PlanetArt sees fiscal 2020 revenues climb 78%

Claranova, the parent company of PlanetArt, closed fiscal 2020 with record growth. The group cleared the €400 million revenue bar (€409 million), progressing 56%, of which organic growth of 20%, the company said. Claranova’s three-year average annual growth rate is 46% and the group has enjoyed 14 consecutive quarters of growth. This strong growth was achieved while preserving operating profitability in a complex economic environment: EBITDA, the main operating performance indicator, is €17 million (+9%). The group chose not to include the reduction in employee costs financed by the US government under the Paycheck Protection Program (PPP), pending final clarification by the US authorities of the conditions governing the definitive vesting of this assistance to two of our subsidiaries. The inclusion of these reductions would have increased the Group’s operating profitability by nearly US$5 million, producing an EBITDA of €22 million.

Cash flow generation was significantly strengthened, with operating cash flow increased €7 million to €29 million.

This fiscal year confirms the improvement in Claranova’s financial profile, reporting net income of €1 million. On this basis and after investment of €33 million during the fiscal year, available cash stood at €83 million at the end of June 2020. In addition to PlanetArt, Claranova also operates the software publishing business Avanquest and the Internet of Things company myDevices.

Change in the Group’s main operating performance indicators:

PlanetArt: move toward personalized e-commerce

PlanetArt reported annual revenue of €314 million, up 78%. This growth was driven by a continued geographic roll-out in Europe, the ramp-up of new mobile offerings (FreePrints Photo Tiles and FreePrints Cards), and a surge in the use of its apps during the COVID-19 lockdown, the company said. The Personal Creations assets purchased in August 2019 from FTD generated revenue of €88 million.

Revenue growth was accompanied by a 30% increase in EBITDA to €14 million. The performance of historical activities supported PlanetArt’s profitability during the period. This positive effect was nonetheless offset by the integration of Personal Creations which did not contribute to PlanetArt’s overall profitability in this first year. The operating profitability of personalized e-commerce activities was also impacted by the ongoing aggressive marketing investment strategy.

With the integration of Personal Creations in August 2019, completed in September 2020 by the acquisition of CafePress, PlanetArt increased its size, expanded its product range, and extended its geographic presence, while accessing a unique platform bringing together hundreds of thousands of designers, the company said.

Founded in 2010, PlanetArt develops and operates more than a dozen e-commerce sites and mobile apps for iOS and Android, including FreePrints, Personal Creations, SimplytoImpress, Photo Affections, CaffePress, CanvasWorld, and Gifts.com.

Change in PlanetArt’s main operating performance indicators in 2019-2020: