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Agora SAAgora media not convinced that KPO funds will affect GDP growth and advertising market in 2024
Listed media group Agora is not convinced that the release of EU funds under the national recovery plan KPO will affect the growth of the national GDP as early as 2024 and thus the growth of the advertising market, the company said in its quarterly earnings report.
"It is worth (...) mentioning two factors that may affect the growth of the Polish advertising market. Firstly, it is uncertain to what extent the release of EU funds from the national recovery plan will affect the growth of Polish GDP and thus the growth of the advertising market in 2024 alone," the management's commentary on the third quarter earnings report says.
"Secondly, it is difficult to predict how the state-owned companies and the state administration centres themselves will behave when spending funds on advertising and advertisements. At present, it is difficult to estimate whether these funds will be less in 2024 or comparable to those that have emerged in the advertising market in recent years," it added.
In addition, it was pointed out that, according to available macroeconomic forecasts, the fourth quarter of 2024 and the following quarters of 2025 will bring higher economic growth in Poland than in Western European countries and a slow stabilisation of prices of energy resources, food, goods and services.
"In 2025, according to analysts' predictions, inflation will continue to remain at a higher level, which may result in interest rates remaining at a similar level until 2024. Higher underlying inflation will translate into higher costs across the group," it was indicated.
According to the company, the development of the economic situation in the country in the following periods will also be characterised by a high degree of uncertainty, due to, among other things, the further course of the war in Ukraine and its geopolitical consequences.
Agora's third quarter attributable net loss amounted to PLN 11.5 million (EUR 2.7 mln), compared to a net loss of PLN 14.2 million (EUR 3.3 mln) a year earlier.
The range of expectations of analysts surveyed by PAP Biznes assumed a net loss of PLN 4.2-3.1 million (EUR 1-0.7 mln).
The company had an operating loss of PLN 400k (EUR 92.5k), compared to a PLN 14.3 million (EUR 3.3 mln) profit a year earlier. Analysts' forecasts were in the range of a PLN 2 million (EUR 462k) to PLN 3.8 million (EUR 879k) operating profit.
Agora's EBITDA in the third quarter fell by 23.2 percent year on year to PLN 43.7 million (EUR 10.1 mln).
Agora's revenue fell 4.9 percent year on year in the third quarter to PLN 334.5 million (EUR 77.4 mln) against expectations of PLN 330.2-348 million (EUR 76.4-80.5 mln).
mcb/ han/