
  • AS Ekspress Grupp publishes the consolidated unaudited interim report for the third quarter and first nine months of 2021.
  • Õhtuleht Kirjastus ended publishing of Linnaleht founded in 1997 due to the significant loss of advertising revenue as a result of the coronavirus pandemic. The final issue of Linnaleht was published on October 29.
  • Delfi Lithuania launched M360, a new project for digital subscriptions that offer even more exclusive content and help readers to strengthen their professional knowledge with the help of experts in the relevant field.

November

  • Since November, the new Editor-in-Chief of Eesti Ekspress is Merili Nikkolo. Her predecessor, Erik Moora, continues as an editor responsible for social issues.
  • On November 4, shareholders of AS Ekspress Grupp approved a resolution to pay extraordinary dividends in connection with the sale of AS Printall a total of EUR 3 028 287, i.e. 10 cents a share.

December

  • AS Ekspress Grupp acquired the media company Geenius Meedia OÜ to grow the digital media business and expand into a niche that the group publications do not yet regularly cover. After the transaction, Geenius Meedia OÜ will continue to operate as a separate media company and its main founders Hendrik Roonemaa and Siim Saidla will remain actively involved in the company’s management and daily operations.
  • Ekspress Meedia took the first place in the TOP of media companies compiled by Äripäev, Õhtuleht Kirjastus won the second place.
  • Book publisher Hea Lugu was ranked 2nd in the Äripäev TOP ranking of publishers.
  • AS Ekspress Grupp published the results of digital subscriptions for the fourth quarter of 2021, according to which the number of digital subscriptions increased by 62% across all Baltic States year-over-year (8% in the fourth quarter) and totalled 134 947 subscriptions at the end of the December.
  • The Supervisory Board of AS Ekspress Grupp decided to extend the mandate of Mari-Liis Rüütsalu as a Member of the Management Board until 31 December 2025.
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Ekspress Grupp Annual Report
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About Ekspress Grupp
Group's key businesses and brands
Our strategy and business goals
Ekspress Grupp as an investment
2021 Summary
Group’s key figures 2021
Statement of the chairman of the management board
Major business results
Main events of 2021
Digital Media Company
Becoming increasingly digital
Digital media facts
Media Responsibilities
Public impact, role and reponsibility of media company
Major topics in 2021
Rewards and recognition
Responsible Business Practice
Customer experience and satisfaction
Development of the society and the sector
Our employees
Environmental management
Management Commentary
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www.egrupp.ee

Statement of the chairman of the management board

In its home markets of Estonia, Latvia and Lithuania, Ekspress Grupp is one of the key companies to mould public information space. We believe that our quality work will help create a better society today and tomorrow.

The year 2021 was successful for Ekspress Grupp. The prolonged Covid-19 pandemic and heightened attention to what was going on in the society increased the interest in classical journalism. The investments made in previous years in journalists and creation of high-quality content have brought us success. This primarily manifests itself in continued growth in the number of digital subscriptions.

By the end of the year, the various companies of Ekspress Grupp had almost 135 000 digital subscriptions. Estonia has the most subscriptions of digital content with Ekspress Meedia attaining the highest number of digital subscriptions. The number of digital subscriptions of Õhtuleht Kirjastus demonstrated very good growth in 2021. It is evident that readers in the market are keenly interested in periodicals with varied content which gives us courage to experiment with various formats in order to grow the number of digital subscriptions in coming years.

The effects of the pandemic were also present in 2021. The ticket sales businesses in Latvia and Estonia suffered the most under the restrictions. Using our knowledge and technological platform of the Latvian ticket business we launched a new platform under the name of Piletitasku in Estonia in spring 2021. Because of the pandemic, ticket sales started to pick up only in autumn. Nevertheless, our ticket sales platforms ended the year with good results due to their skill to adapt to the constantly changing circumstances and develop key technological solutions for theatres, concert halls and other event organisers. These developments helped disperse visitors during the restrictions or check, for example, customers’ vaccine passports.

In the advertising sector, digital outdoor screens were hit the hardest during the pandemic. However, in the second half of the year, there was a recovery of customer interest in outdoor media. We are on the path to growing digital screens both in Estonia and Latvia – at the beginning of the year, we acquired four digital outdoor screen companies in Riga. In addition, we participated in several procurements organised by Riga City Council, two of which we won. Due to the winning of the procurements, we will increase our footprint in the market of digital outdoor screens in Riga and going forward we will be able to offer various formats to our customers.

In June, Ekspress Grupp announced of the sale of the printing house AS Printall. This transaction in is line with the Group’s strategy that primarily focuses on the growth of its digital business. Since the share of print periodicals in the Group’s revenue continues to fall, owning a printing house is strategically unimportant for the Group over the long run.

In December, Ekspress Grupp acquired the media company Geenius Meedia in Estonia. Geenius Meedia is a media company focused on technology, car and business news that already has a significant number of digital subscriptions. It also represents a niche not regularly covered by the periodicals of Ekspress Grupp. After the acquisition, Geenius Meedia will continue as an independent media company. The online portals of Geenius have approximately 300 000 monthly readers and by the end of the year, it had more than 4 000 paying digital subscribers.

Overall, the year 2021 was successful for the Group: despite the ongoing pandemic and the economic uncertainty due to the coronavirus, the Group managed to reinforce its market position and significantly improve its profitability. As compared to 2020, the 12-month revenue increased by 20% to 53.5 million and the net profit increased by 61% to EUR 4.1 million. The share of the Group’s digital revenue was 76% of the total revenue at the end of December.

In addition to growth in digital subscriptions, growth in digital advertising in all countries also made a great contribution to the attainment of our outstanding results. This is primarily attributable to the digitalisation of the businesses due to the pandemic and therefore, making a greater contribution to digital advertising.

In 2020, Ekspress Grupp actively participated in the activities of the Estonian Association of Media Enterprises, the purpose of which is to enhance competition on the Estonian media landscape, fight market distortions and increase the availability of periodicals to the Estonian people. The same focus is also in Latvia and Lithuania, where we are actively participating in solving the industry’s problems through our local companies. The topics related to the equal treatment of companies represent long-term problems, such as the topics related to the taxation of global platforms and copyright-related topics. There is a similar situation in local markets where local national broadcasting companies make a contribution to digital products. From the point of view of evaluating the competitive situation, this does not represent a market failure that should be resolved with the taxpayers’ money.

Latvia and Lithuania can be outlined as progressive countries that in 2021 lowered their value-added tax rate on digital media products to 5%. Thus, Estonia remains one of the few countries in Europe with such a high value-added tax rate on digital media products (9%). A lower value-added tax rate will facilitate media companies’ digital transformation and place value on journalism and journalists as a whole. Strong journalism is the foundation of a strong democracy.

The results over the last couple of years demonstrate that we are on a right strategic path. The company’s revenue and profitability have grown, at the same time we have developed and evolved, implemented new technologies, launched new products and contributed to media companies in terms of their content. It is important for us to be trend setters and market leaders in the media field. This will ensure continued growth of digital revenue and profitability for us.

We thank our readers, viewers and listeners, shareholders and customers for their trust and support of our group companies!

Yours sincerely,
Mari-Liis Rüütsalu