Shares in Baltic Classifieds Group PLC (LSE:BCG) fell nearly 20% on Thursday, down to 178.6p, as the Eastern Europe focussed media business reported interim results.
On the face of it, most financial metrics appear robust, though the company - which operates fourteen online classifieds portals across Lithuania, Latvia and Estonia - noted 'downward pressure on advertising inventory'', which compares against 'record levels' last year and, adding to the pressure, it told investors that Estonian auto transactions were down by around 50% following tax changes in the country.
BCG reported higher revenue and earnings for the six months to 31 October. The company said group revenue rose 7% to €44.8 million, driven by growth in real estate, jobs and services, and its generalist platforms.
Earnings (EBITDA) increased 7% to €35.2 million, with a margin of 78% whilst adjusted net income rose 9% to €30.1 million. The company said yield improvements across business lines contributed to the performance, supported by price and packaging changes for both B2C and C2C customers.
"Aside from the tax-affected Estonian Auto segment, we delivered strong double-digit revenue growth," CEO Justinas Šimkus said.
He said real estate recorded its second consecutive year of strong results and that new AI-enabled product upgrades have enhanced customer tools.
In London, BCG shares were down 39p or 17.9% changing hands at 180.2p.