Paris, 10 April 2014
Press Release
NetBooster - 2013 RESULTS
NetBooster (FR0000079683 - ALNBT - PEA-PME eligible) today announces its financial results for 2013.
BUSINESS AND RESULTS WEAK IN FIRST HALF SEMESTER, STRONG IN SECOND HALF, WITH POSITIVE OUTLOOK
In 2013, the gross margin of NetBooster increased by 1% in comparison to the same period of 2012. During the year, the management team notably focused its efforts on developing client portfolio towards a more added value, key clients. The strategy to restructure the client portfolio came into effect during the second half of the year, following a disappointing first half in terms of commercial development.
2013 was a year of turnaround and reorganisation, with a focus on efficiency and a better management. Profitability in the first half semester was significantly impacted by the level of the group overhead costs and the inefficiencies of some regions. Furthermore, one-off costs that impacted the results were investments in new product areas, the depreciation of trade receivables, costs mainly recorded over the first half and the complete write-off of the liabilities of the Brazil shareholding. As a result global EBITDA was down by 27% at €2.7m, (i.e. an EBITDA/gross earnings ratio of 7.8%) compared to the same period of 2012. During the second semester with new management in place, the Company experienced a positive cash-flow, the end of all earn-out payments, and a better profitability.
Change in the gross margin and EBITDA between 2012 and 2013
| Profit and loss account (€m) | H1 | H2 | TOTAL | ||||||
| 2012 | 2013 | Change | 2012 | 2013 | Change | 2012 | 2013 | Change | |
| Gross Margin | 16.5 | 16.9 | 2% | 17.7 | 17.5 | -1% | 34.2 | 34.4 | 1% |
| EBITDA | 1.3 | 0.4 | -69% | 2.4 | 2.3 | -4% | 3.7 | 2.7 | -27% |
| As a % of gross margin | 7.9% | 2.4% | 13.5% | 13.1% | 10.8% | 7.8% | |||
TURNAROUND OF BUSINESS AND RESTRUCTURING EFFORT IN H2
In the first half of 2013, the Company experienced a negative development with a decrease of EBITDA of 69% compared to the year before. A change in the management team in June 2013 and restructuring efforts put in place enabled the Company achieve an EBITDA of €2.3m, a return to the previous profit levels in H2. This work on the Company's profitability was accompanied by (i) the arrival of new clients, across regions and products (ii) the reduction of group overheads and (iii) the restructuring of some regions.
Once non-recurrent expenses of €0.9m over the period (including fees associated with the restructuring of Guava Group and the depreciation of equipment in the former Paris office), and a negative tax result of €1.0m are taken into account, the Group posted a net attributable loss of €5.2m. This result, compared with a loss of €4.0m in 2012, is affected by the straight-line amortization of goodwill in accordance with French accounting standards (€4.1m).
CASH POSITION AND FINANCIAL STRUCTURE
The Group recorded positive operating cash flow of €1.6m, which contributed to the payment in full of the final installment of the earn-outs, ensuring sufficient cash position of €7.5m, confirming NetBooster's fundamental financial structure.
2014 OUTLOOK
Tim Ringel, CEO of NetBooster, comments: "2013 marked a pivotal stage in NetBooster's strategy, with the Group having undertaken substantial efforts over the period to develop the client portfolio on one hand and to optimize its cost structure on the other hand. These efforts are already bearing fruit, as illustrated by the improvement in profitability over the final quarter. NetBooster, which passed a tipping point in the final quarter of 2013, is therefore ideally positioned to grow in profitability in 2014"
NEXT EVENT
Publication of first-quarter results and outlook for 2014: 29 April 2014, after market close.
About NetBooster Group
NetBooster is an independent international performance agency that makes its comprehensive expertise of digital marketing available to its clients to achieve the best possible performance for their investments. The agency invests in technology and covers the entire chain of online marketing through its European network: search engine optimisation and marketing, display, affiliation, online media, creation, eCRM and social networks, with a recognised expertise in tomorrow's digital marketing (Social Media, Video, Ad Exchange, etc.). Shares in NetBooster are traded on the NYSE Alternext Paris.
Information
For more information please contact:
Contact Presse Communication Financière
Samira CHAKKAF ANDALOUCI Louis-Victor DELOUVRIER
Pepper Menthe Communication NewCap.
Tel. + 33 (0)7 86 11 14 52 Tel. + 33 (0)1 44 71 98 53 /
+ 33 (0)1 44 71 94 94
samira@peppermenthe.com lvdelouvrier@newcap.fr
