Half Year 2026 Stroeer SE & Co KGaA Earnings Call

August 13, 2026

Operator: Ladies and gentlemen, welcome to the Stroeer H1 Q2 2026 figures conference call. I am Matilda, the conference call operator. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to Udo Müller, CEO. Please go ahead.

Speaker #1: Ladies and gentlemen, welcome to the Ströer H1 Q2 Figures 2026 conference call. I am Matilde, your conference call operator. I would like to remind you that all participants will be in listen-only mode, and the conference is being recorded.

Speaker #1: The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and 1 on your telephone. For operator assistance, please press star and 0.

Speaker #1: The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Udo Müller, CEO. Please go ahead.

Speaker #2: Yeah, thank you very much. Dear investors, dear analysts, welcome to today's Q2 and H1 2026 earnings call. Let us dive straight into the numbers and details.

Udo Müller: Thank you very much. Dear investors, dear analysts, welcome to today's Q2 and H1 2026 earnings call. Let us dive straight into the numbers and details. On the top line, revenues in the first half amounted to EUR 1 billion and 37 million, compared to EUR 980 million in the prior year period. On an organic basis, growth accelerated from 0.5% to 2.7%, while on a reported basis, revenue grew by 6%. Moving down the P&L, EBITDA adjusted reached EUR 273 million compared to EUR 266 million last year. This represents a 3% year-on-year increase. On EBIT adjusted, we reported EUR 150 million, up from EUR 109 million in H1 2025. This corresponds to an increase of 6%. Net income adjusted amounted to EUR 56 million compared to EUR 52 million in the prior year period. This translates into a 7% year-on-year increase. Turning to cash flow.

Udo Müller: Thank you very much. Dear investors, dear analysts, welcome to today's Q2 and H1 2026 earnings call. Let us dive straight into the numbers and details. On the top line, revenues in the H1 amounted to EUR 1 billion and 37 million, compared to EUR 980 million in the prior year period. On an organic basis, growth accelerated from 0.5% to 2.7%, while on a reported basis, revenue grew by 6%. Moving down the P&L, EBITDA adjusted reached EUR 273 million compared to EUR 266 million last year. This represents a 3% year-on-year increase. On EBIT adjusted, we reported EUR 150 million, up from EUR 109 million in H1 2025. This corresponds to an increase of 6%. Net income adjusted amounted to EUR 56 million compared to EUR 52 million in the prior year period. This translates into a 7% year-on-year increase. Turning to cash flow.

Speaker #2: On the top line, revenues in the first half amounted to 1 billion and 37 million euros. Compared to 980 million euros in the prior year period.

Speaker #2: On an organic basis, growth accelerated from 0.5% to 2.7%, while on a reported basis, revenue grew by 6%. Moving down the P&L, adjusted EBITDA reached €273 million compared to €266 million last year.

Speaker #2: This represents a 3% year-on-year increase. On EBIT adjusted, we reported €150 million, up from €109 million in H1 2025. This corresponds to an increase of 6%.

Speaker #2: Net income adjusted amounted to €56 million compared to €52 million in the prior year period. This translates into a 7% year-on-year increase.

Speaker #2: Turning to cash flow, free cash flow adjusted remained broadly on the prior year level. For the first six months, we reported minus €1.9 million compared with minus €1.6 million in H1 2025.

Udo Müller: Free cash flow adjusted remained broadly on the prior year level. For the first six months, we reported EUR -1.9 million, compared with EUR -1.6 million in H1 2025. Christoph will elaborate on this in detail later in the finance section. Finally, CapEx before M&A amounted to EUR 51 million, up EUR 12 million as of H1 2025. On market dynamics, first, let us have a look at the news numbers for Q2 of our local German peers in the middle of the chart. As always, please keep in mind that these show gross rate cut developments and that net revenue growth is on average six to seven percentage points lower. On this gross basis, the German advertising market increased by 1.9% in Q2. OOH grew by 8.8%, clearly outperforming TV at -1.1%, print at -4.5%, and radio at +2.9%.

Udo Müller: Free cash flow adjusted remained broadly on the prior year level. For the first six months, we reported EUR -1.9 million, compared with EUR -1.6 million in H1 2025. Christoph will elaborate on this in detail later in the finance section. Finally, CapEx before M&A amounted to EUR 51 million, up EUR 12 million as of H1 2025. On market dynamics, first, let us have a look at the news numbers for Q2 of our local German peers in the middle of the chart. As always, please keep in mind that these show gross rate cut developments and that net revenue growth is on average 6 to seven percentage points lower. On this gross basis, the German advertising market increased by 1.9% in Q2. OOH grew by 8.8%, clearly outperforming TV at -1.1%, print at -4.5%, and radio at +2.9%.

Speaker #2: Christoph will elaborate on this in detail later in the finance section. Finally, capex before M&A amounted to €51 million, up €12 million versus H1 2025.

Speaker #2: On market dynamics, first, let us have a look at the newest numbers for Q2 of our local German peers in the middle of the chart.

Speaker #2: As always, please keep in mind that these show gross rate cut developments, and that net revenue growth is, on average, 6 to 7 percentage points lower.

Speaker #2: On this gross basis, the German advertising market increased by 1.9% in Q2. OOH grew by 8.8%, clearly outperforming TV at minus 0.1%, print at minus 4.5%, and radio at plus 2.9%.

Speaker #2: While desktop and mobile grew by 15.3%. Against this market backdrop, our Autophone Media segment delivered reported net revenue growth of 12.3% in the second quarter.

Udo Müller: While desktop and mobile grew by 15.3%. Against this market backdrop, our OOH Media segment delivered reported net revenue growth at 20.3% in the second quarter. Within the segment, DOOH increased by 24.3% and the DOOH subcategory programmatic digital out-of-home by 45%. The half year picture confirms the same structure trend. The German advertising market increased by 1.1% on a gross basis, with OOH up 5.6%, ahead of TV at -0.3%, print at -0.9%, and radio at -0.5%. Desktop and mobile increased by 10.9%. OOH Media segment achieved reported net revenue growth at 8% in H1, while DOOH grew by 18.5% and programmatic was up by 29.3% in the same period. Driven by the strong development of Stroeer, the share of out-of-home advertising increased to 10.7% of the German advertising market, according to Nielsen. So far my remarks, and with that, I hand over to Christoph.

Speaker #2: Within the segment, DOH increased by 24.3%, and the DOH subcategory, programmatic digital autophone, by 45%. The half-year picture confirms the same structural trend. The German advertising market increased by 1.1% on a gross basis, with OOH up 5.6%, ahead of TV at -0.3%, print at -0.9%, and radio at -0.5%.

Speaker #2: Desktop and mobile increased by 10.9%. The OOH media segment achieved reported net revenue growth of 8% in H1, while DOOH grew by 18.5% and programmatic was up by 29.3% in the same period.

Speaker #2: Driven by the strong developments of Ströer, the share of out-of-home advertising increased to 10.7% of the German advertising market, according to Nietzsche. So far, my remarks, and with that, I hand over to Christoph.

Speaker #3: Thank you, Udo. A warm welcome also from my side. Very good morning to everybody, and thanks for having me today. Let me immediately start the finance section with a quick look at the Q2 2026 P&L.

Christoph Vilanek: Thank you, Udo. A warm welcome also from my side. A very good morning to everybody. Thanks for having me today. Let me immediately start the finance section with a quick look at the Q2 2026 P&L. In total, we delivered a solid set of results for the second quarter. Group revenue increased by 7% to EUR 542 million, compared with EUR 505 million in Q2 2025. If we exclude exchange rate and consolidation effects, the organic growth came in at 4.2%, which is an improvement of 6.5 percentage points year over year. The adjusted EBITDA amounted to EUR 154 million, EUR 4.9 million or 3% higher than the same quarter in 2025. Exceptional items for the quarter were -EUR 9.5 million compared with -EUR 3.7 million in the prior year period. The increase results mainly from our internal reorganizations.

Speaker #3: In total, we delivered a solid set of results for the second quarter. Group revenue increased by 7% to €542 million compared with €505 million in Q2 2025.

