Intershop Communications AG | Press Release |
Intershop increases profitability and generates positive result in FY 2015
- EBITDA of EUR 3.5 million, EBIT of EUR 0.2 million
- Total revenues of EUR 42.7 million; adjusted at prior year level
- Licencing revenues up by 51%
- Product revenues in percent of total revenues climb to 41% (previous year: 30%)
- Operating cash flow rises sharply to EUR 5.0 million (previous year: EUR 0.4 million)
- Forecast: in 2016 due to further investments in product, sales and marketing only moderate increase in EBIT with revenues at prior-year level, in the medium term high sales potential in the B2B market and cloud environment
Jena, 17 February 2016 – Intershop Communications AG (ISIN: DE000A0EPUH1), a leading independent provider of innovative solutions for omni-channel commerce, recorded solid revenues and increased profitability for 2015. At Group level, Intershop’s revenues declined by 7% to EUR 42.7 million; adjusted for the 2014 sale of its subsidiary, SoQuero GmbH, however, revenues reached the prior year level as projected (2014: EUR 42.9 million).
Product revenues rose by 27% to EUR 17.4 million in the reporting period. The related licensing revenues increased by 51% to EUR 9.3 million. Maintenance revenues climbed 8% to EUR 8.1 million. By contrast, service revenues declined by 22% to EUR 25.3 million, primarily because of the non-recurrence of the online marketing revenues and reduced consulting revenues from two key accounts. Consulting and training revenues dropped by 16% to EUR 19.3 million. Adjusted for the revenues of the two key accounts, revenues from consulting projects rose by 2%. Full-service revenues increased by 6% to approx. EUR 6.0 million. Product revenues accounted for 41% of total revenues, up by 11 percentage points on the previous year. Accounting for 59%, service revenues again made the biggest contribution to Intershop Group’s total revenues. The increased percentage of product revenues shows, however, that the strategic repositioning has been successful.
Based on the higher percentage of high-margin product revenues and the improved cost structure, Intershop’s earnings showed a positive trend in the financial year 2015. The gross margin was up by nine percentage points on the previous year to 45%, and operating expenses declined by 18%. Consequently, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose sharply from EUR -2.1 million to EUR 3.5 million. Earnings before interest and taxes (EBIT) amounted to EUR 0.2 million in the reporting period, up from EUR -6.3 million in the previous year. Earnings per share amounted to EUR 0.00 (previous year: EUR -0.22).
Thanks to the increased profitability and the debt and equity measures carried out in the course of 2015, the cash position has also improved significantly. At EUR 15.2 million, liquid funds clearly exceeded the previous year’s EUR 6.4 million as of 31 December 2015. Cash flow from operations improved notably in the reporting period from EUR 0.4 million to EUR 5.0 million. Due to the capital measures, Intershop Group’s total assets increased by 30% to EUR 33.0 million. The equity ratio declined from 70% to a still comfortable 58% as a result of the debt capital raised. As of the balance sheet date, Intershop employed 380 people worldwide.
In the financial year 2016, the company will focus on expanding its strategic growth areas. This also includes widening the base of small and medium-sized customers. In this context, Intershop will present an enlarged range of cloud solutions in this course of this year. In addition, the company will push ahead with its synaptic commerce solutions, essentially by further opening its own technology platform for third-party solutions. This aspect is particularly important in the B2B market, which will play an even more critical role in 2016 than in the past, as Intershop moves forward to exploit and expand its expertise and technology lead in this market.
Says Dr. Jochen Wiechen, CEO of Intershop Communications AG: “Our transformation into an integrated provider of omni-channel commerce solutions is showing effect and the increased percentage of product revenues will clearly help to enhance our profitability. We are gradually laying the basis for a sustainable growth strategy. Therefore, in 2016 we are planning further investments in our product development as well as sales and marketing. We will continue the positive trend of 2015 and will slightly improve our earnings before interest and taxes (EBIT) with revenues remaining stable. In the areas of B2B and cloud solutions we see promising sales potential and great opportunities for Intershop, thereby expecting high growth rates in the medium term.”
The full consolidated financial statements will be published in mid-March 2016. All financials in this press release are provisional, pending completion of the statutory audit.
Intershop Communications AG (founded in Germany 1992; Prime Standard: ISH2) is the leading independent provider of omni-channel commerce solutions. Intershop offers high-performance packaged software for internet sales, complemented by all necessary services. Intershop also acts as a business process outsourcing provider, covering all aspects of online retailing up to fulfillment. Around the globe more than 300 enterprise customers, including HP, BMW, Würth, and Deutsche Telekom run Intershop solutions. Intershop is headquartered in Jena, Germany, and has offices in the United States, Europe, Australia, and China. More information about Intershop can be found online at www.intershop.com.
This news release contains forward-looking statements regarding future events or the future financial and operational performance of Intershop. Actual events or performance may differ materially from those contained or implied in such forward-looking statements. Risks and uncertainties that could lead to such difference could include, among other things: Intershop's limited operating history, the unpredictability of future revenues and expenses and potential fluctuations in revenues and operating results, significant dependence on large single customer deals, consumer trends, the level of competition, seasonality, risks related to electronic security, possible governmental regulation, and general economic conditions.