ADLPartner: NINE-MONTH NET SALES STABLE AT €99.1M
PRESS RELEASE Paris, 27 November 2020 (6:00pm) ADLPartner: NINE-MONTH NET SALES STABLE AT €99.1M (-1%)GROWTH RESUMED IN THE THIRD QUARTER The ADLPartner Group is reporting 2020 third-quarter internet sales1 of €34.2m, up 3.2% from the identical interval in 2019, with a product sales volume2 of €70.2m, up 1.7%. For the primary 9 months of 2020, internet gross sales got here to €99.1m, down 1% in contrast with €100.1m for a similar interval in 2019, whereas the product sales quantity contracted 1.6% to €206.8m. For the reason that begin of the 12 months, the Group has been affected by the Covid-19 pandemic, however has demonstrated its means to resist the disaster, by way of each operational and monetary facets. The third quarter exhibits indicators of an upturn, together with the event of the digital advertising and marketing enterprise, which continues to characterize a rising share of the Group’s actions, climbing to 37.3% within the third quarter (35.0% for the primary 9 months of 2020). The Group’s gross sales have been additionally marked by the deliberate shutdown of the France Abonnements enterprise, with a -€6.2m impression on internet gross sales for the primary 9 months of 2020. The quarterly change within the Group’s gross sales for every enterprise line is introduced under: Product sales quantity €m20202019Change1st quarter72.770.3+3.4percent2nd quarter63.970.7-9.7percent3rd quarter70.269.0+1.7percentNine-month complete206.8210.1-1.6percentOf which: Magazines161.7172.7-6.4% Digital advertising and marketing40.833.4+22.2% Insurance4.24.0+6.8% Web gross sales€m20202019Change1st quarter35.633.5+6.3percent2nd quarter29.333.4-12.5percent3rd quarter34.233.2+3.2percentNine-month complete99.1100.1-1.0percentOf which: Magazines60.368.1-11.4% Digital advertising and marketing34.728.2+23.2% Insurance4.03.8+6.6% The breakdown of the Group’s gross sales for every area is as follows: At September 30 (€m)20202019Change Product sales quantity 206.8210.1-1.6percentFrance197.0200.1-1.5percentIberia9.710.0-2.2% Web gross sales 99.1100.1-1.0percentFrance90.591.5-1.1percentIberia8.68.5+0.8% Magazines: sturdy efficiency by persevering with operations Web gross sales for the magazines enterprise€m20202019Change1st quarter21.523.5-8.2percent2nd quarter18.822.3-15.8percent3rd quarter20.022.3-10.3percentNine-month complete60.368.1-11.4% Web gross sales for the open-ended subscription enterprise got here to €53.1m, down 2.7% from 30 September 2019. Following a second quarter considerably affected by the restrictions linked to the well being disaster, the reactivation of sure partnership campaigns that had been suspended enabled gross sales to stabilize within the third quarter. The subscription portfolio at 30 September 2020 totaled 2.6 million models, with a restricted year-on-year contraction of 0.7%. Web gross sales for the fixed-term subscription traces and the books, merchandise, audio and video vary got here to €7.6m, down -43%, considering the deliberate finish of gross sales beneath the France Abonnements model because the second quarter of 2020. In models30 Sep 202030 Sep 2019ChangeActive open-ended subscriptions2,628,5972,648,178-0.7% Insurance coverage: successfully managed development Web gross sales for the insurance coverage enterprise€m20202019Change1st quarter1.21.2+0.5percent2nd quarter1.41.4+3.9percent3rd quarter1.41.2+15.6percentNine-month total4.03.8+6.6% Web gross sales for the subsidiary ADLP Assurances (€4.0m) are up 6.6% in contrast with 30 September 2019. Gross sales have been buoyed by the resumption of the recruitment of recent clients in the course of the third quarter and the event of the policyholder portfolio. Digital advertising and marketing: return to robust development Web gross sales for the digital advertising and marketing enterprise€m20202019Change1st quarter12.98.8+46.0percent2nd quarter9.19.8-7.0percent3rd quarter12.89.6+33.0percentNine-month complete34.728.2+23.2% The digital advertising and marketing enterprise (advertising and marketing companies and consulting) recorded 23.2% internet gross sales development for the primary 9 months of the 12 months, with the gross margin3 up 18.0%. Third-quarter gross sales have been pushed by the resumption of sure advertisers’ budgets inside a worldwide context that’s however nonetheless unsure. The consulting enterprise confirmed the sturdy growth of the subsidiary Converteo, whose