Licensing revenues grew by 105% in fourth quarter and by 20% during full financial year
Total net revenues up 3% to EUR 53.6 million
High investments in marketing and sales reflected in EBIT of EUR -3.2 million
Jena, 19 February 2014 – Intershop Communications AG (ISIN: DE000A0EPUH1), the leading independent provider of innovative omni-channel commerce solutions, reports net revenues of EUR 53.6 million (previous year: EUR 51.8 million) for its financial year 2013 based on preliminary figures. The 3% rise was mainly driven by the exceptionally strong performance in the fourth quarter, which saw licensing revenues, in particular, increasing by 105% compared to the prior-year period. Net revenues of EUR 15.0 million meant that the fourth quarter 2013 was Intershop’s best quarter since the second quarter of 2001 (previous year: EUR 13.1 million). In contrast, the business trend during the first nine months of the financial year 2013 remained subdued both on the consulting and on the licensing side. The fourth-quarter surge in revenues and profits was not sufficient to offset the losses generated during the first nine months. The resulting negative EBIT of EUR 3.2 million mainly reflects the clearly higher investments in marketing and sales.
CFO Ludwig Lutter said: “The fourth quarter brought numerous new customers and revenues at record level, demonstrating that we are on a good track in the competitive market for omni-channel commerce solutions. While our intensified marketing and sales efforts involve high costs, they will be justified by our enhanced market profile and increasing market share.”
The consulting business remained the single biggest revenue contributor, even though it declined by 9% to EUR 25.8 million, mainly on account of lower revenues from a number of major customers. Licensing revenues were up 20% to EUR 6.3 million thanks to the strong fourth quarter. A positive development is also reported for other revenues; the full service-service business, in particular, grew by 72% to EUR 8.7 million in 2013. Online marketing revenues rose by 2% to EUR 4.4 million. In contrast, maintenance revenues declined by 6% to EUR 8.3 million during the financial year.
During the past year Intershop improved its gross result by 9% from EUR 17.4 million to EUR 18.8 million. The gross margin came in at 35%, compared to 34% in the prior year. This slight increase mainly reflects the higher licensing revenues generated during the reporting period. Earnings before interest, tax, depreciation and amortisation (EBITDA) decreased from EUR 1.8 million to EUR 0.5 million. Earnings before interest and tax (EBIT) declined from EUR -0.6 million to EUR -3.2 million. The net loss amounted to EUR -3.3 million compared to EUR -0.6 million in the year 2012. Earnings per share (diluted and basic) came to EUR -0.11 (previous year: EUR -0.02).
Due to the negative result, cash flow from operations came to EUR -4.1 million compared to EUR 2.0 million in the prior year.
The Intershop balance sheet as at 31 December 2013 remains free of financial debt and shows a very comfortable equity ratio of 72%. Total assets declined by EUR 4.9 million to EUR 33.7 million, primarily as a result of the reduction in liquid funds from EUR 14.4 million to EUR 7.4 million.
Expansion of customer portfolio and international partner network
Intershop’s marketing offensive has resulted in numerous new customers and projects worldwide in 2013. In addition, the company moved forward with the systematic expansion of its partner network. Sales activities in 2014 will focus on the North American region, which will require continued high investment in marketing and sales. The company also plans to manage sales and marketing out of the Berlin branch in the future.
Intershop CEO Jochen Moll said: “Having made good headway with the expansion of our international business, we continue to transform our company into an integrated provider of omni-channel commerce solutions while boosting product sales. The response from the major analyst houses confirms that this development is aimed in the right direction.”
The full consolidated financial statements will be published in mid-March 2014. All financials in this press release are provisional, pending completion of the statutory audit.