PRESS RELEASE Paris, 29 September 2017 (6pm)
ADLPartner: 2017 FIRST-HALF EARNINGS COMMERCIAL INVESTMENTS RAMPED UP
The ADLPartner Group is releasing its earnings for the first half of 2017. Operating income came to €3.6 million, representing 5.8% of net sales, compared with 7.8% for the first half of 2016. Net income (group share) came to €2.1 million, versus €3.0 million the previous year.
HIGHLIGHTS
During the first half of 2017, ADLPartner significantly increased its commercial investments with a view to developing its portfolios of contracts generating recurrent revenues. The Group has further strengthened the marketing mixes for its partnership-based open-ended subscription, while maintaining a high level of commercial investments in its recent direct marketing insurance brokerage business. The strong growth in sales for marketing services notably reflects the consolidation of Activis since October 2016.
EARNINGS
Net sales [1] are up 4.7% from the first half of 2016 to €62.1 million, with the gross sales volume [2] climbing 3.7% to €140.4 million.
Operating income totaled €3.6 million for the first half of 2017, compared with €4.6 million for the first half of 2016. This change primarily factors in: i/ an increase in commercial investments, and ii/ a contraction in the operating margin in Spain faced with a particularly high basis for comparison from 2016.
Net income (group share) represents €2.1 million, compared with €3.0 million for the first half of 2016.
| Consolidated data (€m) | H1 2017 | H1 2016 |
| Net sales | 62.13 | 59.32 |
| Operating income % of net sales | 3.63 5.8% | 4.65 7.8% |
| Net income (group share) % of net sales | 2.11 3.4% | 3.00 5.1% |
FINANCIAL STRUCTURE
The Group's shareholders' equity represented €21.8 million at 30 June 2017, down €1.6 million from 31 December 2016, factoring in half-year earnings and the ordinary dividend paid out for FY 2016 (€4.0 million).
While investments have been stepped up, the Group still has a strong net cash position, with €25.2 million at 30 June 2017, versus €28.8 million at 31 December 2016 and €22.4 million at 30 June 2016.
Net asset value [3] (group share), calculated based on shareholders' equity and the value of the active open-ended magazine subscription portfolio, represented €124.1 million at 30 June 2017 or €31.38 per share excluding treasury stock.
OUTLOOK
The ADLPartner Group is rolling out a strategy to create value and capitalize on its marketing expertise and solutions in new growth markets. Full-year consolidated earnings will be affected by the higher level of commercial investments in the open-ended subscription and the ADLP Assurances subsidiary, as well as LEOO's consolidation from the second half of the year. Ultimately, the Group's actions are focused on improving its profitability and growth profile.
ADDITIONAL INFORMATION
The Management Board approved the consolidated financial statements on 22 September 2017 and the Supervisory Board confirmed on 29 September 2017 that it did not have any observations concerning the consolidated financial statements at 30 June 2017. The accounts have been subject to the usual limited review by the statutory auditors for half-year accounts. The half-year financial report is available on the company's website at www.adlpartner.com .
Next date : 2017 third-quarter net sales on 26 October 2017 (after close of trading)
ADLPartner in brief
As a specialist in relational marketing, ADLPartner designs, markets and implements customer relationship management and loyalty services on its own behalf or for its major partners (banks, retailers, services, e-commerce, etc.). ADLPartner is listed on the regulated market Euronext Paris - Compartment C. ISIN: FR0000062978-ALP - Bloomberg: ALP:FP - Reuters: ALDP.PA www.adlpartner.com
CONTACTS
| ADLPartner Investor Relations & Financial Information tel: +33 1 41 58 72 03 relations.investisseurs@adlpartner.fr | Calyptus Cyril Combe tel: +33 1 53 65 68 68 adlpartner@calyptus.net |
[1] Net sales (determined in line with the French professional status for subscription sales) only include the amount of remuneration paid by magazine publishers; for subscription sales, net sales therefore correspond to a gross margin, deducting the cost of magazines sold from the amount of sales recorded. For acquisition and management commissions linked to sales of insurance policies, net sales comprise current and future commissions issued, acquired by the accounting reporting date, net of cancellations.
[2] Gross sales volume represents the value of subscriptions and other products sold. It is equal to net sales for the insurance business.
[3] Net asset value represents the amount of equity plus the discounted value of future net revenues generated by the active open-ended subscription portfolio.
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