Revenue in Q1 2014/2015 exceeds that of the previous year by just under 15 per cent / EBITA AT 0.3 million Euro / Annual forcast confirmed
SinnerSchrader completed the first quarter of the 2014/2015 financial year (1 September to 30 November 2014) with net revenue of 12.5 million euros. The quarterly revenue thus exceeded the comparative figure for the previous year by 14.6 per cent, although the net revenue fell short of the net revenue for the preceding final quarter of 2013/2014 by just under 8 per cent.
After the dynamic growth steps in the previous quarters, SinnerSchrader assumed that business would be consolidated in the 2014/2015 financial year. However, the economic uncertainty which started in August 2014 and was reflected in a significant reduction in growth forecasts for the German economy in 2014 and 2015, increased the reluctance to spend among the major existing clients in the Interactive Marketing segment more than expected. For this reason, the net revenue fell short of the SinnerSchrader plans by around 0.5 million euros.
Demand for the services of the SinnerSchrader Group – measured in terms of the number and volume of business enquiries – was hardly affected by the ongoing reluctance to spend. According to a study conducted by the business magazine “brand eins” with the renowned analysis company Statista as from September 2014 onwards, 1,300 agency employees and 600 companies were asked for recommendations and placed SinnerSchrader at the top of the list of digital agencies in Germany.
In the first three months of the current financial year, the Group, among other things, commenced with work on a new digital payment platform, an innovative platform to enable the payment for editorial content, and on the kick-off campaign for recently-launched TUI Connect – a mobile communication service by TUI Group in cooperation with Telefónica.
TUI Connect also opted for the NEXT AUDIENCE Platform to manage advertising expenditure for digital channels, with initial success being achieved in the sales activities ramped up after completion of the NEXT AUDIENCE Platform in August 2014. Moreover, cooperation with the pilot client, E-Plus, was further intensified.
The EBITA in the quarter of the report, at just under 0.3 million euros, was at a low level due to temporary over-capacities in the Interactive Marketing segment as a result of unexpected falls in revenues at the end of the quarter of the report. SinnerSchrader achieved an operating result of a good 0.6 million euros in the comparable quarter of the previous year. In contrast to the Interactive Marketing segment, the Interactive Media and Interactive Commerce segments were able to improve their EBITA in comparison to the previous year.
The net income essentially followed the operating development, at just under 0.15 million euros, or one cent per share falling short of the figure of 0.25 million euros, or two cents per share, for the previous year.
In spite of the start to the 2014/2015 financial year falling below the plan, SinnerSchrader believes that the full-year forecast for revenue and profits is achievable. This is also supported by the specific prospects of follow-up business resulting for the content marketing area, created in the previous year, which have so far not been taken into account. In terms of achieving the annual targets, a lot will depend on whether or not the reluctance to spend reported at the end of 2014 continues in 2015. Indications from significant client relationships do not suggest that it will.
The amount of liquid funds was reduced from 5.8 million euros at the end of the preceding financial year to 1.4 million euros as at 30 November 2014, mainly due to the seasonal effects associated with major clients’ year-end planning. As expected, the amount had recovered again considerably to 4.5 million euros as at 31 December 2014.
SinnerSchrader had 535 employees as at 30 November 2014. A year ago, SinnerSchrader had 460 employees; it had 521 employees on 31 August 2014.
The full report of the SinnerSchrader Group for the first quarter of the 2014/2015 financial year can be found at http://www.sinnerschrader.ag/reports as of 2 p.m. CET today.
At the Annual General Meeting to be held next week, the Management Board and the Supervisory Board will propose a dividend of 12 cent per share. This dividend will be paid from the contribution account for tax purposes, and is thus tax-free for those shareholders with minor holdings.