Speaker #3: If we exclude exchange-traded consolidation effects, the organic growth came in at 4.2%, which is an improvement of 6.5 percentage points year over year. The adjusted EBITDA amounted to €154 million, €4.9 million or 3% higher than the same quarter in 2025.

Speaker #3: Exceptional items for the quarter were minus €9.5 million, compared with minus €3.7 million in the prior year period. The increase results mainly from our internal reorganizations.

Speaker #3: Accordingly, the EBITDA was 144 million euros, stable compared to 145 million euros of last year. Depreciation and amortization are virtually unchanged at the level of 83 million euros.

Christoph Vilanek: Accordingly, the EBITDA was EUR 144 million, stable compared to EUR 145 million of last year. Depreciation and amortization are virtually unchanged at the level of EUR 83 million. EBIT came in at EUR 61 million compared to EUR 62 million previous year. The overall financial result was -EUR 19 million against -EUR 16 million in the prior year period, due to a higher average debt level compared to the previous year. Accordingly, earnings before tax came in at EUR 42 million compared to EUR 46 million. The tax rate is unchanged at 29.9%, and the tax result amounted to -EUR 13 million. All in all, reported net income for the quarter came in at EUR 29.7 million, compared with EUR 32.3 million in Q2 2025. The total adjustments amount to EUR 8.6 million, mainly reflecting exceptional items, and additional reconciliation factors shown on the slide.

Speaker #3: EBIT came in at €61 million compared to €62 million in the previous year. The overall financial result was minus €19 million versus minus €16 million in the prior year period, due to a higher average debt level compared to the previous year.

Speaker #3: Accordingly, earnings before tax came in at €42 million, compared to €46 million. The tax rate is unchanged at 29.9%, and the tax result amounted to minus €13 million.

Speaker #3: All in all, reported net income for the quarter came in at €29.7 million, compared with €32.3 million in Q2 2025. The total adjustments amount to €8.6 million, mainly reflecting exceptional items and additional reconciliation factors shown on the slide.

Christoph Vilanek: The adjusted net income increased by 7% to EUR 38.3 million from EUR 36 million. Let's now switch over to a view on the cash flow. In the H1 2026, operating cash flow improved to EUR 161 million compared to EUR 146 million. In the previous year, primarily due to the better working capital development, which came in at -EUR 13 million compared to -EUR 31 million. The positive development over-compensated high tax outflows, which amounted to EUR 36 million compared to EUR 32 million in the previous year. Investment cash flows for the first six months amount to EUR 51.2 million compared to EUR 39.6 million. There was an exceptional investment in real estate.

Speaker #3: The adjusted net income increased by 7% to €38.3 million, from €36 million. Let's now switch over to a view on the cash flow.

Speaker #3: In the first half of 2026, operating cash flow improved to €161 million compared to €146 million in the previous year, primarily due to better working capital development, which came in at minus €13 million compared to minus €31 million.

Speaker #3: The positive development overcompensated high-tax outflows, which amounted to €36 million compared to €32 million in the previous year. Investment cash flows for the first six months amount to €51.2 million, compared to €39.6 million.

Speaker #3: There was an exceptional investment in real estate. As a result, for free cash flow before M&A, there was €110 million in the first half of 2026 compared to €106 million in the previous year, after lease liability repayments, which slightly increased compared to the corresponding period of last year.

Christoph Vilanek: As a result, for free cash flow before M&A, there was EUR 110 million in the H1 2026 compared to the EUR 106 million of the previous year, after lease liability repayments, which slightly increased compared to the corresponding period of the past year. Free cash flow adjusted amounts to -EUR 1.9 million, in line with the prior year half year figure of -EUR 1.6 million. Let's also have a look at the net debt development in the sequential view from end of Q1 2026 to the end of Q2 2026. The financial debt increased by EUR 115 million, including the adjusted free cash flow of +EUR 7.8 million. Cash out for dividend payments amounted EUR 107 million and the share buyback of EUR 21 million, and the EUR 2 million earn-out payments.

Speaker #3: Free cash flow adjusted amounts to minus €1.9 million, in line with the prior year half-year figure of minus €1.6 million. Let's also have a look at the net debt development in the sequential view from the end of Q1 2026 to the end of Q2 2026.

Speaker #3: The financial debt increased by €115 million, including the adjusted free cash flow of plus €7.8 million. Cash out for dividend payments amounted to €107 million, and the share buyback was €21 million.

Speaker #3: And the €2 million earn-out payments. The remaining difference in the reconciliation of around €7 million relates to a reduction of accrued interest liabilities paid in Q2, representing a cash flow with no effect on net debt.

Christoph Vilanek: The remaining difference in the reconciliation of around 7 million relates to a reduction of accrued interest liabilities paid in Q2, representing a cash flow with no effect on net debt. Net debt year-over-year was up EUR 40 million to EUR 996 million, including accumulated free cash flow over the last 12 months of EUR 106 million, cash out for dividend payment of -115, and the share buyback volume of EUR 23 million and EUR 4 million earn-out payment on minor M&A activities. With that, our bank leverage ratio increased to 2.6 times compared to 2.47 times at the end of June 2025, reflecting a higher net debt and a slight decline in the earnings contribution used for the calculation. Let's have a look at the performance of the individual segment. As is customary, let's start with OOH Media.

Speaker #3: Net debt year over year was up €40 million to €996 million, including accumulated free cash flow over the last 12 months of €106 million, cash out for dividend payment of minus €115 million, and the share buyback volume of €23 million.

Speaker #3: And €4 million earn-out payment on minor M&A activities. With that, our bank leverage ratio increased to 2.6 times, compared to 2.47 times at the end of June 2025, reflecting higher net debt and a slight decline in the earnings contribution used for the calculation.

Speaker #3: Then let's have a look at the performance of the individual segment. As is customary, let's start with out-of-home media. During the first half of 2026, segment revenue increased by 8.1% on an organic and 8% on a reported basis, to €492 million, and outperformed the German advertising market significantly, as Udo already pointed out.

Christoph Vilanek: During H1 2026, segment revenue increased by 8.1% on an organic and 8% on a reported basis to EUR 492 million, and outperformed the German advertising market significantly, as Udo Müller already pointed out. As in previous quarters, Digital OOH again was the key growth driver, increasing by 18.5% to a total of EUR 207 million, supported by programmatic demand and also the FIFA World Cup, which took place in June, which accounts for approximately EUR 12 million in this segment. Classic OOH revenue was 1% lower at EUR 253 million. Services increased by 26.7% to EUR 32 million, driven by the newly won clients, as mentioned in our last call. EBITDA adjusted for the segment increased by 10.3% to EUR 224 million for H1, and EBITDA adjusted margin improved by 0.9 percentage points to 45.6% during this period.

Speaker #3: As in previous quarters, digital out-of-home again was the key growth driver, increasing by 18.5% to a total of €207 million. This growth was supported by programmatic demand and also the FIFA World Cup, which took place in June and accounted for approximately €12 million in this segment.

Speaker #3: Classic out-of-home revenue was 1% lower at €253 million. Services increased by 26.7% to €32 million, driven by newly won clients, as mentioned in our last call.

Speaker #3: EBITDA adjusted for the segment increased by 10.3% to €224 million for the first half of the year, and the EBITDA adjusted margin improved by 0.9 percentage points to 45.6% during this period.

Speaker #3: Looking at the adjusted EBITDA before IFRS 16, this increased overproportionately by 23% to €115 million. The corresponding margin improved by 2.9 percentage points to 23.4%.

Christoph Vilanek: Looking onto the adjusted EBITDA before IFRS 16, this increased over proportionally by 23% to EUR 115 million. The corresponding margin improved 2.9 percentage points to 23.4%. From a Q2 perspective, basically the same picture emerges. Total revenues at the segment were up 10.3% to EUR 270 million, with Digital OOH as the main growth driver. EBITDA adjusted came in at EUR 128 million compared to EUR 170 million in the prior year period Q2. Let's have a look at Digital & Dialog Media segment. The first six months, the segment revenue increased by 5.4% on an organic and by 14.4% on a reported basis to EUR 476 million. Digital revenue was up, reported by 2.6%, while dialogue revenue increased organically by 8%. On a reported basis, considering the additional revenues coming from AMEVIDA acquisition, you remember last year, dialogue was up by 25.5%.

