Claranova reports flat annual results

PlanetArt parent company Claranova reported revenue for fiscal year ending June 2022 of €474 million, up 1% at actual exchange rates and down 5% at constant exchange rates (-7% like-for-like).

In an unprecedented economic context that worsened in the second half, like other companies, the group was impacted by a rise in cost prices caused by increased marketing investments reflecting higher customer acquisition costs as well as the effects of inflation on transport costs and raw materials, the company said.

EBITDA remains solid at €26m for the year, however, compared to €29m last year, after restating the €4.3m COVID-19 relief aid received by the U.S. divisions during the pandemic period (Paycheck Protection Program). The latter also benefited from the growth of the Avanquest and myDevices divisions, whose revenues rose by 20% and 33% over the year to €102m and €5m respectively.

The company said the results validated the company’s “diversified approach dating from Claranova’s creation, whereby a weaker performance by one of its activities (PlanetArt) can be offset by the growth of another division (Avanquest).”

Claranova’s top priority continues to be PlanetArt’s return to growth by rebuilding its customer acquisition channels and optimizing its cost base, while leveraging the positive momentum of the Avanquest and myDevices divisions to put the Group back on track for sustainable growth and increased profitability, the company said.

“During FY 2021-2022, our Group remained on track as revenue reached record levels in a particularly complex economic environment,” said Pierre Cesarini, Chairman-CEO of Claranova.  “Each of our businesses is performing well and is demonstrating its resilience. PlanetArt’s teams are continuing to explore new customer acquisition channels and we are already starting to see the first benefits of these efforts. And although these measures temporarily weighed on the division’s margins, they have already contributed to revenue growth higher than that of our competitors and reinforce our confidence in PlanetArt’s outlook for renewed growth.

“Like all companies, we have not escaped the impact of inflation on production costs. However, the group has reaped the benefits of Avanquest’s successful transformation to a subscription-based software sales business model offering recurring revenue streams and longer-term visibility. On this basis, the division’s revenue exceeded €100m for the year, while EBITDA rose 20% over the last 12 months. This division contributed for 45% of Group EBITDA, confirming the relevance of Claranova’s multi-sector offer.

“Similarly, the IoT business has continued to build momentum as new commercial deployments confirm the growing interest in this technology of the future, which remains a growth driver for the Group.

“I continue to be firmly convinced in the fundamental strengths and potential of each of our subsidiaries. That is why I believe that today’s share price does not reflect Claranova Group’s fundamentals and growth prospects and for that reason I intend, together with other managers of the Group, to increase our stake in Claranova’s capital.”

Claranova financial results

PlanetArt personalized objects business

PlanetArt reported annual revenue of €366 million, down 4% at actual exchange rates and 9% at constant exchange rates (-12% like-for-like) compared to a “particularly dynamic” FY 2020-2021 performance during the COVID-19 lockdown periods, which generated a significant influx of new customers characterized by low acquisition rates.

During the year, the PlanetArt division focused on introducing new and more efficient customer acquisition channels after the release of Apple’s iOS 14.5 operating system, which restricted marketing targeting. These latest efforts have already started to pay off with Q4 revenue registering a marginal increase (+1% at actual exchange rates).

The division recorded an 11% increase in these expenses from €92.1m in FY 2020-2021 to €102.6m in FY 2021-2022. As a result, flat revenue combined with higher variable costs (marketing, transport) and reinforced R&D teams to support future growth (R&D and I See Me! integration), mechanically weighed on EBITDA which amounted to €16.3m end of June 30, 2022, compared to €21.7m last year after restating U.S. government aid.

PlanetArt’s weaker performance this year does not call into question its underlying growth potential. Customer demand is steadily growing, the company said.

Xavier Rojo appointed as Deputy Chief Executive Officer

Claranova also announced the appointment of Xavier Rojo, who joined the Group in May 2022, as Deputy Chief Executive Officer to assist Pierre Cesarini in structuring and supporting Claranova’s development and growth. He brings more than 20 years of experience in the banking and financial sector where he occupied various strategic and financial management positions.