Stable growth, improved results and updated financial targets

Readly International AB (publ) presents a good fourth quarter with continued stable growth and improved results. The number of full-paying subscribers (FPS) increased by 29.4 per cent to 478 362 (369 764) and total revenue by 36.6 per cent to SEK 134,8 million (98,6). Gross profit increased by 34.4 percent to SEK 45.1 million (33.6), corresponding to a gross margin of 33.5 per cent. Adjusted for items affecting comparability of SEK -4.6 million, the EBITDA margin improved to -30.7 per cent (-38.3) and operating margin to -34.0 per cent (-40.9) for the quarter. The gross contribution improved to SEK 5.6 million (-4.0), corresponding to a positive gross contribution margin of 4.1 per cent (-4.1).

– We ended an eventful year with a good quarter in which we reported continued stable growth and improved results. Despite substantially increased marketing prices, we delivered a stable full year in which we increased total revenues by 32.2 per cent. We consistently improved results during the year and are following our plan to achieve profitability. In light of the price development on the major digital advertising platforms, we have adjusted our financial targets, while maintaining our ambition to achieve profitability in 2025. With leading positions in the largest markets in Europe, we continue to see good growth opportunities in a huge market driven by megatrends such as digitalisation and sustainability, says Mats Brandt, interim CEO

1 October - 31 December 2021

• Revenue for the period totaled SEK 134.8 million (98.6), an increase of 36.6 per cent compared with the fourth quarter of 2020.
• The number of full-paying subscribers (FPS) increased by 29.4 per cent to 478,362 (369,764) at the end of the quarter.
• Gross profit increased by 34.4 per cent to SEK 45.1 million (33.6), corresponding to a gross margin of 33.5 per cent (34.1).
• The gross contribution margin for the period was 4.1 per cent (-4.1).
• Operating result was SEK -50.3 million (-41.4), corresponding to an operating margin of -37.4 per cent (-41.9).
• Adjusted operating result (excl. IAC) was SEK -45.8 million (-40.3), corresponding to an operating margin of -34.0 per cent (-40.9).
• Earnings per share were SEK -1.3 (-1.3) before and after dilution.

1 January - 31 December 2021

• Revenue totaled SEK 466.3 million (352.6), an increase of 32.2 per cent compared with the year-earlier period.
• The number of full-paying subscribers (FPS) increased by 29.4 per cent to 478,362 (369,764) at the end of December.
• Gross profit increased by 33.4 per cent to SEK 156.1 million (117.1), corresponding to a gross margin of 33.5 per cent (33.2).
• The gross contribution margin for the year was -7.2 per cent (-10.8).
• Operating result was SEK -209.5 million (-189.8), corresponding to an operating margin of -44.9 per cent (-53.8).
• Adjusted operating result (excl. IAC) was SEK -204.9 million (-170.3), corresponding to an operating margin of -44.0 per cent (-48.3).
• Earnings per share were SEK -5.9 (-6.5) before and after dilution.
   

Significant events during the period

• The acquisition of Toutabo SA was completed on 2 November, and the company was consolidated as of this date. The integration of Toutabo began in conjunction with the transaction’s implementation.

• Joe Armstrong, Chief Operating Officer and member of the senior management team, announced his resignation and will leave Readly in the first quarter of 2022. His role will not be replaced, and responsibility will be assumed by Readly’s CFO, Johan Adalberth.

Significant events after the end of the period

• The Board of Directors of Readly has set new financial targets. From annual organic growth of 30–35 per cent to average annual growth of not less than 25 per cent over the next three years (CAGR), including acquired growth. The objectives to achieve a long-term gross margin of 35 per cent and to be profitable at EBITDA level by 2025 at the latest remains.
   
• Maria Hedengren, CEO, stepped down as CEO and handed responsibility to interim CEO Mats Brandt on 31 January. Maria will remain at the Board’s disposal during her notice period of 12 months.
   
• Joakim Johansson, Chief Technology Officer and member of the senior management team, will leave Readly in the first quarter of 2022. Until a new permanent CTO has been recruited, Frederik Blauenfeldt Jeppsson will step in as interim CTO and member of the senior management team.

Q4 presentation today at 9:00 CET
Readly published its interim report for the fourth quarter 2021 on 3 February at 07:30 CET.
The report will be presented in an audio cast and tele conference at 09.00 CET the same day.
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:+46850558351
DE: +4969222239165
UK: +443333009262
US: +16467224956

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:

Rasmus Blomqvist, Head of Investor Relations
+46 70 233 53 67, rasmus.blomqvist@readly.com

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 digitizing 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.

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