Paris, Wednesday 26th April 2017 6:00pm CEST
Press Release
NetBooster Group publishes its financial results for 2016 and Q1/2017
NetBooster Group (FR0000079683 - ALNBT -PEA-PME eligible) , the leading independent international agency in digital performance marketing, today announces its 2016 annual results, as well as its Q1/2017 results.
2016 Key Facts
During the year, the Group has secured several contracts with international new clients such as Dubaï Parks & Resorts, North Sails, Hertz, the Swiss Federal Railway (SBB) and Center Parcs, Some major existing clients such as Estée Lauder and MARC O'POLO extended their collaboration with the Group. These client wins and upsells attest that the Group's expertise attracts international brands.
In March 2016 , NetBooster finalised the closing of a landmark €20.7m financing agreement consisting of a €10.7m tranche used to reimburse an existing convertible bond as well as a €10m tranche that dedicated to finance growth plans and international development.
In September 2016 , the Group announced the closing of a capital increase of 5.3m€ with the arrival of a strategic new shareholder Nobel, managed by Weinberg Capital Partners
These two financial operations enabled the acquisition of a UK agency, 4Ps Marketing, in September 2016.
In October 2016 , and then February 2017, by mutual agreement with the Board, NetBooster Group proceeded to a change in the Management Structure. Mr. Tim Ringel and Mr. Thomas Armbruster left the company after having successfully restructured the balance sheet and brought EBITDA margins back to market level. Mr. François de La Villardière, Chairman of the Board, today serves as interim CEO and uses his extensive experience to focus on NetBooster's top line growth
2016 Annual Results
| 2015 | 2016 | Growth | ||
| Gross Margin | €37.2m | €40.7m | +9% | |
| EBITDA | €5.5m | €5m | -9% | |
| Profitability Rate | 14.8% | 12.3% |
In 2016, NetBooster recorded an organic growth of €38.7m, a +4% increase compared to year 2015.
For the full year 2016, NetBooster reports a €40.7m Gross Margin , an increase of 9% compared to 2015 (€37.2m), explained by: - Major clients up-sells such as Euromaster, Deutsche Telekom, MARC O'POLO or Estée Lauder - New clients wins, such as Hertz and Dubaï Parks & Resorts - The acquisition of 4Ps agency in the UK, enabling the Group to grow in the region, to extend its clients portfolio and enhance its SEO and Paid Media capabilities
Profitability reaches 12.3%, aligned to market standard.
At the end of 2016, the Group recorded an EBITDA at €5m (€5.5m in 2015) affected by: - The expected rebound of Nordics in H2 2016 that did not take place, negatively influencing 2016 EBITDA by €0.8m - The decrease of the British Pound that followed the Brexit negatively affected the EBIDTA, with a loss of €0.2m
NetBooster Group's profitability is stable across all its biggest markets, with a strong growth in the DACH region where the EBITDA increased by 25%.
Q1/2017 Results
| Q1/2016 | Q1/2017 | Growth | Organic Growth | ||
| Gross Margin | 8.9m€ | 10.5m€ | +18% | +6% |
During Q1/2017, NetBooster achieved a Gross Margin of €10.5m, from €8.9m during the same period 2016 (growth of 18%).
New client wins coming in at the end of 2016 including Swiss Federal Railway (SBB), the leading digital marketplaces operator in Germany, and the world leader in sail making North Sails contribute to NetBooster's overall growth in the first quarter of 2017.
Some existing clients including MARC O'POLO and Estée Lauder have enlarged the scope of NetBooster's missions, influencing positively the growth of the company during this first quarter.
2017 outlook and strategy
Industry Backdrop
The global digital media spend is continuously increasing and should grow by +13% in 2017 , to reach 205 billion dollars .**
The advertising industry is currently driven by awareness and branding budgets becoming digital performance driven. Brands are increasingly choosing to shift their offline branding budgets (television, billboards, print) to purely digital campaigns that pair brand awareness and performance. The shift of these budgets represents a massive growth opportunity for the Group.
This evolution requires the development of new technologies and expertise such as programmatic and artificial intelligence, with the support of Data and Analytics, becoming a strategic marketing tool for brands.
As a result of further technical advancements, changes in consumer behaviour and industry interest, the question of effectiveness and ROI of brand advertising is reaching its peak and brands are now demanding more transparent and efficient brand advertising spend to agencies.
Strategy
In 2017, the new Group Management will focus on a strong top line growth by developing its major client accounts, extending existing contracts and securing traditional budgets shifting to digital performance marketing. The Group will also strongly focus on finding new international clients and has already started to initiate a restructuration of its clients' accounting teams.
In order to support organic growth during the year, NetBooster Group is going to develop its technical solutions and skills, strengthen its offering to become the most important data and analytics service provider. The new Group Management will also consider potential partnerships with agencies specialized in data science and data consulting.
Following a deep analysis of the Nordics region activity, NetBooster decided to gather its Nordic activities in Denmark to allow a better overall performance of the Group in 2017. Consequently, the Group has closed its Swedish office in February 2017 and started the restructuration of its Finnish office.
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**Source: Advertising Expenditure Forecasts report by Zenith (Publicis Media)
DISCLAIMER
This press release contain forward looking statements including statements regarding NetBooster's management intent, belief or current expectations with respect to NetBooster's businesses and operations, market conditions, results of operation and financial condition, specific provisions and risk management practices. These statements are based on the current expectations and assumptions of NetBooster's management and they are, therefore, subject to risks and uncertainties. Many factors can impact NetBooster's results and performance, thus forecasts and hypothetical examples are subject to uncertainty and contingencies outside NetBooster's control. Results and performance can be materially different from any future results or performance that may be expressed or implied by the forward looking statements contained in this press release. NetBooster does not undertake to implement any of the actions and operations that may be described in the forward looking statements. Moreover, we remind you that past performance is not a reliable indication of future performance.
This press release, including forecast financial information, should not be considered as advice or recommendation to investors or potential investors in relation to acquiring, selling or transfer by any means NetBooster's securities. Before acting on any information included into this presentation, one should consider the appropriateness of the information, any relevant offer document and especially should seek for independent financial advice. It is reminded that all securities involve financial risks.
About NetBooster Group | www.netbooster.com
NetBooster is a leading independent international agency in digital performance marketing that makes its comprehensive expertise of digital marketing available to its clients to achieve the best possible performance for their investments. The agency invests in technology and covers the entire chain of online marketing through its European network: search engine optimisation and marketing, data and analytics (DnA), GroundControl Technology, display, affiliation, online media, creation, eCRM and social networks, with a recognised expertise in tomorrow's digital marketing (Social Media, Video, Ad Exchange, etc.). Shares in NetBooster are traded on the Alternext Paris.
Information | For more information please contact:
Financial Communication Press Contact Alexia Cassini (Group Communication Manager) ALIZE RP NetBooster S.A. Caroline Carmagnol / Wendy Rigal Tel. 01 40 40 27 00 Tel. 00 33 (0)1 44 54 36 66 acassini@netbooster.com netbooster@alizerp.com
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