Speaker #3: From a Q2 perspective, basically the same picture emerges. Total revenues of the segment were up 10.3% to €270 million, with digital out-of-home as the main growth driver.

Speaker #3: Adjusted EBITDA came in at €128 million, compared to €170 million in the prior year period, Q2. Then let's have a look at the Digital and Dialogue Media segment.

Speaker #3: In the first six months, the segment revenue increased by 5.4% organically and by 14.4% on a reported basis to €476 million. Digital revenue was up 2.6% on a reported basis, while dialogue revenue increased organically by 8%.

Speaker #3: On a reported basis, considering the additional revenues coming from the Amevida acquisition, you remember last year Dialogue was up by 25.5%. The adjusted EBITDA declined by 4%, to €57 million for the first six months of the year.

Christoph Vilanek: The adjusted EBITDA declined by 4% or EUR 2 million to EUR 57 million for the first six months of the year. The corresponding margin decreased by 2.3 basis points to 11.9%, mainly due to a shift in product mix and higher minimum wages in the very personal intensive dialogue business. From a Q2 perspective, digital and dialogue revenue increased by 16.6% to EUR 245 million. Digital revenue grew by 8.3% to EUR 113 million. As the strong performance of the programmatic Digital OOH category more than offset the challenging online media market. Dialogue revenue increased by 24.9% or 7.4% on an organic basis to a total of EUR 131 million. The adjusted EBITDA of the quarter came in at EUR 30 million, just EUR 1 million lower compared to the previous year period. The corresponding margin was 12.2%.

Speaker #3: The corresponding margin decreased by 2.3 basis points to 11.9%, mainly due to a shift in product mix and higher minimum wages in the very personnel-intensive dialogue business.

Speaker #3: From a Q2 perspective, digital dialogue revenue increased by 16.6% to €245 million. Digital revenue grew by 8.3% to €113 million, as the strong performance of the programmatic digital out-of-home category more than offset the challenging online media market.

Speaker #3: Dialogue revenue increased by 24.9%, or 7.4% on an organic basis, to a total of €131 million. The adjusted EBITDA for the quarter came in at €30 million, just €1 million lower compared to the previous year's period.

Speaker #3: The corresponding margin was 12.2%. Last but not least, let's also have a look at the performance of Data as a Service and E-Commerce. As expected, the performance in our third segment remained below the prior year level.

Christoph Vilanek: Last but not least, let's also have a look on the performance of Data as a Service and E-Commerce. As expected, the performance in our third segment remained below the prior year level. Segment revenues declined by 11.2%, EUR 256 million. In E-Commerce, revenue was down by 10% to EUR 83 million, and it still reflects low consumer spending in Germany in that specific field. Data as a Service revenue was 12.2% below prior year revenue of EUR 82 million and came in with EUR 72 million. Adjusted for the disposal of Statista's strategy and consulting unit, which we reported, and also negative currency effects, the organic revenue decline amounts 4.4% year to date. The adjusted EBITDA was EUR 11.4 million for the first 6 months, down 43%, and the corresponding margin, logically, is also down 7.3%. If we look at Q2, the picture is very similar.

Speaker #3: Segment revenues declined by 11.2% to €156 million. E-commerce revenue was down by 10% to €83 million, and it still reflects low consumer spending in Germany in that specific field.

Speaker #3: Data-as-a-Service revenue was 12.2% below prior-year revenue of €82 million and came in at €72 million. Adjusted for the disposal of the Statistical Strategy and Consulting unit, which we reported, and also negative currency effects, the organic revenue decline amounts to 4.4% year to date.

Speaker #3: The adjusted EBITDA was €11.4 million for the first six months, down 43%. The corresponding margin, logically, is also down to 7.3%. If we look at Q2, the picture is very similar: overall segment revenue fell by just under 9%, from €85 million to €77 million.

Christoph Vilanek: Overall segment revenue fell by just under 9%, from EUR 85 million to EUR 77 million. Data as a Service recorded revenues of EUR 36 million, down 11.6%, and E-Commerce achieved revenue just under EUR 42 million, a decline of 6%. These downward trends logically also reflect in the performance of the adjusted EBITDA and the adjusted EBITDA margin with EUR 6 million and 7.5% respectively at the end of the quarter. Having given you an overview on the details of the financials, I'd like to hand back to Udo for his remarks.

Speaker #3: Data as a Service recorded revenues of €36 million, down 11.6%, and E-Commerce achieved revenues just under €42 million, a decline of 6%.

Speaker #3: This downward trend logically also reflects in the performance of the adjusted EBITDA and the adjusted EBITDA margin, with €36 million and 7.5%, respectively, at the end of the quarter.

Speaker #3: Having given you an overview of the details of the financials, I'd now like to hand back to Udo for his remarks.

Speaker #1: Yeah, thank you, Christoph. Before ending the presentation, let me provide some comments on the outlook for Q3 and the current trading momentum. For the third quarter, we expect the following developments.

Udo Müller: Thank you, Christoph. Before ending the presentation, let me provide some comments on the outlook for Q3 and the current trading momentum. For the third quarter, we expect the following developments. For OOH Media, sales should grow in a mid-single digit percentage range. For Digital & Dialog Media, we expect sales growth broadly in line with the development seen in Q2 2026. For DaaS & E-Commerce, we expect sales to continue to decline in a low double-digit percentage range. Against this backdrop, we confirm our full year guidance for 2026. Let me now close the presentation with a short look into our financial calendar for 2026. Our next scheduled reporting date is 12 November. On that date, we'll publish our Q3 2026 quarterly statement. As always, updates, reports, and roadshow presentations can be found on our IR website. Thank you, everyone. We are now happy to take your questions.

Speaker #1: For OOH Media, sales should grow in a mid-single-digit percentage range. For digital and dialogue media, we expect sales growth broadly in line with the developments seen in Q2 2026.

Speaker #1: For Darts and e-commerce, we expect sales to continue to decline in a low double-digit percentage range. Against this backdrop, we confirm our full-year guidance for 2026.

Speaker #1: Let me now close the presentation with a short look into our financial calendar for 2026. Our next scheduled reporting date is November 12. On that date, we'll publish our Q3 2026 quarterly statement.

Speaker #1: As always, updated reports and roadshow presentations can be found on our IR website. Thank you, everyone. We are now happy to take your questions.

Speaker #2: We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator: We will now begin the question and answer session. Anyone who wishes to ask a question, may press star and one on a touch-tone telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use only handsets while asking a question. Anyone who has a question may press star and one at this time. The first question comes from the line of Annick Maas from Bernstein. Please go ahead.

Speaker #2: You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two.

Speaker #2: Participants are requested to use only handsets while asking a question. Anyone who has a question may press star and one at this time. The first question comes from the line of Anik.

Speaker #2: Question from Bernstein. Please go ahead.

Speaker #4: Good morning. So, I have three questions today. The first one is on Statista. Can you give us an update on where we are in the business model change that you've been trying to push through in Statista?

Annick Maas: Good morning. I have three questions today. The first one is on Statista. Can you give us an update on where we are in the business model change that you have been trying to push through in Statista? Can you just tell us where we are, how this is developing? The second one is, you are mentioning at some point that the product mix in Digital & Dialog Media is impacting your margin. Can you just elaborate a bit more what was that specifically? Then I guess there has been again, some bid speculation around Stroeer. Would you be able to comment on it or not? Thank you.

Speaker #4: Can you just tell us where we are, how this is developing? The second question is, you mentioned at some point that the product mix and digital and dialogue are impacting your margin.

Speaker #4: Can you just elaborate a bit more—what was that specifically? And then I guess there's been, again, some speculation around Stroeer. Would you be able to comment on it or not?

Speaker #4: Thank you.

Speaker #1: So, Statista, we are completely in line with what we said three months ago, so nothing much has changed. You know, we changed the business model from selling seats to volume.

