Adthink publishes 2020 Earnings
2020 annual earnings: return to profitability confirming the relevance of the new strategy
Outlook for 2021: acceleration of the offer expansion
|Consolidated statements, €M||FY 2020||FY 2019||Variation|
|Net income Group share||0.69||(1.10)||NA|
« Our return to profitability in 2020, despite a health environment which has affected part of our activities, testifies to the relevance of our strategy of resizing our structure and enriching our high added value offer in digital distribution & marketing. Focused on the most promising segments and relying on exclusive proprietary developments, our teams are now equipped to conquer new markets. With our strengths, we are confident to pursue our developments in 2021 » declares Jonathan Métillon, Chairman and CEO of Adthink.
Resilience of revenue in a sensitive context
Adthink (ENXTPA:ALADM), digital distribution & marketing expert, announces consolidated revenue of €10.24M, up +1.4% (+0.4% on a like-for-like basis). This growth, in a context of the health crisis that has affected the advertising markets, is based on the rise of digital distribution and performance marketing services.
Return to profitability with a strategy focused on added value
In 2020, in a sensitive economic context, Adthink managed to maintain its gross margin rate at 50%. Taking into account the second half of 2020 charges related to the strengthening of electronic payment security and the optimization of the digital distribution offer, EBITDA reached €0.77M compared to €0.05M in 2019 and the result of operating progressed to €0.79M against a loss of €0.10M in 2019. These performances were driven by the resizing of overhead costs and a growing contribution from digital distribution services as well as the diversification of digital advertising activities to clients resilient to the health situation.
After taking into account a financial result of (0.08) €M linked to the increase in interest charges from new borrowings, the Group share of net income for the period came to €0.69M against a loss €1.10M in 2019 partly related to the costs of resizing the company and repositioning its offer. Diluted net earnings per share 2020 came to €0.11.
Strengthening the balance sheet to prepare for the future
The balance sheet on December 31, 2020 shows equity of €4.35M compared to €3.57M at the end of 2019 and a net debt ratio limited to 13.7% of 2020 year-end equity compared to 30.7% in 2019 year-end. Available cash reaches €1.88M, enabling the Group to pursue its policy of investing and acquiring new expertise and technologies.
Outlook: new developments to open up new markets
In 2021, Adthink is continuing its developments in distribution and digital marketing as well as in the monetization of content in order to conquer new markets. The Group remains attentive to media acquisition opportunities to complete its value chain as well as external growth opportunities in additional expertise and digital distribution.
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