AdUX : 2018 Annual results

Paris, April 24, 2019, 8:40 am

2018. Annual results

• 2018 revenue for new scope of consolidation ⁽¹⁾ €26.3 million
   
• Results strongly impacted by the scope reorganization and non-recurring items
   
  • -€2.9 million EBITDA⁽²⁾
  • Provisions for risks and charges & Impairment of receivables:                 -€2 million
  • Impairment of goodwill: -€8.5 million
  • Earnings from discontinued operations: -€2.5 million

Paris, April 24, 2019, 8:40 am - The digital advertising group AdUX (ISIN code FR0012821890 - ADUX) release its annual results for the 2018 financial year.

A temporarily impacted activity base

2018 revenue stood at €26.3 million, down €2.7 million at constant scope in 2017. The business contraction was mainly due to the loss of a major contract in Sweden (€1.4 million). The impact of the recently-implemented GDPR (General Data Protection Regulations), which led to a wait-and-see attitude in the Advertising market during the second half has affected the Group's three subsidiaries: Quantum on Native advertising, Admoove on the Drive to Store and Adpulse on social marketing. However, Quantum’s native advertising business continued to grow.

Analysis of the income statement

In millions of €uro	2018	2017 ([3])	Change
Revenues from operations	26.3	29.0	-2.7
Expenses invoiced by media	-13.8	-13.7	-0.1
Gross margin	12.5	15.3	-2.8
Purchasing	-6.3	-4.1	-2.2
Personnel costs	-9.1	-10.3	1.2
EBITDA	-2.9	0.9	-3.9
Charges and reversals of depreciation, amortization and provisions	-2.7	-2.6	-0.1
Current operating income from ordinary activities	-5.6	-1.7	-3.9
Valuation of stock options and free shares	-0.5	-0.3	-0.3
Other non-recurring income and expenses	-12.3	-0.2	-12.1
Operating income (loss)	-18.4	-2.1	-16.3
Cost of debt	0.0	0.0	0.0
Other financial income and expenses	-0.4	-0.4	0.0
Income from consolidated companies	-18.9	-2.6	-16.3
Share in the results of companies accounted for by the equity method	0.0	0.0	0.0
Pre-tax income of consolidated companies	-18.9	-2.6	-16.3
Taxes	-0.1	0.1	-0.1
Net income from continuing operations	-18.9	-2.5	-16.4
Earnings from discontinued operations	-2.5	-2.1	-0.4
Net income (loss)	-21.4	-4.6	-16.8
Minority interests in continuing operations	0.0	0.2	-0.2
Minority interests in activities sold or held for sale	0.0	0.2	-0.2
Of which Group share	-21.4	-4.2	-17.3

With a revenue of €26.3 million, the gross margin was €12.5 million, with personnel costs decreasing to €9.1 million and external costs rising to €6.3 million mainly due to new geographic locations for Quantum, and Group's technology platforms technical migrations which have led to additional costs in the second half of the year but which will led to savings during the second quarter of 2019. Thus, EBITDA stands at -€ 2.9 million. Depreciation and amortization charges remained stable at €2.7 million, while current operating loss amounted to €5.6 million.

In addition, the termination in Sweden of a historical commercial contract and the sale of its historical business in Belgium led to the Group writing down €8.5 million in goodwill, corresponding to most of the other non-recurring income and expenses in 2018. After accounting for financial expenses and taxes, the Group's consolidated net loss amounted to €21.4 million.

As of 31 December 2018, the company had a gross cash position of €2 million.

Future Prospects

The beginning of the current financial year 2019 was marked by a decline in the activity of the Swedish subsidiary, as a result of losing a major contract in August 2018, of which the full effects will be felt in the course of this year. The fall-off in revenue 2019 can also be attributed to the opening of safeguard proceedings (“procédure de sauvegarde”) for Quantum, the Group’s native advertising subsidiary, following a conviction in a commercial dispute for an amount of 1.07 million euros. A provision for this entire amount was recognized in 2018 financial statements.

Notwithstanding, AdUX expects its native advertising business to continue to grow and recently announced the acquisition of LAGORA to strengthen its positions in the Spanish market. AdUX also expects Admoove, its drive-to-store business, to rebound in France and Belgium.

AdUX aims to continue its development, doing so in synergy with the activities of its reference shareholder Azerion, which recently joined the Board of Directors with 3 co-opted members (ensuring majority representation on AdUX's Board of Directors).

The annual and consolidated financial statements, which were approved by the Board of Directors of AdUX SA on April 15, 2019, have been audited, and un unqualified opinion has been issued by the auditors. The annual financial report on the financial statements for the year ended December 31, 2018 will be available within the legal deadlines at the Company's website at www.adux.com under the heading "Investors".

Next financial Press Release

First quarter 2019 revenue, to be released on Thursday, May 2, 2019 after close of trading.

About AdUX
A pioneer in the sector, AdUX is a European specialist in digital advertising and user experience.
AdUX, which operates in 7 European countries, generated revenue of €26 million in 2018, is listed on compartment C of Euronext Paris and holds the "Innovative Company" label, thanks to which FCPI funds (i.e., French mutual funds specialized in innovation) are authorized to invest in AdUX, with fund subscribers entitled to the corresponding tax benefits.

ISIN code: FR 0012821890 / LEI: 969500IIE66C3CFB1K57 / Mnemo: ADUX

For more information, visit www.adux.com and [e-mail]
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LinkedIn: http://www.linkedin.com/company/adux_en

Investor and analyst contact
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Press Contact
Antidox
Nicolas Ruscher
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This press release may contain certain forward-looking statements. Although AdUX Group believes that these statements are based on reasonable assumptions as of the date of this press release, they are by their nature subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by these statements. AdUX Group operates in a highly evolving sector in which new risk factors may emerge. AdUX Group does not undertake any obligation to update these forward-looking statements to reflect new information, events or other circumstances.

 ⁽[1]⁾ The new scope of consolidation represents all the activities of the Group adjusted for the disposals of the traditional Spanish, Belgian and Portuguese activities.

^([2]) Current operating income before depreciation, amortization and provisions.  

^([3]) The data presented as at 31 December 2017 were prepared on the basis of the 2017 consolidated financial statements published, less the activities sold or held for sale (Belgium, Portugal, France and Italy)

Attachment

• AdUX - EN - CP Resultats 2018