Udo Müller: Statista, we are completely in line to what we said three months ago, so nothing much changed. We changed the business model from selling seats to volume, and this takes some time because, obviously our clients need to implement Company GPT first, then they connect their own data pools, and then they decide which third-party data pools they connect as well to their own AI backbone. But everything is actually unchanged. We are going through a year where we are going to see difficult development on turnover, because as we already discussed last time, all the long-tail demand where people, whatever, private individuals have a question, this is actually declining, obviously. But on the corporate side, things are looking pretty much the same like three months ago. We are in the middle of the process. Before Christoph answers the second question about speculation, there is nothing new.

Speaker #1: And this takes some time because, obviously, our clients need to implement Company GPT first, then they connect their own data pools, and then they decide which third-party data pools they connect as well to their own AI backbone.

Speaker #1: But everything is actually unchanged. We're going through a year where we're going to see difficult developments in turnover, because, as you already discussed last time, all the long-tail demand—where people, whatever private individuals have a question—this is actually declining, obviously.

Speaker #1: But on the corporate side, things are looking pretty much the same as three months ago, so we are in the middle of the process.

Speaker #1: So, about before Christoph answering the second question about speculation, there's nothing new. I think we've said everything about that. There are rumors, but there's nothing that we have to add now.

Udo Müller: I think we said everything about that. There are rumors, but there is nothing we are going to add now.

Speaker #3: Let me maybe add one more thing on the Statista topic. Udo described that this is a change. We have our first B2B customers, which we changed from a pure subscription to a tokenization model.

Christoph Vilanek: Let me maybe add one more thing on the Statista thing, Udo described that this has changed. We have first B2B customers, which we changed from a pure subscription to a tokenization model as a test, and it turned out that the total revenue with these customers remains about at the same level, which is a very positive signal at this stage. It is a first test with first customers, but I think, looking at it pure financially, this is a promising first proof of concept. You have asked about the product mix in the dialog business. Let me split it, dialog, Ranger, as well as the call center. Mix in the call center is that you are well aware that we have German activities and we have nearshore activities in southern regions of Europe. Part of the mix changes is that we relocate business there.

Speaker #3: As a test, it turned out that the total revenue with these customers remains about at the same level, which is a very positive signal at this stage.

Speaker #3: It's the first test with first customers, but I think looking at it from a purely financial perspective, this is a promising first proof of concept. You asked about the product mix.

Speaker #3: In the dialogue business, well, let me split it. Dialogue ranger as well as the call center. Mix in the call center is that you are well aware that we have German activities and we have a nearshore activities in southern regions of Europe.

Speaker #3: Part of the mix changes is that we relocate business there. That is not only for internal purposes, but also on demand. And these things have an effect individually on revenue, but also a little bit on absolute margin.

Christoph Vilanek: That is not only on internal purposes, but also on demand. These things have an effect on revenue, but also a little bit on absolute margin. That is part of it. Second is that in AMEVIDA, we have also seen that in the early stage, we just took over the clients, now we are resorting it. We are rearranging the cores, et cetera. I think that also has an effect. So it is basically driven by internationalization as well as some client changes. On Ranger, we are still the core business in Germany is on fiber. In Italy, we are working with a lot of energy contracts, so electricity, and this is a weak market at this stage given the macroeconomic environment. So these are two drivers of the changes that you were mentioning.

Speaker #3: That's part of it. Second is that in Amivida, we've also seen that in the early stage, we just took over the clients.

Speaker #3: Now we're resorting it. We are rearranging the calls, et cetera, et cetera. I think that also has an effect. So, it's basically driven by internationalization as well as some client changes.

Speaker #3: On Ranger, our core business in Germany is still on fiber. In Italy, we are working with a lot of energy contracts, or electricity, and this is a weak market at this stage given the macroeconomic environment.

Speaker #3: So, these are two drivers of the changes that you were mentioning.

Speaker #4: Great. Thank you very much.

Annick Maas: Thank you very much.

Speaker #2: The next question comes from James Tate at Goldman Sachs. Please go ahead.

Operator: The next question comes from the line of James Tate from Goldman Sachs. Please go ahead.

James Tate: Hi. Thank you. Good morning. It is James Tate from Goldman. I have two questions, please. I guess firstly, on OOH, please could you comment in a bit more detail on current Q3 trends? How much of a benefit is there from the World Cup in July, and how does the order book look for September versus August? Secondly, on DaaS & E-Commerce margins, I think they were down around 3 percentage points year on year, in Q2. So could you provide some color between the individual performance between Statista and asambeauty margins? Then how should we think about margins and profitability in this segment into 2027? Do you think you can return to 2025 margin levels if the division returns to growth? Thank you.

Speaker #5: Thank you. Good morning. It's James Tate from Goldman. I've got two questions, please. I guess, firstly, on out-of-home—please could you comment in a bit more detail on current Q3 trends?

Speaker #5: How much of a benefit is there from the World Cup in July? And how does the order book look for September? First, it’s August.

Speaker #5: And secondly, on DAS and e-commerce margins, I think they're down around 3 percentage points year on year in Q2. So, could you provide some color between the individual performance between Statista and SM Beauty margins?

Speaker #5: And then, how should we think about margins and profitability in this segment into 2027? Do you think you can return to 2025 margin levels if the division returns to growth?

Speaker #5: Thank you.

Speaker #1: Yeah. Thank you, James. So, look, we are not focused on quarters, as we have talked about many times. For the full year, if you look back at the end of the year, I think we’ll see that some business from Q3 most likely will have moved to Q2 because of the World Cup.

Udo Müller: Yeah. Thank you, James. We are not focused on, as we talked about it many times, on quarters for the full year. If you look back at the end of the year, I think we see that some business from Q2 most likely will have moved to Q2 because of the FIFA World Cup. That is why we explicitly figured out here the EUR 12 million, from our expectation, was money which normally would have been spent in the second half of the year and was pulled forward to Q2 due to the FIFA World Cup. I think Q3 looks definitely a bit softer than Q2, because people's budget are the budgets, and if you spend in Q2, you cannot spend it in Q3 anymore. But for the full year, our expectations are completely intact.

Speaker #1: So that's why we explicitly pointed out here that the €12 million from our expectation was money which normally would have been spent in the second half of the year and was brought forward to Q2 due to the World Cup.

Speaker #1: So I think Q3 looks definitely a bit softer than Q2, because people's budgets are the budgets. And if you spend in Q2, you cannot spend it in Q3 anymore.

Speaker #1: But for the full year, our expectations are completely intact. If you look to the order book now, then this year there is positive development in Q4, with a little bit softer Q3.

Udo Müller: If you look at the order book now, then we see a positive development in Q4, a little bit softer Q3. That is what you are seeing right now.

Speaker #1: So that's what you're seeing right now.

Speaker #3: Can you repeat your second question? Because I didn't fully get it.

Christoph Vilanek: Can you repeat your second question? I did not fully get it.

Speaker #5: In terms of DAS and e-commerce margins, I think they have been under pressure through H1. Could you help give some color on the individual margin performance in Statista and SM Beauty?

James Tate: In terms of DaaS & E-Commerce margins, I think have been under pressure through H1. Could you help give some color between the individual margin performance in Statista and asambeauty, what is driving that segment level margins, and then how to think about margins in the segment overall into next year, into 2027?

Speaker #5: So, what's driving those segment-level margins? And then, how should we think about margins in the segment overall into next year and into 2027?

Speaker #3: Yeah, I think as Udo pointed out in Statista, we're changing the model. So what's actually happening there is that we're trying—the big and long-tail market here is the big B2B market.

Christoph Vilanek: Yeah, I think as Udo pointed out in Statista, we are changing the model. What is actually happening there is that we are trying the big and long tail market here, the big B2B market. It is not the subscription of small individuals. We are changing that into a tokenized version versus a kind of a flat fee usage on a monthly basis. As I pointed out, that is not only work in progress, but it is tested with some customers and gives us positive signals. Overall, the Statista business, as we all understand, is a Software as a Service, so it is highly driven by volume and scale. We have brought down the staff even further, and we are stabilizing on the current level in terms of margin that we have shown in Q2.

Speaker #3: It's not the subscription of small individuals, and we are changing that into a tokenized version versus a kind of flat fee usage on a monthly basis.

Speaker #3: As I pointed out, that is not only a work in progress, but it’s also being tested with some customers and is giving us positive signals. Overall, the Statista business, as we all understand, is a software-as-a-service.

