aufeminin – 2017: Revenue Growth of 6% to €113 Million, EBITDA Margin of 19% and Stable Net Profit of €11 Million

PARIS--(BUSINESS WIRE)--Regulatory News:

Groupe aufeminin (Paris:FEM) (ISIN: FR0004042083, Ticker: FEM), 1^st creator of communities, announces its 2017 annual results.

Marie-Laure Sauty de Chalon, CEO of aufeminin, says: “In an environment undergoing extensive changes, aufeminin is continuing the in-depth transformation of its business model towards programmatic advertising, marketing content and social e-commerce. With strong potential in terms of revenues and results, these changes are weighing heavily on the Group’s profitability. The Group is now accelerating its positioning on Influence, Brand Publishing and Social Media, and is maintaining its high profitability target”.

Financial summary - published data:

€ millions	2017	2016 ^(2)	Δ
Revenues	113.5	107.0	+6%
EBITDA ^(1)	21.3	24.7	-14%
as a % of revenues	19%	23%
Operating profit	12.1	17.7	-32%
as a % of revenues	11%	17%
Net profit group share	11.0	11.0
Operating cash flow	12.3	17.9	-31%
Net cash position at close	66.2	78.6

⁽¹⁾ EBITDA results from operating income minus expenses, non-recurring operating income, amortisation and provisions.
⁽²⁾ The Polish subsidiary having been divested at the end of March 2017, Ofeminin’s contribution in 2016 as well as in 2017 have been reclassified as “net profit from divested activities”.

2017 revenues: +6% to €113.5m - International activity accounted for 51% of total activity

In 2017, the aufeminin group’s revenues totalled €113.5 million, up +6% on the previous year. The Group is continuing to record very satisfactory performances on the French market, with revenues up +8% to €55.5 million, and internationally, with activity growing by +5% to €58.0 million.

From an operational standpoint, the Group is continuing to increase its “Social e-commerce” and “Programmatic” advertising revenues, with growth exceeding 20% on each segment. On the other hand, traditional advertising revenues have decreased, as anticipated by the Group for more than two years.

The deployment of these activities has thus become a major growth route for the Group, both in France and internationally, accounting for over 67% of Group revenues.

EBITDA margin of 19% – Profitability level down but under control

Total operating expenses came to €92.2 million in 2017, up 12%.

This increase was a result of the direct costs of “Programmatic” advertising in accordance with the model developed by the American subsidiary Livingly Media (currently being deployed in France and Europe), as well as the deployment of the “Social e-commerce” model in France and Japan.

On the other hand, excluding the effect of IFRS 2 expenses, personnel costs were stable. The Group is continuing to intensify its presence on its new business segments by recruiting talented staff whilst controlling its workforce on the traditional “Direct Media” segment.

2017 EBITDA was thus €21.3 million, giving an EBITDA margin of 19% versus 23% in 2016.

Including non-recurrent operating elements and depreciation costs, current operating profit was €12.1 million and the current operating margin was 11% versus 17% in 2016.

Once tax – impacted by the recognition of future tax benefits on the US subsidiary – and minority interests are taken into account, net profit group share was stable at €11.0 million.

Good EBITDA conversion rate, net cash position down €12.4 million to €66.2 million

Operational cash flow was €12.3 million, versus €17.9 million in 2016, giving an EBITDA conversion rate of 58% in 2017 impacted by the working capital of the last two of the year.

Net cash flow was -€12.4 million, notably as a result of the increased stake in My Little Paris in October 2017. The net cash position was €66.2 million at the end of December 2017 (excluding the changes in perimeter impact, the Group’s net cash position would have been €87.3m, +€8.7 M€ versus 2016).

See details in the appendix

Next publication: Q1 2018 revenues and results, on Thursday 19 April, 2018, after market.

About aufeminin

1st creator of communities, the Groupe aufeminin provides an editorial and community-based offer covering mainly : 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 155 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 brand publishing pillars.

My Little box : https://www.mylittlebox.fr/
Gambettes box : https://www.gambettesbox.fr/
Loom: https://www.loom.fr/
Edie & Watson : https://www.edie-et-watson.com/
Gretel box : https://www.gretel-box.com/
Beautiful Box by aufeminin : https://www.beautiful-box.com/

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 2017, the Group recorded revenue of €113,5 million and an EBITDA of €21.3 million.

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

http://corporate.aufeminin.com

Appendix

CONSOLIDATED INCOME STATEMENT (€ millions)

IFRS	2017	2016	Δ
Revenue	113.5	107.0	+6%
Operating expenses	92.2	82.3	+12%
of which: Staff costs	29.2	28.3	+3%
of which: Other purchases and external costs	63.0	54.0	+17%
EBITDA ^(1)	21.3	24.7	-14%
as a % of revenue	19%	23%
Other operating expenses	-3.6	-3.4
Amortisation & provisions	-5.6	-3.5
Operating income	12.1	17.7	-32%
as a % of revenue	11%	17%
Financial income	-0.1	-0.1
Corporation tax	-0.8	-5.6
Net income from divested activities^(2)	-	-
Income from associates	-	-
Net profit	11.3	12.0
Attributable net profit	11.0	11.0

⁽¹⁾ EBITDA results from operating income minus expenses, non-recurring operating income, amortisation and provisions.
⁽²⁾ The Polish subsidiary having been divested at the end of March 2017, Ofeminin’s contribution in 2016 as well as in 2017 have been reclassified as “net profit from divested activities”.

CONSOLIDATED BALANCE SHEET (€ millions)

IFRS	2017	2016
ASSETS
Goodwill	50.3	53.7
Intangible assets	25.0	26.6
Other non-current assets	5.0	2.1
Total non-current assets	80.3	82.4
Current assets	42.5	43.3
Cash & cash equivalents	66.2	78.6
Total current assets	108.7	121.9
Total assets	189.0	204.3
LIABILITIES
Group shareholders’ equity	138.0	130.8
Minority interests	-	-0.2
Consolidated shareholders’ equity	138.0	130.6
Non-current liabilities	7.2	10.3
Current liabilities	43.8	63.4
Total liabilities	189.0	204.3

CONSOLIDATED CASH FLOW STATEMENT (€ millions)

IFRS	2017	2016
Net profit	11.3	12.0
Gross cash flow	12.7	15.4
Change in working capital requirements	-0.4	2.5
Operating cash flow	12.3	17.9
Acquisition / divestment of net consolidated securities	-21.1	0.1
Others	-6.7	-3.4
Cash flow from investments	-27.8	-3.3
Cash flow from financing	3.7	2.3
Impact of foreign currency fluctuations	-0.6	-1.4
Cash flow	-12.4	15.5
Cash position at start of period	78.6	63.1
Cash position at end of period	66.2	78.6