ANEVIA (EPA:ALANV) Anevia : 2018 annual results.
Transparency directive : regulatory news
27/03/2019 17:45
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PRESS RELEASE
GENTILLY, 3/27/2019
2018 ANNUAL RESULTS
* Results include:
- A lower than anticipated sales conversion rate in the Telecom business in
H2 2018; and
- A ramp-up in investments in R&D and sales teams to pave the way for future
growth.
* Major strategic milestones reached in 2018:
- The Enterprise business unit is now stable and providing a constant source
of business activity;
- Successful integration of Keepixo and ramp-up in sales of encoding
technologies.
Anevia, a leading provider of OTT and IPTV software solutions, today announced
its financial results for 2018, approved by the Board of Directors.
French GAAP
In EUR millions, at 12/31(1) 2018 (2),(3) 2017
Revenues 14.1 12.6
Gross margin 11.1 10.0
As a % of revenue 78% 80%
Operating expenses (14.7) (11.3)
Operating income (3.7) (1.4)
Research tax credit & subsidies 1.2 0.7
Net income (2.6) (0.7)
The audit procedures on the annual accounts have been carried out. The
certification report will be issued after verification of the management
report.
Anevia generated revenue of EUR14.1m in 2018, up 12% compared to 2017. This
figure includes a EUR1.5m contribution from Keepixo, which was acquired by
Anevia in the first half of 2018.
(1) All R&D expenses are recorded as expenses and are partially funded by the
Research Tax Credit (RTC)
(2) 2018 figures include revenues from Keepixo, the company being consolidated
in the accounts from 1 January 2018.
(3) Figures include withholdings of EUR189,000. Tax withholdings were not
reported in 2017 sales figures.
BUSINESS ACTIVITY IN 2018
Anevia is expanding in a buoyant market, resulting in an average growth rate of
23% p.a. since 2015. This performance has notably been driven by the Telecom
sector, which is in transition and offers many opportunities. That being said,
after five consecutive semesters of double-digit growth (CAGR Telecom for
2015-2018: +42%), the Telecom business stalled in H2 2018, as a result of
insufficient sales conversions during the period. However, 2018 was marked by
significant progress with the strategic plan, which should ensure renewed
momentum over the coming months.
* Successful integration of Keepixo and accelerating sales of encoding
solutions
The integration of video compression software expert Keepixo, which was
acquired by Anevia in H1 2018, is now complete. The company's teams and
products have been successfully combined with Anevia's. Keepixo's Genova
solutions will enable Anevia to extend its value proposition to include
encoding technologies, and thus better meet the needs of existing and
prospective customers, while strengthening its position in the OTT, TV and
video distribution market. Anevia's new encoding solution, Genova Live, has
been enriched by both teams' technological expertise and the pooling of their
resources, and combines the latest advances in technology, such as 4K, low
latency, ultra HD (UHD) and virtualisation.
Anevia now has a unique positioning and can offer an end-to-end solution, which
enables it to address the market with greater efficiency and credibility. The
solution has been well received by the market, and several of Anevia's existing
customers have already integrated the encoding software as a core feature of
their OTT and IPTV distribution channels for TV and video.
* Strengthening its position in the shared OTT platforms market
OTT video broadcasting markets are currently witnessing a strong trend:
operators are teaming up to pool their OTT video broadcasting infrastructures
in an effort to increase economies of scale, notably during negotiations with
content providers, which are strategically important for winning new
subscribers.
Anevia, which already has an extensive customer base worldwide (serving several
shared platforms), bolstered its market share in 2018, relying on its
partnership with Minerva Networks and ComNet to launch a new OTT service in the
US and to which several American operators have signed up.
* Stabilising the Enterprise business
The Enterprise business recorded overall growth of +18% in 2018 (+9% excluding
Keepixo), confirming that the measures implemented to revive momentum are
bearing their fruit and have reinforced the division's core. Now fully
restructured, and with a renewed range of solutions that are more closely
tailored to suit customer needs, the business got back on the growth path in
2018 and is now a lasting source of activity for the coming years.
The business has notably been referenced by three of the world's top five
systems integrators, which are now selling its product range.
Meanwhile, Anevia intends to take advantage of the Genova Live solution to
extend its distribution network to new vertical markets, notably via new
partnerships.
