Obviously, this company generates a high level of free cash flow : . 21.3 m$ in FY 24 and 11.8 m$ in FY 23 (boosted in both cases by the positive impact of change in working capital of respectively 6.3 m$ and 0.7 m$ in FY 24 and FY 23), . it has done this massively during the last 4 years as they were able to decrease debt by 52 m$ since FY 20.
However, it remains a tough business, simply because their revenue (ad, at 97 % from radio ad) are variable, while expenses are essentially fixed. In FY 24, the company did quite well with + 4 % for revenues (184 m$) and + 15 % for adjusted EBITDA (22.3 m$). There are also some concerning trends : - Australian business (where they do 47 % of their revenues and almost all of their profit) saw a revenue decline in FY 24 (- 3 %), so total revenue increase was fully explained by overseas business (UK and Brazil), - their main cost (network operation) increased by 6 % (vs + 4 % for revenues); total operating expenses increased by only 2 %, but it was explained by a 7 % decrease for SG&A which is probably not sustainable.
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