Squirrel Media plans to quintuple its profit by 2024

The company chaired by Pablo Pereiro Lage, Squirrel Media, has presented this Monday its new Business Plan for the period 2023-2024, which foresees an increase in net profit of 98% during the current year over the 2022 figure, driven, especially, by a growth of more than 400% in the Content area.

This increase is responded to, for the first time, with the expression of more than 45 million investment in CAPEX carried out along these lines in the last 4 years, going from monetizing only in Spain to monetizing in more than 30 countries (all Spanish, Portuguese and Italian speaking countries).

The document, published on the Squirrel Media website, reflects the company's forecasts through its four main business areas (Advertising, Content, Media and TMT Services), with which it is expected to reach revenues of 123 million euros in 2023, doubling the net profit for 2022, going from 9.4 million last year to the 18.6 million that are forecast for the current year.

He Content area Squirrel Media will be the main growth driver during 2023, with a positive variation of 423% compared to the previous year's figure (38 million euros compared to just over 7 million in 2022). With this purpose, the company chaired by Pablo Pereiro Lage has invested more than 45 million in the last four years to internationalize its business to all Spanish, Portuguese and Italian speaking countries, so that from this year the company's fundamentals will include activity in more than 30 countries compared to the year 2022, where activity has only been reflected in Spain. Likewise, the company continues to plan significant investments in content, as reflected in the investment in audiovisual rights (capex), which remains stable compared to the last two years.

Los TMT Services They will also contribute to the growth of operating income by increasing from 8.5 million to 13 million in 2023 (+52%), mainly due to the increase in international business on the African continent, where several competitions have already been won that will begin to be reflected this year in the company's fundamentals.

The Plan attributes a 12% increase in income from AdvertisingSpecifically, from 36 to 41 million euros, based on the forecasts already made by the company's clients.

Finally, a growth of 11% is expected in the area of Media, going from 28 million in 2022 to the 31 expected for 2023.

In this way, operating income will grow by 52% as a whole (123 million compared to 80 million in 2022).

According to Squirrel Media's 2023-2024 Business Plan, the gross margin will grow by 65% and will rise from 22 million (2022) to 37 in 2023, while prudent containment in expenses will prevail: only a 12% increase in 2023 (10 million compared to 9 in 2022).

In its 2023-2024 Plan, the company contemplates a 100% increase in EBITDA, which will reach 27 million this year, doubling the 13.5 million of the 2022 accounts, presented just a week ago (link). For its part, the EBIT expected for 2023 experiences an increase of 83% (from 11 to 19 million).

As for the benefits, the BAI (profit before taxes) will scale from 10.8 million in 2022 to 18.5 in 2023, which represents an increase of 72%, while the BDI (profit after taxes) will practically double, going from the 9.4 million obtained in 2022 to the 18.6 million expected by the end of 2023.