SYZYGY AG: Slight decline in sales, profitability unchanged
July 25, 2019 at 05:50 am EDT
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DGAP-News: SYZYGY AG / Key word(s): Half Year Results
SYZYGY AG: Slight decline in sales, profitability unchanged
25.07.2019 / 11:46
The issuer is solely responsible for the content of this announcement.
- Sales down by 2 per cent to EUR 31.6 million in first half of year
- Continuing growth in core German market with 14 per cent EBIT margin
- Operating income up marginally at EUR 2.8 million
- Net income EUR 2.1 million
- Outlook for 2019: sales at the previous year's level overall, with positive business performance in Germany contrasting with a decline in international business; operating EBIT margin of 8 to 9 per cent expected
The SYZYGY Group generated sales of EUR 31.6 million in the first 6 months of the financial year. This represents a fall of 2 per cent compared to the same period in the previous year. The German core market saw continuing solid growth, with sales of EUR 23.6 million, resulting in an EBIT margin of 14 per cent.
Earnings before tax were largely unchanged over the previous year at EUR 2.8 million, while net income declined to EUR 2.1 million. Earnings per share were EUR 0.15 overall and EUR 0.07 in the second quarter.
At EUR 15.8 million, sales in the second quarter were 5 per cent below the figure for the previous quarter. Operating income (EBIT) amounted to EUR 1.4 million, corresponding to an EBIT margin of 8.6 per cent.
Liquid funds and securities declined from EUR 13.7 million to EUR 8.3 million in the reporting period. This figure includes the dividend of EUR 5.4 million paid on June 12, 2019.
The positive sales trend in the German core market was unable to offset the weaker than expected performance of the international companies. This trend will continue in the second half of the year. Overall, the somewhat softer economy, especially in the UK market, is having an adverse impact on the SYZYGY Group's order book.
Accordingly, SYZYGY AG expects sales to remain at the prior-year level in the current financial year. Restructuring charges from international operations will be somewhat higher, with the result that an operating EBIT margin of 8 to 9 per cent is expected.
Multiple new client wins in the German market suggest that performance and growth in the core market will remain strong.
Q2 2019
Q2 2018
Change
H1 2019
H1 2018
Change
Sales (kEUR)
15,877
16,799
-5%
31,566
32,223
-2%
EBIT (kEUR)
1,365
1,690
-19%
2,807
2,794
0%
EBIT margin
8.6%
10.1%
-1.5 pp
8.9%
8.7%
0.2 pp
Financial income (kEUR)
-10
84
n.a.
-18
235
n.a.
Earnings before tax (kEUR)
1,355
1,774
-24%
2,789
3,029
-8%
Net income (kEUR)
1,017
1,404
-28%
2,092
2,324
-10%
Earnings per share (EUR)
0.07
0.10
-30%
0.15
0.17
-12%
Operating cash flow (kEUR)
3,048
978
n.a.
-6,220
4,891
n.a.
The full six-monthly report will be available at http://ir.syzygy.de from August 2, 2019.
Contact:
Susan Wallenborn
Investor & Public Relations Manager
s.wallenborn@syzygy.de
25.07.2019 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 
