35% hike in adjusted EBITDA and 38% increase of cash revenues on sale of services, development of products based on user data in the e-commerce segment, progressing personalization of contents and finalizing the work on the launch of Wirtualna Polska Television. The WP Group summarized Q3 2016.
Business achievements
During Q3 2016, Wirtualna Polska continued to implement the “MoViBE” strategy covering mobile, video, big data and e-commerce, by developing products in these areas. Progressing market consolidation and consistently deepening activity synergies between the group companies, as well as the use of proprietary big data mechanisms operating on the point of contact of contents and traditional and native advertising in electronic commerce significantly contributed to attainment of the results by the company.
– Last quarter we recorded higher revenues despite a constant user base. This was possible thanks to improved efficiency of the use of advertising space – introduction of a new portal platform, development of big data tools and products dedicated to e-commerce. We were among the few players in the market who know how to combine user activity between different devices to an increasing extent and anticipate users’ purchasing needs – said Jacek Świderski, President of the Management Board of Wirtualna Polska Holding S.A.
In addition, the company finalized its activities related to the launch of the Wirtualna Polska TV. Work on development of the infrastructure required for own production has been completed. It will comprise three bandwidths #dziejesienazywo: journalistic commentary, news and lifestyle, and most of the foreign content has been purchased – large part of it will be found in the free VOD collection to be launched in parallel to the launch of the station, on 2 December.
– The comfort of use of the video contents that we provide for our viewers, both linear and on demand, on any device, will have clearly a positive balance – says Michał Brański, Chairman of the Supervisory Board if WP1 Sp. z o.o. and VP Product Strategy in the Wirtualna Polska Group. – We will report on the reality making sure the people living in the regions do not feel neglected; we will draw heavily from the Internet dynamics and different forms of interaction. In other words, we will be faster and better integrated with the online world. We want to show the whole spectrum of opinions. WP TV will be a television of confrontation of different circles but delivered in a positive and inspiring spirit – explains Brański.
Financial results
The Group’s consolidated revenues on the sales of services rose in the third quarter of 2016 by over 31% to PLN 103 million. Cash sales revenues of PLN 95 million were up 38% compared to the corresponding period of the previous year. The EBITDA earned by the Group was up by 31% to PLN 28 million while adjusted EBITDA climbed 35% to PLN 34 million when Q3 2016 is compared to the same period of 2015.
Comparison of the Group’s operating results and financial position in the third quarter of 2016 with the consolidated results for the corresponding period of the previous year:
The Group’s consolidated revenues on the sales of services rose in the first nine months of 2016 by nearly 31% to PLN 292 million. In turn, cash sales revenues exceeding PLN 266 million were up 35% compared to the sales revenues in the corresponding period of 2015. The EBITDA earned by the Group was up by almost 35% to nearly PLN 85 million while adjusted EBITDA climbed 28% to PLN 95 million.
Comparison of the Group’s operating results and financial position in the first nine months of 2016 with the consolidated results for the corresponding period of the previous year:
Material events that took place in the first 3 quarters of 2016
The following events in the first 3 quarters of 2016 exerted an impact on the Group’s current operations: the concession decision made by the Chairman of the National Radio and Television Council for a subsidiary of Wirtualna Polska to disseminate a universal television program, finalization of the acquisition of TotalMoney.pl Sp. z o.o., the owner of TotalMoney.pl, a leading financial shopping engine, acquisition of shares in Nocowanie.pl Sp. z o.o. and the extension of the available investment credit facility (by another PLN 50 million) designated to acquire companies and non-current assets, which is supposed to provide the Group with flexibility in the pursuit of its acquisition strategy.
WP Group highlights
The Group owns one of Poland’s two most popular horizontal internet portals called Wirtualna Polska. It also runs the o2 horizontal portal and numerous specialist vertical portals, including in particular a business portal: Money.pl; a sports portal, e.g. WP SportoweFakty, a new technology portal: e.g. Dobreprogramy; entertainment portals: e.g. Pudelek and WP Gwiazdy; health and parenting portals: abcZdrowie.pl and Parenting.pl; and internet radio stations: OpenFM and PolskaStacja. In addition, the Group runs advertising business offering lead generation for internet stores, mostly through portals that aggregate the offers of internet stores (marketplace), in particular Domodi and Allani in fashion, Homebook in the home and interior decoration category, Money.pl and Finansowysupermarket.pl in financial services and wakacje.pl in tourism and recreation. The Group offers its users the possibility of using e-mail free of charge; it also conducts business on the Polish online advertising market offering its clients an extensive range of advertising products: modern display, including video advertising, advertisements distributed by e-mail, advertising for mobile devices and advertising based on a performance model. On 2 December the WP Group launches its latest project, WP Television, available from the 8th landline television multiplex and from SG WP.