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eEducation Albert Q3 EBITDA falls on higher marketing spend

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

SEK 36.70 mln

SEK 34.40 mln (1 Analyst)

Q3 Loss Per Share

SEK 0.39

Q3 Net Loss

SEK 9.87 mln

Q3 EBITA

-SEK 1.60 mln


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


Reuters Recommended Reads

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

  • Oct 26 - Singapore's IFAST Q3 revenue rises on ePension growth

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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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