Declared Dividend • Jul 13
Dividend of €2.50 announced Shareholders will receive a dividend of €2.50. Ex-date: 20th July 2026 Payment date: 22nd July 2026 Dividend yield will be 13%, which is higher than the industry average of 0.6%. Sustainability & Growth Dividend is not adequately covered by earnings (91% earnings payout ratio). However, it is covered by cash flows (79% cash payout ratio). The dividend has increased by an average of 18% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 1.6% to bring the payout ratio under control, which is less than the 19% EPS growth achieved over the last 5 years. New Risk • Jun 25
New minor risk - Dividend sustainability The dividend is not well covered by earnings. Payout ratio: 91% Dividend yield: 15% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. However, this risk is mitigated by the fact the dividend is covered by cash flows. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (91% payout ratio). Market cap is less than US$100m (€33.8m market cap, or US$38.4m). Board Change • May 21
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. No experienced directors. 4 highly experienced directors. 1 independent director (3 non-independent directors). Independent Director Philippe Nicolas was the last independent director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Oct 03
First half 2024 earnings released: EPS: €1.16 (vs €1.51 in 1H 2023) First half 2024 results: EPS: €1.16 (down from €1.51 in 1H 2023). Revenue: €11.4m (up 3.5% from 1H 2023). Net income: €2.33m (down 23% from 1H 2023). Profit margin: 21% (down from 28% in 1H 2023). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Jun 14
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to €16.60, the stock trades at a trailing P/E ratio of 6x. Average trailing P/E is 22x in the Interactive Media and Services industry in Europe. Board Change • May 14
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. No experienced directors. 4 highly experienced directors. 1 independent director (3 non-independent directors). Independent Director Philippe Nicolas was the last independent director to join the board, commencing their role in 2013. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment.