The Board of Directors of MailUp approved the consolidated half-year report as of 30 June 2018
– Consolidated REVENUES of EUR 18.03M, +38% versus 30 June 2017
– Consolidated foreign REVENUES of EUR 7.89M, +52% versus 30 June 2017
– Consolidated EBITDA of EUR 1.87M, +56% versus 30 June 2017
– Consolidated NET EARNINGS of EUR 0.51M, +225% versus 30 June 2017
– Consolidated NET CASH POSITION of EUR 8.94M, versus EUR 7.25M as of 31 December 2017
– ONGOING DEVELOPMENT SEEN VIA ORGANIC GROWHT AND M&A
MailUp S.p.A. (the “Company” or “MailUp”), a company admitted to trading on the multilateral trading facility AIM Italia / Alternative Investment Market and operating in the marketing technology field, has announced today that the Board of Directors passed a resolution to approve the consolidated report for the six-month period ended on 30 June 2018, prepared in compliance to international accounting standards (IAS/IFRS).
Here follow the half-year Group results as of 30 June 2018
Here follow the half-year Group results by business unit as of 30 June 2018:
The Board of Directors is very satisfied for the positive half-year results. especially in light of the highly competitive market landscape and complex overall economic situation.
The half-year P&L posts total revenues in excess of EUR 18M, showing an increase for almost EUR 5M or +38% versus the same period of 2017. The biggest contribution to said result comes from the SMS line, in terms of both revenues (EUR 11.95M) and growth (+59%) versus 1H 2017, particularly because of Agile Telecom’s excellent performance in a dynamic, volatile and highly price-oriented market environment. The Email line, steadier and consolidated by nature within the Group, showed a +8% increase, with revenues in excess of EUR 5M deriving from the combined growth in the MailUp and Acumbamail business units and decrease in the Globase business unit, which completed its turn-around process over the last months. BEE Editor posted a substantial growth up to EUR 0.43M 1H revenues (+132%), measuring the rapidly increasing recognition of the product, an in-house start-up, by marketers globally. Positive if subdued is the trend for Professional Services, on-demand consulting for customisation and training on the Group platforms. Foreign revenues amounted to ca. EUR 7.89M, showing a substantial growth trend on 1H2017 both in absolute (+52%) and relative terms (44% incidence versus 40%).
Consolidated EBITDA amounted to ca. EUR 1.87M, growing by +56% versus 1H 2017, for a 10.3% margin on sales, as the positive organic outcome of the reorganisation process that took place during the past year.
Net of depreciation, amortisation and net financial expenses; Earnings Before Taxes for over EUR 1M showed a considerable increase on 1H 2017, notwithstanding EUR 0.86M D&A (+20% versus 30 June 2017), related to investments on the platform, which is a strategic factor to preserve the Group’s competitive position.
Net Earnings, after estimated current and deferred taxes, amount to EUR 0.51M, increasing by +225% versus the same period of 2017.
The consolidated Net Financial Position as of 30 June 2018 is negative (for net cash) and amounts to EUR 8.94M, growing versus the previously recorded (net cash) amounts of EUR 7.25M as of 31 December 2017, thanks to the positive operating cash flow.
Significant events after the reporting period
On 2 July 2018 MailUp paid the second earn-out tranche due to the seller of Agile Telecom, according to the provisions of the sale and purchase agreement signed on 29 December 2015, for a consideration of Eur 0.8M.
On 16 July 2018 MailUp Group announced they received confirmation of a EUR 5.1M grant, including a soft loan and a nonrefundable loan of EUR 1.3M for a R&D project denominated “NIMP – New Innovative Multilateral Platform”, to be carried out in the three-year period between 1 March 2018 and 28 February 2021, in co-operation, among others, with the Politecnico di Milano University as scientific partner within the ICT/Digital Agenda government plan. specifically within the “Technologies for innovation in the creative, contents and social media industry”. This grant will enable the Group to enhance its competitive positioning in the relational marketing area, with a view to multichannel and co-operative approach, by developing new services and functions integrated within the MailUp platform. aiming at allowing clients to implement customer loyalty strategies via consumer engagement.
