For H1, sales appears to € 61.4 m, up 114.7%, gross margin, the most relevant indicator of the level of activity, stood at € 16.5 m up 33.1%, +12.2% on proforma basis and +3.2% on organic. The EBITDA, at € 1.2 m, improved significantly after a loss of € -0.3 m in H1 2011.
Despite a difficult macroeconomic situation with a wait from some advertisers, the group's activity was good. Netbooster benefits more and more from the rise of its value-added offers (AdExchange and social networks). It proves its dynamism in a market where many competitors have slowdown.
After an encouraging Q1, the group continued to improve its profitability. Indeed, it displays a Q2 EBITDA / Gross margin ratio higher than that of Q1 (8.1% vs 6.5%), despite an unfavorable base effect related to a May 2012 with more days off than in 2011. By country, the situation is always difficult in Spain where budgets are down sharply and remains tense in the UK. In other areas, the trends are still favorable: the group is more and more sought by international clients.
Knowing that the seasonality is stronger in H2 (EBITDA / Gross Margin by 11.8% in H2 2011 with 16% in Q4 vs. -2.3% in H1 2011), Netbooster H1 sales appears in line with annual targets: growth of 25% of the Gross Margin and EBITDA/Gross Margin ratio greater than 11%. Remember that it appears to us as a minimum. Indeed, based on the proforma 2011 Gross Margin of € 33.1 million, the target of € 34 million means an increase of only 2.9%. To us, we consider a 10% increase as more realistic. By extension, we expect an EBITDA / Gross Margin ratio of 11.7%.
As we mentioned in our study published in early July, 2012 must be the year of confirmation, after the deep restructuring undertaken since mid 2011. Through this publication, the first step is validated. The second half should confirm that Netbooster is truly capable of displaying sustained levels of growth and good profitability. Given the information provided by the management about bids to international clients, for which it hopes the closing in September, and further work optimization, we are confident about the ability of Netbooster to achieve its objectives.
Finally, we confirm our Buy opinion with a target price of 3.43 €, a 49.1% potential.
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