ADLPartner: €58.2m in net sales for the first half of 2018
Business stable in the 2nd quarter
The ADLPartner Group is reporting €58.2m of net sales[1] for the first half of 2018, down 4.7%, and a gross sales volume[2] of €133.1m, down 5.2%.
Quarterly business trends
| At 30 June | 2018 | 2017 restated[3] | Change |
| Gross sales volume (€m) | 133.1 | 140.4 | -5.2% |
| 1st quarter | 63.9 | 70.9 | -9.9% |
| 2nd quarter | 69.3 | 69.6 | -0.4% |
| Net sales (€m) | 58.2 | 61.0 | -4.7% |
| 1st quarter | 28.2 | 30.9 | -8.7% |
| 2nd quarter | 30.0 | 30.2 | -0.5% |
Net sales for the second quarter of 2018 are stable compared with the second quarter of 2017. Open-ended subscription sales have picked up again, following a first quarter affected by the deferral of a major partnership-based prospecting campaign. Alongside this, the Group has continued moving forward with its development in the new marketing services and insurance brokerage markets.
Developments for each region
| At 30 June | 2018 | 2017 restated3 | Change |
| Active open-ended subscriptions (units) | 2,827,608 | 3,006,936 | -6.0% |
| France | 2,777,463 | 2,941,691 | -5.6% |
| International | 50,145 | 65,245 | -23.1% |
| Gross sales volume (€m) | 133.1 | 140.4 | -5.2% |
| France | 127.2 | 133.6 | -4.8% |
| International | 5.9 | 6.8 | -12.7% |
| Net sales (€m) | 58.2 | 61.0 | -4.7% |
| France | 53.2 | 55.4 | -3.9% |
| International | 4.9 | 5.6 | -11.9% |
Change in the product mix
| At 30 June | 2018 | 2017 restated3 | Change |
| Gross sales volume (€m) | 133.1 | 140.4 | -5.2% |
| Open-ended subscriptions | 99.7 | 105.7 | -5.7% |
| Fixed-term subscriptions | 14.3 | 15.4 | -6.7% |
| Books, merchandise, audio and video | 6.3 | 7.9 | -20.1% |
| Other (insurance and marketing services) | 12.8 | 11.5 | +11.7% |
| Net sales (€m) | 58.2 | 61.0 | -4.7% |
| Open-ended subscriptions | 36.6 | 38.6 | -5.3% |
| Fixed-term subscriptions | 5.0 | 5.8 | -13.8% |
| Books, merchandise, audio and video | 5.3 | 6.6 | -19.2% |
| Other (insurance and marketing services) | 11.3 | 10.0 | +12.7% |
Half-year net sales for the open-ended subscription business are down 5.3% from the first half of 2017, with this contraction recorded exclusively in the first quarter.
In line with their unfavorable outlook, prospecting on the fixed-term subscription and books, merchandise, audio and video lines has been scaled back significantly.
For the new markets, net sales are up 12.7% compared with the first half of 2017. The development of the marketing services primarily reflects a scope effect linked to the full consolidation of Leoo since July 2017. ADLP Assurances, the specialist direct marketing insurance brokerage subsidiary, is seeing sustained growth in its brokerage fees, which represent 3.8% of Group's net sales at 30 June 2018, versus 2.8% at 30 June 2017.
Outlook
The ADLPartner Group is rolling out a strategy to create value and capitalize on its marketing expertise and solutions in new growth markets. Its continued commercial investments in the open-ended subscription business and the ADLP Assurances subsidiary in 2018 will enable it to develop its portfolios of contracts generating recurrent revenues. Alongside this, it is further strengthening its marketing services with the company Converteo, whose full integration from the second half of 2018 will have a positive impact on the Group's net sales for the full year.
Next date: 2018 half-year earnings on 28 September 2018 (after close of trading)
ADLPartner in brief
With its extensive track record in performance marketing, ADLPartner designs, markets and implements customer relationship management and loyalty services on its own behalf or for its major partners (banks, retailers, services, e-commerce, etc.) across all distribution channels.
ADLPartner is listed on the regulated market Euronext Paris - Compartment C.
ISIN: FR0000062978-ALP - Bloomberg: ALP:FP - Reuters: ALDP.PA
www.adlpartner.com
CONTACTS
| ADLPartner Investor Relations & Financial Information Tel: + 33 1 41 58 72 03 relations.investisseurs@adlpartner.fr | Calyptus Cyril Combe Tel: + 33 1 53 65 68 68 adlpartner@calyptus.net |
[1] Net sales (determined in line with the French professional status for subscription sales) only include the amount of remuneration paid by magazine publishers; for subscription sales, net sales therefore correspond to a gross margin, deducting the cost of magazines sold from the amount of sales recorded. For acquisition and management commissions linked to sales of insurance policies, net sales comprise current and future commissions issued, acquired by the accounting reporting date, net of cancellations.
[2] Gross sales volume represents the value of subscriptions and other products sold. It is equal to net sales for the insurance business.
[3] The ADLPartner Group has applied IFRS 15 since 1 January 2018. To present comparable data between financial years, net sales for the first half of 2017 have been restated, resulting in a €1.2m reduction. This restatement has not had any other impact on profit and loss for 2017.
