- +50% in revenues in the first half of the year and +51% in
Q31
- gross margin up to 47.2%
- recruitment of new talent
Regulatory News:
AudioValley (Paris:ALAVY) (Brussels:ALAVY), an international
specialist in B2B digital audio solutions, (ISIN code: BE0974334667
/ ticker symbol: ALAVY) is today publishing its results for the
first half of 2021 and its turnover for the third quarter of 2021.
The half-yearly accounts for the period ending 30 June 2021 were
approved by the Board of Directors on 15 October 2021.
As stated on 13 July, the turnover for the first half of 2021
shows a remarkable level of growth of 50% (at constant exchange
rates) compared to the first half of 2020, amounting to
€12.3m (vs. €8.5m in 2020). This reflects the strong
recovery felt from the beginning of the year in the Targetspot
audio content monetisation division. This is despite the fact that
COVID is still having a negative impact on certain European
countries.
Targetspot, which accounts for 91% of the AudioValley
Group's business2, achieved half year revenues of €11.2m, up
56.3% at cer on H1 2020. Several months of record growth were
recorded in Q2 in the US, the main driver of this growth.
Advertiser spend budgets resulted in excellent half year revenues
in the US, up 72% at cer compared to H1 2020. In our view, this is
a clear signal of the accelerating trend towards digital audio in
advertising spend. The division's European business also performed
very well, with growth of 27.5% compared to H1 2020.
Jamendo, the music licensing and rights management
business, was still feeling the impact of the pandemic heavily in
Q1, but recovered strongly in Q2 to end the half year up
5.1% on H1 2020, at €1.2m. Several talented individuals
have been hired to work on the division's commercial growth
strategy.
FINANCIAL RESULTS FOR THE FIRST HALF OF 2021
IFRS Consolidated
Statement of Income
(in thousands of euros)
30/06/2021
30/06/2020
Variation
Turnover
12,332
8,676
+42.1%
Cost of sales
(6,511)
(4,631)
+40.6%
Staff costs
(4,471)
(2,780)
+60.8%
Other administrative and commercial
costs
(1,763)
(1,483)
+18.9%
EBITDA (earnings before interest,
taxes, depreciation and amortisation)
(413)
(218)
- €195k
Amortisation and depreciation
(2,055)
(2,279)
-9.8%
Current operating income after
depreciation and amortisation
(2,468)
(2,497)
+ €29k
Other revenues
-
-
Other costs
(2)
(15)
+ €13k
Operating income
(2,470)
(2,512)
+ €42k
Financial performance
(818)
(808)
- €10k
Income before tax
(3,288)
(3,320)
+ €32k
Taxes on income
(2)
(10)
+ €8k
Net result for the financial
year
(3,290)
(3,330)
+ €40k
In addition to the very strong growth in revenue, the Group
recorded an improvement in its gross margin rate,
representing 47.2% of revenue compared to 46.6% in H1 2020.
The increase in staff costs is largely due to COVID-related
mechanisms (COVID-related unemployment, working time reduction)
implemented in 2020, which had an impact of €1.2m in H1 2020.
Investments in preparation for the future
The Group recorded a current operating income before
depreciation and amortisation (EBITDA) of -€0.4m, compared
to -€0.2m in the first half of 2020. However, this is difficult to
compare for the reasons given above.
Sébastien Veldeman, CFO: “The slight decline in
profitability is mainly due to the human factor, with staff costs
increasing from €2.8m in H1 2020 to €4.5m in H1 2021. This increase
is largely due to the introduction of COVID-related mechanisms in
2020, which had an impact on H1 2020 staff costs of €1.2m. This
should be taken into account when comparing the EBITDA between the
two years. We have also invested in the future by hiring talent to
support the growth of Targetspot and to work on preparing new
revenue streams alongside this division. For example, in the
Jamendo division, we have created a new business - Bridger - for
music rights management. And we have also been working on the
technical side of our other brands, Shoutcast and Winamp.”
In addition, developments in the Jamendo division had a negative
impact on the Group's EBITDA (€273k).
Other items
The successful capital increase of €8.6m carried
out with qualified investors in April 2021 is specifically intended
to support the Group's international growth and provide it with
the necessary liquidity.
Depreciation and amortisation decreased by €0.2m, from
€2.3m to €2.1m. This includes €1m of amortisation of the Group's
proprietary technology platforms, which has no cash effect, €0.6m
of amortisation of intangible assets (capitalised tech salaries)
and €0.4m of amortisation of tangible assets (mainly lease costs,
IFRS 16).
The financial performance of -€0.8m is mainly made up of
interest on bonds and convertible bonds of -€0.4m
Alexandre Saboundjian, CEO: “We will continue our efforts
to be a global player in our market with enthusiasm and ambition.
We remain confident of continued strong growth in the second half
of 2021. We are also actively preparing the organisation of our
company for the launch of new products in 2022 that will contribute
to the evolution of the group.”
TURNOVER FOR Q3 2021
Continuing growth of 50%
Turnover for Q3 is up by 51% compared to Q3 2020
(at constant exchange rates; cer), at €7.5m.
This very satisfactory result was driven by the Targetspot
division, which achieved a turnover of €7.0m, up by 57.1% at
cer, compared to €4.5m in Q3 2020. This growth is mainly due to
the US (+80.3% at cer), Europe still being somewhat impacted by the
pandemic (+16%).
On the other hand, the Jamendo division posted revenues of
€0.5m, a stable result compared to T3 2020 (+0.4%).
Turnoverin €k - non-audited
T3 2021
% of rev.
2021
T3 2020
Variation 2021/2020
CER variation3
Targetspot
7,002
93%
4,519
54.9%
57.0%
Jamendo
525
7%
522
0.4%
0.4%
Total for Group
7,527
5,041
49.3%
51.2%
FUTURE UPDATES 2021 revenues 27 January
2022, before market close
About AudioValley Based in Brussels in the heart of
Europe, AudioValley has been a pioneer and leader in digital audio
since 2007. Active across the entire value chain of its sector, and
with a global network, AudioValley offers its customers and
partners solutions to develop their business through digital audio,
both locally and internationally. The Group brings together iconic
brands: Targetspot, for digital audio monetisation; Jamendo
Licensing, for marketing of creative works; Bridger, for music
rights management; Shoutcast, for streaming technologies and
podcast management; and Winamp, the iconic audio player. The audio
industry is undergoing an unprecedented digital revolution, with
ultra-connected consumers who want to access the best audio content
anywhere, any time. To address these new consumer habits,
AudioValley is developing technologies that enable the benefits of
digital audio to be enjoyed instantly; and services that connect
brands and consumers, publishers and their audiences, publishers
and brands, and artists and music lovers. AudioValley is
operational in 9 countries and employs around 100 people worldwide.
www.audiovalley.com
1 Compared to the first half and the third quarter of 2020, at
constant exchange rates (cer). 2 on 31/12/2020. 3 At CER: at
constant exchange rate.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211017005057/en/
Investor Relations Francis Muyshondt, RI •
investorrelations@audiovalley.com
Press Relations Laure-Eve Monfort •
press@audiovalley.com