EQS-News

The Social Chain AG: Q1 2023 Report - revenue decreased due to restructuring, EBITDA improved, capital increase planned in the coming weeks

EQS-News: The Social Chain AG / Key word(s): Capital Increase/Quarterly / Interim Statement The Social Chain AG: Q1 2023 Report - revenue decreased due to restructuring, EBITDA improved, capital increase planned in the coming weeks 25.05.2023 / 19:48 CET/CEST The issuer is solely responsible for the content of this announcement. The Social Chain AG: Q1 2023 Report - revenue decreased due to restructuring, EBITDA improved, capital increase planned in the coming weeks

 

Results Q1 2023

• Restructuring takes effect:
  Group revenue at EUR 58.4 million (previous year: EUR 117.5 million)
  Decrease in revenue largely due to planned disposals of unprofitable companies
  Operating EBITDA (excluding M&A) improves by EUR 9.4 million to EUR -3.5 million (previous year excluding M&A EUR -12.9 million, previous year including M&A EUR 26.3 million)
• Total debt reduced by EUR 60.5 million, financing structure significantly improved

 

Outlook

• Capital increase planned: new equity in the low double-digit million range
• Forecast 2023 slightly corrected within the given range

 

Berlin, 25 May 2023. The Social Chain AG has published its report for the first quarter of 2023. The company generated consolidated revenue of EUR 58.4 million (same quarter of the previous year EUR 117.5 million). The reduction in revenue was largely driven by the scheduled divestment of unprofitable companies and portfolio streamlining. On the other hand, operating EBITDA (excluding M&A income) shows significant improvement of EUR 9.4 million: from EUR -12.9 million in Q1 2022 to EUR -3.5 million in Q1 2023.

The prior-year quarter was impacted by the partial sale and subsequent deconsolidation of KoRo Group, which resulted in a positive effect of EUR 39.2 million. As a result, EBITDA in Q1 2022 including M&A income amounted to EUR 26.3 million.

Dr. Georg Kofler, CEO: "We were succesfully able to implement large parts of our restructuring program in the first quarter of 2023. We have disposed of unprofitable companies and business units or those that are not part of our core business. In doing so, we have consciously accepted a significant reduction in revenue in order to structurally improve the profitability of the Social Chain AG. In addition, the consumer sentiment, which remained weak in many areas, weighed on the sales of some of our companies. However, today we can state that our ongoing restructuring program is showing a clear impact which is evidenced by the significant improvement in operating EBITDA."