gross margin grew 26.8% over the primary 9 months of the 12 months to €13.6m. The advertising and marketing companies enterprise in France was affected by the contraction of promoting efforts for a number of clients, with its gross margin at end-September down 3.5% to €3.9m, together with a +€0.6m scope impact linked to the acquisitions of Ividence’s property in February, the corporate AWE in July and Pschhh’s property in August. In Spain, the enterprise exhibits extra constructive traits, with its gross margin climbing 15.7% to €3.9m, following a major upturn in operations within the third quarter. Gross margin for the digital advertising and marketing businessAt September 30 (€m)20202019Change Consulting – France13.610.7+26.8percentMarketing companies – France3.94.0-3.5percentMarketing companies – Iberia3.93.4+15.7percentTotal digital advertising and marketing21.518.2+18.0% Governance As indicated beforehand on 25 September, the Administration Board, as agreed with ADLPartner’s Supervisory Board, determined to suggest the transformation of the Firm’s governance construction on the common assembly on 11 December 2020. Topic to this proposal being authorised by shareholders, the present twin construction primarily based on a Supervisory Board and Administration Board might be changed by a corporation with a Board of Administrators. This proposed modification is in keeping with the Group’s dedication to simplifying its operational decision-making processes, whereas updating its technique and group round six enterprise divisions. A proposal might be submitted on the common assembly to nominate three new administrators: Ms Delphine Grison, Mr Stéphane Treppoz and Mr Xavier Gandillot. It’s going to even be proposed to reappoint the Supervisory Board members, aside from Mr Xavier Bouton and Ms Isabelle Spitzbarth, who had beforehand indicated that they wished to resign from their positions for private causes. Outlook In an unsure financial surroundings, the Group is optimizing its industrial investments in its journal and insurance coverage actions to help its portfolios producing recurrent revenues. Alongside this, it’s capitalizing on its monetary assets to sustainably strengthen its place as a significant participant for knowledge and digital advertising and marketing in Europe because of an aggressive exterior development technique. Subsequent dates General Assembly on 11 December 20202020 full-year internet gross sales on 26 February 2021 (after shut of buying and selling) ADLPartner in short With its in depth cross-channel advertising and marketing observe file and deep knowledge experience, the ADLPartner Group designs, markets and implements buyer acquisition, loyalty and relationship administration companies by itself behalf or for its companions throughout all distribution channels. The Group works with 50% of the businesses from the CAC 40 and huge numbers of mid-market corporations. The ADLPartner Group recorded internet gross sales of €139m in 2019 and employs greater than 500 individuals. ADLPartner is listed on the regulated market Euronext Paris – Compartment C.ISIN: FR0000062978–ALP – Bloomberg: ALP:FP – Reuters: ALDP.PA www.adlperformance.com CONTACTS ADLPartnerInvestor Relations & Monetary InformationTel: +33 (0)1 41 58 72 firstname.lastname@example.org CalyptusCyril Combe Tel: +33 (0)1 53 65 68 email@example.com 1 Web gross sales (decided in keeping with the French skilled standing for subscription gross sales) solely embrace the quantity of remuneration paid by journal publishers; for subscription gross sales, internet gross sales due to this fact correspond to a gross margin, deducting the price of magazines offered from the quantity of gross sales recorded. For acquisition and administration commissions linked to gross sales of insurance coverage insurance policies, internet gross sales comprise present and future commissions issued, acquired by the accounting reporting date, internet of cancellations. 2 Product sales quantity represents the value of subscriptions and different merchandise offered. It is the same as internet gross sales for the insurance coverage enterprise. Three The gross margin for the digital advertising and marketing enterprise represents the overall quantity of internet gross sales (complete invoices issued: charges, commissions and purchases charged again to clients) much less the overall quantity of prices for exterior purchases made on behalf of consumers.