CLARANOVA 
By The potential of our growth activities confirmed
Avanquest Software achieved annual sales of 100.3 million euros for the 2012-2013 financial year, which was marked by a speeded-up shift toward online sales. Strong growth in online business (+22%), both in download sales and Web-to-print and hosting services, almost offset the decline in retail sales (-22%).
Now, the Group is doing 45.5% of its business online thanks to the growth drivers on which Avanquest focused : e-commerce, downloadable software, mobile apps, Web services (Cloud, hosting, etc.). Offline sales now represent only 38.7% of gross income. This is the first time that these two proportions have reversed, indicating that the shift to online has been a success.
BtoB activity is also showing growth, at 15,8 million euros.
Sales in the fourth quarter reached 23.2 million euros, posting modest growth (+1.3%) compared to the same period in the previous year, 2011-2012.
| in ?M | Q1 2012/13 | Q4 2011/12 | Change | YTD 12 months 2012/13 | As % of Total | YTD 12 months 2011/12 | Change | |
| Online | 10.6 | 9.6 | +10.4% | 45.6 | 45.5% | 37.4 | +21.9% | |
| Offline | 8.8 | 9.7 | -9.3% | 38.9 | 38.7% | 49.7 | -21.7% | |
| Total BtoC | 19.4 | 19.3 | 0.5% | 84.5 | 84.2% | 87.1 | -3.0% | |
| BtoB | 3.8 | 3.6 | +5.6% | 15.8 | 15.8% | 14.3 | +10.5% | |
| Total | 23.2 | 22.9 | +1.3% | 100.3 | 100.0% | 101.3 | -1.0% |
Overall, gross revenue is down slightly by 1.0%.
The Group has reinvented itself by focusing on three main growth drivers
This evolution in its business confirms that the identified growth engines are really relevant.
- Web-to-print sales, remote printing services for your photos in various formats (cards, canvas, Smartphone skins, etc.), total 11.3 million euros, continuing their strong growth (+41%). Over the course of this year, US web-to-print sales jumped by 65%, driven by the success of the new customized Smartphone skins offered by myCustomCase.
- Cloud and hosting services (offered by our sister-company Arvixe) total 6.3 million euros after experiencing growth of 43% this year.
- Downloadable software and apps sales total 19.0 million euros with organic growth of 11%. This evolution is the result of expanded geographic coverage of the Group's e-commerce platforms, with the main one, www.avanquest.com, now covering Australia and Argentina.
On the horizon: a new stage in Avanquest's growth
"Having maintained a level of sales of over 100 million euros in a difficult economic context is proof that the Group activity is based on firm foundations : organic growth engines, strong expertise in key segments and recognized skills" says Bruno Vanryb, Chairman of the Board of Directors.
After this necessary phase of shifting the Group's focus, Avanquest intends to return to a path of sustainable performance. The arrival last May 15th of Pierre Cesarini, as the group's CEO, is part of this picture. "My objective now is to move Avanquest into a new value-creation cycle. We're holding all the cards, in house, that will enable us to do this" Pierre Cesarini concludes.
http://hugin.info/143369/R/1719884/572480.pdf
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Avanquest Software via Thomson Reuters ONE
