Earnings Release • Oct 31, 2008
Earnings Release
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PARIS, 31 OCTOBER 2008
Paris, 31 October 2008 – In Q3 2008, ADLPartner recorded strong growth in its business, with the gross sales volume1 climbing 20.1% to €69.2 million, while net sales2for Q3 2008 came to €31.9 million, up 18.3% compared with the same period the previous year. Over the first nine months of 2008, net sales totaled €91.0 million, representing an increase of 10.3% in relation to the previous year.
In line with its objectives, ADLPartner has achieved an acceleration in its growth since the start of 2008, in light of the ramping up of commercial investments. The open-ended subscription portfolio is up 8.5% to 2.8 million units. The gross sales volume came in at €203.0 million, 13.4% higher than the first nine months of 2007. Net sales are up 10.3% to €91.0 million, compared with €82.5 million the previous year.
As expected, Ofup's integration has contributed to the dynamic commercial development over the quarter, with the first sales for the start of the 2009 academic year.
In France, the gross sales volume has climbed 15.9% since the start of the year, with net sales up 12.4%. In Q3 2008 alone, the gross sales volume increased by 22.5% to €64.0 million, with net sales rising 19.9% to €29.4 million.
At international level, performances have been affected by a deteriorated economic environment.
In Spain, the Group is showing its ability to resist, with business stable compared with the previous year (€2.07 million in net sales over the first nine months).
In Germany, as a result of the development of cross-selling and the strengthening of operations on the phonecard channel over the second half of 2008, business is gradually improving, with a 4.4% increase in net sales over Q3. Nevertheless, over the first nine months, net sales are down 13.0% on the previous year.
In Brazil, the Group is finalizing its test programs.
The dynamic level of growth is being driven by all of ADLPartner's offerings:
With the strengthening of its offerings, ADLPartner is seeing strong growth in this business, with net sales up 15.1% since the start of the year.
On this business, gross sales volume growth came to 12.8% over the first nine months of the year, with net sales up 7.9%; this trend reflects the strengthening of partnerships and the optimizing of marketing techniques on the various distribution channels.
Ofup's first sales are contributing to the brisk growth seen on the fixed-term period subscription offering. In this way, net sales climbed 42.7% in the third quarter, while sales are up 14.1% over the first nine months.
ADLPartner is confident that it will be able to achieve sound and strong growth over the full year in 2008, paving the way for a further improvement in its net asset value3. Nevertheless, in light of the significant ramping up of commercial investments and the first integration of OFUP, ADLPartner is forecasting a temporary drop in profitability over 2008.
| At 30 September | 2008 | 2007 | Change |
|---|---|---|---|
| Gross sales volume (€ million) | 203.0 | 179.0 | 13.4% |
| Q1 | 73.2 | 68.6 | 6.8% |
| Q2 | 60.6 | 52.8 | 14.8% |
| Q3 | 69.2 | 57.7 | 20.1% |
| Net sales (€ million) | 91.0 | 82.5 | 10.3% |
| Q1 | 34.5 | 33.3 | 3.6% |
| Q2 | 24.5 | 21.9 | 10.6% |
| Q3 | 31.9 | 27.0 | 18.3% |
| At 30 September | 2008 | 2007 | Change |
|---|---|---|---|
| Active open-ended subscriptions (units) |
2,836,388 | 2,614,896 | 8.5% |
| France | 2,481,945 | 2,205,018 | 12.6% |
| International | 354,443 | 409,878 | -13.5% |
| Gross sales volume (€ million) | 203.0 | 179.0 | 13.4% |
| France | 188.0 | 162.2 | 15.9% |
| International | 15.1 | 16.8 | -10.1% |
| Net sales (€ million) | 91.0 | 82.5 | 10.3% |
| France | 83.7 | 74.5 | 12.4% |
| International | 7.3 | 8.0 | -9.5% |
| At 30 September | 2008 | 2007 | Change |
|---|---|---|---|
| Gross sales volume (€ million) | 203.0 | 179.0 | +13.4% |
| Open-ended subscriptions | 123.8 | 109.7 | +12.8% |
| Fixed-term subscriptions | 49.8 | 42.4 | +17.6% |
| Books, articles, audio, video | 25.3 | 22.3 | +13.6% |
| Other | 4.1 | 4.6 | -11.5% |
| Net sales (€ million) | 91.0 | 82.5 | +10.3% |
| Open-ended subscriptions | 40.4 | 37.5 | +7.9% |
| Fixed-term subscriptions | 26.0 | 22.8 | +14.1% |
| Books, articles, audio, video | 21.1 | 18.3 | +15.1% |
| Other | 3.4 | 3.9 | -11.4% |
As a specialist in relational marketing, ADLPartner designs, markets and implements customer relation management and loyalty services on its own behalf or on behalf of its major partners (banks, retailers, etc.). Capitalizing on its experience on magazine press and enhancing its wide range of offers, aimed at managing, reactivating or ensuring the loyalty of its customers, ADLPartner has established itself as the European number one for loyalty marketing with press subscriptions.
ADLPartner is listed on Euronext Paris – Compartment C - (Codes: FR0000062978 – ALP)
ADLPartner Calyptus Investor Relations & Financial Information Cyril Combe / Hélène Dujardin
[email protected] [email protected]/[email protected] Tel: +33 1 41 58 72 03 Tel: +33 1 53 65 37 94 / +33 1 53 65 68 64
1 Gross sales volume represents the value of subscriptions and other products sold.
2 Net sales (determined in line with the French professional status for subscription sales) only include the amount of compensation 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.
3 Net asset value represents the amount of equity plus the value of the active open-ended subscription portfolio.
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