Paris, 27 July 2020
Recurring revenues grow 24%
- Recurring revenues (Maintenance Support and Subscription) grow 24% and make up 46% of H1 revenues, reflecting the acceleration of the revenue model change since the beginning of the year
- Business resilience with €14.3 million of bookings in H1; €28.5 million of 2020 billable bookings for the remaining 6 months of 2020
- Strong balance sheet and liquidity preserved
|(Unaudited) In € millions||H1 2019||H1 2020||Change|
|Maintenance - Support||9.7||11.0||+13%|
|Revenues excluding Hardware||22.5||23.5||+5%|
|Total revenues for the semester||24.6||25.9||+5%|
DALET, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, announced today revenues (unaudited) for the first half-year ended June 30, 2020.
Consolidated revenues for the semester were €25.9 million, up 5% on a reported basis, despite a context disrupted by the health crisis.
As indicated in April (see press release dated April 22, 2020), the development of the health crisis in Europe and the United States has led some customers to slow down or postpone their investments, thus impacting the Group's growth and profitability improvement objectives for the 2020 financial year.
Dynamic recurring revenue Growth: +24%.
The Group's recurring revenues rose sharply (+24%) in the first half of the year. This performance reflects the integration of subscription revenues from the Flex Media platform acquired in July 2019 (€1.0m over the period) and the good momentum of Maintenance/Support revenues (+13%).
The recurring portion of revenues, a key indicator for the company, reached 46% in the first half (compared with 39% in H1 2019).
Licenses sales came to €5.3 million, down 10% compared with the same period last year. Business was slowed down by the health crisis in the Group's various markets, resulting in the postponement of certain projects milestones.
Continued solid growth in North America
Revenues for the Americas continued posting healthy growth at €12.3 million, up 10%, driven by sales in the United States. EMEA sales were up by 10% to €11.4 million. Asia-Pacific was down sharply over the first half of the year at €2.2 million, reflecting less dynamic commercial activity over the period (projects won in Australia and Japan in Q1 2019).
Business resilience and outlook for year-end 2020
Despite the uncertainties linked to the evolution of the health and economic context, DALET believes that it will be able to limit the effects of the crisis on the Group's business, thanks in particular to a growing share of recurring revenues (46% in the first half of 2020) and to maintaining the order book at a high level.
Over the past six months, the Group has booked orders worth €14.3 million (compared with €17.6m over the same period in 2019 and €14.8m in 2018). To date and taking into account the postponements already announced by customers, DALET's billable order book for the 2nd half of 2020 stands at €28.5 million.
The group confirms that it has a solid gross cash position of €10.7 million at 30 June 2020, enabling it to look to the future with confidence and to maintain its main growth investments.
Based on the current economic and health context, for the full year 2020, Dalet targets revenues excluding Hardware close to those of last year. At this level of activity, current operating profit could be close to breakeven for the full year, with an increased seasonality compared to 2019 between the first half, which will show a significant loss (Ooyala costs and implementation of measures to adjust operating expenses from March) and the traditionally profitable second half.
Full financial results for the first semester of 2020 on 22 September 2020 after the close of trading
About Dalet Digital Media Systems
DALET solutions and services enable media organizations to create, manage and distribute content faster and more efficiently, fully maximizing the value of assets. Based on an agile foundation, DALET offers rich collaborative tools empowering end-to-end workflows for news, sports, program preparation, post-production, archives and enterprise content management, radio, education, governments and institutions.
DALET platforms are scalable and modular. They offer targeted applications with key capabilities to address critical functions of small to large media operations - such as planning, workflow orchestration, ingest, cataloguing, editing, chat & notifications, transcoding, play out automation, multi-platform distribution and analytics.
The integration of the Ooyala Flex Media Platform business has opened vast opportunities for DALET customers to deploy successful strategies that better address their audience with agile multi-platform content distribution in a wider range of markets, such as sports for teams and leagues, brands and corporate organizations, as well as Media and Entertainment companies looking to scale up their digital offerings.
DALET solutions and services are used around the world at hundreds of content producers and distributors, including public broadcasters (BBC, CBC, France TV, RAI, TV2 Denmark, RFI, Russia Today, RT Malaysia, SBS Australia, VOA), commercial networks and operators (Canal+, FOX, MBC Dubai, Mediacorp, Fox Sports Australia, Turner Asia, Mediaset, Orange, Charter Spectrum, Warner Bros, Sirius XM Radio), sporting organizations (National Rugby League, FIVB, Bundesliga) and government organizations (UK Parliament, NATO, United Nations, Veterans Affairs, NASA).
DALET is traded on the NYSE-EURONEXT stock exchange (Eurolist C): ISIN: FR0011026749, Bloomberg DLT:FP, Reuters: DALE.PA. For more information on DALET, visit www.dalet.com
Actus Finance & Communication: Investors: Olivier Lambert +331 53 67 36 33
Press-Media: Vivien Ferran +331 53 67 36 34