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PRESS RELEASE

Financial Results First Semester 2017

Revenue Growth; Significant Decrease in Seasonal Losses; Increase in Net Cash
Paris, France -
19 September 2017
In € millions H1 2016 H1 2017 Variation 2016
Revenues 20.9 22.7 +9% 48.2
Cost of goods and third-party services resold 2.7 2.7 +3% 7.0
Commercial gross profit 18.2 20.0 +9% 41.2
Other cost of revenues 7.2 7.9 +10% 14.6
Gross profit 11.1 12.0 +9% 26.6
Gross margin 53% 53% - 55%
Research and development 6.1 6.0 -2% 11.6
Selling and marketing 4.5 4.9 +8% 9.0
General and administrative 2.3 2.6 +12% 4.6
Current operating income (1.9) (1.4) +23% 1.4
Operating income (1.9) (1.4) + 27% 1.3
Net income, Group share (2.1) (1.9) +7% 0.7

DALET, a leading provider of software solutions for the creation, management and distribution of multimedia content for broadcasters, operators and content producers, has published its financial results for its first half-year ended June 30, 2017.

Total revenues for the semester were up by 9% at €22.7 million as compared to the first half of 2016. Gross profit, which includes the cost of services, increased at the same rate as revenues, despite a larger share of services in the total sales mix (services represented 22% of revenues, versus 20% for the first semester of 2016). This result reflects the initial implementation of new processes designed to better control the cost of projects deployment.

Research and development expenses were stable at €6 million (26% of revenues). Selling and Marketing expenses were up by 8%, an increase due to international expansion in new markets and increased presence at tradeshows. General and Administrative expenses were up by €0.3 million, related to the development of new offices in Japan and Brazil and expansion in Singapore.

The resulting current operating loss decreased significantly by 23% to -€1.4 million, as compared to the first half of 2016. It is noted that Dalet’s business experiences significant seasonality, with higher revenues in the second semester compared to the first semester, while expenses are almost fixed.
After €0.3 million in financial expenses, of which 10% is net interest expenses and 90% is related to exchange rates fluctuations, and €0.2 million in tax, net income for the semester amounted to a loss of €1.9 million as compared to a loss of €2.1 million for the first semester of 2016.

Improved cashflows – Stronger net cash position

Cash flows linked to operations amounted to €2.3 million, up by 35% as compared to the first semester last year, due to the decrease in seasonal loss and to an improved management of work capital. These cash flows linked to operations covered all investments and generated cash flows before financing activities of €0.6 million.
On 30 June 2017, net cash stood at €1.6 million, shareholder’s equity at €13 million. 

Perspectives 

Based on these results and on the initial activity of the second semester, DALET expects continued growth in 2017, and progressive improvement of its operating margins, with an objective of a current operating margin of 4 to 5% for the full year 2017.

DALET just participated at the IBC broadcast tradeshow in Amsterdam (September 15 to 19), where it released its new “Dalet Social Media Panel”, an innovative module that provides newsrooms with the capability to create and distribute stories to social media outlets, and provides journalists, on their Dalet desktop production tools, with real time feedback on the stories from their audience.
This innovative solution was awarded by a panel of judges from the industry the "Best of Show Award', one of the most prestigious awards at the show.

 

Next publication
Q3 revenues on 6 November 2017 after the close of trading

 

About Dalet Digital Media Systems

Dalet solutions enable broadcasters and media professionals to create, manage and distribute content to both traditional and new media channels, including interactive TV, the Web and mobile networks. Dalet combines into a single system a robust and proven Asset Management platform with advanced metadata capabilities; a configurable workflow engine, and a comprehensive set of purpose-built creative and production tools. This integrated and open environment enables end-to-end management of the entire News and Sport and Program content chain, and allows users to significantly improve efficiency, and to maximize the use and value of their assets. Dalet's solutions are delivered through a dedicated Professional and Integration Services Department to ensure the highest possible standards.

Dalet systems are used around the world by many thousands of individual users at hundreds of TV and Radio content producers, including public broadcasters (ABS-CBN, BBC, CBC, DR, France TV, RAI, RFI, Russia Today, RT Malaysia, VOA), commercial networks and operators (Canal+, FOX, eTV, Mediaset, NBC Universal, Time Warner Cable, Warner Bros., SiriusXM) and government organizations (UK Parliament, NATO, United Nations, Veterans Affairs, NASA).

Dalet is traded on the NYSE-EURONEXT stock exchange (Eurolist C): ISIN: FR0011026749, Bloomberg DLT:FP, Reuters: DALE.PA. For more information on Dalet, visit www.dalet.com.

