Change in the operations of the joint venture of AS
The Supervisory Board of AS Express Post, 50% of which is owned by AS Ekspress Grupp made a decision to close down the home delivery business line of Express Post during 2023. The company is going to continue to provide the call centre service and the management service for the subscriber bases of periodicals that make up ca 7% of the company’s current business. The change will neither impact the volume and frequency of publishing the paper periodicals of Ekspress Grupp nor the home delivery conditions for its subscribers.
AS Express Post, a joint venture established in 1997, is engaged in home delivery of periodicals as well as advertising and business letters in the largest cities in Estonia and in their vicinity. Additionally, Express Post offers a call centre service and a management service for the subscriber bases of periodicals. According to the unaudited data, the revenue of Express Post totalled EUR 5.2 million (2021: EUR 5.2 million) and the loss totalled EUR 1.2 million in 2022 (2021: loss of EUR 0.6 million). Ekspress Grupp has a 50% ownership interest in Express Post.
As a result of the closure of the business line, AS Express Post will make redundant approximately 450 employees. The estimated additional one-off expenditure related to the closure of the business line will total EUR 1.0–1.2 million, of which the share of Ekspress Grupp will be EUR 0.5–0.6 million.
As at 31 December 2022, the value of the investment recognised in the Group’s balance sheet is EUR 0 (31.12.2021: EUR 0). The additional one-off expenditure related to the closure of the business line in the amount of EUR 0.5–0.6 million will be reflected in the Group’s results for the 1st quarter of 2023.
Mari-Liis Rüütsalu
Chairman of the Management Board
+372 512 2591
mariliis.ryytsalu@egrupp.ee
AS Ekspress Grupp is the leading Baltic media group whose key activities include web media content production as well as publishing of newspapers, magazines and books. The Group also operates an electronic ticket sales platform and ticket offices, and provides an outdoor screen service in Estonia and Latvia. Ekspress Grupp launched its operations in 1989 and it employs almost 1400 people.
