AIM Group » Poland

Revenue drops, but profit rises at Agora

Andrzej Sowula — Wed, 15 May 2013 14:21:59 +0000

At Polish media group Agora SA gross operating profit rose from Q1 FY2012 to Q1 FY2013, despite the fact that revenue dropped, the company said today.

The division Internet** (including classifieds portals such as Trader.com and Agora SA) reported a 24 percent rise in gross operating profit, even though revenue dropped 2.7 percent. Revenue added up to 25.1 million Polish zloty ($7.73 million U.S.) in Q1 of FY2013. The structure of the revenue changed over the period: income from online advertising climbed slightly (1 percent) to 19.7 million Polish zlotych ($6.06 million U.S.), while income from classifieds dropped massively (-16.7 percent) to 4 million Polish zloty ($1.23 million U.S.) from Q1 last year to Q1 FY2013, the company said.

Agora ascribed the revenue drop to lower sales of combination offers (print/online combinations) and lower revenue earned by real estate sites. Revenue of the division Internet was hit by the closure of printed newspapers (withdrawal of combo offers) by Trader.com (Poland) and the suspension of the group-buying service HappyDay.

Despite these revenue declines, Agora still earned a gross operating profit of 3.1 Polish zloty ($954,455 U.S.) in Q1, which was 24 percent more than a year earlier. This was done by reducing operating costs (laying off workers and limiting marketing expenses) in Agora’s Internet division and Trader.com (Poland). In Q1 FY2013 the operating expenses of the Internet division decreased by 6.1 percent to 23.2 million Polish zloty ($7.14 million U.S.).

Agora also presented its forecast for the Polish advertising market in 2013. It expected total online ad spend to grow by 2 to 5 percent from 2012 to 2013.

**Included in the Internet division is recruitment site GazetaPraca.pl, automotive portal Autotrader.pl and real estate portal Domiporta.pl, Agora Ukraine, Trader.com (Poland), AdTaily and Sport4People.

Higher sales, lower costs pull Morizon into black

Andrzej Sowula — Mon, 13 May 2013 15:44:01 +0000

Morizon SA, owner of Polish real estate search engine Morizon.pl, released its financial results for Q1 today and the picture looked good: revenue was up and costs down, for a small (very small) profit.

The revenue of 348,746 Polish zlotych ($108,863 U.S.) earned in Q1 of FY2013 was 21 percent more than in Q1 of FY2012. The gross operating profit amounted to 5,582 Polish zlotych ($1,742 U.S.). That was small, but significantly better than in Q1 last year, when Morizon SA reported a loss of 182,243 Polish zlotych ($56,888 U.S.).

The improvement followed on the back of cost-cutting and – to a large extent – better debt-collecting results. The short-term receivables of Morizon SA were nearly three times lower in Q1 than in Q1FY2012.

Key events in Q1 FY2013 were new partnerships formed with a real estate classified service called NajDom.pl, owned by O2 Group SA (one of the largest online groups in Poland), a construction company called ROBYG SA, currently developing housing and office space in Warsaw, Gdansk and Wroclaw.

In Q1 FY2013 Morizon SA also received 1.162 million Polish zlotych ($362,725 U.S.) of funding from the EU for its training project aimed at management of real estate agents and brokers. The company also signed an investment agreement for the acquisition of Media Properties SA, which owns a competing real estate service at Nportal.pl. With this acquisition, Morizon SA hopes to grow its customer base, and with it revenue.

Polish Agora S.A. takes minority share in Goldenline Sp. z o.o. (goldenline.pl)

AIMGroup — Thu, 29 Dec 2011 19:22:06 +0000

Published December 29, 2011

29-12-2011
Press release

Agora S.A. became a minority shareholder in the company Goldenline Sp. z o.o., the owner of the social portal goldenline.pl

We have finalized the negotiations with the shareholders of the company Goldenline Sp. z o.o. (“Shareholders”) and signed the agreement to acquire shares in the company and shareholders agreement. As a result of these agreements, by means of acquiring part of the company’s shares from the Shareholders, Agora S.A. (“Agora), became the owner of 36% of the company’s shares entitling Agora to 36% of votes at a shareholder meeting. The total price paid for the 36% stake in the company amounted to PLN 11,520,000 which implies the total equity value at the level of PLN 32 million and transaction multiple of 3.5 calculated on the basis of expected sales revenues for 2011 – said Zbigniew Bak, Vice President of the Management Board of Agora S.A.

- The investment is coherent with our Internet strategy and will strengthen the position of the Agora Group among social websites and in recruitment category. Current CEO of Goldenline Sp. z o. o., Mr. Mariusz Gralewski, shall remain in this position and will be responsible for the company’s strategy and development. We will develop the company together in accordance with the original strategic vision of its co-founders. The company is already profitable and at the moment does not require additional financing – said Mr. Tomasz Jozefacki, a Management Board member and head of Internet division in Agora S.A.

On the basis of the modified articles of association and shareholders agreement executed between Agora S.A. and Shareholders, Agora received a number of rights typical for a minority shareholder, the most important including: (i) a proportional pre-emptive right in case of disposal of shares by any of the Shareholders, (ii) the right to appoint and remove one member of the company’s two-member management board; (iii) the right to appoint and remove two out of five members of the company’s supervisory board; (iv) making key decisions at a general meeting of shareholders by means of qualified majority of votes (two – thirds majority), including consent of the general meeting of shareholders for disposal of the company’s shares to a third party not being a shareholder and for accepting a third party as a new shareholder; (v) making key decisions by a supervisory board by means of a qualified majority of votes (two – thirds majority), including approval of the company’s annual budgets. On the basis of the shareholders agreement, Shareholders make take advantage of their right to sell their shares to Agora and Agora may use its right to purchase the shares owned by the Shareholders, but those rights do not constitute inexorable obligations of the other party as each party can free itself from those obligations by voting at a general meeting of shareholders for alternative ways of giving liquidity to the shares owned by Shareholders.

Resignation of Tomasz Jozefacki from the position of Agora’s Management Board member

Jim Townsend — Thu, 29 Dec 2011 19:21:08 +0000

Published December 29, 2011

Regulatory filing

The Management Board of Agora S.A. (“Agora”, “the Company”) hereby informs that, today, due to personal reasons, other career plans, Mr. Tomasz Jozefacki -Agora’s Board member- has resigned from the position of Agora’s Management Board member with the effect on January 31st, 2012 and handed in the notice to terminate his employment with the Company at the position of Managing Director, with the effect on June 30th, 2012.

Simultaneously, today, the Company and Mr. Jozefacki, signed an agreement enabling seamless handing over job duties and ensuring the continuity of processes related to the managing of Agora’s Internet segment.

The Company’s Supervisory and Management Boards wish to thank Mr. Tomasz Jozefacki for his contribution in the process of managing and developing the Company.

The development strategy of the Internet segment as well as of all Internet activities in the Company and in the Agora Group will be continued with at least the same level of engagement. As of February 1st, 2012 Mr. Piotr Niemczycki shall supervise the Internet segment on behalf of the Management Board of Agora S.A.