• Half year revenue at TEUR 8,634 almost at last year’s level (TEUR 8,900)
• Consolidated net profit increases to TEUR 189 (previous year: TEUR -69)
• Positive outlook for the full year 2017 confirmed
Munich, September 6, 2017 – Ecommerce Alliance AG (ISIN DE000A12UK08) published its half year results for 2017 today. The reporting period was characterised by two major developments. The management of Ecommerce Alliance AG (ECA) decided in late April to enter into a partnership with the Swiss-based company builder and new strategic anchor investor Mountain Partners AG to allow a more efficient utilisation of growth dynamics and any opportunities for further investments. From this position of strength, ECA was able to implement important business strategic projects over the course of the reporting period. That firstly included two profitable sales from the company portfolio. These were the fashion platform MYBESTBRANDS and the brand marketing expert The Native Media Inc. A few days after the end of the reporting period, the third exit this year was the sale of the minority shareholdings in InterNations, a social network for expats. The company was therefore able to meet its declared target of three to four exits in 2017 already after just seven months.
ECA has therefore set a path towards sustainably successful business development in a market environment that is unusually challenging for holding companies. During the first six months of the business year 2017, ECA achieved a revenue of TEUR 8,634, which is almost on a par with the same period of the previous year, which was TEUR 8,900. On the earnings side, media and IT costs in the company’s Shirtinator holdings were noticeably increased. The additional IT investment will ensure sustainable growth. Investment in a new sales team for the media agency getonTV GmbH during the year was made in a bid to compensate for the loss of customers in 2016 and to further expand the key account area. ECA responded to increasing competitive pressure in TV marketing with targeted investments, which negatively impacted the gross profit margin in that area during the first half year of 2017. Earnings before interest, taxes, depreciation, and amortization (EBITDA) during the first half year of 2017 was TEUR -540 in comparison with TEUR 449 year on tear, while the earnings before interest and taxes (EBIT) was reduced from TEUR 221 to TEUR -691 year on year. The financial result was improved mainly due to the sale of shareholdings after a minus of TEUR 95 during the first half of 2016 to TEUR 944 during the reporting period. The consolidated surplus after taxes for the period January 1 to June 30, 2017 is TEUR 189 against a minus of TEUR 69 year on year.
“We are right now in the middle of a period of dynamic change at Ecommerce Alliance. And we always welcome change. The new partnership with our Swiss colleagues will allow us to drive our planned three-step approach of company building, venture capital asset management and the development of mature digital companies. The capital increase will, in line with our company philosophy, be reinvested profitably, promisingly, but also with the right amount of time and patience. I am very much looking forward to the road ahead”, concludes Daniel Wild, CEO of Ecommere Alliance AG.