Speaker #3: So it's highly driven by volume and scale. We've brought down the staff even further, and we are stabilizing at the current level in terms of margin that we've shown in Q2.

Speaker #3: And I would expect for the next three to four quarters a similar level before we hook up again, changing the model and having it fully established.

Christoph Vilanek: I would expect for the next three to four quarters, a similar level before we hook up again, changing the model and having fully established. If I would model it, I would say, let us stick to the current margin level for the next three, four quarters and then ramp up again. But it is difficult to say how fast the ramp-up is going to be. On asambeauty, giving a bit more color, the business originally, as you are all aware, comes from TV sales. That has come down. The target group is a little bit, well, is aging, and they seem to be They seem to have bought enough, if I may say it like that. The now biggest proportion of sales is in e-commerce to a younger target group, and also in retail. Which means that we ship to German retailers.

Speaker #3: So, if I were to model it, I would say let's stick to the current margin level for the next three to four quarters, and then ramp up again.

Speaker #3: But it's difficult to say how fast to ramp. I was going to be on SM Beauty. I mean, giving a bit more color, the business originally, as you're all aware, comes from TV sales.

Speaker #3: That has come down. The target group is a little bit—well, it's aging. And they seem to be—they seem to have bought enough, if I may say it like that.

Speaker #3: And now the biggest proportion of sales is in e-commerce to a younger target group, and also in retail. So that means that we ship to German retailers.

Christoph Vilanek: By definition, what are the major margin drivers? Cost of goods are always the same, independent from the channel. On retail, we live with a lower margin because high volume but lower margin, and we have to invest into furniture. We are, as you are familiar with, in dm-drogerie markt and Rossmann and these kind of big chains. We are doing well there, but this is a lower margin than typically the TV and the e-commerce sales. On e-commerce, we see that the actual conversion for people coming into the website is fine, but bringing in new customers is more expensive. We talk to our agencies and we look at our own online performance activities. In the online, we see that it is just a fatigue of the consumers in Germany right now. A bit slow.

Speaker #3: By definition, what are the major margin drivers? Cost of goods is always the same, independent from the channel. In retail, we work with a lower margin because of high volume, but lower margin.

Speaker #3: And we have to invest in furniture. And we are, as you are familiar with, in Drogerie Markt and Rossmann and these kinds of big chains.

Speaker #3: We're doing well there, but this is a lower margin than typically the TV and the e-commerce sales. And on e-commerce, we see that the actual conversion for people coming into the website is fine, but bringing in new customers is more expensive.

Speaker #3: And we talk to our agencies and to others and we look at our own online performance activities. In the online, we see that it's just a fatigue of the consumers in Germany right now.

Speaker #3: They're a bit slow on top. We have 35 degrees, which is not really the time to buy beauty products and makeups, which is our key product in that range.

Christoph Vilanek: On top, we have 35 degrees, which is not really the time to buy beauty products and makeups, which is our key product in that range. Here again, I would expect a recovery from the current downtrend in 2027, H1. Once again, fixed costs will stay the same. Margin improvement will start step by step in the next, I would say starting Q1 and Q2, step by step, getting better to a Well, maybe not to the level that we have had two years ago, but to a much better level than we have today. That is very helpful. Thank you.

Speaker #3: So here again, I would expect a recovery from the current downtrend in 2027, first half of the year. And once again, I mean, fixed costs will stay the same.

Speaker #3: So, margin improvement will start step by step in the next, like—I would say—starting Q1 and Q2, step by step. Getting better to a, well, maybe not to the level that we had two years ago, but to a much better level than we have today.

Speaker #5: That's very helpful. Thank you.

James Tate: That is very helpful. Thank you.

Speaker #2: We now have a question from the line of Jérôme Baudin from Odoo BHF. Please go ahead, Mr. Baudin.

Operator: We now have a question from the line of Jérôme Bodin from Oddo BHF. Please go ahead. Mr. Bodin?

Jérôme Bodin: Yes. Good morning, all. Three questions on my side, just to follow up on the advert. Hello? Can you hear me?

Speaker #4: Yes. Morning, all. Three questions on my side. Just to follow up on the—hello? Can you hear me?

Speaker #3: Yes.

Christoph Vilanek: Yes.

Speaker #4: Can you hear me?

Jérôme Bodin: Can you hear me?

Speaker #3: Yes.

Christoph Vilanek: Yes.

Speaker #4: Can you hear me now?

Jérôme Bodin: Can you hear me now?

Speaker #3: Yes.

Christoph Vilanek: Yes.

Speaker #4: Okay, sorry. Yes, sorry. So, three questions on my side. Can you hear me?

Jérôme Bodin: Okay. Sorry. Yes, sorry. So three questions on my side. Can you hear me?

Speaker #3: Yes.

Christoph Vilanek: Yes. Yeah. Loud and clear.

Udo Müller: Yes. Yeah. Loud and clear.

Speaker #4: And Udo? Okay. It seems to have a delay between my line and yours. So let me continue. First question on the advertising trend, to follow up on the last question.

Jérôme Bodin: Okay. It seems to have a delay between my line and yours. Let me go through. First question on the advertising trend, to follow up on the last question. On the last call, you said that the second half should be stronger. Now you guide for mid-single digit in Q3. Just to understand if your view has changed and H1 has been better, so H2 will be lower or should we expect a much stronger Q4? That is my first question. Second one on the OOH margin. Revenue grew by 10% and cash EBITDA grew by 18%. Should we expect this stronger operating leverage to continue in H2? Maybe could you also comment a bit on the rent evolution since the beginning of the year? Last question on the Ad Manager project.

Speaker #4: So on the last call, you said that the second half should be stronger. So now you guide for mid-single digit in Q3. So just to understand, has your view changed? H1 has been better, so will H2 be lower, or should we expect a much stronger Q4?

Speaker #4: That's my first question. Second one on the OOH margin: so revenue grew by 10%, and cash EBITDA grew by 18%. Should we expect this strong operating leverage to continue in H2?

Speaker #4: And maybe, could you also comment a bit on the rent evolution since the beginning of the year? And, last question on the Ad Manager project.

Speaker #4: So, you said earlier that the first test of the platform was going live. Could you give us an update? And what do you see in terms of customer demand and average spend? Any data would be useful.

Jérôme Bodin: You said earlier that the first test of the platform was going live, so could you give us an update and what do you see in terms of customer demand and average spend? Any data would be useful. Thank you very much.

Speaker #4: Thank you very much.

Speaker #1: Yeah. Thank you, Jérôme. So, the Ad Manager—we are testing, let's say, right now three models. Self-service models, but it is not the Ad Manager.

Christoph Vilanek: Yeah. Thank you, Jérôme. The Ad Manager, we are testing, let's say right now, three models, self-service models, but this is not the Ad Manager. The Ad Manager will not be ready before the end of next year. That was maybe a misunderstanding. We are testing a self-service tool for cultural advertising, for example. It is more or less a simple web shop. On the other hand, we have a self-service tool for digital out-of-home, which we rolled out three, four weeks ago, and where our own sales team, our customers now collect the first experience. But this actually are, let's say, test environments, has nothing to do with Ad Manager. The Ad Manager, we are on track with our coders. They are working hard. Maybe we discussed it one time. We have coding teams in Czech Republic and also New Zealand and Spain.

Udo Müller: Yeah. Thank you, Jérôme. The Ad Manager, we are testing, let's say right now, three models, self-service models, but this is not the Ad Manager. The Ad Manager will not be ready before the end of next year. That was maybe a misunderstanding. We are testing a self-service tool for cultural advertising, for example. It is more or less a simple web shop. On the other hand, we have a self-service tool for digital out-of-home, which we rolled out three, four weeks ago, and where our own sales team, our customers now collect the first experience. But this actually are, let's say, test environments, has nothing to do with Ad Manager. The Ad Manager, we are on track with our coders. They are working hard. Maybe we discussed it one time. We have coding teams in Czech Republic and also New Zealand and Spain.

Speaker #1: The ad manager will not be ready before the end of next year. That was maybe a misunderstanding. So now we are testing a self-service tool for cultural advertising, for example.

