Sliding Profits by 38% for Daft.ie Parent Group Due to Rising Expenses
In the financial year of 2024, Distilled Ltd, the operator of popular online marketplaces daft.ie, donedeal.ie, adverts.ie, and gumtree.ie, experienced a 38% decrease in pretax profit, despite a 14% increase in revenues from €41.38 million to €47 million.
The primary cause of this decline was higher operational costs, which outweighed the revenue growth. As a result, pretax profits dropped to €7.55 million.
Despite the profit decline, the business thrived in other areas. Distilled Ltd attracted 162 employees, marking an increase from the previous year. Staff costs rose to €15.48 million, reflecting the company's growth and expansion.
The business also saw a significant boost in its valuation. After European online classifieds group Adevinta sold its 50% stake in Distilled to Dublin-based fund manager Blacksheep Fund Management for €312 million, the company was valued at €624 million last year.
Distilled Ltd's strong performance was evident in its revenue streams. DoneDeal, the company's car-buying platform, now attracts 6.4 million monthly visitors. Ipsos ranks DoneDeal as the number one platform for car buyers looking for vehicles from car dealerships in Ireland.
Adverts.ie, a peer-to-peer marketplace, continues to be active, attracting about two million monthly users and facilitating over 200,000 new listings each month.
The company's financial health was further demonstrated by its cash funds, which decreased from €11.38 million to €10.77 million in 2024. However, Distilled Media's shareholder funds stood at €73.56 million in the same year.
In addition to the profit decline, Distilled Media booked a profit after tax of €4.32 million in 2024. The company also paid out dividends of €17.3 million this year, up sharply from the €11.5 million paid out in 2024.
Corporation tax of €3.23 million was paid by Distilled in 2024. The company's directors' pay totaled €405,067 in the same year.
The sale of Adevinta's stake put an estimated value of €212 million on the joint 34% share held by brothers Eamonn and Brian Fallon, who co-founded property website daft.ie in 1997 and each hold a 17% share in Distilled.
Separate accounts filed at Companies House in the UK show that Aurelia UK Feederco Ltd, an Adevinta entity, booked a gain of €159 million in 2024 from the €312 million deal.
Despite the profit decline, Distilled Ltd continues to be a significant player in the online classifieds market in Ireland. The company's commitment to growth, expansion, and dividend payments suggests a resilient and ambitious approach to business.
- The decline in Distilled Ltd's pretax profits in 2024, primarily due to increased operational costs, did not hinder the company's progress in the technology sector, as they continued to thrive in business areas such as staff expansion and technology advancements.
- The valuation of Distilled Ltd soared in 2024, reaching €624 million, after European online classifieds group Adevinta sold its stake to Dublin-based Blacksheep Fund Management for €312 million, signifying the company's strategic value in the finance and technology-driven business environment.
