Adthink announces strong progress in earnings
On September 24, Adthink (ALADM) announced strong growth in results and profits for the first half of 2020.
The group is continuing the profitability trend started in fiscal 2019, driven by activities that were slightly impacted by the context of the COVID-19 crisis and by efficient structures. Adthink is resilient and confident in its continued development, backed by strategic commercial projects over the coming months and while remaining vigilant on its profitability.
Adthink achieved a consolidated turnover of €5.14M as of June 30, 2020, a very contained decline of only -2.12% compared to the first half of the previous year, despite the health and economic crisis. Activity remained dynamic over the first half of the year, comprising on the one hand an acceleration in the distribution of digital content and e-commerce by subscription and, on the other hand, a refocusing of digital marketing activities on the most promising sectors in the period.
The group had announced an increase in profitability and kept its commitments. After having communicated a return to operational profitability for the whole of the 2019 financial year, Adthink continued its optimization and rationalization efforts and posted a positive EBITDA of €0.67M as of June 30, 2020, net improvement compared to -€0.06M on June 30, 2019.
Adthink’s operating income reached €0.70M at the end of the half-year, compared to an operating loss of -€0.13M in the first half of the previous year. This performance reflects the success of the restructuring carried out at the end of 2019 coupled with a variability in fixed costs which resulted in a 35% reduction in the wage bill.
The group recorded an exceptional result of -€0.11M, mainly linked to capital transactions including: -€0.05M from malus on repurchase of own shares and -€0.05M from scrapping a project.
Adthink returned to profitability, generating a net profit of €0.59M as of June 30, 2020 against a net loss of -€0.21M in the first half of 2019.
Jonathan Métillon and Sébastien Balestas, Deputy general managers, add: « We are proud of what the team delivered in the first half of the year, despite the challenges caused by the COVID-19 pandemic. We have managed to regain profitability by deploying our marketing intelligence, both internally and for our customers, whom we thank for their confidence, renewed several times. Confirmed in our strategy, we are stepping up our efforts to develop in B2C and B2B while continuing to control our costs. Our goal is always to deliver sustained and profitable growth ».
Learn more about Adthink: Investor Relations.