• Ongoing review of existing businesses to focus on core online classifieds
• Discontinuation of loss-making revenue lines and headcount reduction
• FY25 guidance: Revenue A$60-63M, EBITDA A$3.3-4.3M, EBIT loss A$9.5-10.5M, NPAT loss A$9.5-10.5M
• Disclosure of LATAM ESOP plan allowing up to 5% equity to be issued to employees

Frontier Digital Ventures Ltd (FDV) has provided an update on an ongoing review of its existing businesses, FY25 earnings guidance, and disclosure of an employee share ownership plan (ESOP) in its Latin America subsidiary. The review is aimed at increasing profitability and improving free cash flows, with a renewed focus on the core online classifieds business. As a result, FDV has discontinued or shut down various revenue lines that were loss-making or not in support of this focus, including 'Centrify' in Latin America and the 'Iris' business. Over 30% of headcount in the Latin America business has been removed, with plans to further streamline costs across all regions. FDV's FY25 financial results are expected to be materially below analyst estimates, with revenue of A$60-63 million, EBITDA of A$3.3-4.3 million, EBIT loss of A$9.5-10.5 million, and NPAT loss of A$9.5-10.5 million. This is primarily due to the steps taken from the business review, as well as historical receivables unlikely to be collected and a review of intangible assets leading to write-offs. Additionally, the FDV Board has become aware that in 2023, the board of FDV Latam implemented an ESOP under which up to 5% of the equity in FDV Latam could be issued to certain employees, without performance hurdles or FDV Board oversight. FDV is investigating the extent to which FDV Latam is bound by the ESOP terms and will seek to implement appropriate performance conditions for any future awards.

Revenue: approximately A$60.0 million - A$63.0 million EBITDA before one-time adjustments and write offs: approximately A$6.5 - A$7.5 million EBITDA: approximately A$3.3 million - A$4.3 million EBIT: approximately a loss of A$9.5 million - A$10.5 million NPAT: approximately a net loss of A$9.5 million - A$10.5 million

The Company is optimistic about the prospects of its core classifieds business and is focused on its growth and improvement of its margins. While the renewed focus on the core business results in some short-term financial performance challenges, the Company believes it is in the best interests of value creation for FDV shareholders in the longer term.