CLA Claranova

Surge in Group organic growth1 to +33%

Avanquest scale-up following acquisitions: +101%

Continued strong PlanetArt growth: +45%

myDevices: 49% rise, thanks to Sprint partnership

Regulatory News:

The Claranova (Paris:CLA) group announced today consolidated Q1 revenue (July 1 to September 30, 2018) of €48.2 million, up 61% (+59% at constant exchange rates). Organic growth accelerated across all divisions in this first quarter, generating Group organic growth of 33% (compared with 24% for the previous full year). Q1 figures also include revenue generated by the Canadian businesses acquired on July 1, 2018.

In € million   July-September2018   July-September 2017   ∆  

∆ at constantexchangerates

 

∆ at constantscope

                      Avanquest   16.9   8.4   101%   99%   3% PlanetArt   30.4   21.0   45%   44%   45% myDevices   0.9   0.6   49%   47%   49% Revenue   48.2   30.0   61%   59%   33%

Avanquest: twofold increase in revenue to €16.9 million (+101%)

Q1 2018-2019 benefited from the July 2018 acquisition of the Canadian businesses Upclick, SodaPDF and Adaware, allowing the Avanquest division to double its revenue from €8.4 million in Q1 2017-2018 to €16.9 million this quarter. Without these acquisitions, Avanquest revenue would still have increased by 3% to €8.7 million. The acquired companies reported organic growth of 24% year-on-year. In addition to this strong revenue growth, the consolidation of the newly acquired companies will significantly improve the division’s profitability.

This marked improvement comes from the completion of the first stage in Avanquest’s consolidation strategy, which aims to make it the European leader in monetizing internet traffic.

PlanetArt: revenue up +45% to €30.4 million

PlanetArt continues to deliver outstanding performance, with revenue up 45% on Q1 2017-2018 to €30.4 million. This increase marks an acceleration on the prior year average rate of 37%, despite the increasing size of the business. Growth is primarily tied to the success of the FreePrints and FreePrints Photobooks mobile applications, as well as initial promising figures for the FreePrints Photo Tiles application launched in June 2018.

As announced, PlanetArt continued its geographic expansion with the launch of its FreePrints application in India, making it the first mobile photo printing player present on three continents. This launch, which hardly contributed to revenue this quarter, could be a growth driver going forward.

myDevices: revenue up +49% to €0.9 million

myDevices confirmed prior quarter trends, as it continued to benefit from revenue from its commercial partnership with the U.S. telecoms operator, Sprint. Revenue grew +49% compared with Q1 2017-2018 to €0.9 million, nearly half of which generated by the Sprint partnership. The division’s outlook is positive, with the announcement this quarter of several partnerships and notably with Alibaba Cloud in China and Ingram Micro in the U.S., opening-up their extensive reseller networks to myDevices. A partnership was also signed with Arm in the U.S., enabling the IoT in a BoxTM technology to be combined with Arm’s IoT PelionTM platform, dedicated to secure device-to-data connectivity. The recent launch of these partnerships means they had no impact on the division’s Q1 revenue, however they represent promising advances for the upcoming periods.

For Pierre Cesarini, CEO of the Claranova group: ”Although Claranova group has now attained significant scale, we continue to deliver strong growth each quarter, demonstrating the considerable potential of our businesses. We’re confident this is merely the beginning of what will be an excellent fiscal year 2018-2019”.

Next Claranova Group event

Annual Ordinary and Extraordinary General Shareholders’ Meeting: November 29, 2018

2017-2018 General Shareholders’ Meeting

The Company’s individual and consolidated financial statements for fiscal year 2017-2018 were approved by the Management Board and reviewed by the Supervisory Board on September 28, 2018. They will be presented for vote to the General Shareholders’ Meeting to be held on November 29, 2018.

The Company will communicate the details and legal information concerning this General Shareholders’ Meeting within the applicable legal time periods.

About Claranova:

Claranova is a French technology group operating in three major business sectors: mobile services through its PlanetArt division, Internet of Things (IoT) through its myDevices division and monetizing Internet traffic through its Avanquest division. A truly global internet and mobile player, Claranova reported annual revenue in excess of €160 million, generated over 90% internationally. Its businesses are:

• PlanetArt: A world leader in mobile printing, specifically via its FreePrints and Photobook applications – the cheapest and simplest solutions in the world for printing photos and creating photo albums from a smartphone;
• myDevices: A global platform for IoT (Internet of Things) management, myDevices allows its partners to commercialize turnkey solutions (“IoT in a Box”) to their customers. Ready-to-use solutions are available for roll-out in the medical, hotel, food and beverage, retail and education sectors thanks to these offerings;
• Avanquest: A specialist in monetizing Internet traffic through cross-cutting solutions, Avanquest boosts its customer impact through cross-selling offerings that maximize Internet traffic while ensuring the most efficient monetization possible.

1 Organic growth: growth in Group activities excluding the impact of the Canadian businesses, Upclick, SodaPDF and Adaware, acquired on July 1, 2018.

CODESTicker : CLAISIN : FR0004026714www.claranova.com

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