- 2021 Revenues of €32.2 million, up 11.3% compared to
2020
- Gross margin of 51%, up 9.4%, and stable operating
profit
- Cash position at the end of 2021 of €7.0 million, financial
visibility ensured
- Confirmation of 2022 targets: revenues above €20m, reaching
operating profitability and positive EBITDA
Regulatory News:
ALCHIMIE (FR0014000JX7 – ALCHI –
Eligible PEA-PME) (Paris:ALCHI), an OTT (over the top)
subscription video on demand (SVoD) platform featuring original and
exclusive thematic channels published jointly with media groups and
talents, today announces its consolidated annual results for the
year ending December 31, 2021, as approved by the Board of
Directors on April 20, 2022.
IFRS consolidated income
statement
In thousands of euros
31.12.2021
31.12.2020
Change
Revenue
32,223
28,952
+11,3%
Cost of sales
-15,639
-13,794
+13,4%
Gross profit
16,584
15,158
+9,4%
Technological and development costs
-4,669
-3,724
+25,4%
Sales and marketing costs
-15,083
-14,161
+6,5%
General and administrative expenses
-5,405
-5,900
-8,4%
Operating income
-8,574
-8,626
Net financial expense
-168
-564
-
Tax income (expense)
-297
504
Net income from continuing
operations
-9,038
-8,687
-
Net income from discontinued
operations
0
105
-
Consolidated net income
-9,038
-8,582
-
Cash position at end of period
7,061
14,955
-
Business activity and 2021
financial results
As announced on the occasion of the release of the 2021
revenues, the Group's consolidated annual revenues (IFRS) amounted
to €32.2 million at December 31, 2021, an increase of +11% compared
to December 31, 2020. The Video activity (€29.5 million) shows an
annual growth rate of +17%.
This increase is due to the launch of more than 60 new channels
in 2021, bringing Alchimie's offer to 130 channels co-published
with celebrities and talents.
Despite the growth in revenues, the distribution partnerships
established proved to be less buoyant than anticipated. As a
result, the number of subscribers during the past fiscal year
showed less growth than expected (+13%).
In 2021, cost of sales increased to
€15.6 million; despite this increase, the Group's gross margin was
51%, up 9.4%.
Operating expenses increased slightly (+5.8%), including both
Technology and Development costs (+25.4%) and Marketing and Sales
costs (+6.5%). The increase in Technology and Development costs is
the result of the temporary reinforcement of the teams to develop
the new functionalities of the Alchimie Studio platform, while the
increase in Marketing and Sales costs is the result of the sizing
up of the teams to strengthen the distribution network in France
and abroad. General and administrative expenses were down 8.4%,
mainly due to the non-recurring legal costs incurred in 2020 in
connection with the IPO.
The operating loss is stable, at
around -€8.58 million compared to -€8.63 million in 2020.
The financial result reaches -€0.17
million at December 31, 2021 compared to -€0.56 million in
2020.
All in all, the consolidated net
loss for the year 2021 is €9.0 million, compared with €8.6 million
in 2020.
Financial position of the
Group
Consolidated shareholders' equity is in deficit and amounts to
-€0.8 million as of December 31, 2021. This decrease of
approximately €9.1 million is the result of the consolidated net
loss of €9 million in 2021.
The cash position at the end of December 2021 was €7.1 million
in 2021, compared with €15.0 million at December 31, 2020.
Borrowings amounted to €8.5 million in 2021, a decrease of
approximately €1.4 million following the early repayment of senior
debt for €1.8 million.
Post-closing highlights
The Company has an historical contract with the mobile operator
Orange to provide a turnkey service. The renewal of this contract
for fiscal year 2022 has been confirmed, with the service scheduled
to be closed by January 2023 due to the redefinition of the
portal's offerings.
The service had 140,000 video subscribers at December 31, 2021,
contributing €4.2 million to 2021 revenues.
Strategy and outlook
Fiscal year 2021 was marked by a
number of operational achievements in terms of technology,
marketing and publishing. However, the limited growth in the number
of subscribers during the past year requires Alchimie to adapt its
strategy to optimize its cost structure and cash. From now on, the
Company's management will be focused on achieving profitability
rather than on a subscriber base growth target. This adjustment of
the model will thus enable the Company to focus its resources on
its profitable assets.
2022 marks a strategic refocusing of the Alchimie model around
three major focuses:
- The development of thematic channels for brands and key
accounts,
- Optimizing resources, in particular through the reorganization
of the structure and,
- Pursuing profitable growth by achieving operational
profitability.
In terms of business development, Alchimie is pursuing the
distribution of high-potential channels to its subscribers and is
also diversifying its business. The Company has signed its first
contract to publish the content of a third party, acting as a
service provider.
In addition, in order to develop the channel publishing offer
for companies, Alchimie has strengthened its team and recruited an
experienced profile dedicated to this activity.
At the operational level, the Company is now focusing on markets
where it believes it has the greatest potential for profitable
growth, such as France and Spain. As a result, it no longer has
local teams in the U.S. or the United Kingdom.
In France, the reorganization plan presented on February 10 is
now being implemented and fully financed by the Company's own
resources, opening a new phase of business development.
At the financial level, as announced in February, the Company's
management is firmly focused on achieving operating profitability
as of the first quarter of 2022 and for the entire year. The
strategic adjustments made will enable Alchimie to lower its
breakeven point to a revenue of over €20 million for the year 2022
and implement the new strategy that will enable a return to
growth.
In terms of financial resources, Alchimie maintains a rigorous
management of its costs to preserve its cash flow and does not plan
a capital increase given its cash position of €7 million at the end
of December 2021.
Pauline Grimaldi d’Esdra, CEO of
Alchimie comments: « 2021 has been an intense year for Alchimie
following a health accident of its founder, Nicolas d'Hueppe, who
stepped away from the Company's business. My arrival at the end of
last year was aimed at reorganizing the Company with an adaptation
of its model in order to achieve healthy and profitable growth.
Four months after my appointment, the strategic orientations
validated by the Board of Directors have been implemented and
Alchimie is now on track to reach its 2022 targets ».
Alchimie will publish its 2021 Annual Financial Report on April
29, available on its website: https://www.alchimie-finance.com/
***
General meeting : June 8, 2022, terms of participation
will be communicated at a later date.
Next financial release: H1 2022 sales, July 19, 2022
after closing.
About Alchimie
Alchimie is a channel factory: a unique video platform in
partnership with talents and media to co-publish their own thematic
channel. Alchimie has a content catalog established among 300
renowned partners (Arte, France TV distribution, ZDF Entreprises or
Zed). Alchimie partners with 110+ talents (celebrities,
influencers), brands and media groups to create new channels (The
Big Issue, Army Stories, Poisson Fécond, Vaughan, Scène de Crime,
Point de Vue) which are then distributed on more than 60
distribution platforms (TVPlayer, Amazon, Orange, Movistar,
Samsung, Huawei, etc.) constantly expanding its audience and
consequently its revenues. In 2019, Alchimie acquired TVPlayer, the
largest independent OTT platform in the UK.
For more information: www.alchimie-finance.com /
www.alchimie.com
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220426005911/en/
Alchimie Stéphane Taillefer Directeur Financier
investors@alchimie.com
NewCap Thomas Grojean/Louis-Victor Delouvrier Relations
investisseurs alchimie@newcap.eu 01 44 71 94 94
NewCap Nicolas Merigeau Relations Médias
alchimie@newcap.eu 01 44 71 94 98
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