After a year of strong growth for PlanetArt and myDevices combined with further restructuring for Avanquest, Claranova (PA:AVQ) reported EBITDA profitability on a group basis. With further growth expected in PlanetArt, acquisitions doubling the size of Avanquest, and operator contracts increasing their contribution to myDevices, we maintain our revenue and EBITDA margin growth forecasts for FY19 and FY20. PlanetArt’s launch in India and recent distribution agreements signed by myDevices both have scope to contribute materially to revenues in the longer term.
Return to EBITDA profitability in FY18
Claranova had previously reported FY18 revenues of €161.6m (+24% y-o-y, +32% constant currency). FY18 EBITDA of €3.9m was ahead of our €3.4m forecast with all divisions slightly ahead; both PlanetArt and Avanquest reported positive EBITDA and myDevices reduced the loss compared to the prior year. Normalised operating profit of €3.4m was ahead of our €2.9m forecast, as a result of slightly lower costs in each division. After exceptional items totalling €2.4m and share-based payments of €7.1m the company reported operating profit of –€6.1m, compared to -€10.1m a year ago. Net cash of €37.5m at year-end was €5m higher than our forecast.
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