First-quarter revenues up 10.6%

24/04/07 - Acquisition of two regional networks (13 centers) and Targets revised upwards

 

In line with its development plan, Audika posted revenues of EUR 20.0 million for the first quarter of 2007, up 10.6% of which 6.2% was internal growth. As is the case each year, the Group reported strong, steady growth in business from mid-February, a trend which has also continued into April.

 

The centers acquired at the beginning of the year (EUR 1.5 million in additional revenue in 2007) are still in the process of being integrated and contributed relatively little to revenue over the quarter (EUR 0.2 million).

 

(in EUR thousands)	Q1 2006 (*)	Q1 2007 (*)	Change
Revenue	18,055	19,971	+10.6%

(*) This figure takes into account the restatement linked to extended guarantee cards: under IFRS, revenue only includes the margin earned on this type of product and not the full sales figures.

 

 

Position strengthened and centers opened in two new regional departments in the South West

 

As part of Audika's aggressive strategy to increase its market share, the Group today announced the purchase of two regional networks in the South West, which comprise 10 and 3 centers respectively.

 

These acquisitions considerably strengthen Audika's position in a region where the Group has only been present since 2005, broadening its geographical coverage in the regional departments of the Pyrénées Atlantiques (8 centers) and the Landes (1 center). Moreover, this operation has enabled Audika to open its first centers in two new regional departments, the Gers (2 centers) and the Hautes Pyrénées (2 centers), reflecting the Group's active strategy to achieve complete national coverage.

 

 

2007 targets revised upwards

 

All of these centers will be consolidated in the second quarter of the year and should generate additional revenue of over EUR 1.5 million in 2007 (more than EUR 3.0 million over a full year). As a result, Audika is revising its 2007 revenue target to at least EUR 90.5 million excluding any new acquisitions.

 

 

Continued aggressive acquisitions strategy

 

After just four months of business, Audika Group has already increased its network by 23 centers (19 centers acquired and 4 new centers). Audika now has over 340 centers in 80 French regional departments, thereby confirming the Group's market leadership in France.

 

With a portfolio of other potential targets still available, Audika intends to continue its aggressive acquisition strategy in 2007 and aims to take an ever stronger strategic position in order to rapidly reach its target of 500 centers in France. Audika will therefore be the first to benefit from the forecast growth in its market in the years ahead as its target category, the “baby boom” generation, reaches the age of 65.

 

Audika Group will publish its revenue for the first half of 2007 on July 23, 2007 after the close of the markets.

 

 

About Audika:

 

With over 340 centers in 80 different regions and a market share of 13%, Audika is the number one network offering hearing correction consulting and solutions in France. Positioned on the market for hearing correction solutions for senior citizens, which is not affected by changes in the economic environment, Audika aims to consolidate its leadership in a sector that remains very highly fragmented. Audika is listed on the Eurolist SMALL 90, segment B.



IISIN FR0000063752-ADI

Reuters DIKA.PA,

Bloomberg ADI

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Audika contact: Alain Tonnard / Etienne Sirand-Pugnet on +33 1 55 37 30 30

Kaparca Finance contact: Guillaume Le Floch on +33 1 72 74 82 25



KAPARCA FINANCE - 24/04/07