The consolidated net loss for the 2021 fiscal year is 9ME.

( — alchemy Published the annual results of 2021
As announced at the time of the 2021 sales announcement, the Group’s consolidated annual sales (IFRS) were 32.2 million euros as of 31 December 2021 compared to 31 December 2020. + 11% increase. Video activity (€ 29.5 million) recorded an annual growth rate of + 17%. This increase is due to the launch of more than 60 new channels in 2021, with Alchimie’s offer coming to 130 channels published in collaboration with Personality and Talents.

Despite increased revenues, established distribution partnerships have proven to be less buoyant than expected. As a result, the number of subscribers over the past year has not increased significantly (+ 13%).

In 2021, the cost of goods sold increased to 15.6 ME. Despite this increase, the Group’s gross margin was 51%, an increase of + 9.4%.

Operating expenses increased slightly (+ 5.8%), including both technology and development costs (+ 25.4%), marketing and sales (+ 6.5%). Increased technology and development costs are due to the temporary strengthening of the team to develop new features for the Alchimie Studio platform, and increased marketing and sales costs are due to the team to strengthen the French and international distribution networks. It follows the sizing of. General and administrative expenses decreased by 8.4%, primarily due to the absence of recurrence of IPO-related legal costs incurred in 2020.

The operating loss is stable, about -8.58 ME compared to -8.62 ME in 2020.
The financial results reached -0.17 ME on December 31, 2021, compared to -0.56 ME in 2020.
In total, the consolidated net loss for fiscal year 2021 is 9 ME, which is compared to 8.6 ME in 2020.

Group financial status

Consolidated shareholders’ equity is in the red and will reach -0.8 ME as of December 31, 2021. This decrease of about 9.1ME is due to the consolidated net loss of 9ME in 2021. The cash position at the end of December 2021 was € 7.1 million in 2021, compared to € 15 million as of December 31, 2020.
Borrowings and financial debt in fiscal year 2021 reached 8.5 ME. In other words, after the early repayment of 1.8 ME of preferred debt, it decreased by about 1.4 ME.

Important post-closing events

We have a historic contract with mobile operator Orange to provide turnkey services. The renewal of this agreement for fiscal year 2022 has been confirmed and the portal offer redefinition will result in termination of service in January 2023. As of December 31, 2021, the service has 140,000 video service subscribers, contributing € 4.2 million to 2021 revenue.

Strategy and outlook

Fiscal Year 2021 saw many operational advances in technology, marketing and editing. Nevertheless, the limited increase in subscriber numbers over the past fiscal year requires Alchimie’s strategy to be adapted to optimize its cost structure and its cash flow. Our management is currently focused on achieving profitability, not on expanding our subscriber base. Therefore, the adaptation of this model allows you to focus your company’s resources on profitable assets.

2022 marks a strategic shift in the alchemy model around three major axes.
-Development of thematic channels to serve brands and key accounts,
-In particular, resource optimization by reorganizing the structure,
-Pursuing highly profitable growth by achieving operating profitability.
In terms of commercial development, Alchimie continues to distribute potential channels to serve its subscribers, and its activities are diversifying. In this way, we have recorded the first contract to publish the content of a third party acting as a service provider. In addition, to develop open channel offers for businesses, Alchimie has strengthened its team and adopted an experienced profile dedicated to this activity.

At the business level, we are currently focusing on markets that are considered to have the highest potential for profitable growth, such as France and Spain. Therefore, there are no local teams in the United States or the United Kingdom.
In France, the restructuring plan presented on February 10 will be implemented, fully funded by the company’s resources, and a new phase of business development will begin. At the financial level, as announced in February, our management is resolutely focused on achieving operating profitability from the first quarter of 2022 to 2022 as a whole. To implement a new strategy that will enable a return to growth with more than 20 MEUR in 2022.

In terms of financial resources, Alchimie maintains strict cost controls to maintain cash and has no plans to reach out to the market given the 7 ME cash position as of the end of December 2021.

Pauline Grimaldid’Esdra, Managing Director of Alchimie, said: He aims to reorganize the company by adopting a model aimed at healthy and profitable growth. Four months after my appointment, a strategic orientation validated by the Board of Directors has taken place and Alchimie is on track to reach its 2022 goals. “

Next General Assembly: June 8, 2022, participation conditions will be announced later.

Next financial publication: Earnings in the first half of 2022, July 19, 2022 after market closure.