Revenue for the first half of 2010: EUR 52.5 million

19/07/10

 

Second-quarter 2010 revenues amounted to EUR 27.9 million, a decrease of 4.0% (down 6.7% in organic terms). Although the beginning of the year was in line with expectations, Audika has witnessed a sharp slowdown in sales since mid-May against an economic backdrop which is once again not conducive to consumption by seniors (austerity plans, pension reform, etc.).

 

(in EUR thousands)	2009	2010
First quarter	22,501	24,545
Secondquarter	29,119	27,941
First half	51,620	52,486

 

Audika’s marketing campaigns, which were well received by the public in terms of image and brand awareness, turned out to be less effective against this backdrop.

 

Audika Group recorded 2010 first-half revenues of EUR 52.5 million, an increase of 1.7% (a 3.0% drop in organic terms). First-half revenues in France amounted to EUR 48.1 million, an increase of 1.5% (down 2.6% in organic terms). In Italy, as planned, the first half of the year was dedicated to restructuring internal processes and a major training program in order to improve hearing aid practitioners’ productivity. Revenues increased by 3.5% to EUR 4.4 million, which included a positive scope effect of EUR 0.5 million.

 

In terms of profitability, Audika will draw on its high gross margin and sound management of all of the Group’s overheads. Despite the decline in revenues witnessed in the second quarter, Audika is nonetheless expected to maintain an excellent level of operating profitability in France (more than 17%), with Italy logically being impacted by the Group’s internal restructuring program. In total, recurring operating margin should remain above 15%.

 

Continued network development: Ten new centers in France and two in Italy 

 

Audika is announcing the acquisition of six new centers in France (three in the Greater Paris region and three in Provence-Alpes-Côte d'Azur. Consolidated as of the fourth quarter, these new centers will contribute an additional EUR 2 million in full-year revenues. Moreover, the Group is continuing to complete its national coverage with the set-up of four new centers in the Aquitaine, Brittany, Midi Pyrénées and Rhône Alpes regions.

 

These transactions bring the number of new centers in France since January 1 to 24, which is equal to the Group's figure for the whole of 2009.

 

In Italy, Audika is announcing the set-up of two new centers, one in Tuscany and one close to Rome in order to solidify the Group’s presence and increase the productivity of its teams, as these centers are managed by existing teams.

 

Second half outlook

 

Audika has developed its marketing strategy for the second half of the year in order to tailor all of its advertising to the current economic backdrop.

 

Audika is confident in its ability to be the first to benefit from the inevitable development of its market, while remaining conservative in the short term on the rate of the growth recovery. While continuing its aggressive marketing strategy and the active development of its network, Audika will continue to pay close attention to overhead control in order to optimize its profitability.

 

Audika Group will publish its first-half 2010 results on September 6, 2010 after the close of the markets.

 

About Audika :

 

With more than 420 centers in 86 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 at +33 (0) 1 55 37 30 30
Actus Finance contact: Guillaume Le Floch at +33 (0) 1 72 74 82 25