SYZYGY AG: SYZYGY boosts sales by 6 per cent and operating income by 34 per cent
October 25, 2018 at 05:50 am EDT
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DGAP-News: SYZYGY AG / Key word(s): 9-month figures/Quarter Results
SYZYGY AG: SYZYGY boosts sales by 6 per cent and operating income by 34 per cent
25.10.2018 / 11:46
The issuer is solely responsible for the content of this announcement.
Sales up by 6 per cent to EUR 48.1 million
Operating income increased by 34 per cent to EUR 4.5 million
Net income up almost 10 per cent to EUR 3.7 million
Outlook for 2018: forecast confirmed, double-digit sales growth with rising profitability
The SYZYGY Group remains on its growth trajectory, with a rise in sales of 6 per cent to EUR 48.1 million in the first nine months of 2018. Operating income (EBIT) improved significantly, climbing 34 per cent to EUR 4.5 million, while the EBIT margin rose from 7.5 per cent to 9.5 per cent.
The depreciation of the pound sterling negatively impacted sales performance by EUR 0.5 million. The Germany segment in particular is on track, with 22 per cent growth and a 14 per cent EBIT margin. Restructuring costs at the UK branch adversely affected earnings in the UK segment, with EBIT coming in at just EUR 0.2 million.
Financial income accounted for EUR 0.3 million of the total (previous year EUR 1.4 million). The annualised return on the securities portfolio was 4 per cent.
Liquid funds and securities rose from EUR 16.0 million to EUR 17.7 million in the nine-month period. Operating cash flow more than compensated for the outflow of funds resulting from the dividend distribution of EUR 5.2 million.
Earnings before tax rose to EUR 4.9 million, while net income grew to EUR 3.7 million. Earnings per share amounted to EUR 0.27, or EUR 0.10 in the third quarter.
Despite the Brexit-induced uncertainty in the UK, the SYZYGY Group has decided to invest in the market and has gained Ita Murphy, one of the most experienced communications professionals in the country, as UK CEO. Her CV includes many years as managing director of media agency Mindshare and she has also held a variety of other senior positions on the client and media side. Ita Murphy has excellent links to the British business community and will primarily drive growth in new business and work on expanding the UK agency.
"The positive performance seen in the current year is an endorsement of the reorganisation measures we took last year. Restructuring and the integration of acquisitions such as diffferent and Catbird Seat are bearing visible fruit. This is paying off especially in Germany, our home market, which is outperforming with impressive growth of 22 per cent. Given the number of new client wins and new business enquiries, we are optimistic about the coming months," commented Lars Lehne, Chairman of the Management Board of SYZYGY AG.
Q3 2018
Q3 2017
Change
9M 2018
9M 2017
Change
Sales
(kEUR)
15,839
15,093
5%
48,062
45,373
6%
EBIT (kEUR)
1,751
1,283
36%
4,545
3,389
34%
EBIT margin
11.1%
8.5%
2.6pp
9.5%
7.5%
2.0pp
Financial income
(kEUR)
100
521
-81%
335
1,429
-77%
Earnings before tax (kEUR)
1,851
1,804
3%
4,880
4,818
1.3%
Net income
(kEUR)
1,369
1,203
14%
3,693
3,371
10%
Earnings per share
(EUR)
0.10
0.11
-10%
0.27
0.31
-15%
Operating cash flow (kEUR)
4,314
5,671
-24%
9,205
2,923
215%
The SYZYGY Group expects this strong performance to continue in the current year and is confirming the forecast for the full year 2018. The assumption is still of double-digit sales growth and a rise in the EBIT margin in the upper single-digit range.
The full quarterly report will be available at http://ir.syzygy.de from November 2, 2018.
Contact:
Susan Wallenborn
Investor & Public Relations Manager
s.wallenborn@syzygy.de
25.10.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de
Language:
English
Company:
SYZYGY AG
Horexstraße 28
61352 Bad Homburg v.d.H.
Germany
Phone:
06172 9488100
E-mail:
info@syzygy.de
Internet:
www.syzygy.net
ISIN:
DE0005104806
WKN:
510480
Listed:
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
Syzygy AG is a Germany-based digital marketing company. The Company's activities include, among others, digital production services, such as film and computer generated imagery, Search Engine Marketing (SEM), Facebook advertising and affiliate marketing, and display and real time advertising. It operates through four segments: The Germany segment comprises the Company's activities in Germany; the United Kingdom segment covers clients from the United Kingdom; the United States segments includes the Company's activities in the United States, and the Other segment, which comprises Ars Thanea Rozbicki ska, a Poland-based subsidiary. The Company operates through offices in London in the United Kingdom, New York in the United States and Warsaw in Poland, as well as through offices in Berlin, Frankfurt, Hamburg and Munich in Germany.
SYZYGY AG 
