- Twofold increase in Avanquest revenue (+103%), notably attributable to the Upclick, SodaPDF and Adaware acquisitions
- PlanetArt half-year revenue nears €100 million (41% )
- myDevices: revenue improvement driven by partnerships (+77%)
- Acceleration of Group organic growth1 to +35%
Regulatory News:
Claranova group (Paris:CLA) recorded growth across all activities in H1 2018-2019 (ended December 31, 2018), reporting consolidated revenue up 55% to €139.6 million (+54% at constant exchange rates). This surge was mainly driven by an acceleration in Group organic growth to +35% for the half-year (vs. +24% for the last full-year), and the consolidation, from July 1, 2018, of the Avanquest acquisitions, Upclick, SodaPDF and Adaware.
H1 2018-2019 revenue
In million | July-Dec. 2018 | July-Dec. 2017 | - reported | at constant exchange rates | at constant scope | |||||
Avanquest | 40.1 | 19.7 | +103% | +103% | +11% | |||||
PlanetArt | 97.8 | 69.2 | +41% | +39% | +41% | |||||
myDevices | 1.7 | 1.0 | +77% | +73% | +77% | |||||
Group revenue | 139.6 | 89.9 | +55% | +54% | +35% | |||||
This H1 2018-2019 performance shows that the Group can continue to grow at a fast pace, even with an increasingly high revenue base. The half-year also shows a more balanced relative size of the Group's different businesses, with the ramp-up of the Avanquest division.
After +3% growth at constant exchange rates in Q1, Avanquest accelerated its rate of growth to +16% in Q2. myDevices went from a growth rate of +49% in Q1 to +81% in Q2. While still only a marginal contributor to Group revenue, myDevices is and remains a major growth driver for the coming years.
PlanetArt continued to record substantial organic growth of 40% in Q2, despite a very high comparison base following a 37% increase in revenue between Q2 2016-2017 and Q2 2017-2018. This period remains the most important period of the year for this business due to the holidays season (Thanksgiving, Christmas, etc).
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1 Organic growth: growth in Group businesses excluding the impact of Upclick, SodaPDF and Adaware, acquired on July 1, 2018.
Q2 2018-2019 revenue
In million | Oct. to Dec. 2018 | Oct. to Dec. 2017 | ? reported | ? at constant exchange rates | ? at constant scope | ||||||
Avanquest | 23.2 | 11.3 | +106% | +107% | +16% | ||||||
PlanetArt | 67.4 | 48.2 | +40% | +37% | +40% | ||||||
myDevices | 0.9 | 0.5 | +81% | +76% | +81% | ||||||
Group revenue | 91.5 | 59.9 | +53% | +51% | +36% | ||||||
Avanquest: over twofold increase in revenue to €40.1 million (+103%) and successful integration of acquisitions
Avanquest doubled its revenue to over €40 million for the half-year, boosted by the July 2018 acquisitions of Upclick, SodaPDF and Adaware. The division also recorded a return to double-digit organic growth, reporting an increase of 11% for the half-year (and 16% for Q2, with revenue of €23.2 million). The acquired businesses reported organic growth of 23% on H1 2017-2018, mainly thanks to robust growth in Adaware revenue (+42%).
With the ramp-up of Avanquest, the Group confirms its ambition to make this division a European leader in monetizing Internet traffic. The integration of recent acquisitions and the synergies generated, combined with organic growth, should help further improve the division's operating results.
PlanetArt: steady revenue growth to €97.8 million (+41%)
PlanetArt's performance continues to excel, with half-year revenue reaching nearly €100 million and growing 41% year-on-year.
Driven by the surge in FreePrints apps, particularly in Europe, PlanetArt records an H1 growth rate above that of the previous full-year (+37%). The division also benefits from an increase in FreePrints PhotoTiles revenue. The results of this app, launched in June 2018, are promising.
After the good start for its apps in India, where revenue is not yet significant, PlanetArt continued its geographic expansion in Europe. The FreePrints apps were launched in the Netherlands at the end of January 2019, joining the United Kingdom, France, Germany, Italy, Spain and Ireland, where FreePrints apps already enjoy huge success.
myDevices: revenue up +77% to €1.7 million
As in previous quarters, the commercial partnerships signed by myDevices last Spring continued to generate revenue. In particular, the partnership with the telecoms operator, Sprint, generated revenue of close to US$1 million over the half-year.
myDevices has partnered with leading international names, including Alibaba Cloud in China and Sprint (telecoms operator with 58 million customers), Ingram Micro (one of the world's largest distributors of IT products) and Arm (whose microprocessors are used by over 70% of the world's population) in the United States, providing it with real development prospects. In the coming years, these distinguished partnerships should help position myDevices as the reference in IoT solutions.
myDevices has also started commercializing its "IoT in a Box" offering in its own name, to expand its market position.
Pierre Cesarini, CEO of the Claranova group, said: This first half-year confirms, once again, our strong growth momentum across all our divisions. In addition to these excellent figures, the strategy implemented over the past three years is now firmly established. This is illustrated by PlanetArt, which not only topped US$100 million in revenue in six months but more importantly has further strong growth prospects, both through geographic expansion and new product ranges.
Also, our Internet division doubled its revenue through acquisitions at the beginning of July 2018 as well as renewed organic growth, benefiting from initial synergies from its acquisitions. All these factors should contribute to a significant improvement in the division's profitability.
As for myDevices, the division continues its deployment in the IoT world and should emerge as a key player in IoT solutions in the coming years. This excellent performance and this outlook clearly demonstrate Claranova's ability to grow in all its markets at the same time.
Next Claranova Group event
2018-2019 Half-year results: March 27, 2019
About Claranova:
Claranova is a French technology group operating in three major business sectors: mobile services through its PlanetArt division, Internet of Things (IoT) through its myDevices division and monetizing Internet traffic through its Avanquest division. A truly global internet and mobile player, Claranova reported annual revenue in excess of €160 million, generated over 90% internationally. Its businesses are:
- PlanetArt: A world leader in mobile printing, specifically via its FreePrints and FreePrints Photobooks applications the cheapest and simplest solutions in the world for printing photos and creating photo albums from a smartphone;
- myDevices: A global platform for IoT (Internet of Things) management, myDevices allows its partners to commercialize turnkey solutions ("IoT in a Box") to their customers. Ready-to-use solutions are available for roll-out in the medical, hotel, food and beverage, retail and education sectors thanks to these offerings;
- Avanquest: A specialist in monetizing Internet traffic through cross-cutting solutions, Avanquest boosts its customer impact through cross- selling offerings that maximize Internet traffic while ensuring the most efficient monetization possible.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190206005572/en/
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