Ateme: FIRST HALF OF 2021 RESULTS
Paris, September 28, 2021 – 5:45 p.m. CET
- 8% increase in gross margin despite 4% like-for-like drop in income
- S1 operating loss of 4.7 million euros, but moderate growth and profitability expected for the full year
- Founding member of ‘Greening of Streaming’, promoting sustainability in our sector
|Consolidated data (in € m)||H1 2020||S1 2021||Switch
Like for like
|Gross margin||14.6||19.6||35%||+ 8%|
|Gross margin (%)||50.1%||60.4%|
|current operating income||-2.2||-4.7||N / A||N / A|
|Operating margin (%)||-7.7%||-14.5%|
|Financial profit / loss||-0.2||0.1|
|Group net income||-2.6||-4.4||N / A||N / A|
|The net margin||-8.9%||-13.5%|
ATEME’s accounts at June 30, 2021 were closed by the Board of Directors at its meeting on September 27. The limited review of the company’s financial information by its auditors has been completed. The limited review report will be issued after verification of the half-year activity report.
Paris, September 28, 2021 – ATEME (ISIN: FR0011992700), a global specialist in video broadcasting, has published its half-year results at 30e June 2021.
Uneven revenue performance across geographic areas and significant business model transition
First-half sales amounted to 32.4 million euros, up 12% on a reported basis and down 4% on a like-for-like basis.
All regions continued to be affected by the impact of COVID-19, including travel restrictions limiting interactions with customers, supply chain challenges and customers delaying some of their investments. The North America and APAC regions recorded similar performances with respectively 17% and 19% decrease in sales (each of 16% like-for-like). Latin America posted robust growth of 42% thanks to the contribution of Anevia, while sales were stable (-1%) on a like-for-like basis. The EMEA has shown the strongest resilience, with sales growth of 12% like-for-like, increased to 68% with the contribution of Anevia.
Overall, while travel restrictions prevented ATEME from gaining new customers at the usual rate, the group was able to develop its activity with its existing customers and thus increase its MRR (Monthly Recurring Revenue) by nearly 200 K € in the first half of the year. , or € 2.4 million of incremental gross margin over a rolling 12-month period.
In addition, ATEME has strengthened its value proposition for media companies and service providers, in particular with the integration of Anevia, thus increasing its competitive position upstream of the expected post-Covid dynamic.
Increased software sales leading to improved gross margin
The 4% decrease in turnover reflects a decrease in resales of third-party products (in particular servers sold with TITAN software); on the other hand, software sales increased, resulting in an improvement in gross margin from 14.6 to 19.6 million euros (published), with a margin increasing from 50.1% to 60.5% (+10.4 points).
The integration of Anevia partly explains an increase in operating expenses (16.8 to 24.3 M €) with + 3.1 M € in R&D, + 3.7 M € in Sales & Marketing and + 0 , € 7 million in G&A.
The synergies of the merger should materialize in 2022:
- savings of around 1 to 2 million euros are expected.
- above all, cross-selling opportunities, with a goal of doubling Anevia’s NEA sales between 2020 and 2022.
Net income for the first half of the year showed a deficit of 4.4 million euros, or 13.5% of sales, close to 13.8% for the first half of 2018.
Usual acceleration of S2 revenue expected
Since the 2014 IPO, second half sales have generally exceeded first half sales by around 30%. The same seasonality was experienced by Anevia, and this established seasonality is not expected to change in 2021.
Scaling up R&D investments in H1 to accelerate the NEA roadmap was halted in Q3, while savings on travel and trade shows continue, as illustrated by the world’s leading show, Las Vegas NAB, initially. postponed from April to October, and now officially canceled.
Overall, the seasonal acceleration in second half sales should offset the first half and ATEME should post moderate like-for-like growth and breakeven in terms of operating profitability for fiscal year 2021.
founding member of “Greening streaming”
Ateme is a founding member of Greening of Streaming, so that streaming continues to change the world for the better. Greening streaming will bring together some of the biggest players in the industry to tackle the energy impact of the streaming industry, focus on best practices, act as a voice for our industry, and promote the changes we are making to ensure that streaming becomes so sustainable. as we can do.
