Consolidated revenues Legimi in the second quarter of 2024 reached PLN 29.79 million, a year-on-year growth of 47.5%. from PLN 20.19 million. – This increase was largely the result of the well-thought-out pricing policy introduced in the previous quarterswhich contributed to the continuation of the favorable trend of gradual increase in revenue per user – the company’s report stated.
Its dynamics operating costs were more than twice as low: they increased by 20.5%. up to PLN 25.73 million, of which the vast majority were expenses for external services – from PLN 18.88 to PLN 22.74 million.
Legimi recalled that in June it completed development work on the platform version 5.0. – They include many innovative features, the most important of which include the ability to filter content, expanded payment options, support for Android Auto, synchronization of Kindle via the mobile application in the Android version of the Legimi application or connection to the aforementioned Legimi platform recommendation technologies using AI algorithms. An important element of Legimi 5.0. is also the launch of the sale of Legimi bundles with services of external partners, which created a new source of additional revenue generation through the possibility of developing the Legimi offer with new subscription services – the report calculates.
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Since July, the company has been preparing new features in Legimi 6.0. They should be ready by the end of this year. – Similar to Legi 5.0, we expect innovative features to meet future user needs and make the application even more user-friendly, and strengthen Legimi’s position as a technology leader in the e-book industry. The continuous technological development of the platform is the basis for establishing cooperation with business partners and building a stable and innovative sales channel – it was described.
Legimi with record revenue and profit
At the operational level, the result of the Legimi group in the second quarter of 2024 increased year-on-year, from a loss of PLN 1.21 million to PLN 4 million, and net profitability – from a loss of PLN 1.43 million to a profit of PLN 3.09 million.
– The very good financial results mentioned above are the result, among others, of optimization activities carried out in the previous year, such as the increase in subscription prices for new users and numerous activities related to the optimization of operational costs. They are also the result of the increasingly widespread implementation of recommendation algorithms, which translates into higher revenues, but also into more effective management of the level of content acquisition costs – as calculated in the report.
– Since December last year, a group of Legimi users has been able to use a test version of the so-called “virtual librarian”, which is the result of a completed EU co-funded project on a recommendation system using artificial intelligence (AI) techniques. The first results of the implementation of AI techniques are very promising in terms of the rate of acquisition of new and retention of existing users and have a positive impact on the operational profitability of the Company’s activities – he added.
Legimi set financial records for the second consecutive quarter. In the first quarter of this year, it recorded PLN 27.28 million in consolidated revenue and PLN 1.77 million in net profit. The company has been recording positive profitability for four quarters.
The company’s results in the last quarter were received very positively by stock market investors. On Tuesday, its shares rose several percent. (At 3 p.m., the increase was 17.5 percent.).
At the exchange rate of PLN 47, Legimi’s capitalization was PLN 76.1 million. This is equivalent to 169 percent. over 12 months ago.
Last December Legimi shares constituting 32.73 percent of the capital and 25.89 percent of the votes at the general meeting were purchased by Wirtualna Polska Media, paying PLN 27.50 each. The other main shareholders of the company are the members of its management board, Mikołaj Małaczyński and Mateusz Frukacz.
