aufeminin – 1st half of 2017: the Group is Continuing Its Transformation

  • Solid revenue growth of +5.3% to €53.7 million
  • EBITDA down to €8.8 million – margin of 16.4%
  • Net cash position increases to €81.4 million

PARIS--()--Regulatory News:

aufeminin (ISIN: FR0004042083, Ticker: FEM), 1st creator of communities, announces its results for the first half of 2017 (to end-June), as approved by the Board on 14 September.

Marie-Laure Sauty de Chalon, CEO of the aufeminin group, says: “Within an environment that is undergoing major changes, aufeminin is continuing the in-depth transformation of its business model in order to focus more on programmatic advertising and social e-commerce. With substantial potential in terms of revenue and results, these changes are currently weighing heavily on the Group’s profitability. Aufeminin will carry on implementing this transformation, the bedrock of its future growth, whilst continuing to target high profitability.”

Financial summary - published data:

€ millions - audited   H1 2017   H1 2016   Δ   FY 2016
Revenue   53.7   51.0   +5%   107.3
EBITDA (1) 8.8 12.3 -28% 24.7
as a % of revenue 16.4% 24.2% 23.0%
Operating profit 5.5 9.5 -42% 17.8
as a % of revenue 10.2% 18.6%
Attributable net profit 3.0 5.8 -48% 11.0
 
Operating cash flow 5.5 8.4 17.9
Cash position   81.4   69.0       78.6

(1) EBITDA results from operating income minus expenses, non-recurring operating income, amortisation and provisions.

Activity up by 5.2%

Over the 1st half of 2017, the aufeminin group recorded a solid sales performance with revenue totalling €53.7 million, up 5.3%. Beyond a high baseline, the performances of the Group’s brands reflect their respective positioning on highly-contrasting markets:

  • on the French market, revenues were up slightly at €25.1 million, still driven by aufeminin and My Little Paris’ activity;
  • International activity generated revenues of €28.6 million, up 8.6%. Activity is continuing to benefit from the excellent performances of Livingly Media on the American market and My Little Paris in Japan, whilst the main European markets do not yet reflect the ongoing repositioning of our main brands.

Profitability affected by the Group’s ongoing transformation

As announced, the evolution of the Group’s business mix, its ongoing restructuring and the investments required to transform its business model are weighing on its profitability.

Total operating expenses came to €44.9 million in the first half of 2017, an increase of 16%. EBITDA was thus €8.8 million, versus €12.3 million in the first half of 2016, giving a margin of 16.4% versus 24.2% a year earlier because:

  • the additional EBITDA generated by fast-growing activities, notably Programmatic Display Advertising, Content Marketing and E-commerce, are not currently entirely offsetting the decrease in traditional Display Advertising;
  • furthermore, the investments required to implement the Group’s transformation, in particular the My Little Paris teams given the innovative Brand Content strategy, have continued. Personnel costs thus increased by 18% to €15.7 million.

Once amortisation and depreciation are taken into account, as well as other non-recurring expenses, the Group recorded an operating profit of €5.5 million. Given financial expenses of €0.4 million and a tax burden of €1.9 million, consolidated profit was €3.3 million and attributable net profit €3.0 million.

Net cash position up €2.8 million to €81.4 million

On this basis and thanks to good control over working capital requirements, operating cash flow was €5.5 million, down on the H1 2016 figure of €8.4 million, whilst net cash flow was €2.8 million. The net cash position was €81.4 million, versus €78.6 million at the end of December 2016 and €69.0 million at the end of June 2016.

Outlook

The Group is continuing its transformation by accelerating its successful strategy in the United States.

Next publication: 3rd quarter revenue and results, on 19 October, 2017.

About aufeminin

1st creator of communities, the Groupe aufeminin provides an editorial and community-based offer covering all the most popular topics amongst women: Fashion, Beauty, Parenthood, Cooking, News, Entertainment, etc.

With media brands such as aufeminin, Marmiton, My Little Paris, Merci Alfred, Onmeda, Zimbio.com, Livingly.com and Stylebistro.com, the Group is present in more than 20 countries in Europe, North Africa, North America and Latin America.

With a global audience of 133 million monthly visitors (1), the Groupe’s presence is gaining momentum on all platforms such as mobile, videos and social networks and strengthens its diversification strategy through ecommerce, programmatic and brandpublishing pillars.

The Groupe aufeminin, which is 78.43% owned by the Axel Springer group, is listed on compartment B of Euronext Paris (ISIN: FR0004042083, Ticker: FEM). In 2016, the Group recorded revenue of €107 million and an EBITDA of €24.7 million.

[1] Source: Google Analytics, Groupe aufeminin - without deduplication – August 2017

http://corporate.aufeminin.com

Appendices

CONSOLIDATED INCOME STATEMENT (€ millions)

IFRS – audited   H1 2017   H1 2016   Δ
Revenue   53.7   51.0   5%
Operating expenses 44.9 38.7 16%
of which: Staff costs (15.7) (13.4) 18%
of which: Other purchases and external costs (28.8) (25.1) 15%
EBITDA (1) 8.8 12.3 -28%
as a % of revenue 16.4% 24.2%
Other operating expenses (0.9) (1.7)
Amortisation & provisions (2.4) (1.2)
Operating income 5.5 9.5 -42%
as a % of revenue 10.3% 18.5%
Financial income (0.4) (0.1)
Corporation tax (1.9) (3.1)
Net profit 3.3 6.4
Attributable net profit 3.0 5.8 -48%

(1) EBITDA results from operating income minus expenses, non-recurring operating income, amortisation and provisions.

CONSOLIDATED CASH FLOW STATEMENT (€ millions)

IFRS – audited   H1 2017   H1 2016
   
Net profit   3.3   6.4
Gross cash flow   5.9   8.1
Change in working capital requirements   (0.4)   0.3
Operating cash flow   5.5   8.4
 
Acquisition / divestment of net fixed assets (1.9) (1.6)
Acquisition / divestment of net consolidated securities (0.1) 0.1
Others   (0.4)   (0.1)
Cash flow from investments   (2.4)   (1.6)
         
Cash flow from financing   0.1   (0.3)
 
Impact of foreign currency fluctuations (0.3) (1.2)
         
Cash flow   2.8   5.9
 
Cash position at start of period 78.6 63.1
   
Cash position at end of period   81.4   69.0
 

CONSOLIDATED BALANCE SHEET (€ millions)

IFRS – audited   H1 2017   FY 2016
   
ASSETS
Non-current assets   79.9   82.4
Total non-current assets   79.9   82.4
 
Current assets 38.1 43.2
Cash & cash equivalents   81.4   78.6
Total current assets   119.5   121.8
         
Total assets   199.4   204.3
 
LIABILITIES        
Group shareholders’ equity   133.0   130.8
Minority interests   0.3   (0.2)
Consolidated shareholders’ equity   133.3   130.6
 
Non-current liabilities 7.2 10.3
Current liabilities 58.9 63.4
         
Total liabilities   199.4   204.3
 

Contacts

NewCap
Relations investisseurs :
Mathilde Bohin / Marc Willaume
aufeminin@newcap.eu
Tel : +33 (0)1 44 71 00 13

Contacts

NewCap
Relations investisseurs :
Mathilde Bohin / Marc Willaume
aufeminin@newcap.eu
Tel : +33 (0)1 44 71 00 13