AVIDLY FINANCIAL STATEMENTS RELEASE 2019: Revenue increased by 11.9% to EUR 22.1 million, operating result was EUR -2.4 million

AVIDLY FINANCIAL STATEMENTS RELEASE 2019: Revenue increased by 11.9% to EUR 22.1 million, operating result was EUR -2.4 million 

Avidly Plc, Financial Statements Release, 5 Mar 2019 at 8:30 EET

This company announcement is a summary of Avidly’s Financial Statements Release for January–December 2019. The complete Release is attached to this announcement as a pdf file. It is also available on the company website at https://investors.avidlyagency.com/en/company-news.

 In line with its strategy, Avidly’s revenue increased significantly during 2019. The inbound business, in particular, grew strongly. Revenue growth in Marketing Services fell short of expectations in the second half of the year, which together with the growth investments in Inbound Marketing led to a clear decline in profitability. 

July–December 2020

  • Revenue was EUR 10,350 thousand (10,100), an increase of 2.5%.
  • Gross profit was EUR 7,851 thousand (8,385), a decline of -6.4%. Continuous services amounted to approximately 38% (44%) of gross profit.
  • EBITDA was EUR -1,031 thousand (516), a decrease of -299.8%.
  • Operating profit of Marketing Services was EUR -1,417 thousand (518).
  • Operating profit of Inbound Marketing was EUR -676 thousand (-254). 
  • The Group’s operating profit (EBIT) was EUR -2,093 thousand (264), i.e. -20.2% of revenue (2.6%). Operating profit adjusted for acquisition costs was EUR -2,029 thousand (420).
  • Profit for the period was EUR -2,050 thousand (153), i.e. -19.8% of revenue (1.5%).
  • Earnings per share were EUR -0.84 (0.08).

January–December 2020

  • Revenue was EUR 22,131 thousand (19,770), an increase of 11.9%.
  • Gross profit was EUR 17,266 thousand (15,327), an increase of 12.7%. Continuous services amounted to approximately 35% (42%) of gross profit.
  • EBITDA was EUR -603 thousand (1,047), a decrease of -157.6%.
  • Operating profit of Marketing Services was EUR -1,301 thousand (799), including a cost of EUR 98 thousand connected to employee co-operation negotiations concluded in February.
  • Operating profit of Inbound Marketing was EUR -1,091 thousand (-183) due to investments in growth initiatives. 
  • The Group’s operating profit (EBIT) was EUR -2,392 thousand (616), i.e. -10.8% of revenue (3.1%). Operating profit adjusted for acquisition costs was EUR -2,262 thousand (811).2
  • Profit for the period was EUR -2,478 thousand (352), i.e. -11.2% of revenue (1.8%).
  • Earnings per share were EUR -1.03 (0.22).
  • Board proposes to the AGM that no dividend be paid for the year 2019.


Outlook for 2020

At this stage Avidly does not provide estimate on revenue and operating result for 2020.


CEO Jesse Maula:

“The year 2019 was Avidly’s first full year of operations. However, investment and effort directed towards internationalisation and growth in the domestic market did not realise as expected, which led to weaker result development than projected. Avidly’s full-year revenue in 2019 grew by 12 percent to 22.1 million euro, but the business result was negative at -2.4 million euro.

The operating loss was mainly affected by the weak revenue development of Marketing Services. The replacement of our outsourcing agreement with the Finnish retail company SOK, that expired at the end of 2018, with new clients progressed more slowly than planned. In the Inbound Marketing our revenue more than doubled thanks to the acquisitions made in 2018–2019, but upfront recruitment and other growth investment put pressure on profitability.

During the year, Avidly employees did an excellent job of serving our clients and providing high quality design. We are especially proud of our successful sales and marketing services that are particularly focused on commercialising products and services, enabling our clients’ international growth, and constructing customer experiences differentiating our clients from their competitors.

It is clear that we need to change the way we operate and turn Avidly into a profitable company. In 2020, we will continue the profitability project started in autumn 2019, and focus especially on creating profitable growth through activities such as critical cost monitoring and renewing operating and leadership models.

At the same time, we are going to invest in our strong brand and content competencies in 2020, as well as combining digital operations with sales and marketing technologies, thereby creating synergy benefits. Encouraging examples exist within our client base.”
 

Key figures 1-12 1-12 Change
1,000 EUR 2019 2018
       
Revenue 22,131 19,770 11.9
Gross profit 17,266 15,327 12.7
EBITDA -603 1,047 -157.6
Operating profit (EBIT) -2,392 616 -488.3
Profit before taxes -2,593 256 -1,112.9
Personnel, average 246 195 26.2
Earnings/share, EUR -1,03 0.22 -564.1
Earnings/share, diluted, EUR -1.03 0.22 -568.2
Equity ratio, % 35.3 50.4 -11.9 pp.*
ROI, % -32.2 6.2 -38.4 pp.*
Equity/share, EUR 2.92 3.73 -23.9
Gearing, % 55.1 -14.7 69.8 pp*.
Number of outstanding shares, weighted average during the period 2,409,549 1,585,980  
Number of outstanding shares, at the end of the period 2,473,290 2,416,560   

*pp. =  percentage points
 

Annual General Meeting 2020

Avidly Plc’s Annual General Meeting is planned to be held on 1 April 2020 in Helsinki. The notice to the Annual General Meeting will be published later.
 

Financial information

On March 10, 2020, Avidly will publish its Annual Report 2019, which will include the Board of Directors' Report and Financial Statements for 2019. Avidly will publish its half-yearly report on August 25, 2020.
 

Helsinki, March 5, 2020

AVIDLY PLC

BOARD OF DIRECTORS
 

Additional information:

Jesse Maula, CEO, Tel. +358 40 548 0248

Hans Parvikoski, CFO, Tel. +358 40 586 6154

Oaklins Merasco Oy acts as Avidly Plc’s Certified Advisor, tel. +358 9 6129 670
 

Avidly is Finland’s leading marketing and communications service provider and a leading marketing automation company in the Nordics, listed on the Nasdaq First North Growth marketplace in Helsinki. We create an atmosphere for growth to take our customers forward. We are a team of more than 250 navigators and explorers, makers and shakers in 16 locations in Finland, Sweden, Norway, Denmark and Germany. Read more: investors.avidlyagency.com/en