2010 revenues EUR 105.7 million
Return to growth expected in 2011
In EUR thousands | 2009 | 2010 |
Full-year revenue | 106,523 | 105,650 |
Audika Group ended 2010 with full-year revenues of EUR 105.7 million, a slight decrease of 0.8% compared to 2009 (-4.4% like for like). This trend in activity reflects a rather unfavorable economic environment in France throughout the year and a restructuring year in Italy.
France: revenues of EUR 97.5 million, 30 new centers in 2010
The development of Audika's marketing campaign, which was launched last September, reaped rewards overall. However, the positive impact on revenues was softened by extremely difficult weather conditions in December (the biggest month of the year in terms of invoicing), which led to appointments being postponed until 2011.
As a result, Audika generated fourth-quarter revenues of EUR 31.1 million in France, a drop of 2.6%, bringing the Group's full-year revenues to EUR 97.5%, a 0.9% decline on the previous year (-4.2% in organic terms).
In line with its development strategy, in the fourth quarter, Audika acquired two new centers in the Greater Paris region (for additional full-year revenue of EUR 0.7 million) and set up four new centers in the Normandy, Centre, Greater Paris and Rhône Alpes regions. In total, Audika expanded its network by 30 centers in 2010 (15 acquisitions and 15 new set-ups), bringing the Group's total number of centers to 430. As such, Audika is progressively moving towards its target of 700 centers.
Italy: a transition year in 2010
As planned, 2010 was mainly dedicated to operational restructuring and training of all employees. This program, which is strategic for Audika's future, included the appointment of new management in the fourth quarter, following the departure of the Group’s Deputy Director, due to differences of opinion regarding the development and management of the Group's Italian subsidiary.
The Group's efforts are beginning to have an impact with a return to organic growth in the fourth quarter (+1.1%), with revenues of EUR 2.2 million. Full-year revenues amounted to EUR 8.1 million, a 0.4% decrease on 2009 (down 6.5% in organic terms).
Strategic acquisition of a network of 10 centers in Italy
Now fully operational in Italy, Audika is returning to active development and, in early 2011, announced the acquisition of a new network of ten centers in the Veneto region (Vicenza, Padova), a high-potential region in which the Group was not previously present. Additional full-year revenue from this network will be around EUR 1.2 million in 2011.
Outlook for 2011: Increasingly robust business
Audika Group is starting the new year with ambition and confidence. The increase in the number of appointments in centers in late 2010 is a promising sign for the beginning of 2011.
In France, activity will be underpinned by the launch of the new marketing campaign illustrated by the new brand signature "Audika, bien entendu!", which aims to demonstrate to seniors the value of the Group's unique expertise in its business. As such, Audika has set itself the target of making a return to positive internal growth in 2011.
In Italy, Audika intends to reap the rewards of its efforts, with revived internal growth, underpinned by local marketing campaigns, and developing relationships within medical circles.
At the same time, Audika will actively continue to develop its networks in France and Italy (through acquisitions and new set-ups) in order to strengthen the Group's positions on a market which still maintains an intact growth pool, as the baby boom generation gradually reaches the age at which they will require their first hearing aid (65-70 years of age).
Audika will publish its 2010 full-year results on March 21, 2011 after market close.
About Audika:
With 430 centers in 90 different regions and a 14% market share, Audika is the number one network offering hearing correction consulting and solutions in France. The Group has been present in Italy since 2007 and now has a network of almost 60 centers. 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.
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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