Greensome Analysis – Q2 2015
22 July 2015
Share Price (07/21/15) : € 2.65 Market Cap : €m 42.2
Alternext -‐ FR0000079683 -‐ ALNBT
Target Price : € 3.70
Potential : +40.7%
BPI « Innovative Company »
H1 GM + EBITDA : Growth is back and profitability still improve
Stock Market Profile
NetBooster announces its H1 2015 results, recording a stable gross margin of € 17 million compared to H1 2014 and EBITDA of € 2.1 million, up 23.5%, an EBITDA/GM ratio of 12.3% (Q1: 10.8% / Q2:
After a slight decline in gross margin in Q1 due to the reduction in budget from some major existing clients (eg Bouygues Telecom), the growth is back, as forecasted for Q2, thanks to the new blue chip clients contracts won in the last 9 months (Adidas, Estee Lauder, Euromaster, Pierre & Vacances, SEB…). As we already mentioned, it usually takes a period of 6 months between the signing, set up of the contracts and onboarding of services. Given the various announcements made in H1, we can anticipate the continuation of this trend in H2.
As in Q1, the quarterly profitability has further appreciated with an EBITDA/GM ratio of 13.8% in Q2 and 12.3% in H1 (vs. respectively
11.6% and 10% on the same periods of 2014). The reason for the
increase in profitability is similar to Q1: the impact of restructuring
Shareholders Truffle=Capital Pure=Invest ID=Invest
work carried out in 2014 continue to save almost € 1 million in 2015,
NetBooster is benefiting from a better business mix with a higher
share of Data & Analytics business.
Management Allianz=G.I Free=float
expected to accelerate and profitability should also continue to
Performance 2015 3m 6m 1y
and + 34% compared to 2014) in line with our estimate of € 5.8 million (+ 30%).
Finally, we confirm our Buy opinion with an unchanged price target of € 3.70, representing a potential of 40.7%, and consider that the decline of the share of almost 20% since early April provides an excellent point entry.
Furthermore, management indicated working on several strategic options (partnership or acquisition with a focus on the US zone) and aim to make a major announcement in the next 6 months, which provides additional speculative appeal.
Remember also that the group would, in H2, define its position (refinancing, dilution) regarding to the convertible bond maturing in March 2016 (143 bonds still outstanding for a total of € 8.9 million). Note that 18 bonds were converted since April.
+ 33 (0) 6 14 26 27 53
Fondamental Matrix Investment Profile
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PRICE TARGET AND RATING HISTORY
DATE COMMENTS RATING PRICE TARGET
05/06/2015 QA Gross Margin BUY € 3.70
04/08/2015 2014 Result BUY € 3.70
01/20/2015 2014 Gross Margin BUY € 3.41
11/19/2014 Private Meeting BUY € 3.12
10/29/2014 Q3 EBITDA BUY € 3.12
10/15/2014 H1 Results BUY € 3.12
07/30/2014 H1 EBITDA ACCUMULATE € 3.12
Coporate Finance operation in progress or completed during the last
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Estimates : GreenSome Finance
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