We’re also excited to be featured in Gartner’s new Market Guide for Video Platform Services as a representative vendor, among just 15 other companies, showing the company’s compelling momentum in video and streaming.
Finally, in another great recognition of our innovation capacities, Ateme has just received 2 CSI Awards (Cable & Satellite International):
- Best Ultra HD TV technology with TITAN for the ultimate viewing experience (involving technologies like HDR – High Dynamic Range – and immersive sound)
- Better video processing technology with our “Green Delivery solution” based on the combination of TITAN and NEA
The Chairman and CEO of ATEME, Michel Artières, declared: “The first half of 2021 demonstrated the ability of ATEME, despite the persistence of the Covid-19 environment, to continue growing both software sales (as evidenced by the gross margin, up 8% like-for-like) as recurring revenues (on track to reach the EUR 3 million MRR target in 2024. In this context, we are confident that we will be able to achieve another year of revenue growth in 2021. The benefits of synergies integration, and the expected post-Covid-19 recovery, first in EMEA and North America, will contribute to significant improvements in financial results and overall performance from 2022. Elsewhere, we are delighted to participate in the founding of Greening of Streaming, aiming to spearhead best practices in terms of sustainability in the streaming sector.
November 5, 2021: Q3 2021 revenue
About ATEME: Ateme is a global leader in video compression and delivery solutions helping Tier 1 content providers, service providers and streaming platforms increase their audience and subscription engagement.
Backed by a unique R&D working group in the video industry, Ateme’s solutions power green and sustainable television services, improve the quality of end-user experience, optimize the total cost of ownership of services TV / VOD and generate new sources of income based on the personalization and insertion of ads. . Beyond technological agility, Ateme’s value proposition is to partner with its customers by offering great flexibility in engagement and business models corresponding to their financial priorities. One consequence is a rapid shift to recurring revenue, strengthening the resilience of the business and creating long-term value for shareholders.
Founded in 1991, Ateme has 490 employees spread over its head office in France and 20 offices around the world, particularly in the United States, Brazil, Argentina, United Kingdom, Spain, Germany, Russia and the Emirates. Arab Emirates, Singapore, China, Korea and Australia.
Ateme has been listed on the Paris Euronext market since 2014 and in November 2020 acquired Anevia, a publisher of OTT and IPTV software solutions. In 2020, Ateme served nearly 1,000 customers worldwide with a turnover of 70.7 million euros, of which 93% outside its home market.
Name: ATEME – ISIN code: FR0011992700 – Ticker: ATEME – Compartment: C
|ATEME||RELATIONS WITH INVESTORS||PRESS RELATIONS|
President and CEO
Phone: +33 (0) 1 53 67 36 33
Phone: +33 (0) 1 53 67 36 93
This press release does not constitute or form part of and should not be construed as an offer to sell or a solicitation of an offer to buy securities of ATEME, nor should it, or any part thereof, constitute the basis of or be invoked in the framework of any contract or commitment whatsoever relating to the assets, activities or actions of ATEME.
All statements other than historical facts included in this presentation, including, without limitation, those concerning ATEME’s position, business strategy, plans and objectives are forward-looking statements.
The forward-looking statements included in this document are provided for informational purposes only and are based on the current opinions and assumptions of management. These forward-looking statements involve known and unknown risks. For illustrative purposes only, these risks include, but are not limited to, the impact of external events on customers and suppliers; the effects of competition from competing technologies in general in major markets; profitability of the expansion strategy; litigation; ability to establish and maintain strategic relationships in large companies; and the effect of future acquisitions and investments.
ATEME expressly disclaims any obligation or commitment to update or revise any projections, forecasts or estimates contained in this presentation to reflect any change in the events, conditions, assumptions or circumstances upon which these statements are based, except as applicable law l ‘required. These materials are provided to you for your information only and may not be copied or distributed to any other person (whether inside or outside your organization) or published, in whole or in part, for any purpose. it would be.
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