H1 2016 results

Luxembourg (Grand-Duchy of Luxembourg) – 2 September 2016 – Valtech SE [Euronext Paris: FR0011505163 - LTE], first independent European agency in digital and technology marketing, announced its results for the first half of FY 2016, ending on 30 June 2016. The Board of Directors met on August 30, 2016 to finalize the half-yearly statements. Auditors have not issued a report on these accounts.

Group key figures

(in € million)
H1 2016
H1 2015
Change
Change at constant scope⁽¹⁾ and exchange rates
2015

Revenue
102.6
87.6
+17.1%
+13.5%
184.9

Cost of sales
(68.2)
(58.5)

+13.5%
(122.0)

Gross margin
34.4
29.1
+18.2%
+13.3%
62.9

Commercial costs
(7.0)
(5.2)
+33.6%
+27.2%
(11.5)

Administrative costs
(22.2)
(19.4)
+14.5%
+11.9%
(40.9)

Adjusted EBITDA⁽²⁾
6.9
6.4
+5.9%
+0.9%
14.8

Adjusted EBITDA margin
6.7%
7.4%

8.0%

EBITDA
5.6
5.4

-3.9%
12.6

Amortization, depreciation and provisions
(1.3)
(0.9)

(2.6)

EBIT
4.3
4.5
-4.6%
-11.4%
10.0

Income from discontinued operations
(2.5)
(0.6)

(1.5)

Net income
(0.1)
2.0

5.4

(1) Excluding the impact of the integration of w.illi.am/, company consolidated on 1 July 2015.

(2) The adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) excludes the exceptional elements and the REW plan expenses.

Sebastian Lombardo, Valtech's CEO, said:

« Despite growth remaining strong, H1 has proved to be more difficult than anticipated in terms of profitability, affected adversely by postponements or cancellations of several projects in the US and UK that have impacted the group's operations. Although this seems to be related to cyclical phenomena, such as the approach of the US presidential elections or in connection with the Brexit, and while the second half should be better than the first, we remain cautious about the prospects for the coming quarters. »

KEY FIGURES

In H1 2016, Valtech has recorded consolidated revenue of € 102.6 million, up by +17.1%, or +13.5% at constant scope and exchange rates. All regions contributed to the group's growth in the first half, particularly the North America and Asia - Pacific regions, with respective increases of +41.3% and +40.9%.

Up by +18.2%, the gross margin totalled € 34.4 million over the past half year, representing a gross margin rate of 33.5% against 33.2% in H1 2015.

The half-year adjusted EBITDA amounted to € 6.9 million, against € 6.4 million a year earlier, an increase of 5.9%. Commercial costs increased by 33.6%, going from € 5.2 million to € 7.0 million to support the group's development, which explains its less sustained progress compared to the revenues. The adjusted EBITDA margin was 6.7%, against 7.4% during H1 2015.

The EBIT amounted to € 4.3 million, slightly down by -4.6%, due to restructuring charges and other major non-recurring expenses over the past half year.

Net income amounted to (0.1) M€ in H1 2016, against a profit of € 2.0 million a year earlier. It includes in particular a loss of € 2.5 million consecutive to the disposal, in early 2016, of non-strategic IT services businesses in the US and a provision for litigation.

On 30 June 2016, equity amounted to € 58.4 million, for cash reserves of € 17.4 million and borrowings and bank overdrafts of € 6.2 million, of which € 5.0 million is a loan from the shareholder Verlinvest, finalized on June 30, 2016 to finance the acquisition of the Dutch digital agency eFocus on 1 July 2016. After the end of the first half, Valtech conducted a private placement on July 27 for an amount of € 42.5 million, which has notably permitted repayment, in late July, of a € 5.0 million loan granted by Verlinvest.

OPERATING INCOME TO ADJUSTED EBITDA RECONCILIATION TABLE

Group key figures - (M€)
H1 2016
H1 2015
2015

EBIT
4.3
4.5
10.0

Amortization and provisions
(1.3)
(0.9)
(2.6)

EBITDA
5.6
5.4
12.6

Restructuring and exceptional
(0.7)
(0.5)
(1.1)

REW plan expenses
(0.6)
(0.5)
(1.1)

Adjusted EBITDA
6.9
6.4
14.8

ABOUT VALTECH

Valtech [Euronext Paris: FR0011505163 - LTE] is a digital marketing agency, pioneer in technology with a presence in 13 countries (Germany, Australia, Canada, Denmark, USA, France, India, Luxembourg, Netherlands, United Kingdom, Singapore, Sweden and Switzerland) and approximately 1,800 employees. As a "digital full service" player, Valtech knows how to add value to its customers at all stages of a digital project: strategy consulting, design, graphic design, development and optimization of business-critical digital platforms. Thanks to its recognized commitment to innovation and agility, Valtech helps brands to develop and grow their business with web technologies while optimizing time to market and return on investment (ROI).

INVESTOR CONTACT

Mr Sebastian Lombardo

CEO

[email protected]
PRESS CONTACT

ACTUS – Nicolas Bouchez

+33 1 53 67 36 74

[email protected]