Sweden's Acast Q3 sales rise 25% on US growth

Overview

• Swedish podcast monetisation platform's Q3 net sales rose 25% yr/yr, led by North America

• Adjusted EBITDA nearly doubled, and adjusted EBIT margin reached a record high

• Company acquired Backyard Ventures during the quarter, expanding US presence and omnichannel capabilities

Outlook

• Company did not provide specific financial guidance for the current or upcoming periods in its press release

Result Drivers

• NORTH AMERICA GROWTH - Co said net sales in North America rose 54% yr/yr, making it the largest segment

• HIGHER REVENUE PER LISTEN - Co said Average Revenue Per Listen or View (ARPLV) increased 20% yr/yr to SEK 0.69

• BACKYARD VENTURES ACQUISITION - Co said Backyard Ventures contributed SEK 28m in sales in Q3

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Acast AB (publ) is SEK47.00, about 45.1% above its October 27 closing price of SEK32.40

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 42 three months ago

Reuters Recommended Reads

• Oct 27 - Sweden's Storytel Q3 sales rise 16% as subscribers grow

• Oct 26 - Finland's Nitro Games Q3 revenue falls 35%, posts net loss

• Oct 26 - Trading platform Plus500 Q3 revenue rises on customer growth

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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.)