ADLPartner / ADLPerformance

PROGRESS WITH EARNINGS IN 2020 - Seite 2

The Digital Marketing business (marketing services and consulting), which represents 37% of consolidated net sales, recorded 20% growth in its gross margin (€31m), linked primarily to the robust development of the subsidiary Converteo, a market leader for digital and data strategy consulting. The marketing services business, held back by the impact of the health crisis, was further strengthened with the integration of the three acquisitions made during the year: i) in January, the acquisition of the assets of Ividence, an adtech company specialized in programmatic native advertising for media newsletters, ii) in July, the acquisition of a majority interest in AWE, a BtoB digital marketing agency, and iii) in August, the acquisition of the assets of Pschhh, a strategic planning and creation agency.

EARNINGS

Consolidated net sales¹ came to €139.3m, up 0.5% from 2019, while the gross sales volume² is stable at €287.5m.

Operating income came to €9.3m, up 21% from 2019, which was negatively affected by a provision for restructuring linked to the realignment measures for the magazine activities. In 2020, the progress with earnings for ADLPartner SA, the further reduction in the loss of the subsidiary ADLP Assurances, and the growing contribution by the subsidiary Converteo made it possible to offset the Spanish subsidiary’s stable results and the drop in performance for the marketing services subsidiaries.

After factoring in a higher tax expense (€2.9m), consolidated net income totaled €6.2m in 2020, up 19% from 2019.

After deducting minority interests, net income (Group share) represents €6.5m, with a net margin rate of 4.7%, versus 3.8% in 2019.

Consolidated data (€m)	2020	2019	Change
Net sales	139.31	138.64	+0.5%
Operating income % of net sales	9.31 6.7%	7.67 5.5%	+21.4%
Consolidated net income % of net sales	6.21 6.7%	5.23 5.5%	+18.6%
Net income (Group share) % of net sales	6.49 4.7%	5.24 3.8%	+23.9%

FINANCIAL STRUCTURE

Consolidated shareholders’ equity represented €23.1m at 31 December 2020, up €0.5m from 31 December 2019, primarily factoring in earnings for the year (+€6.5m), the exceptional dividend paid in December 2020 (-€1.8m), the impact of the takeover of AWE (-€4.8m) and the impact of changes in the basis for consolidation (+€1.2m).