Speaker #1: It's more or less a simple web shop. On the other hand, we have a self-service tool for digital auto form, which we rolled out about three or four weeks ago.

Speaker #1: And our own sales staff and our customers now collect the first experience. But this is actually our, let's say, test environment and has nothing to do with the Ad Manager.

Speaker #1: So, the Ad Manager—we are on track with our coders. They're working hard. Maybe we discussed it one time: we have coding teams in the Czech Republic, and also New Zealand and Spain.

Speaker #1: And so, this was a very experienced team, which was working on the SSP for a long time. You might remember we have our own SSP, and now this team is actually working on that manager.

Christoph Vilanek: This is a very experienced team which was working on the SSP for a long time. You might remember, we have our own SSP, and now this team is actually working on that manager. But it will take until the end of next year until we have it really up and running. Okay, the other questions, your advertising trend, and that translated in, you wanted to kind of have a view on current trading again on Q3 and Q4. I think the current picture for Q3 and Q4 perfectly matches our guidance. The order book for the third quarter and fourth quarter is up from previous year, and we said that we are going to be about 5% growth and definitely we see the same trend. I would just extrapolate H1, which is, I think, fair for the rest of the year.

Udo Müller: This is a very experienced team which was working on the SSP for a long time. You might remember, we have our own SSP, and now this team is actually working on that manager. But it will take until the end of next year until we have it really up and running.

Speaker #1: But it will take until the end of next year before we have it really up and running.

Speaker #4: Okay. The other question you asked was about advertising trends, and I translate that as you wanting to have a view on current trading again in Q3 and Q4.

Christoph Vilanek: Okay, the other questions, your advertising trend, and that translated in, you wanted to kind of have a view on current trading again on Q3 and Q4. I think the current picture for Q3 and Q4 perfectly matches our guidance. The order book for the third quarter and fourth quarter is up from previous year, and we said that we are going to be about 5% growth and definitely we see the same trend. I would just extrapolate H1, which is, I think, fair for the rest of the year.

Speaker #4: I mean, I think the current picture for Q3 and Q4 perfectly matches our guidance. The order book for the third quarter and fourth quarter is up from the previous year.

Speaker #4: And we said that we're going to be about 5% gross, and definitely we see the same trend. So I would just like to extrapolate the first half of the year, which is fair for the rest of the year.

Speaker #4: We've just had reviews of July, and that proves perfectly fine. Second question, if I got that right, was your question on revenue to margin impact in out-of-home, whether this is a stable one, and if the 10 to 18 is a fair assumption also for the upcoming quarters.

Christoph Vilanek: We have just had reviews of July, and that proves perfectly fine. Second question, if I got that right, was your question on revenue to margin impact in out-of-home, whether this is a stable one and the 10 to 18 is a fair assumption also for the upcoming quarters. Yes, I would reconfirm that, by definition, the next extra euro that we take in on existing inventory basically costs only the revenue share or rent, and no additional cost either in technology, CapEx or working capital. So step by step, it improves with marginal revenues. But I think the current spread is a fair one, which we also internally use for our extrapolation. The third one, you have asked about the development of rent. Well, I think it is a bit of a hard question because we are not reviewing rents on a daily basis.

Speaker #4: Yes, I would reconfirm that, by definition, this business—I mean, the next extra euro that we take in on existing inventory—basically costs only the revenue share or rent.

Speaker #4: And no additional cost either in technology CapEx or working capital. So, step by step, it improves with marginal revenues. But I think the current spread is a fair one.

Speaker #4: Which we also internally use for our extrapolation. And the third one—you've asked about the development of rent. Well, I think it's a bit of a hard question because we are not reviewing rents on a daily basis.

Speaker #4: We are changing rents with new concessions, and we either invest in technology and discuss that with our landlords or with our concession partners. Overall, our ambition is to bring rent down.

Christoph Vilanek: We are changing rents with new concessions, and we either invest into technology and discuss that with our landlords or with our concession partners. Overall, our ambition is to bring rent down, and on a non-disclosable contract level, we are very successful there. We see that city governments prefer a bit higher guarantees, but are then ready to let go on their revenue share. We have seen that in Hamburg, for example, which we recently won, and we have extended our reach there, and we are very successful in the latest auction. So I think overall the rent will come down, but given the total volume of 300,000 individual advertising locations, you will not see a big step down in a single year.

Speaker #4: And on a non-disclosable contract level, we are very successful there. We see that city governments prefer a bit higher guarantees, but are then ready to let go on their revenue share.

Speaker #4: We have seen that in Hamburg, for example, which we recently won, and we have extended our reach there. We were very successful in the latest auction.

Speaker #4: So I think overall, the rent will come down. But given the total volume of 300,000 individual advertising locations, you will not see a big step down in a single year.

Speaker #4: Thank you very much. Thank you.

Jérôme Bodin: Thank you very much. Thank you.

Speaker #2: The next question comes from the line of Craig Abbott from Kepler Cheuvreux. Please go ahead.

Operator: The next question comes from the line of Craig Abbott from Kepler Cheuvreux. Please go ahead.

Speaker #3: Yeah. Good morning, Udo, and good morning, Christoph. First of all, on the financials, we saw the leverage ratio increase to 2.6.

Craig Abbott: Yeah. Good morning, Udo, and good morning, Christoph. First of all, on the financials, we saw the leverage ratio increase to 2.6. Of course, Q2 is typically the highest given the dividend payout in that quarter. I would like to get an idea, basically, of ideally where you want to see that leverage ratio by year end. Second, a little bit just more conceptually, going forward. Stroeer is now investing quite heavily in the rollout of these mega outdoor screens like you have on page slide 1 of your presentation. With the 3D dimensions, you have The Lighthouse in Hamburg and the new one in Cologne, I believe. I am just curious if the overall capacity intensity of OOH Media is structurally likely to rise, and if so, how might you consider managing this with regards to your capital structure?

Speaker #3: Of course, Q2 is seasonally the highest, given the dividend payout in that quarter. But I'd like to get an idea, basically, of ideally where you want to see that leverage ratio by year-end.

Speaker #3: Secondly, just a little bit more conceptually—going forward, Stroeer is now investing quite heavily in the rollout of these mega outdoor screens, like you have on slide one of your presentation.

Speaker #3: With the 3D dimensions, you've got the lighthouse in Hamburg and the new one in Cologne, I believe. And I'm just curious if the overall capacity intensity of out-of-home media is structurally likely to rise.

Speaker #3: And if so, how might you consider managing this with regard to your capital structure? My third question is just briefly: any update you can provide us on the more permanent, long-term CFO search?

Craig Abbott: My third question is just briefly any update you could provide us on the more permanent long-term CFO search? Thank you.

Speaker #3: Thank you.

Speaker #1: And thank you, Craig. So, the CFO search is in an advanced stage, so we should see, let's say, a result in the next four weeks, I would say.

Christoph Vilanek: Thank you, Craig. CFO search is in an advanced stadium. We should see a result in the next four weeks, I would say. Most likely. We had a long process now already, and we are quite happy with the candidates which we have. For the second question, there is no risk for the capital structure because we are very happy now that we could launch three, four super screens at the same time or the same year. For example, The Whale in Hamburg, it was a 10-year preparation work. Lighthouse, also a couple of years. The capacity of these type of screens are super limited. There will be no impact on CapEx, because if we would be able to install such spectacular screens, let's say in a bigger number, we would do it, but it's not possible in Germany.

Udo Müller: Thank you, Craig. CFO search is in an advanced stadium. We should see a result in the next four weeks, I would say. Most likely. We had a long process now already, and we are quite happy with the candidates which we have. For the second question, there is no risk for the capital structure because we are very happy now that we could launch three, four super screens at the same time or the same year. For example, The Whale in Hamburg, it was a 10-year preparation work. Lighthouse, also a couple of years. The capacity of these type of screens are super limited. There will be no impact on CapEx, because if we would be able to install such spectacular screens, let's say in a bigger number, we would do it, but it's not possible in Germany.

Speaker #1: Most likely. We have had a long process already, and we are quite happy with the candidates that we have. So for your second question, there is no risk to the capital structure, because we are very happy now that we could launch three or four Super Screens at the same time, or in the same year.

