Intershop reports good new business and double-digit revenue growth for H1 2017

  • Focus on wholesalers and cloud showing initial success
  • Consolidated revenues climb 10% to EUR 18.0 million (previous year: EUR 16.3 million)
  • Positive EBIT of EUR 0.2 million (previous year: EUR -1.3 million)

Jena, 2 August 2017 – Intershop Communications AG (ISIN: DE000A0EPUH1), a leading independent provider of innovative solutions for omni-channel commerce, increased its consolidated revenues by 10% to EUR 18.0 million in the first six months of 2017. Following on from a strong first quarter, Intershop continued the positive business trend and signed up more than twice as many new customers in the first six months of 2017 than in the same period of the previous year, half of which were companies from the wholesale sector.

Supported by the good new business trend, the strategically important product revenues increased by 16% to EUR 7.6 million. Service revenues were up by 6% on the prior year period to EUR 10.3 million. In this segment, too, new customers made a major contribution to the positive business trend. Product revenues accounted for 43% of total revenues, up from 41% in the previous year.

The gross margin rose to 50% in the reporting period (previous year: 46%). As had been announced, the cost reductions in administrative functions achieved in the context of the “Lighthouse 2020” program were used to accelerate the new sector and cloud focus through additional investments in marketing and sales. As a result, costs in this area increased by 15% to EUR 4.2 million. At EUR 8.7 million, total operating expenses (OPEX) were moderately lower than in the previous year (EUR 8.8 million).

Moreover, Intershop generated slightly positive earnings before interest and taxes (EBIT) of EUR 0.2 million in the first six months of 2017 (previous year: EUR -1.3 million). The EBIT margin stood at 1% (previous year: -8%). At EUR 1.4 million, earnings before interest, taxes, depreciation and amortisation (EBITDA) also improved notably (previous year: EUR -0.1 million). The net result for the period amounted to EUR 28k (previous year: EUR -1.6 million), which is equivalent to earnings per share of EUR 0.00 (previous year: EUR -0.05).

Intershop posted clearly positive operating cash flow of EUR 1.8 million in the first six months of the year (previous year: EUR -1.4 million). As a result of the scheduled repayment of the loan raised in 2015, liabilities to banks were reduced by EUR 1.0 million to EUR 2.8 million as of the interim reporting date. Cash and cash equivalents declined by a moderate 3% to EUR 10.6 million, while the equity ratio climbed from 59% to 60%. Overall, Intershop’s asset and capital structure is solid.

Dr. Jochen Wiechen, CEO of Intershop Communications AG: “The good business trend in the first half of the year is already largely attributable to our new “Lighthouse 2020” strategy and the related repositioning and sector focus. We are confident that this trend is sustainable and expect to sign up a relevant number of new customers before the end the current year, especially in the B2B sector. Our cloud offering in cooperation with Microsoft is also showing a very positive trend. We feel we are well positioned to benefit from the increasing digitization of commerce and to successfully support the transformation of our customers.”

The Intershop Management Board continues to project moderately higher revenues and balanced earnings before interest and taxes (EBIT) for the full year 2017.

The interim report on the first six months of 2017 is available for download at https://www.intershop.com/en/financial-reports.

About Intershop

Intershop (founded in Germany 1992; Prime Standard: ISHA) enables the world’s leading manufacturers and wholesalers to digitalize, transform, and boost their businesses. Our e-commerce platform and cloud-based technology give B2B companies the power to establish and expand their digital presence, improve customer experience, and increase online revenue. With 30 years experience and a global presence, we help our 300+ clients turn products into profits, customers into business partners, and transactions into lasting relationships.

Intershop is built to boost your business. Learn more 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.

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Mercedes Zaremba
Mercedes Celine Zaremba Corporate Communications Manager Phone