LLAMA GROUP SA ISIN : BE0974334667 / mnémonic : ALAVY
PRESS
RELEASE
2021
6 April 2021 - 08:30 CEST
2020 annual results: AudioValley announces marked improvement in its operating profitability and the preparation of a new growth plan.
- Operating income before depreciation and amortization up €1,170K
- Vivendi debt fully repaid
- Strong growth in the first quarter of 2021
- Preparing for the launch of a new business line
AudioValley, an international specialist in B2B solutions in digital audio, (ISIN code: BE0974334667 / mnemonic: ALAVY) has published its annual results for the 2020 financial year and its revenue for the first quarter of 2021.
Alexandre Saboundjian, CEO: "2020 was marked by several exceptional events. The health crisis of course, but also the early repayment of our debt to the Vivendi group and the signing of strategic partnerships that enabled us to make up for much of the decline in our business, heavily impacted by the fall in advertising investment at the start of the coronavirus crisis. As our results show, we were able to confront the crisis by controlling our costs. These measures and the resilient mindset that spurred each member of our teams led to a remarkable €1,170K improvement in operating income before depreciation and amortization (from - €548K in 2019 to +€622K in 2020)! In early 2021, we signed new strategic partnerships that give us access to new territories such as Scandinavia. We are also preparing to launch a new rights management business in Europe, a market worth €10 billion!"
www.audiovalley.com | Investor relations: Sébastien Veldeman • investorrelations@audiovalley.com |
1 | Press Relations : Emilie Dehan • press@audiovalley.com |
PRESS | ||||||||
RELEASE | ||||||||
ISIN : BE0974334667 / mnémonic : ALAVY | 2021 | |||||||
KEY FIGURES | ||||||||
in €000 - IFRS standards - audited | 2020 | 2019 | Change | |||||
Revenue | 19.583 | 21.962 | -10,8% | |||||
Cost of sales | (10.290) | (12.223) | -15,8% | |||||
Payroll costs | (6.409) | (6.998) | -8,4% | |||||
Other administrative and commercial expenses | (2.262) | (3.289) | -31,2% | |||||
Operating income before depreciation and | 622 | (548) | +1.170 K€ | |||||
amortization | ||||||||
Depreciation and amortization | (3.977) | (4.184) | -4,9% | |||||
Operating income after depreciation and | (3.355) | (4.732) | +1.377 K€ | |||||
amortization | ||||||||
Other income | 9 | +9 K€ | ||||||
Other expenses | (25) | (44) | +19 K€ | |||||
Operating income | (3.371) | (4.776) | +1.405 K€ | |||||
Gain on disposal / revaluation of equity interest | 7.091 | -7.091 K€ | ||||||
Financial income/loss | (1.908) | 2.276 | -4.184 K€ | |||||
Income taxes | 448 | (260) | +708 K€ | |||||
Net income from continuing operations | (4.830) | 4.331 | -9.162 K€ | |||||
Net income from discontinued operations | 450 | -450 K€ | ||||||
Net income (Group share) | (4.830) | 4.781 | -9.612 k€ |
www.audiovalley.com | Investor relations: Sébastien Veldeman • investorrelations@audiovalley.com |
2 | Press Relations : Emilie Dehan • press@audiovalley.com |
PRESS
RELEASE
ISIN : BE0974334667 / mnémonic : ALAVY | 2021 |
ANALYSIS OF FIGURES
Revenue down only 10%
In 2020, the Group posted a slight decline in business of 10.8% compared with 2019 (€19.6M vs €22M). At constant exchange rates, this fall was 10.1%.
Activity was strongly impacted by the coronavirus crisis, particularly in Q2 when lockdown measures appeared (-22% compared to Q2 2019). Targetspot's business was impacted by the fall in advertiser ad budgets, especially in the retail sector. The closure of retail outlets also impacted in-store music broadcast licensing.
There was a marked pick-up in activity at the beginning of the summer, mainly thanks to strong growth in European business at Targetspot, which helped to limit the decline in sales for the full financial year. The recruitment of several talents also worked in the Group's favor.
Globally, for the full year, media budgets fell -31% in Europe and -24% in the US1. AudioValley's activity was therefore, comparatively, very satisfactory.
