Paris - February 15, 2018, 5:40 pm

Fourth-Quarter 2017 Revenue
Details of the new 2018 business base



  • Following the disposals completed in late 2017, AdUX is now sharply focused on a new business base, structured around Native Advertising, Drive-to-Store Marketing and Social Marketing
     
  • Reported revenue of the new business base([1])
    • €10.6 million* in Q4 2017
    • €34.2 million* over the full year
       
  • Reported EBITDA([2]) of the new business base(2)
    • €1.8 million* in Q4 2017
    • €1.7 million* over the full year

                   

Paris - February 15, 2018, 5:40 pm - Following the disposal of most of its traditional media sales operations, digital marketing specialist AdUX (ISIN code: FR0012821890 - HIM, HIM.FR) has released its revenue figures for fourth-quarter and full-year 2017 in its new configuration.

A new scope of business for 2018

Late 2017 saw AdUX complete the final disposals needed to withdraw from most of its traditional media sales activities. These included, in succession, its legacy operations in Germany[3], Latin America, Spain and Italy which have been in steep decline for several years. The only remaining legacy business assets concern minor operations in Belgium and Portugal, which are also in decline but remain profitable.

Reported revenue from the new business base stood at €34.2 million for the year, of which the Native Advertising (Quantum), Drive-to-Store Marketing (Admoove) and Social Marketing (Adpulse) divisions represented 75% of the fourth-quarter total and are expected to account for nearly 85% of the 2018 revenue stream.

Native Advertising and Social Marketing delivered robust growth throughout the year, with gains of 48% for the former and of 85% for the latter. In the fourth quarter alone, Native Advertising revenue rose by 47% year-on-year and Social Marketing revenue by 70%. On the other hand, the
Drive-to-Store location-based advertising division saw a 30% falloff in business during the year, as it focused on repositioning itself to ensure compliance with the new privacy protection rules that will come into effect in May 2018 with the EU's General Data Protection Regulation (GDPR).

In 2018, Drive-to-Store Marketing revenue is expected to level off before regaining momentum, while the Native Advertising and Social Marketing divisions should maintain their double-digit momentum. AdUX's three core businesses are therefore projected to enjoy strong growth in 2018 and drive an increase in consolidated revenue for the year.

Positive EBITDA in 2017

In its new configuration, AdUX reported €1.8 million in EBITDA in the fourth quarter, which lifted the full-year performance to €1.7 million.  The final quarter figure included a €0.9 million gain on the holding company's property lease ([4]), which was renegotiated in July 2017.

Based on the former scope of consolidation, namely including the traditional media sales activities until December 31, 2017, EBITDA would also have totaled €1.7 million for the year. The company therefore met its objective of reporting positive EBITDA in 2017, regardless of business configuration.

With a revitalized EBITDA structure and restored growth prospects, AdUX has entered 2018 on a healthier footing and with opportunities for expansion evenly spread across the business base. At December 31, 2017, the company had €4.4 million in gross cash and cash equivalents and a transferable equity interest in HiPay valued at €0.4 million. 



"We have refocused on digital advertising models with higher growth potential - native advertising, Drive-To-Store marketing and Social Marketing - whose expansion is being driven by new consumer shopping habits and by advertiser needs. In 2018, we can begin a new phase of growth," said
Cyril Zimmermann, Chairman and Chief Executive Officer of AdUX.


Investor calendar:

2017 results on Wednesday March 14, 2018 after close of trading.

About AdUX
AdUX is an industry pioneer and European leader in digital marketing.
With operations in six European countries, the Group reported revenue of €59 million in 2016.
Independent since its creation, the company is listed on Euronext Paris, in compartment C, and is included in the CAC Small, CAC All-Tradable and CAC SME indices.

ISIN code: FR0012821890/LEI: 969500IIE66C3CFB1K57/Symbol: ADUX

For more information, please visit www.adux.com or email infofin@adux.com
Follow us on Twitter: @AdUX_France
LinkedIn: http://www.linkedin.com/company/adux_fr


Investor and analyst contact
infofin@adux.com    

Media contact
 Antidox
Nicolas Ruscher
nicolas.ruscher@antidox.fr


This press release may contain certain forward-looking statements. Although AdUX Group believes that these statements are based on assumptions that were reasonable as of the date of this press release, they are by their very nature subject to risks and uncertainties that could cause actual results to differ from those indicated or projected in these statements. AdUX Group operates in a continually changing environment and new risks may emerge. AdUX Group assumes no obligation to update these forward-looking statements to reflect any new information, future events or other circumstances.





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Source: AdUX via Globenewswire