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- REVENUES UP 15% WITH 14% RISE IN GROSS MARGIN
- OPERATING LOSS OF €2.4 MILLION, IN LINE WITH SEASONAL TREND
- ALL FINANCIAL OBJECTIVES CONFIRMED
|Consolidated data (in € million)||H1 2022||H1 2023||Change|
|Gross margin (%)||58.0%||57.8%||-0.2 pts|
|Operating margin (%)||-3.0%||-5.1%|
|Financial profit / loss||1.2||-0.9|
|Group net profit||-0.1||-3.3|
|Net margin (%)||-0.3%||-6.7%|
Paris, Sept 28, 2023 – ATEME (ISIN: FR0011992700), the global specialist in video delivery, has published its 2023 Half Year results. The financial statements for the Six Months to June 30th, 2023, were approved by the Board of Directors at its meeting on 27 September. The limited review of the company's financial information by its statutory auditors is complete and the limited review report will be issued no later than September 30, 2023.
Adjusted H1 revenues
First Half revenues amounted to €49.1 million a 15% increase year-on-year on a reported basis and 14% like-for-like.
- The USA/Canada region generated revenues of €25.5 million, up 40% (39% like-for-like), confirming its position as the Group's largest market, representing 53% of revenues.
- EMEA revenues stood at €13.6 million, up 16% reported and like-for-like, including a 1.1 M€ positive adjustment versus the €12.5 million reported on 12th July as a result of the recognition of a larger portion of a deal following the limited statutory audit review.
- Asia Pacific revenues declined by 14% (same like-for-like) to €6.9 million reflecting a tough comparison base in 2022 when topline growth was 68% like-for-like.
- Latin America revenues were down 36% (same like-for-like) to €3.1 million, reflecting a more difficult commercial environment.
Demanding base effect for comparing first-half profitability with the previous year
The operating result stood at a loss of €2.4 million, versus €1.3 million in H1 2022, but to be placed in the context of a €4.8 million deficit in 2021, in line with the Group's usual seasonal pattern. The gross margin was virtually stable at 58%.
During the First Half, Ateme continued investments to accelerate its innovation roadmap and global expansion:
- R&D investments increased by 20% versus H1 2022 (+€2.1 million), at 24.7% of the topline.
- Sales and Marketing costs were up 18% over the same period (+€2.5 million), at 32.3% of the topline.
Improved cash position
In terms of global supply chain, market conditions have improved. Kyrion deliveries have resumed, and our server partners, Dell and HPe, have considerably improved lead times. This has had a positive impact on our balance sheet, with inventories down €3 million compared to December 2022, and our available cash position has improved to almost € 10 million.
New technological developments
Over the last three months, Ateme has continued to support the media & entertainment industry as it transforms the way it reaches and engages audiences. Its latest developments facilitate new ways of consuming video and engaging fans, democratize immersive viewing experiences, and open up new opportunities with Spatial Computing. They also inject flexibility at every step of the video workflow while enhancing efficiency to reduce the carbon footprint. More details can be found at the following links:
- Accedo, Ateme transform in-stadium experiences with AWS
- Ateme Introduces its Next-Generation Video Compression
- Ateme Introduces Ateme+ Packaging Service at IBC2023
- Ateme joins Akamai qualified computing partner program
- Ateme behind Viacom18's top video quality and immersive sound experience for Indian Premier League 2023
- Ateme enables the first 5G broadcast transmission in the US
Elsewhere, Ateme has focused on helping the industry increase revenues while maintaining prudent content investments, through both geographic expansion and the leveraging of existing international resources. More details can be found at the following links:
- Ateme Powers Foxtel's Global Content Acquisition for the Australian TV Market
- Ateme's Video Headend Feeds Nilesat's Latest Satellite
Full Year Sales growth and EBITDA targets confirmed
The established seasonal pattern, with Second Half revenues always exceeding the First Half, is expected to continue in 2023. Therefore, our revenues growth target of 10% to 15% remains perfectly achievable, moreover with a less unfavorable base effect on the second semester.
Following the investments of the First Half, the Second Half will see a pause, with the global headcount remaining virtually stable until the end of the year.
We are confident the seasonal acceleration in Second Half revenues will enable us to reach our target of exceeding €5 million EBITDA on a full year basis.
