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AND expects at least significant growth in revenue in 2016
Revenue for first half of 2016 € 6.1 million compared to € 1.8 million in first half of 2015
Net profit first half of 2016 € 3.2 million compared to € 0.7 million in first half of 2015
Earnings per share first half of 2016 € 0.85 compared to € 0.19 per share in first half of 2015
AND expects at least significant growth in revenue in 2016 compared to € 6.0 million in 2015
Capelle aan den IJssel, 18 August 2016 – Revenue and profit of AND International Publishers NV sharply increased in the first half of 2016 compared to 2015. AND realized a revenue of € 6.1 million and a profit of € 3.2 million in the first half of 2016, which resulted in earnings per share of € 0.85. In May 2016 a dividend of € 0.15 was paid from the 2015 results to the shareholders.
AND CEO Hugo van der Linde: “The first half of 2016 has been excellent, also thanks to the big order which was acquired in February this year. I am excited that we can welcome Barry Glick as a new member of the Supervisory Board. Barry is American and has an impressive track record within our sector as executive at Mapquest, Webraska, Navteq and ALK. His knowledge, experience and network is also a valuable contribution to our plans to grow further in the United States.”
Course of events for the first half of 2016
In January the production of the high quality premium navigation map of Canada was completed. This completes the upgrade and enrichment program for high quality premium navigation maps of North America. AND more than doubled the coverage of AND’s navigation maps.
In February, AND entered into a material agreement to license mapping data with one of the largest European internet companies. The license agreement includes AND’s worldwide digital maps.
In April, AND announced a licensing agreement with CycloMedia. This empowers AND’s capability to deploy data generated by cars in its digital maps. In 2016 AND starts a pilot project. This step enhances AND’s growth prospects in the automotive sector, which is on the brink of new developments driven by technology and an important user of digital maps.
In addition, AND announced that it has been enrolled as a member of ADASIS, a platform for car manufacturers and map makers to standardize interface between in-vehicle ADAS (Advanced Driver Assistance Systems) applications and map data sources. Partners of ADASIS include car manufacturers (like BMW, Daimler, FORD, Honda, Renault, Toyota, Volkswagen and Volvo) and map makers (like HERE and TomTom).
End of June 2016 AND announced to extend the Supervisory Board to three members. The very well experienced American Barry Glick, with much experience in the mapping and navigation sector is nominated to strengthen the Supervisory Board. At 10 Octoberan extraordinary general meeting of Shareholders will be held. On the AND website the invitation and agenda for this meeting is available.
On operational level AND has executed several custom orders. Together with the Dutch police a so called tile server is delivered with specific point of interests. Also, AND started, worked on and successfully completed various custom projects which involved accepting total confidentiality with respect to the client, the work involved and the financials of the project and is therefore unable to disclose any further details
Revenue in the first half of 2016 more than tripled from € 1.8 million to € 6.1 million. Revenue from the signed license agreement in February contributed substantially to the revenue in the first half of 2016. AND is highly dependent on a few large customers and new orders to be acquired and the timing within the financial year. For this reason, revenue during a certain period can strongly fluctuate compared to the same period in the previous financial year.
Total operating expenses increased from € 2.0 million to € 2.2 million and decreased sharply as a percentage of revenue.
In 2015 AND invested substantially in the upgrade and enrichment program of a high-quality map of North America. This program is finalized in January 2016 and consequently capitalized development costs decreased from € 0.9 million to € 0.3 million. Net operating expenses amounted € 1.9 million in the first six months of 2016 compared to € 1.1 million in the same period in 2015.
The cash position is further strengthened in the first half of the year. Net cash flow amounted € 3.2 million positive resulting in a total balance of cash and cash equivalents of € 7.7 million as per end of June 2016.
AND solvency remains strong. Shareholders’ equity of € 20.7 million amounts 93% of total assets. As in previous years AND has no bank debts.
AND is the only independent company in the global map market for digital maps for location based services. This offers opportunities and AND will continue to improve and extend its existing maps more effectively. In addition AND will increase its added value by offering its maps and data as customized services. Our plans to realize additional growth through an own office in the United States are a logical next step to further execute our strategy successfully.
Outlook for 2016
AND is positive about the new opportunities presented by today’s rapidly changing technological possibilities and market developments, including the automotive sector. Based on the realized revenue of € 6.1 million in the first half of 2016 AND expects to realize in 2016 at least significant growth of revenue compared to 2015 (€ 6.0 million).
For a detailed description of the risk factors that apply to AND International Publishers NV and its subsidiaries, you are referred to page 12, 13 and 14 of the annual report for 2015.