Targetspot (89% of consolidated revenue): international expansion and European growth
Targetspot ended the year with revenue of €17.4M, down only 9.8% compared with 2019 (9% fall at constant exchange rates). This performance was the result of strong activity in the United States despite the crisis (€11.3M compared with €14.1M in 2019, which represents a fall of 18.7% at constant exchange rates, and the rapid growth of Targetspot in Europe (€6.1M compared with €5 .1M in 2019, i.e. +18.4%). Despite the various lockdowns in Europe that impacted revenue in the 4th quarter, the growth observed reflects the potential in extremely buoyant markets.
The launch in April of Passport Explore, the most advanced digital audio campaign optimization and management platform on the market, was very well received (press release of 23 April).
Targetspot contributed to AudioValley's expansion with the signing of a major partnership in 2020 with MediaDonuts, an international group specializing in advertising technologies, covering India and South-East Asia, and a partnership with Sonos to exclusively monetize their new streaming service Sonos Radio, with its 60,000 radio stations, in 11 countries (press release of 29 April 2020). Targetspot is forecasting significant growth in 2021.
1Source: World Federation of Advertisers.
www.audiovalley.com | Investor relations: Sébastien Veldeman • investorrelations@audiovalley.com |
3 | Press Relations : Emilie Dehan • press@audiovalley.com |
ISIN : BE0974334667 / mnémonic : ALAVY
PRESS
RELEASE
2021
Jamendo (11% of revenue): a highly promising collaboration
The Jamendo division recorded revenue of €2.2M, a decrease of 18.2%.
The Covid crisis significantly impacted Jamendo's activity during the 1st half of the year (-22.7% compared with the 1st half of 2019). Business improved somewhat in the second half of the year (-13.2%), mainly due to implementation of the new subscription offer, as well as the signing of a global partnership with Adobe (press release of 22 June 2020) for the launch of Adobe Stock audio which integrates thousands of Jamendo audio tracks with its Premiere Pro software. This partnership expands sources of revenue for Jamendo and its musicians, while benefiting from international visibility.
The creation of Jamendo Rights Management at the end of 2020, a new business line devoted to collective music rights management, will enable Jamendo to broaden its scope of action in terms of managing and monetizing rights. This new activity, which is being prepared for commercial launch, will be a springboard for attracting new talent looking for channels to showcase their musical works. The first revenue from the deployment of Jamendo Rights Management is expected in 2021.
Operating income before depreciation and amortization positive and up €1,170K!
The best illustration of Audio Valley's resilience is the sharp improvement in its operating income before depreciation and amortization (OIBDA) which was positive, up €1,170K! This grew to €622K compared with -€548Kin 2019 mainly due to:
- a significant increase in the consolidated gross margin in 2020, at 47.5%, compared with 44.3% a year earlier; and
- control of fixed costs: temporary or permanent layoffs in the different countries where they were applied facilitated a 8.4% reduction in personnel costs compared with 2019. More generally, other operating expenses, mainly marketing and travel expenses, were cut back as much as possible and were down 31.2% compared with 2019. The company also received grants amounting to €340K.
This improvement in OIBDA is a continuation of the trend that began in 2019, when it had already increased by €1,125K.
www.audiovalley.com | Investor relations: Sébastien Veldeman • investorrelations@audiovalley.com |
4 | Press Relations : Emilie Dehan • press@audiovalley.com |
ISIN : BE0974334667 / mnémonic : ALAVY
PRESS
RELEASE
2021
Sébastien Veldeman, CFO: "The speed at which the teams adapted as soon as the pandemic appeared enabled AudioValley to cope with this difficult period. We have implemented strict cost control and cash flow protection measures at Group level, through temporary or permanent layoffs, subsidies and maximum cutting back of other operating expenses."
- Targetspot - The improvement in the Group's operating profitability stemmed exclusively from the Targetspot division: its OIBDA rose from - €0.2M in 2019 to €1.1M in 2020, an increase of more than €1.3M. In addition to controlling costs, this improvement was also due to the increase in the division's gross margin rate to 45.8% compared with 42.4% in 2019.
- Jamendo - The Jamendo division saw a sharp downturn in its activity, with less leeway for reducing costs. It recorded a negative OIBDA of -€0.1M for the year. The gross margin rate also improved compared with 2019 (60.8% versus 58%).
www.audiovalley.com | Investor relations: Sébastien Veldeman • investorrelations@audiovalley.com |
5 | Press Relations : Emilie Dehan • press@audiovalley.com |
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
AudioValley SA published this content on 06 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 April 2021 06:37:03 UTC.