Speaker #1: But, for example, the whale in Hamburg—it was a 10-year preparation work. A lighthouse also took a couple of years. So, capacity of these types of screens is super limited.

Speaker #1: So there will be no impact on CapEx, because if we were able to install such spectacular screens, let's say in a bigger number, we would do it.

Speaker #1: But it's not possible in Germany.

Speaker #4: Yeah.

Speaker #3: Because there are only restrictions, you mean? Yeah.

Craig Abbott: Because there's zoning restrictions, you mean? Yeah.

Speaker #1: Yeah, yeah, yeah. It's very conservative. You're planning the country. It's not Korea or China or America. So, Europe is generally very defensive. Look, for example, in France, you get almost nothing still.

Christoph Vilanek: Yeah. It's very conservative here in planning, the country. It's not Korea or China or America. Europe is generally very defensive. Look, for example, France, we get almost nothing still. UK is the most developed market up to now. We are ramping up screen by screen, but it's always a hard work. Administration, they only change very step by step, the view how they look on that. The Lighthouse, yes, what you see on the front page is a spectacular screen. We have another screen at the same square here. It's a very exciting launch product, what we call the Landmark, where you can rent two screens plus a square plus space inside of the-

Udo Müller: Yeah. It's very conservative here in planning, the country. It's not Korea or China or America. Europe is generally very defensive. Look, for example, France, we get almost nothing still. UK is the most developed market up to now. We are ramping up screen by screen, but it's always a hard work. Administration, they only change very step by step, the view how they look on that. The Lighthouse, yes, what you see on the front page is a spectacular screen. We have another screen at the same square here.

Speaker #1: And in the UK, the most developed market up to now. And so we are ramping up screen by screen. But it's always hard work.

Speaker #1: And administration, they only change very step by step. The view, how they look on that. So the lighthouse here—what you see on the front page—is a spectacular screen.

Speaker #1: And we have another screen at the same square here. And so it's a very exciting launch product, what we call the Landmark, where you can rent two screens plus a square, plus space inside of the clubhouse here.

Udo Müller: It's a very exciting launch product, what we call the Landmark, where you can rent two screens plus a square plus space inside of the-Inside of the clubhouse here. But again, this is an exception. We worked for many years on that, and if we have, at the end, 10, 12 iconic screens in Germany, that would be a really good result.

Udo Müller: Inside of the clubhouse here. But again, this is an exception. We worked for many years on that, and if we have, at the end, 10, 12 iconic screens in Germany, that would be a really good result.

Speaker #1: But again, this is an exception. We have worked for many years on that, and if we have, at the end, 10 or 12 iconic screens in Germany, that would be a really good result.

Speaker #3: I do. If I may just follow up real quick on that—I'm sorry—is that, are you happy with the return you're seeing on those boards?

Craig Abbott: If I may just follow up real quick on that, I am sorry. Are you happy with the returns you are seeing on those boards, or is it more a marketing campaign, if you will, for the Digital Out-of-Home medium overall?

Speaker #3: Or is it more of a marketing campaign, if you will, for the digital out-of-home medium overall?

Udo Müller: No, the return is spectacular. I do not go into details now, but-

Speaker #1: No, the return is spectacular. I won't go into details now, but the return is very strong—much higher than the average return on the average digital location.

Craig Abbott: Sure

Udo Müller: The return is very strong, much higher than average return on the average digital location.

Speaker #3: Okay. Thank you.

Craig Abbott: Okay. Thank you.

Speaker #4: Yeah. And if we look at the bookings for the first months of the year, we also see that we attract new customers. And we also feel that this innovation is creating more demand.

Christoph Vilanek: Yeah, and if we look at the bookings for the first months of The Whale, we also see that we attract new customers, and we also feel that this innovation is creating more demand. I think it has also, as you said, has good returns, but it also has a branding effect and a marketing effect for OOH as such. Maybe also fair to add that we are not planning or including exceptional CapEx for any of those. They are in our basic planning included. The other questions you had was on the debt ratio. I think the debt ratio by the end of the year will be around 2.35, so a bit higher than previous year. But going down again, I think we are working hard on working capital improvements. And the last digit will depend on how successful we are in Q4 on that.

Speaker #4: So I think it has—also, as you said—it has good returns, but it also has a branding effect and a marketing effect for out-of-home as such.

Speaker #4: Maybe it's also fair to add that we are not planning or including any exceptional capex for any of those DR in our basic planning. The other question that you had was on the debt ratio.

Speaker #4: I mean, I think the debt ratio by the end of the year will be around 2.35, so a bit higher than the previous year, but going down again. I think we're working hard on working capital improvements.

Speaker #4: And the final, the last digit will depend on how successful we are in the fourth quarter on that.

Speaker #3: Okay. Thank you.

Craig Abbott: Okay. Thank you.

Speaker #4: You're welcome.

Udo Müller: You are welcome.

Christoph Vilanek: You are welcome.

Speaker #2: We now have a question from Julien Roche at Barclays. Please go ahead.

Operator: We now have a question from the line of Julien Roch from Barclays. Please go ahead.

Julien Roch: Yes, good morning. On the article in Manager Magazin that had a lot of detail, this is the fourth M&A rumor on Stroeer. Last time, at the third rumor, I asked you, Udo, and you said, "Don't believe everything you read in the press." You answered any question as nothing new. Are you saying, don't believe what you read in the press, or is the message different? That's my first question. On the World Cup in Q2, just to make sure it is EUR 12 million, because I thought EUR 12 million was The Whale. That's my second question. Then the third one is, can we have a breakdown of Statista 25 revenue between corporate and retail long tail, and is that the right way to split the business?

Speaker #5: Yes, good morning. On the article in Management Magazine, there was a lot of detail. This is the fourth Emily rumor on Stroeer. Last time, at the third rumor, I asked you, Udo, and you said, don't believe everything you read in the press.

Speaker #5: And you answered any question as “nothing new.” So are you saying, don't believe anything? Don't believe what you read in the press? Or is the message different?

Speaker #5: That's my first question. On the World Cup in Q2, just to make sure, it is 12 million, because I saw 12 million was the whale. That's my second question.

Speaker #5: And then the third one is: can we have a breakdown of Statista 25 revenue between corporate and retail long tail? And is that the right way to split the business?

Speaker #1: Thank you, Julien. So, €12 million is the right number for what you see as the World Cup effect. But this is not, let's say, on top money.

Udo Müller: Thank you, Julien. EUR 12 million is the right number for what you see as World Cup effect. This is not, let's say, on top money. This is money which comes from, most likely from Q3 to Q2. People have the budgets, and if there are certain events in the year, they allocate budgets to the events and move it from somewhere else. That is what we expect. Let's see. For your first question, I'm sorry to say, I can nothing add here. There's a lot of speculations, but we're doing our job here, and that's all we can say right now. The third question was?

Speaker #1: This is money which comes most likely from Q3 to Q2. So people have the budgets, and if there are certain events in the year, they allocate budgets to the events and move it from somewhere else.

Speaker #1: So that is what we expect. But let's see. Let's see. For your first question, I'm sorry to say I can add nothing here. That is, I can just say nothing.

Speaker #1: There's nothing new. There's a lot of speculation, but we're doing our job here, and that's all we can say right now. The third question was?

Speaker #4: On Statista—well, we are not planning to disclose the details and the breakdown, because we would have to add lots of definitions on that.

Christoph Vilanek: Well, on Statista, we are not planning to disclose the details and the breakdown, because we would have to add lots of definitions on that. Please accept that we will not do that for the time being.

Speaker #4: So please accept that we will not do that for the time being.

Speaker #5: Okay. And then maybe a follow-up question: CapEx was up because you said there was some real estate investment.

Julien Roch: Okay. Then maybe a follow-up question is, CapEx was up because you said there was some real estate investment.

Christoph Vilanek: Yeah. We bought some land which is close to our headquarter, basically in front of our headquarter here in Cologne. We are planning to bring more people back to the center. We have a spread out real estate or office infrastructure in Cologne as well as Dusseldorf. Midterm and long-term, we plan to bring them all together down here, and we bought land across the street for EUR 9.8 million.

