Weborama : 2018 first-half earnings
2018 first-half earnings
Growth driven by Data Science solutions
Earnings impacted by investment efforts, particularly in the US
Press release - Paris, September 27, 2018, 5:45pm
Weborama (FR0010337444 - ALWEB - PEA PME), a global leader for data science delivering scientific consumer insights, is reporting its earnings for the first half of 2018, ended June 30, 2018.
|€m||June 30, 2018|| June 30, 2017 |
| June 30, 2017 |
|Gross margin rate||64%||67%||67%|
|Financial income and expenses||-0.03||-0.12||-0.12|
|Non-recurring income and expenses||-0.20||-0.11||-0.11|
|Minority interests and income from associates||-0.46||-0.40||-0.40|
|Net income (Group share)||+0.11||+0.75||+0.77|
|'* In accordance with the change of scope from end-2017|
2018 first-half growth driven by Data Science solutions
Buoyed by the Data Strategy division, which recorded strong growth of +20%, the Group's revenues are up +11% to €16m for the first half of 2018. This division now represents 73% of consolidated revenues.
Weborama's semantic Data Science expertise and unique business knowledge enable it to offer its clients access to some of the market's most innovative digital marketing solutions, supporting the Group's growth.
In the first half of 2018, the Group continued moving forward with its international development, with international sales generating 70% of revenues.
EBIT shows a slight loss, impacted by new investments in the US
The gross margin rate is at 64%. The light contraction over the first half of the year primarily reflects the increase in purchases of raw data to extend the Database's scope.
In addition to the increase in data purchases, operating expenses increased due to the opening of offices in the US. The start-up phase of this new data distribution business in the US has been slower than expected, notably due to delays regarding technical set up of partnerships with data distribution platforms.
Alongside this, the ruble's depreciation had a negative impact on earnings for the Russian business. Half-year EBIT is down to -€147,000 (vs. €734,000 for H1 2017).
In line with its sustained Research and Development efforts, the Group has a research tax credit of €974,000.
After considering financial income and expenses and tax, the Group's net income represents €111,000.
At June 30, 2018, the Group had €2.8m in cash (N.B. the company received €1.3m for the 2017 research tax credit after June 30), with its medium / long-term debt down to €4.2m and €20.2m of shareholders' equity. The balance sheet position is still solid. The Bank of France (BDF) has renewed its D3++ rating.
Now available in the US, particularly through platforms like Liveramp, Weborama's first dedicated data solution for the automotive sector now covers more than 2,500 segments and is aligned with the main expectations of American manufacturers. This innovative and dynamic new offer is expected to quickly find its market. Although its start-up phase has taken longer than planned, this new American business is expected to quickly contribute to the Group's revenue growth.
Weborama is a world leader for data science supporting businesses with their digital marketing transformation thanks to its range of tools and expertise delivering scientific consumer insights. In a globalized marketing world within which the relationship between brands and their audiences is increasingly individualized, Weborama provides a custom proprietary data solution that is efficient, non-intrusive and competitive, on a global scale, for next-generation marketers.
Weborama's solutions include a number of proprietary technologies, particularly a data management platform (DMP), fed by one of the world's most advanced behavioral databases (BigSea: 1.3 billion anonymized profiles, 220 qualification criteria). Expanding strongly, this database benefits from exclusive Data Science capabilities combining Natural Language Processing and Machine Learning.
Listed on Euronext GrowthTM in Paris, Weborama is developing its expertise in around 30 countries, supported by a team of 250 people. Weborama is an accredited research entity in France and a member of the Excellence Club of BPI France, which has awarded the Group its "Innovative Business" label. It is also eligible for SME share-based savings schemes (PEA-PME).