ANEVIA (EPA:ALANV) Anevia : First-Half 2019 Results.

Transparency directive : regulatory news

25/09/2019 17:45

PRESS RELEASE

GENTILLY,
25/09/2019

FIRST-HALF 2019 RESULTS

* +7% organic growth
* Sharp rise in gross margin
* Improved earnings, net loss cut in half
* Shareholder's equity enhanced with the exercise of 240,000 warrants

Anevia, a leading provider of OTT and IPTV software solutions, today announced
its H1 2019 results, as approved by the Board of Directors and subject to a
limited review by the statutory auditors.

French GAAP                H1 2019    H1 2018
In EURm, at 30 June(1)     6 months  6 months         Var.
Revenue                      7.2        6.7           +7%
Gross margin                 5.9        5.1          +15%
As a % of revenue            82%        76%         +6 pts
Operating expenses          (7.4)      (7.4)        stable
Operating income
(including foreign
exchange income)            (1.5)      (2.2)      +EUR729k
Research Tax Credit
and subsidies                0.6        0.5         +13%
Operating income (expense)
plus Research Tax Credit    (0.9)      (1.7)      +EUR800k
Net income for the period   (0.9)      (1.8)      +EUR863k

ACTIVITY IN THE FIRST HALF OF 2019

Organic growth up +7%, driven by both the Telecom and Enterprise businesses

Anevia posted total organic revenue growth of +7% to EUR7.2m in H1 2019.

All activities contributed to interim revenue performance. The Telecom business
recorded revenue of EUR5.3m (+9%) and the Enterprise business EUR1.9m (+2%).

The company achieved major strides expanding its business in the first half:

- Internationally, the company continued rolling out its product and service
  range in the United States and onboarding new top-tier operators in Asia, two
  strategic markets for the company;

- The end-to-end offer was taken to market, with encoding solutions that
  combine the latest cutting- edge technologies such as 4K, low latency, Ultra
  HD (UHD) and virtualisation, which has already won over multiple clients;

- New partnerships were contracted with major players such as Haivision, one of
  the world's leading providers of live video streaming technologies, and
  Evermedia, a French specialist in IPTV and multi-media solutions, for the
  distribution and deployment of Anevia products and associated services.

(1) R&D costs are fully expensed and partially funded by the Research Tax
Credit.

FIRST-HALF 2019 RESULTS

Sharp rise in gross margin; net loss cut in half

Anevia improved its gross margin significantly in the first half, recording a
6-point gain to 82%. The company enjoyed a better product mix over the period,
thanks to the combined impact of two factors:

- More software sales, on par with the company's guidance;

- More sales of higher-margin services to a constantly growing installed client
  base, which is systematically loyal to the quality of solutions provided.

This performance, combined with strict cost discipline over the period, boosted
operating income by +EUR800k which, together with the Research Tax Credit, came
out at EUR(0.9)m versus EUR(1.7)m in H1 2018.

Similarly, net income improved, with the net loss cut in half from EUR(1.8)m to
EUR(0.9)m.

Cash position at 30 June 2019

At 30 June 2019, the Group's balance sheet showed shareholders' equity of
EUR(1.4)m, financial debt of EUR2.7m (stable compared to 31 December 2018) and
a cash position of EUR1.4m (vs. EUR1.7m at 31 December 2018).

Shareholders' equity enhanced with the exercise of 240,000 warrants on 1 July
2019

On 1 July 2019, 240,000 equity warrants (BSAs) were exercised out of the
480,000 BSAs issued in December 2018 in a private placement issue of shares
with warrants attached (ABSA), without pre-emptive rights, at an exercise price
of EUR2.50 each.

RECENT DEVELOPMENTS

"Full Dynamic Ad Insertion" function added to monetise OTT content

Anevia announced the addition of a Full Dynamic Ad Insertion solution to its
product range targeting operators and broadcasters.

The range, which already included ad-enabling and preparation capabilities, now
offers ad-stitching and routing features in the CDN (content delivery network),
allowing clients to better monetise their OTT content via programmatic
advertising.

According to a report published by survey firm US Video Advertising Bureau(2),
advertising already makes up 45% of all online video revenues, and is expected
to reach nearly 60% over the next 10 years.

Virtualisation of the software range

Anevia furthered its R&D investments over the period with the aim of
virtualising its software range in order to simplify deployment, configuration
and operations for its clients without compromising performance, and to stay
one step ahead of the current market transformation.

In addition to unbundling hardware and software, recent containerisation
technology made it possible to streamline administrative tasks (e.g. using an
orchestration system to move software from one machine to another, or to launch
multiple instances of a programme in response to a peak load). The
implementation of these technologies (containerisation and orchestration) has
been completed for the NEA-CDN(r) solution, is currently being finalised for
the Genova encoders, and is in the works for Anevia's NEA-DVR(r) and Flamingo
solutions.

(2) You Down with OTT - An overview of the Competitive Video Ecosystem - Video
Advertising Bureau, 2018
http://www.thevab.com/wp-content/uploads/2018/03/OTT-Ecosystem-Overview-
Final.pdf

Collaboration with Intel and NVIDIA

In September, Anevia announced it has worked closely with Intel and NVIDIA to
optimise its Genova encoder with their respective processors.

With these developments, OTT service providers are able to offer their
subscribers a higher quality of video broadcast and additional services at no
extra cost.

2019 PRIORITIES

Anevia has confirmed its organic growth guidance for full-year 2019. To that
end, the company will continue to develop the business opportunities at its
disposal, while also focusing its efforts on two complementary, high-priority
objectives:

- Maintaining a high gross margin;
- Further streamlining its cost structure.

Next release: full-year 2019 revenue out 29 January 2020 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 of 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: 4,586,978

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ANEVIA (EPA:ALANV) Anevia : First-Half 2019 Results.

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