ISPD has announced strong growth with 2021 results. Therefore, EBITDA is up 50% to 6.3 ME and operating profit is up 155% to 5.1 ME. Net cash is € 10.5 million (excluding IFRS 16).
The strong growth of activities in 2021 was driven mainly by digital media trading services (+ 82% to € 115.9 million for proformers), supported by a recovery and a recovery of advertiser confidence. Affiliate marketing offers (+ 20% to 7.3 ME) also experienced strong momentum despite the slow recovery of the hotel sector. This is one of the key segments the department is working on. The recovery is slow in Europe, reflecting a 18% decline in revenue, especially in the technology and marketing services sector, to € 16.5 million. The Spanish market in particular is realigning its offerings to better meet the changing needs of its customers.
The acquisition of Happyfication in the fourth quarter helped us significantly contribute to ISPD’s strategic planning and media services, improving client performance and streamlining operations.
From a geographic point of view, the United States and Latin America have had a strong recovery since 2020, accounting for 80% of the Group’s revenues.
Significant improvement in results
For comparison purposes, the analysis of results is based on Proformer’s financial indicators, including Rebold for 2020 from January 1st. Proformer revenue in 2021 includes the sale of advertising space in Mexico, which has been billed directly to customers by the media since the introduction of the new Advertising Transparency Act.
The change in gross margin from 47% to 38% is related to the weight of digital media trading activities, which will account for 95% of consolidated revenue in 2021 compared to 71% in 2020. Nevertheless, gross profit increased. With 9% of proformers, we prove that we manage margins across our portfolio of activities.
2021EBITDA is 6.3ME, which is a 50% increase in proforma. This increase is explained by the evolution of the workforce reorganization and the combination of activities in the new composition of the group. Therefore, the average number of proformers will increase from 497 in 2020 to 442 in 2021.
The Group is no longer affected by the exceptional restructuring costs incurred in 2019 and 2020 and the asset impairments recorded in 2020, resulting in an operating profit increase of 155% to 5.1 ME in 2021 and a net profit of 5.1 ME. It became 5.4ME.
8.8ME free cash flow and 10.5ME net cash
Cash flow from operating activities was 11.3 ME in 2021, compared to 2.5 ME in 2020. The investment flow is 2.5 million, including the acquisition of treasury stock of 0.6 ME in particular, so the free cash flow in 2021 is 8.8 ME. .. After a loan repayment of 1.4 ME and a positive exchange rate effect of 0.8 ME, the cash change in 2021 is +11 ME, which brings the available cash to 20.1 ME at 31.12.2021.
Therefore, when recalculated with 9.6 ME financial debt (excluding the impact of 1.2 ME IFRS 16), net cash at the end of 2021 is 10.5 ME compared to 0.2 ME net financial debt at the end of 2020.
Andrea Monge, CEO of ISPD, said: “Thanks to our financial strength, product diversity, investments made over the last few years, and the integration process undertaken, we will continue to strengthen our leadership and gain market share.”