On 1 August 2018 MailUp Group announced that the shareholders holding 30% of the Spanish subsidiary Acumbamail exercised the Put Option towards the Company, as per the purchase and shareholders agreements executed on the occasion of the acquisition of a 70% stake in Acumbamail, announced on 3 August 2015. The condition for the exercise was the achievement of certain performance targets for the three-year period 2015-2018, which were positively verified. The price for the acquisition of residual 30% of Acumbamail share capital amounts to EUR 0.59M and was paid from the Company’s liquidity. Acumbamail is strategic to reinforce MailUp Group’s presence in Spanish-speaking Countries and entry-level client segments which are not served by MailUp offer. Acumbamail founders, Mr. Rafael Cabanillas Carrillo and Mr. Ignacio Arriaga Sanchez, remain involved in the subsidiary’s top management as executive Board Members, with a two-year retention period from the closing, together with Mr. Nazzareno Gorni, founder and CEO of MailUp Group, appointed as Chairman of the Board on 11 July 2018 with deciding vote for strategic matters.
On 19 September 2018 MailUp signed a binding agreement for the acquisition of 100% of the share capital of Datatrics B.V., a Dutch company founded in 2012 that developed a state-of-the-art predictive marketing platform, able to grow globally and focused on making data-science accessible to marketers. Datatrics’ proprietary technology enables marketing teams to build customer experiences based on artificial intelligence-managed data, resulting in better quality customer engagement, higher conversion rates and upgraded loyalty, via a data management platform with a self-learning algorithm. The above-mentioned technology allows marketing teams to directly exploit data with no necessity to involve IT departments or data analysts for complex integrations. The use of Artificial Intelligence (“AI”) allows the combination of data from multiple sources; both Clients’ internal sources (CRM. Email, social network, ecommerce, web analytics and more) and external features (demographics, weather, traffic and more) using an open Customer Data Platform approach. Marketers thus gain detailed, comprehensive and unified customer profiles in view of an efficient and effective use of tools and channels. Datatrics was founded by Mr. Bas Nieland and started posting revenues in 2017 (amounting to EUR 0.30M in FY2017), and currently serves ca. 100 corporate clients (showing a 43% growth in 1H2018), including Siemens; LeasePlan, KLM, PostNL, British Petroleum, CarGlass and Rabobank. The company is based in Enschede (NL) and has offices in Amsterdam; Utrecht and London. The transaction is consistent with MailUp Group’s growth and development plan, aimed at increasing its dimension and capitalization by means of a strategy based on M&A, diversification and offer enlargement. The acquisition will thus enable the inception of an integrated player in the field of artificial intelligence, fostering industrial synergies via both the shared business support services already in place within the Group and the integration of a complementary business line. The transaction contemplates the purchase of 100% of Datatrics share capital from its current shareholders for a total consideration of ca. EUR 3.8M to be paid in cash and via a capital increase reserved to the sellers, who will also be granted an earn-out provision up to EUR 3M. The closing is expected to be effective by the end of October.
BDO S.p.A., appointed audit firm, issued a positive opinion on the half-year consolidated report for the six months period ended on 30 June 2018.
Matteo Monfredini, Chairman and founder of MailUp Group, stated: “We are very satisfied with these results, which corroborate the soundness and potential of the investments made so far, in order to sustain MailUp’s and Agile Telecom’s great performance and Acumbamail’s and BEE’s growth process. We are determined to pursue the announced growth strategy, both organic and by M&A, and we trust that the recent Datatrics acquisition will prove complementary and synergic with the Group activity.”
Nazzareno Gorni, CEO and founder of MailUp Group, stated: “We congratulate the whole team for the great performance and the hard work. We intend to pursue the development of the Group’s activity and services in order to strengthen our competitive position. In detail; we intend to focus our effort on enlarging, integrating and maximising our competitive position within the varied service and geographical landscapes where we operate. We confirm our will to grow in the mid-large corporate segment, via both the traditional offer (such as MailUp and Professional Services) and more innovative solutions (such as BEE Plugin and Datatrics), which will enable a significant increase in the return per customer thanks to specific cross-selling interventions.