Invibes Advertising : Strong growth in annual results 2023.

Invibes Advertising NV / Key word(s): Annual Results/Annual Results
Invibes Advertising : Strong growth in annual results 2023.

27.03.2024 / 17:45 CET/CEST

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Press release

Strong growth in annual results 2023

Return to positive EBITDA and net profit

London, 27th March 2024 - Invibes Advertising (Invibes), an advanced
technology company specialising in digital advertising, has published its
results for 2023, showing strong growth and a return to positive EBITDA and
net income.

The annual financial report is available on the Company's website:
https://www.invibes.com/uk/en/investors.html

  Audited consolidated figures,                  2023    2022      
  in EURK
  Sales figures                                28 913    27 966   +3,4%
  Purchases and external charges             (16 497)  (17 873)   -7,7%
  Staff costs                                (10 389)  (11 227)   -7,5%
  REBITDA(1)(1)                                 2 027   (1 134)  +3 161 EUR

  1. #_ftn1
  Non-current expenses                           (56)   (3 374)    -98%
  EBITDA                                        1 971   (4 508)  +6 479 EUR
  Depreciation, amortisation and provisions   (1 383)   (1 419)   -2,5%
  Current operating profit (loss)                 588   (5 927)  +6 515 EUR
  Exceptional impairment                            -   (1 766)    n/a
  Operating profit (loss)                         588   (7 693)  +8 281 EUR
  Financial result                              (594)     (469)   +26,7%
  Deferred tax                                    563       190  +196,3%
  Net profit (loss)                               557   (7 972)  +8 529 EUR

Sales growth of +3.4% in 2023

Over the course of 2023, Invibes recorded sales growth of +3.4%. H1 of 2023
was marked by a growth slowdown in the digital advertising sector, followed
by two consecutive quarters of sales growth during the second half,
benefiting from the sector's renewed vigour.

Business in the countries where Invibes has been established for the longest
(France, Spain, and Switzerland) remained stable in the second half of the
year, a remarkable performance after the difficult conditions of the first
half of the year. This limited the decline to 13% for the year.

Countries in the scale-up phase (Germany, the UK, Italy, and Belgium) are
recording accelerated growth between H1 and H2, with total growth of +32% in
2023.

The new countries in the start-up phase (Sweden, Norway, Denmark, South
Africa, Netherlands, UAE, Poland, Czech Republic) crossed the threshold of
nearly one million euros in sales for the first time in 2023.

Return to positive EBITDA and net profit by 2023

The rapid measures to reduce its cost structure, implemented by Invibes from
the second half of 2022 to accompany growth slowdown in the advertising
market over the period have successfully borne fruit in 2023. These
measures, combined with the return to sales growth since Q3 2023, have
enabled Invibes to meet its objective in returning to profitable growth in
2023.

Recurring EBITDA (REBITDA) amounted therefore to EUR2.0m in 2023, compared
with -EUR1.1m in 2022, representing an increase of EUR3.2m between the two
financial years.

After accounting for non-current expenses, EBITDA was EUR2.0m in 2023,
compared with
-EUR4.5m in 2022, which included costs relating to the restructuring
undertaken in the second half of 2022.

The breakdown of EBITDA by country maturity is as follows:

    Audited consolidated figures,     2023     2022      
    in EURK

    Existing countries (1)
    Sales figures                  17 267 (2) 19 892   -13,2%
    EBITDA                           5 198     5 131   +1,3%
    % EBITDA                          30%       26%

    Scale-up (3)
    Sales figures                    9 927     7 538   +31,7%
    EBITDA                           1 902     (640)    n/a
    % EBITDA                          19%       n/a

    New countries (start-up) (4)
    Sales figures                     973       536    +81,5%
    EBITDA                           (579)    (1 529)   n/a
    % EBITDA                          n/a       n/a

    Discontinued operations (5)
    Sales figures                     701        -      n/a
    EBITDA                             17        -      n/a

Group overheads (6) (4 567) (7 470) -38,9%

Consolidated EBITDA 1 971 (4 508) +6 479 EUR
(1) France, Spain, Switzerland

(2) The ML2Grow business has been restated as a discontinued operation
following its disposal in March 2024

(3) Germany, United Kingdom, Italy, and Belgium

(4) Sweden, Norway, Denmark, South Africa, Netherlands, UAE, Poland, and
Czech Republic

(5) Corresponds to ML2Grow sold in March 2024

(6) Excluding CAPEX

Despite a fall in activity in the countries where Invibes has been
established the longest (France, Spain, Switzerland), EBITDA rose slightly,
enabling the margin to increase by 4 points to 30% of sales, demonstrating
the resilience of the model when a market is mature and established and all
the fundamentals are activated, despite difficult market conditions.

