ISPD : FY 2022 RESULTS

27 Apr 2023 08:00 CEST

• FY revenues up 17% to €142.7m • EBIT up 10% to €5.6m • Net cash at €10.0m (excluding IFRS 16) Madrid, April 27, 2023 – 8:00am - ISPD (ISIN ES0109429037), a global cognitive marketing group, today presents its consolidated results for FY 2022, ending 31 December 2022. In millions d'euros 2022 2021 Var. % Consolidated revenues 106,4 106,2 - Net revenues (1) 105,9 105,7 - Net pro forma revenues (2) 142,2 121,7 +17% Gross margin 50,2 46,3 +8% Gross margin rate (% of net revenues) 35% 38% Staff costs (36,5) (28,1) Other operating expenses (6,8) (12,0) EBITDA 6,8 6,3 +8% Amortization and depreciation (1,2) (1,2) EBIT 5,6 5,1 +10% Financial income and expenses 0,0 0,6 Consolidated income before tax 5,6 5,7 Tax expense (1,2) (0,3) Consolidated net income 4,4 5,4 - (1) Revenues less volume discounts on ad sales (2) Pro forma sales calculated by reintegrating the advertising space sales in Mexico in 2022 (€36.3m) and 2021 (€16.0m), invoiced to clients directly by the publisher since the second half of 2021 under the new law on advertising transparency "In a global advertising market disrupted by economic and geopolitical tensions, ISPD is reporting double-digit growth and increased earnings in 2022. The digital advertising playing field, which has been preempted by the tech giants for the past decade, is increasingly open to innovative players, particularly in the eCommerce sector. Our agility, our cognitive marketing technologies and our global presence position us well to take advantage of these new opportunities," says Andrea Monge, CEO of ISPD. Growth momentum maintained in 2022 ISPD recorded consolidated net sales of €105.9 million in 2022 and €142.2 million on a pro forma basis, i.e. a growth of 17% compared to 2021. The share of Europe and the USA declined slightly in the second half of the year, to the benefit of the still very dynamic Latin America region. Business growth continued to be driven by Digital Media Trading services (+20% to €138.5m on a pro forma basis) and a significant rebound in Publishing (+8%) in the second half, thanks in particular to new campaigns in Europe.   EBIT up 10% As a result of the change in the sales mix in favour of digital media trading, the gross margin rate has fallen from 38% to 35% in 2022. This did not prevent the gross margin from increasing by 8% to €50.2m. Operating profit rose by 10% to €5.6m. The 30% increase in payroll (€36.5m in 2022), with the average number of employees rising from 443 to 511 in one year, was offset by a reduction in the use of external service providers and by a significantly lower impact of goodwill impairment than last year (€0.2m compared to €3.0m in 2021). After a sharp increase in the tax charge (€1.2m vs. €0.3m in 2021), explained by higher results in the USA and Mexico, the net result for the year closes at €4.4m. Healthy financial situation At 31 December 2022, shareholders' equity amounted to €6.2m. The Group had cash of €18.9m and financial debt of €8.9m (excluding IFRS 16 rental commitments of €1.8m). The net cash position is therefore €10.0m, compared with €10.5m at 31 December 2021. Outlook With a positioning adapted to the major trends of its markets and a reinforced structuring of its organisation, ISPD remains positive about the evolution of its activity in 2023. Publication of the 2022 financial report The 2022 full-year financial report is available to the public and was filed today with the French Financial Markets Authority (AMF). It can be consulted on the company’s website at https://ispd.com/investors/ under “Financial Information”. Next date: HY 2023 revenues, 27 July 2023 (before stock market opening) About ISPD ISPD is a cognitive marketing group redefining how people and brands relate. We blend cognitive science and creativity to provide our customers with end-to-end capabilities across our network of agencies. Our 500+ multidisciplinary experts from research, data science, strategic planning, creative storytelling, shopper marketing, gaming, media, technology solutions, and consulting deliver breakthrough results for our clients. Visit us at ispd.com to learn more. Contact ISPD Jordi Ustrell jordi.ustrell@ispd.com shareholders@ispd.com accionistas@ispd.com CALYPTUS Mathieu CALLEUX / Darius DINU Tél. : +33 1 53 65 68 68 ispd@calyptus.net

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