Financial strength and Blackstone investment set the foundations for future growth, both organically and by acquisition
LONDON, March 10, 2020 /PRNewswire/ -- HH Global, the world's fastest-growing and most innovative outsourced marketing execution partner, announces its unaudited financial results for the third quarter of fiscal year 2020, ended December 31, 2019.
Third quarter 2020 financial highlights
- 19.5% revenue increase, from £110.9 million in the same period last fiscal year to £132.5 million. Year-to-date revenue was £347.9 million, a 19.5% increase compared to £291.5 million in the same period of FY 2019
- 22.4% net revenue increase, from £25.9 million in the same period last fiscal year to £31.7 million. Year-to-date net revenue was £87.1 million, a 28.8% increase compared to £67.6 million in the same period of FY 2019
- 15.9% increase of non-GAAP adjusted EBITDA, from £7.5 million in the same period last fiscal year to £8.7 million. Year-to-date non-GAAP adjusted EBITDA was £21.8 million, a 43.4% increase compared to £15.2 million in the same period of FY 2019
Business highlights
- Closed a strategic £100M minority stake investment by Blackstone Tactical Opportunities to fuel growth both organically and by acquisitions to broaden service lines to support evolving needs of marketers in our enterprise clients
- Secured commitments for enterprise contracts with the collective total of over £74 million of annual gross revenue at full run rate, the largest of which include new agreements with a consumer products company in APAC, Co-op and Nisa in the UK, and GNC in the US
- Witnessed accelerated adoption of its broader service offerings. Approximately 75% of enterprise contract commitments include newer services, such as content development, customer experience or promotional products procurement
- Completed full acquisition of Veriteva and renamed the entity as HH Global Interactive to extend our full end-to-end data and digital marketing delivery capabilities to a broader set of client companies, expanding HH Global's overall total addressable market for its services
"This quarter was very exciting to us," said Robert MacMillan, HH Global Chief Executive Officer. "We received commitment and recently closed the transaction with Blackstone, putting us in a great position to continue growth both organically and by acquisition. Our core marketing materials outsourced procurement business continues to outperform that of our peers and our clients are starting to see real value from our new service lines."
Edward Parsons, Group Chief Financial Officer of HH Global, said: "We set another company record across revenue, net revenue, and EBITDA. Forecasts for the remainder of our fiscal year are strong. We believe the growth trends established over the past year will continue for the foreseeable future."
About HH Global
HH Global Ltd., founded in 1991, is a leading, strategic marketing execution partner to prominent brands in 44 countries. The company uses people, data and technology to provide customer experience, content development, and outsourced procurement services across multiple marketing delivery channels globally. Every HH Global solution brings deep expertise of over 1300 employees directly to clients by embedding a team on-site in their marketing departments. HHub, a best-in-class marketing technology platform, data analytics capabilities, and an expansive list of suppliers help HH Global teams drive down cost, time to market, improve quality and increase sustainability for its clients. The company also operates HH Labs, the center of its innovation programme, that brings fresh, new ideas to clients. With over $650M of spend under management, HH Global maintains a razor-sharp focus on cost and quality, combined with an industry-leading sustainability program, offering improvements that provide both fiscal and environmental value. For more information, visit www.hhglobal.com.
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