Sharp improvement in activity in Q2

20/07/09 - Revenues up 0.5%

 

Nine new centers in France in Q2

 

Audika’s second-quarter revenues amounted to EUR 28.4 million, up 0.5%, which marked a return to growth for the Group. This performance was bolstered by the contribution of new centers integrated into the Group over the last year, and, as expected, by a substantial improvement in like-for-like trends (-6.6% in the second quarter compared to -11.1% in the first quarter).

 

(in EUR thousands)	2008	2009	Change
First quarter	23,329	22,091	-5.3%
Second quarter	28,304	28,434	+0.5%
First half	51,633	50,525	-2.1%

 

Revenues for the first half of the year as a whole fell slightly by 2.1% to EUR 50.5 million, which demonstrates the Group’s sound resistance in spite of an unfavorable comparison base and an economic backdrop that remains difficult.

 

Revenues generated in Italy continued to increase sharply, in particular thanks to the broadening of the Group’s network (43 centers at June 30, 2009), with Italy representing 8.4% of revenues for the first half of the year compared to 5.2% for the same period last year.

 

Nine new centers in Q2: over 400 centers in the French network

 

Audika Group is actively continuing the strategic development of its network, thereby reinforcing its number one market status. Accordingly, Audika announced the acquisition of seven new centers in four regional departments: Cantal (two centers), Haut Rhin (two centers), Hérault (two centers) and Gard (one center). These centers will generate additional revenue of almost EUR 1 million over a full year.

 

Moreover, Audika announced that it had set up two new centers in the Paris region in order to increase the Group’s store concentration in this high-potential area.

 

With 17 new centers acquired or set up since the beginning of the year, Audika Group now has a network of more than 400 centers in France, thereby taking another step towards its medium-term target of 700 centers.

 

Second half outlook

 

Against a backdrop that remains uncertain, Audika Group is remaining cautious on its full-year targets. However, the more favorable comparison base in H2 should enable a continued gradual improvement in activity levels.

 

As a priority for this year, Audika intends to maintain high profitability, by increasing its gross margin, implementing cost cutting measures, improving the amortization of structural expenses in Italy and through the solid resistance of its activity. At the same time, the Group is confirming that it will maintain its marketing investments in France and Italy.

 

Having already made 37 acquisitions and openings in France and Italy since the beginning of the year, Audika intends to continue to actively develop its networks over the coming months, in markets that are maintaining all of their medium-term growth potential.

 

Audika Group will publish its first-half results on September 7, 2009 after the close of the markets.

 

About Audika:

 

With over 400 centers in 83 different regions and a 14% market share, Audika is the number one network offering hearing correction consulting and solutions in France. The Group recently undertook international development, successfully creating a network of almost 50 centers in Italy.  Positioned on the market for hearing correction solutions for senior citizens, Audika aims to consolidate its leadership in a sector that remains very highly fragmented. Audika is listed on Euronext Paris, Segment B and the SBF 250, CAC Mid & Small 190 and CAC Small 90 indexes.

 

If you would like to receive free financial information on Audika by e-mail, go to: www.audika.com

 

ISIN FR0000063752-ADI Reuters DIKA.PA Bloomberg ADI:FP

Number of shares: 9,450,000

 

Audika contact: Alain Tonnard / Etienne Sirand-Pugnet on +33 (0) 1 55 37 30 30
Actus Finance contact: Guillaume Le Floch on +33 (0) 1 72 74 82 25