- Posted on 26 July 2017
NetBooster Group publishes its results for H1 2017: Gross margin up
Second half of the year focused on integrating Artefact
NetBooster Group (FR0000079683 – ALNBT – PEA-PME eligible), the leading independent international agency in performance-driven digital marketing, has released its figures for the first half of 2017.
Gross margin was up 12.7% to €21.3M in the first half of 2017. The growth was driven principally by the full year integration of 4Ps Marketing Ltd, which was acquired in September 2016.
On a like for like basis, the gross margin was slightly up despite the significant management involvement across the board on the evaluation of potential synergies and the completion of the tie-up with Artefact.
This tie-up was announced in June 2017 and is still subject to shareholder approval at the General Assembly Meeting on the 27th of July, 2017. It represents an opportunity to be the first agency in the digital strategy consulting space based around Data and Artificial Intelligence. In 2016 Artefact generated €5M of revenue – growth of 200% versus 2015, with a further doubling of revenue expected in 2017.
Growth slowed in the main countries where the Group is present (France, Germany and the United Kingdom), as significant resources were dedicated to completing the Artefact transaction, defining the new product offering and assessing the synergies that will be generated going forward. Despite this, the client portfolio was augmented, with several new key clients secured. The effect thereof is expected to be seen in the coming months.
Business-wise, the half-year results were buoyed by new client wins in the Netherlands and Dubai.
In Northern Europe, extensive restructuring was undertaken in order to reinvigorate the business and produce a sustainable long-term performance. The Swedish office was closed, with business redeployed to the Danish office, which has already borne fruit with the first half-year results showing growth.
Second half of the year focused on integrating Artefact
The second half of the year will be more dynamic, with the seasonal characteristics of the business continuing to favour that half of the year.
In addition to this positive factor, the next few months will see the implementation of the tie-up with Artefact(1).
The deal will add new capabilities to the Group and allow it to deliver across all advertising channels. This new product offering brings together consultancy, data and delivery. It will be unique in the marketplace, giving us a decisive competitive advantage in a market environment characterized by advertisers increasingly re-allocating resources to digital campaigns.
The objective is to roll out the new product offering from 2018 onwards across the whole group, with a view to vastly increasing the Group’s growth potential and improve profitability.
NetBooster’s CEO François de La Villardière commented that “this transitional year will be an opportunity for us to totally overhaul the business relationship that we are seeking to establish with advertisers. Technological advances in Artificial Intelligence and Data mean that together we can define new marketing objectives and deploy appropriate advertising strategies. This is the main benefit of the tie-up with Artefact, meaning that we can establish the vision and deliver it through an integrated product offering”.
(1) Subject to shareholder approval at the General Meeting of the 27th July 2017
This press release contain forward looking statements including statements regarding NetBooster’s management intent, belief or current expectations with respect to NetBooster’s businesses and operations, market conditions, results of operation and financial condition, specific provisions and risk management practices. These statements are based on the current expectations and assumptions of NetBooster’s management and they are, therefore, subject to risks and uncertainties. Many factors can impact NetBooster’s results and performance, thus forecasts and hypothetical examples are subject to uncertainty and contingencies outside NetBooster’s control. Results and performance can be materially different from any future results or performance that may be expressed or implied by the forward looking statements contained in this press release. NetBooster does not undertake to implement any of the actions and operations that may be described in the forward looking statements. Moreover, we remind you that past performance is not a reliable indication of future performance.
This press release, including forecast financial information, should not be considered as advice or recommendation to investors or potential investors in relation to acquiring, selling or transfer by any means NetBooster’s securities. Before acting on any information included into this presentation, one should consider the appropriateness of the information, any relevant offer document and especially should seek for independent financial advice. It is reminded that all securities involve financial risks.
About NetBooster Group | www.netbooster.com
NetBooster is a leading independent European agency in digital performance marketing that makes its comprehensive expertise of digital marketing available to its clients to achieve the best possible performance for their investments. The agency invests in technology and covers the entire chain of online marketing through its European network: search engine optimisation and marketing, data and analytics (DnA), GroundControl Technology, display, affiliation, online media, creation, eCRM and social networks, with a recognised expertise in tomorrow’s digital marketing (Social Media, Video, Ad Exchange, etc.). Shares in NetBooster are traded on the NYSE Alternext Paris.
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