eEducation Albert Q3 EBITDA falls on higher marketing spend

Overview

• Sweden edtech firm's Q3 net revenue for continuing ops rose 1% yr/yr to 36.7 mln SEK

• EBITDA for continuing ops fell, mainly due to higher marketing and new venture costs

• Total group net revenue declined 10% yr/yr due to discontinued units

Outlook

• Company expects Q4 to be seasonally strongest, with positive indicators carrying into the quarter

• Albert plans to launch its new AI venture in 2027, with first revenue from existing customers

Result Drivers

• MARKETING SPEND - Co said increased marketing was the largest driver of higher costs, impacting EBITDA

• NEW VENTURE COSTS - Costs rose due to investment in a new AI platform and Welsh launch of Sumdog

• ALBERT JUNIOR GROWTH - Co said more families are joining Albert Junior, with higher average spend and stable retention

Company press release:

Key Details

Analyst Coverage

• Wall Street's median 12-month price target for eEducation Albert AB is SEK6.30, about 55.2% above its October 27 closing price of SEK4.06

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)