Germany's Stroeer shares gain at market open after FY profit increase

Stroeer SE & Co KGaA

06/03/2025 08:27

** Shares of German advertiser Stroeer SAXG.DE rise 5% after reporting preliminary full year results

** FY adjusted EBITDA grew 10% YOY, free cash flow increased by 96% to around 158 million euros ($170.66 million) and consolidated revenue reached 2.05 billion euros

** "Importantly, guidance for the out-of-home (OOH) business growing 13-14% in Q1 is well ahead of expectations (single-digit growth) which sends a strong message around trading momentum and dismisses the tough advertising environment other German Media is proclaiming," J.P. Morgan analyst Marcus Diebel says

** He adds that FY EBITDA came in 2% ahead of analyst consensus and revenues came in slightly below

** "All in all, a reassuring set of results with Ströer likely a key beneficiary of higher German spending into infrastructure going forward and further market share gains of Outdoor in the Media mix," Diebel says

** "Conference Call will be important with comments on private equity," a local trader says, seeing "interest in Billboard unit and a potential disposal of Asambeauty"

** Stroeer has been in the process of selling its multi-billion-euro outdoor advertising business, suffering a setback as two bidders left talks over price disagreements, according to sources in late February

($1 = 0.9258 euros)

 (Reporting by Marleen Kaesebier)

 ((Marleen.kaesebier@thomsonreuters.com))