Contacts

Actus Finance & Communication :

  • Investors: Guillaume Le Floch +331 53 67 36 70
  • Press-Media: Vivien Ferran +331 53 67 36 34

 

 

 

 

 

APPENDIX: DETAILED FINANCIAL INFORMATION H1 2017 

INCOME STATEMENT BY FUNCTION 30 june 2016 30 june 2017
(in € thousands) 6 months 6 months
     
Revenues 20 896 22 964
Cost of revenues -9 836 - 10 657
Gross Profit 11 059 12 037
Research and development -6 084 - 5 992
Selling and marketing -4 531 - 4 890
General and administrative -2 312 - 2 600
Current operating income -1 869 - 1 445
Other income and expenses from operations 76
Operating income -1 869 -1 369
Net financial income (expense) -146 - 325
Pre-tax income -2 015 - 1 694
Income tax -90 -246
Net consolidated income -2 105 - 1 940
Net income, Group share -2 105 -1 940
 

INCOME STATEMENT BY NATURE OF EXPENSE 30 june 2016 30 june 2017
(in € thousands) 6 months 6 months
     
Revenues 20 896 22 694
Cost of goods and third-party services resold -2 659 -2 737
Commercial gross profit 18 236 19 957
Other external expenses -5 939 - 6 649
Employee expenses -12 144 -12 747
Taxes and duties -90 -99
Other income and expenses from operations -29 -21
EBITDA 36 442
Amortization expense and provisions net of reversals -1 905  - 1 886
Current operating income -1 869 -1 445
Net financial income (expense) -146 - 325
Pre-tax income -2 015 -1 694
Net consolidated income -90 - 246
Net consolidated income -2 105 - 1940
Net income, Group share -2 105 - 1940
 

BALANCE SHEET 31 dec 2016 30 june 2017
(in euro thousand)    
     
Goodwill 5 604 5 508
Intangible assets 5 375 5 154
Property, plant and equipment 1 333 1 403
Long-term financial assets 360 370
Long-term restricted cash 180 181
Other non-current assets 1 718 1 926
Deferred tax assets 424 395
NON-CURRENT ASSETS 14 992 14 936
Inventories 428 290
Trade receivables 17 814 16 323
Sundry debtors 1 701 1 270
Cash and cash equivalents 6 532 5 950
Current tax assets 299 204
CURRENT ASSETS 26 774 24 037
TOTAL ASSETS 41 766 38 973
     
Capital 7 187 7 187
Premiums 9 682 9 682
Consolidated reserves -4 655 - 3948
Consolidated income, Group share 660 - 1940
Translation reserves 2 276 1 979
Shareholder’s equity (attributable to the Group) 15 150 12 960
Non-controlling interests 9 9
SHAREHOLDER’S EQUITY 15 159 12 969
Long-term financial debt 2 930 2 550
Long-term provisions 677 670
Deferred tax liabilities 578 529
Other non-current liabilities 754 787
NON-CURRENT LIABILITIES 4 938 4 536
Short-term provisions 96 18
Short-term financial debt 2 332 1 815
Current tax liabilities 38 72
Suppliers 3 962 2 776
Tax and social security liabilities 4 316 4 907
Other creditors 10 926 11 879
CURRENT LIABILITIES 21 669 21 468
TOTAL LIABILITIES 41 766 38 973
STATEMENT OF NET CASH FLOWS 30 june 2016 30 june 2017
(in € thousand) 6 months 6 months
Consolidated net income
(including non-controlling interests)
- 2 105 - 1940
+/- Depreciation, amortisation and provisions
(except on current assets)                  
1 929 1 764
+/- Impairment losses – Long term assets    
+/- Income and expense linked to stock options and similar 64 42
-/+ Other income and expense    
-/+ Gains and losses on disposals 1 2
Cash flow after cost of net financial debt and tax -112 -132
+ Cost of net financial debt 82 32
+/- Tax expense (including deferred taxes) 90 246
Cash flow before cost of net financial debt and tax (A) 60 146
- Tax paid (B) -189 - 247

+/- Change in working capital requirement from operating
activities 
(including liabilities for employee benefits) (C)

1 861 2 447
= NET CASH FLOW FROM OPERATING ACTIVITIES
(D) = (A + B + C)
1 732 2 345
     
- Cash outflow for acquisitions of property, plant and equipment
and intangible assets
-1 733 - 1 764
+ Cash from disposals of property, plant and equipment and
intangible assets
1 76
+/- Impact of changes of scope    
+/- Change in loans and advances made 51 -72
= NET CASH FLOW FROM INVESTMENT ACTIVITIES
(E)
-1 682 - 1 761
     
-/+ Repurchase and resale of treasury shares 2 -9
+ Cash from new borrowings 300 423
- Loan repayments (including finance leases) -480 -649
- Net financial interest paid (including finance leases) -72 -24
+/- Other cash flows from financing activities -140 -712
= NET CASH FLOW FROM FINANCING ACTIVITIES (F) -390 -971
     
+/- Impact of changes in exchanges rates (G) -60 - 225
     
= CHANGE IN NET CASH POSITION (D + E + F + G) -399 -612
     
Cash at end of period    
Cash and cash equivalents – Bank overdrafts 3 917 5 701
     
Cash at opening    
Cash and cash equivalents – Bank overdrafts 4 317 6 313
 

Events

CABSAT Dubai 2018
Date: Jan 14 - 16, 2018
Location:
Dubai, UAE
Website:
HPA Tech Retreat 2018
Date: Feb 19 - 23, 2018
Location:
Palm Desert, USA
BVE 2018
Date: Feb 27 - Mar 01, 2018
Location:
Excel London
Website:
ABU Digital Broadcasting Symposium 2018
Date: Mar 05 - 08, 2018
Location:
Kuala Lumpur, Malaysia
Website:
PBS Technology Conference 2018
Date: Apr 04 - 06, 2018
Location:
Las Vegas, USA

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