H1 2020-2021 results

Continuing strong growth and very significant improvement in profitability

• Revenue of €278 million, up 25% at constant exchange rates (+17% like-for-like)
• Operating profitability more than doubles with EBITDA reaching €23 million (+107%) or 8.3% of revenue
• Net income multiplied by 7 to €11 million
• Record cash position of €118 million, supported by strong operating cash flow generation of €40 million

“More than any year to date, 2020 marked a pivotal milestone in the economy’s digital transformation. Our diversified market position in the B2C1 segment, based largely on a freemium business model2 allowed us to fully benefit from the economy’s rapid digital development within a health context we have been experiencing already for one year.

In this context, Claranova achieved record performances in H1 2020-2021 with continuing strong revenue growth, up 25%3 to €278 million, but above all a very significant improvement in operating profitability with EBITDA4 of €23 million. Operating profitability more than doubled in relation to last year’s first half, already exceeding the total annual amount of EBITDA achieved by Claranova over the entire 2019-2020 fiscal year. Similarly, the Group’s net profitability5 grew by a multiple of seven to reach the historic level of €11 million. These performances are the result of work accomplished over the last few years to strengthen our positions in high-potential digital segments and build resilient business models for each of our divisions.

Our growth potential remains considerable. We are more than ever confident in our ability to maintain this trend of profitable growth and reaffirm our goal to achieve annual revenue of €700 million and an EBITDA margin above 10% by 2023“, commented Pierre Cesarini, Chairman and CEO of Claranova Group.

Claranova remained on track with strong and balanced growth in H1 2020-2021 (July-December 2020), with revenue of €278 million (+25% at constant exchange rates) accompanied by a sharp improvement in profitability. EBITDA, the main operating performance indicator, more than doubled in the first half (+107%), in line with guidance issued when revenue was published on February 10, 2021. Operating profitability reached €23 million6, increasing the EBITDA margin to 8.3%, up from 4.8% one year earlier.

This significant rise in EBITDA achieved by each of Claranova’s divisions highlights:

• the potential profitability of the personalized e-commerce businesses (PlanetArt) during a period of limited marketing investments;
• the successful transition from a software publishing business model (Avanquest) into a higher margin proprietary software subscription-based model (SaaS);
• the significant reduction in the operating losses of the IoT businesses (myDevices).

In line with the improvement in EBITDA, Net Income increased sevenfold in H1 2020-2021 to reach €11 million. This first half also confirmed the Group’s strong cash flow generation with a net inflow from operating activities of €40 million. On that basis, Claranova’s gross cash position increased 29% in relation to December 31, 2019 to a record level of €118 million, resulting in net cash (cash net of financial debts) of €47 million.