Speaker #4: Yeah. We bought some land, which is close to our headquarters, basically in front of our headquarters here in Cologne. We are planning to bring more people back to the center.

Speaker #4: We have a spread-out real estate or office infrastructure in Cologne as well as Düsseldorf. And midterm and long term, we plan to bring them all together down here.

Speaker #4: And we bought land across the street for €9.8 million.

Julien Roch: Does that mean you are going to also have further CapEx to basically build a building?

Speaker #5: And so, does that mean you're also going to have further CapEx to basically build a building?

Julien Roch: Does that mean you are going to also have further CapEx to basically build a building?

Christoph Vilanek: Yeah. Building in Germany, it means you do a pre-question, then you do pre-planning, then you do ask for the changes. We are talking nothing in the next two years, but it is safe to have it, and if we run out the long lease contracts in other places, we will review that.

Speaker #4: Yeah, yeah. But building in Germany means you do a pre-question, then you do pre-planning, then you ask for the changes. So, we're talking nothing in the next two years.

Speaker #4: But it's safe; the long lease contracts in other places, we will review that.

Udo Müller: We are not planning to invest in real estate or to keep it on the balance sheet for a long time, if that is your question.

Speaker #1: Trying to invest in real estate or to keep it on the balance sheet for the long term, if that's the question.

Speaker #5: Okay. All right. Thank you.

Julien Roch: Okay. All right. Thank you.

Speaker #2: As a reminder, if you wish to register for a question, please press star one on your telephone. The next question comes from the line of Anna Patrice from Berenberg.

Operator: As a reminder, if you wish to register for a question, please press star and 1 on your telephone. The next question comes from the line of Anna Patrice from Berenberg. Please go ahead.

Speaker #2: Please go ahead. Yes, hello. Thank you very much for all the questions answered so far. Just a few questions from my side: If you can comment on the progress of the share buyback, please.

Anna Patrice: Yes, hello. Thank you very much for all the questions answered so far. Just a few questions from my side. If you can comment on the progress of the share buybacks please, and if there are any plans to accelerate to increase the share buyback? That's the first question. The second question is on their CapEx. I understand that the increased CapEx now is due to the real estate investment, but if you can comment on the CapEx trends across different divisions. If the CapEx is up or down in the E-Commerce and in the Statista, and how much the CapEx spend is now at OOH and what we should expect going forward, please. Then the comments on the Q3, you expect mid-single digits increase in OOH based on the booking you have right now.

Speaker #2: And if there are any plans to accelerate or to increase their share buyback, that's the first question. The second question is on their capex. I understand that the increased capex now is due to the real estate investment.

Speaker #2: But if you can comment on the capex trends across different divisions—if the capex is up or down in e-commerce and in Statista, and how much the capex spend is now at Out-of-Home, and what we should expect going forward.

Speaker #2: Please. And then their comments on Q3—you expect a single-digit increase in out-of-home based on the bookings you have right now. So there might still be some kind of mixed trends, with some advertisers pulling forward campaigns because of the World Cup, but still, the World Cup was ongoing in Q3.

Anna Patrice: There might be still some kind of mixed trends with pulling forward some advertisements because of the FIFA World Cup, but still FIFA World Cup was ongoing in Q3, so there should be also some support. So what do you see is underlying trends in the OOH, and what would you expect is underlying, so adjusted for all their FIFA World Cup events for the OOH? Thank you.

Speaker #2: So there should also be some support. What do you see as the underlying trends in out-of-home? And what would you expect as underlying?

Speaker #2: So, adjusted for all their World Cup events, for the out-of-home. Thank you.

Speaker #4: Well, let me start with the buyback. We've spent so far €21 million, which was close to 690,000 stocks at this level. This is currently for sure also supported by the speculation. We are not planning to continue, but we have an obligation to have a look at it.

Christoph Vilanek: Well, let me start with the buyback. We have spent so far EUR 21 million, which was close to 690,000 stocks at this level, which is currently for sure also supported by the speculation. We are not planning to continue, but we have an obligation to have a look at it, but we are not obliged to spend the money. So far it was EUR 21 million, as we reported on our website. Next steps would only be done if the share price was dropped significantly under the current level. For the total year CapEx, we expect a total number of EUR 104 million, which is a remainder of EUR 52 million for the H2 of the year, so similar level as 2025.

Speaker #4: But we are not obliged to spend the money. So, so far, it was €21 million as we reported on our website. And next steps would only be done if the share price dropped significantly under the current level.

Speaker #4: For the total year CapEx, we expect a total number of 104, which leaves a remainder of 52 for the second half of the year.

Speaker #4: So similar level as 2025.

Speaker #1: Yeah. For the underlying trends—I mean, I think everything is said in our statement here. We see unchanged trends, and we are not big fans of analyzing single quarters.

Udo Müller: Yeah, for the underlying trends, I think everything said in our statement here, we see unchanged trends. We are not big fans of analyzing single quarters because if people are moving campaigns from one quarter to the other, you see directly an impact on the quarter but have nothing to say. The question at the end, you see underlying positive development for OOH, and I think this is around the world, everywhere the same situation. Slightly up, slightly down in different markets, depending on specific development in these areas. But underlying demand is unchanged positive. I am not sure if this was the answer you expected. If not, please.

Speaker #1: Because, I mean, if people are moving campaigns from one quarter to the other, you see a direct impact on the quarter, but have nothing to say.

Speaker #1: The question at the end: Do you see underlying positive development for out-of-home? And I think this is around the world—everywhere is the same situation.

Speaker #1: Slightly up, slightly down in different markets, depending on specific developments in these areas. But underlying demand is unchanged—positive. I'm not sure if this was the answer you expected.

Speaker #1: If not, please.

Anna Patrice: Yeah. Thank you. No, that is fine. Thank you very much. Sorry, and just to understand on the CapEx trends, what are the trends on the CapEx at the OOH? Do you expect the increase in the CapEx or it is pretty much stable as last year? Thank you.

Speaker #2: Yeah, thank you. No, that's fine. Thank you very much, sorry. And just to understand, on the capex trends, what are the trends on the capex at the out-of-home?

Speaker #2: Do you expect an increase in capex, or will it remain pretty much stable compared to last year? Thank you.

Speaker #1: No, no. Pretty much stable as in last year. As I said also, the bigger ones that Udo mentioned, they will always be covered by the existing plans.

Christoph Vilanek: No, pretty much stable as in last year. As I said, also the bigger ones that Udo mentioned, they will be always covered by the existing plans. We take opportunities, but the decision on a conversion into digital is not a decision that we can take ourselves and then move on the next day, but we have to discuss, prepare, do technically planning, et cetera. This is why we have a six to 12 months roadmap, which we can perfectly analyze, and that says that we will remain on the same level as we were on 2025 and will be on 2026.

Speaker #1: We take opportunities, but the decision on a conversion into digital is not a decision that we can take ourselves and then move on to the next day.

Speaker #1: But we have to discuss, prepare, too, technically planning, etc., etc. So this is why we have a 6- to 12-month roadmap, which we can perfectly analyze.

Speaker #1: And that says that we will remain on the same level as we were in 2025, and we'll be in 2026.

Speaker #2: Understood. Thank you very much. Once again, to ask a question, please press star and one on your telephone. Ladies and gentlemen, there are no more questions at this time.

Anna Patrice: Understood. Thank you very much.

Operator: Once again, to ask a question, please press star and one on your telephone. Ladies and gentlemen, there are no more questions at this time. I would now like to turn the conference back over to Udo Müller for any closing remarks.

Speaker #2: I would now like to turn the conference back over to Udo Müller for any closing remarks.

Speaker #1: Yeah, thank you very much. Happy that we could answer all your questions, and we're looking forward to hearing you back in November. All the best.

Udo Müller: Yeah, thank you very much. Happy that we could answer all your questions, and looking forward to hear you back in November. All the best, and thank you.

Speaker #1: And thank you.

Christoph Vilanek: Thank you.

Browse all earnings call transcripts

Half Year 2026 Stroeer SE & Co KGaA Earnings Call

Request TrialDemo

Stroeer

Earnings