We also maintain our objective of €3 million in Monthly Recurring Revenue in 2024.
Ateme's growing visibility was confirmed by its recent success at the IBC trade show which took place in mid-September in Amsterdam, with an all-time high attendance of its booth, up 58% versus 2022, to be compared with an increase of just 16% in total attendance of the show.
Michel Artières, Chairman and CEO of Ateme, commented: "The H1 performance is in line with our expectations and our seasonal pattern. We have strong visibility on our sales pipeline, enabling us to confirm our Full Year revenue and profitability targets objectives as we enter the most buoyant quarter of the year. Our confidence in our ability to meet our mid-term recurring revenues and profitability targets is reinforced”.
November 8th, 2023: Third Quarter 2023 revenues
About Ateme: Ateme is a global leader of video compression and delivery solutions helping Tier-1 Content Providers, Service Providers and Streaming Platforms to boost their viewership and subscription engagement.
Leveraging a unique R&D task force in the video industry, Ateme's solutions power green sustainable TV services, improve end-users' quality of experience, optimize the total cost of ownership of TV/VOD services and generate new revenue streams based on personalization and ad insertion. Beyond the technology agility, Ateme's value proposition is to partner with his customers by offering a great flexibility in the engagement and business models matching their financial priorities. A consequence is a rapid shift to Recurring Revenues, boosting the company resilience and creating long term value for the shareholders.
Founded in 1991, Ateme has 560 employees spread over its headquarters in France and 20 offices around the world including the USA, Brazil, Argentina, UK, Spain, Germany, the UAE, Singapore, China, Korea, and Australia.
Ateme has been listed on the Paris Euronext market since 2014 and in November 2020 it made the acquisition of Anevia, a provider of OTT and IPTV software solutions. In 2022, Ateme served close to 1,000 customers worldwide with revenues of €90 million, of which more than 90% outside its home market.
Find out more: www.ateme.com.
Name: ATEME - ISIN Code: FR0011992700 - Ticker: ATEME - Compartment: C
|Ateme||INVESTOR RELATIONS||PRESS RELATIONS|
|Michel Artières |
Chairman and CEO
|Anne-Catherine Bonjour |
Tel: +33 (0)1 53 67 36 93
|Amaury Dugast |
Tel: +33 (0)1 53 67 36 74
This press release does not constitute or form part of and should not be construed as any offer for sale of or solicitation of any offer to buy any securities of Ateme, nor should it, or any part of it, form the basis of or be relied on in connection with any contract or commitment whatsoever concerning Ateme's assets, activities or shares.
All statements other than historical facts included in this presentation, including without limitations, those regarding Atemes' position, business strategy, plans and objectives are forward-looking statements.
The forward-looking statements included herein are for illustrative purposes only and are based on management's current views and assumptions. Such forward-looking statements involve known and unknown risks. For illustrative purposes only, such risks include but are not limited to impact of external events on customers and suppliers; the effects of competing technologies competition generally in main markets; profitability of the expansion strategy; litigation; ability to establish and maintain strategic relationships in major businesses; and the effect of future acquisitions and investments.
Ateme expressly disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in this presentation to reflect any change in events, conditions, assumptions or circumstances on which any such statements are based, unless so required by applicable law. These materials are supplied to you solely for your information and may not be copied or distributed to any other person (whether in or outside your organization) or published, in whole or in part, for any purpose.
 EBITDA = earnings before interest, tax, depreciation and amortisation. Underlying EBITDA equals Group pre-tax profit before deduction of interest, depreciation, amortisation and impairment charges on non-current assets, and staff share-based payments, but after impairment of inventories and trade receivables. It shows profit generated by business activities regardless of financing conditions, tax constraints and the upgrading of operating assets. Non-recurring expenses (one-off, unusual or infrequent items) are excluded.
 Versus 48.0 M€ unaudited reported on July 12. 1.1 M€ increase reflects adjustment in the revenue recognition of an EMEA deal following the limited review by statutory auditors.
 MRR: Alternative performance indicator not subject to review by Ateme's statutory auditors: monthly recurring revenue is defined as the sum of (1) monthly sales from support contracts already signed, (2) monthly sales from multi-year license contracts already signed (CAPEX) and (3) monthly sales from license rental contracts (OPEX).