* Paving the way to future growth by ramping up investments in R&D and sales
teams
Anevia has been investing heavily in bolstering its teams and its R&D activity
since 2017, to pave the way for future growth. It now has one of the most
technologically advanced teams of engineers in the world.
2018 ANNUAL RESULTS
In addition to the Telecom business, which fell short of expectations for the
period, full-year results were heavily impacted by the Group's investments in
sales and R&D.
Personnel costs therefore increased by 27% in 2018 (13% excl. Keepixo).
Similarly, the "Other external purchases and costs" line rose 37% (28% excl.
Keepixo), the company having used sub-contractors to assist the R&D programmes
underway and to shore up its operations and support teams.
Anevia thus posted an operating loss of EUR3.7m, compared to a loss of EUR1.4m
in December 2017.
The Research Tax Credit (RTC) came to EUR1.2m, which was higher than in 2017,
following the recruitment of new R&D engineers in 2018 and the acquisition of
Keepixo, which received an RTC of EUR256,000 for the period.
The company posted a net loss of EUR2.6m.
Cash position at December 31, 2018
Anevia had financial debt of EUR2.7m at Dec. 31, 2018 (compared to EUR3.2m at
Dec. 31, 2017), and net cash of EUR1.7m (compared to EUR2.3m at Dec. 31, 2017),
taking into account the proceeds of the EUR1.2m capital increase conducted in
December by issuing 480,000 shares with warrants attached (actions à bons de
souscription d'actions - ABSA) and no preemptive subscription rights, via a
private placement.
The cash position for 2019 includes:
- Pre-financing of 2018 RTC for an amount of EUR 1 million cashed in March
2019;
- A deferred reimbursement of around EUR 600K from the French public investment
bank BPI.
Furthermore, equity will be strengthened with the exercise of 240,000 of the
equity warrants (bons de souscription d'actions - BSA), out of the 480,000 ABSA
issued in December 2018, at a price of EUR2.5 each, by June 30, 2019 at the
latest, thereby adding EUR600,000 to share capital.
Note that the remaining 240,000 equity warrants may be exercised up until
December 19, 2021, at a unit price of EUR2.50, enabling Anevia to raise a
further EUR600,000 in funding.
PRIORITIES FOR 2019
In 2019, priority will be given to reviving organic growth and improving
results. To this end, Anevia will continue focusing its efforts on its
strategic plan to further the progress made in 2018, which will mean:
- Stepping up commercial deployments in the US;
- Closing business opportunities in Asia;
- Strengthening strategic partnerships;
- Seizing opportunities in the encoding market (4K, ultra-low latency);
- Capitalising on the sales potential of its end-to-end solution, which is the
only one of its kind on the market.
Note: At December 31, 2018, the company has negative share capital, at
-EUR0.5m. While this does not call into question the company's ability to
continue operating, it will be obliged to rebuild its equity over the next two
years, in accordance with current regulations.
Next publication: H1 2019 sales, on July 24, 2019
About ANEVIA
Anevia is a leading OTT and IPTV software provider of innovative multiscreen
solutions for the delivery of live TV, streaming video, time-shifted TV and
video on demand services. The company offers a comprehensive portfolio of video
compression, multiscreen IPTV head-ends, Cloud DVR and CDN solutions to enable
viewers to enjoy a next-generation TV experience - anywhere, anytime and on any
screen - including 4K UHD content. The solutions have been widely adopted by
globally-renowned telecom and pay-TV operators, TV broadcasters and video
service providers in hospitality, healthcare and corporate businesses.
Founded in 2003, Anevia has a track record of being first to market with
advanced video technologies. The company is a member and active contributor to
several TV, media and hospitality industry associations. Headquartered in
France, with regional offices in the USA, Dubai and Singapore, Anevia is listed
on the Paris Euronext Growth market.
For more information please visit www.anevia.com.
Contacts
ANEVIA
Silvia CANDIDO
Field Marketing Director
Tel: +33 1 81 98 32 40
Email: investisseurs@anevia.com
ACTIFIN
Alexandre Commerot
Isabelle Dray (press relations)
Tel.: +33 1 56 88 11 11
Email: acommerot/idray@actifin.fr
Name: ANEVIA
ISIN Code: FR0011910652
Ticker symbol: ALANV
Number of shares comprising the share capital: 4,340,136