EBITDA in countries in the scale-up phase rose sharply in 2023 to reach 19%
of sales, illustrating the strength of Invibes' international development
model, which is based on its ability to roll out its activity rapidly and
successfully in a new country so that it becomes a contributor to
profitability in less than two years after its launch.

After reaching the threshold of nearly one million in sales during 2023, the
new countries recently opened (start-ups) will rapidly benefit, like the
scale-ups, from the strength of the model and increase their contribution to
the Group's profitability.

It should be noted that ML2Grow was sold in March 2024 and is therefore
accounted for as a discontinued operation. The purpose of acquiring the
company in 2019 was to strengthen Invibes' machine learning capabilities to
further analyse data using AI. Through knowledge transfer, the ML2Grow team
has helped us take our AI initiatives forward. We thank them and wish them
all the best.

Operating profit and net profit also returned to positive territory.

Including depreciation and amortisation of EUR1.3m, Invibes posted an
operating profit of EUR0.6m. After including a financial charge of EUR0.6m and a
tax credit of EUR0.6m relating to the capitalisation of deferred tax, net
profit came to EUR0.6m.

Between 2022 and 2023, operating profit and net profit have risen by EUR8.3m
and EUR8.5m respectively, demonstrating the Group's ability to adapt its costs
rapidly to changes in its business and maintain sustained profitability,
without penalising its capacity for innovation or its ability to win new
business.

As of 31 December 2023, Invibes had a solid financial structure, with net
cash of EUR10.8m and shareholders' equity of EUR21.7m.

Outlook for 2024

Once again buoyed by a recovering digital advertising market, Invibes has
entered 2024 with more favourable parameters.

To increase the density of its cross-market offer and meet the demand of its
international key account customers looking for a global offer, Invibes
intends to extend its geographical footprint with the opening of 3 new
markets, the United States, Mexico, and Singapore.

On the strength of its ability to model the ROI of launching a new country,
Invibes expects these new markets to contribute to business a few months
after their launch and then to the group's profitability within 2 years.

In 2024, Invibes is confident that it will continue to grow its business
while maintaining positive profitability.

Next publication: Q1 2024 sales, on 25 April 2024 (after trading).

About Invibes Advertising

Invibes Advertising (Invibes) is an international technology company
specialising in digital advertising innovation.

Founded on the philosophy that advertising efficiency comes from being truly
innovative and naturally engaging to users, Invibes has developed an
integrated technology platform for brands to reach consumers through
impactful in-feed advertising.

Invibes delivers advertising that creates positive attention by harnessing
the power of big data, innovative in-feed formats, wide reach and extensive
intelligence services.

Pioneering the way in sustainable advertising, Invibes also offers a unique
solution to offset campaign emissions through its Carbon-Neutral label.

In order to partner with some of the greatest brands in the world, like
Amazon, Bacardi, Dell, IKEA and Toyota, we rely on even greater people. At
Invibes we strive to maintain an energetic, open environment that fosters a
culture of ideation, growth and #GoodVibes, that shines straight through to
our clients.

Want to hear more about Invibes? Visit: www.invibes.com

Invibes Advertising is listed on the Euronext Stock Exchange (Ticker: ALINV
- ISIN: BE0974299316)

Read our latest press releases at:

https://www.invibes.com/investors.html

Follow the latest news about Invibes Advertising on:

LinkedIn @Invibes AdvertisingX @Invibes_adv

Financial & Corporate Contacts:

Kris Vlaemynck, co-CEO

kris.vlaemynck@invibes.com

(1) REBITDA: recurring EBITDA, i.e. operating profit before depreciation,
amortisation, provisions, and non-recurring charges, as explained in section
1.3 - Principal activities, of the 2023 financial statements.


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File description: 2024 03 27 - PR - Invibes Advertising_EN_final

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End of Media Release

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   Language:       English
   Company:        Invibes Advertising NV
                   Reigerstraat 8
                   9000 Gent
                   Belgium
   E-mail:         audrey.mela@invibes.com
   ISIN:           BE0974299316
   Listed:         Paris
   EQS News ID:    1869151

End of News EQS News Service
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1869151 27.03.2024 CET/CEST