Q1 2022: Solid growth and improved profitability - revenue up 41%

Readly International AB (publ) presents a first quarter with continued solid growth and improved profitability. The number of fully paying subscribers increased by 17 percent to 465,456 (397,071) compared with the first quarter of 2021, and total revenue by 41.2 percent to SEK 143.8 (101.9) million. Gross profit increased by 44.2 percent to SEK 48.8 (33.9) million, corresponding to a gross margin of 34.0 percent. Adjusted for items affecting comparability of SEK -7.0 million, the EBITDA margin improved to -22.0 (-53.2) percent and the operating margin to -26.0 (-55.9) percent in the quarter. Gross contribution improved to SEK 19.2 (-16.4) million, corresponding to a positive gross contribution margin of 13.3 (-16.1) percent

– We had a good start to the year with improved profitability and revenue growth of 41.2 percent driven by solid growth, primarily in the DACH region. The changed strategic direction communicated during the quarter includes measures aimed at increasing revenues and reducing costs. In a shorter perspective, we will grow somewhat slower than before. In return, this means that Readly will continue to be a company with good growth and a more profitable user base going forward. With increased investments in product development, we see overall good opportunities to deliver results in accordance with our financial goals, says Mats Brandt, Acting President and CEO at Readly.

1 January - 31 March 2022

• Total revenues for the period amounted to SEK 143.8 (101.9) million, corresponding to an increase of 41.2 percent compared with the first quarter of 2021.
• The number of fully paying subscribers increased by 17.2 percent to 465,456 (397,071) at the end of the quarter.
• Gross profit increased by 44.2 percent to SEK 48.8 (33.9) million, corresponding to a gross margin of 34.0 (33.2) percent.
• The gross contribution margin for the period was 13.3 (-16.1) percent.
• Operating profit amounted to SEK -44.4 (-56.9) million, corresponding to an operating margin of -30.9 (-55.9) percent.
• Adjusted operating profit before items affecting comparability amounted to SEK -37.4 (-56.9) million, corresponding to an operating margin of -26.0 (-55.9) percent.
• Earnings per share were SEK -1.2 (-1.6), before and after dilution.

Significant events during the period

• On March 31, Readly announced its plans to restructure the company's organisation and take steps to further improve the company's competitiveness. The restructuring means a reduction of approximately 30 positions, including consultants. The cost savings will achieve full effect from the third quarter and amount to approximately SEK 18 million for 2022.

Significant events after the end of the period

• On April 26, Readly announced that Mats Brandt has been appointed permanent President and Chief Executive Officer, effective from May 20th. Mats Brandt took over as interim CEO, 31 January 2022.

Q1 presentation today at 9:00 CET
The Q1 report will be presented in an audio cast and tele conference, today at 09.00 CET. Mats Brandt, interim CEO and Johan Adalberth, CFO, will present the report and answer questions.The presentation will be held in English.

To listen to the conference by phone, please call:

SE: +46850558365
DE: +4969222220377
UK: +443333009262
US: +16467224902

Follow the presentation live on:
Link to audiocast

Report and presentation will be available for download on:
https://corporate.readly.com/investors/financial-reports-and-presentations/

For more information, please contact:
Linnéa Aguero, Head of PR & Communications
+46 725 03 32 31, linnea.aguero@readly.com


This information constitutes inside information that Readly International AB (publ) is obliged to publish in accordance with EU Market Abuse Regulation 596/2014. The information in this press release has been published by the above contact persons, at the time specified by the Company's news distributor Cision at the time of publication of this press release.

About Readly
Readly is the European category leader for digital magazines. The company offers a digital subscription service that lets customers have unlimited access to 7,500 national and international magazines - all in one app and at a fixed monthly fee. Readly has subscribers in 50 countries and content available in 17 different languages. In collaboration with around 1,200 publishers worldwide, Readly is digitising the magazine industry. In 2021, revenues amounted to SEK 466 million. Since September 2020, the Readly share is listed on Nasdaq Stockholm Midcap. For more information, please visit https://corporate.readly.com.