(Boursier.com) — ALCHIMIE, channel factory allowing brands, media and companies to create, design and host their own thematic video channels and stream their video content, today announces its consolidated annual results for the financial year ended December 31, 2023, approved by the Board of Directors on April 18, 2024.
The turnover as of December 31, 2023 amounts to 11.3 ME, a level of activity in line with the announced trajectory. The decline in activity is partly the consequence of the planned shutdown of the service with Orange in January 2023.
In 2023, Alchemin benefited from the solid retention of its historic subscriber bases in France and Germany. Furthermore, the strategic reorientation carried out by the Company with a view to marketing its new SaaS and VPaaS offers, videowall and 42videobricks, got off to a slower start than expected, with these having generated little revenue in 2023.
The continued rationalization of content licensing costs and technical costs incurred in the Video segment enabled Alchemin to significantly reduce the cost of sales, -50% compared to 2022, to €4.4 million. The 2023 gross margin rate thus stands at 61%, a stable level compared to that recorded in 2022.
Operating expenses, down -37%, stand at 8.3 ME in 2023. These reflect the finalization of the restructuring of the Company initiated in 2022 to adapt the cost structure to the activity of the society. Consequently, in 2023, Alchemin will record a 26% drop in technology and development costs, and a 48% drop in marketing and sales costs.
In addition, the resizing of support functions to the needs of the Company as well as the retrocession of part of the premises in Aubervilliers and the subletting of another part, have enabled Alchemin to reduce its general and administrative costs by around 40%.
All of the measures taken by Alchemin show a positive 2023 EBITDA of €326 million, compared to €3.1 million a year earlier.
The operating profit shows a loss of 1.4 ME, compared to 11 KE in 2022.
After taking into account a financial result of -211 KE, including a positive exchange rate difference of 46 KE and investment income of 68 KE offset by interest from the HLD Europe associate current account, and a charge of taxes of 229 KE on the German subsidiary, the consolidated net loss amounts to 1.9 ME, compared to 701 KE in 2022.
Consolidated shareholders’ equity is negative and amounts to -2.9 ME as of December 31, 2023, impacted by the loss recorded during the 2023 financial year.
The cash position as of December 31, 2023 stands at 5.3 ME, compared to 6.4 ME as of December 31, 2022. This variation is explained in particular by the repayment of the maturity of the HLD Europe associate current account.
In terms of financial resources and given its current cash position, Alchemin maintains rigorous management of its costs to preserve its cash flow and does not plan to call on the market.
Strategy and outlook for 2024
The year 2024 will be marked by the continued deployment of the videowall and 42videobricks offers.
With a view to further monetizing its technical assets, Alchemin will intensify its external communication, via targeted campaigns, in order to maximize the visibility of these two growth drivers, and will benefit from the signing of the first contracts.
In parallel with its commercial development, the Company will ensure that it remains among the most innovative players in its sector, thanks to the implementation of new functionalities (live broadcasting, event replay, additional billing options, improved dashboard, etc. .), to offer customers an ever more complete and intuitive solution.
Alchemin will also continue its channel editorialization activity with the regular enrichment of its content catalog.
This start of the year is thus marked by the launch of two new SVOD video platforms by the Bauer Group, www.maximag.tv, a channel of various documentaries (yoga classes, cooking, escapades and trips, etc.), and www .telecablesat.tv, offering programs around targeted themes (legends from the world of cinema, history and civilizations or the major themes of science and technology), an innovative project carried out thanks to the know-how of Alchemin. These two thematic channels offer an immersive experience to users, with the possibility of personalizing the program according to their preferences.
Taking into account the outlook, the company intends to achieve a 2024 turnover of almost 8 ME, the turnover of new activities not yet making it possible to compensate for the drop in income generated by historical subscriber bases. Despite ongoing efforts to optimize its structural costs, Alchemin does not expect to generate positive EBITDA in 2024.
Pauline Grimaldi d’Esdra, Managing Director of Alchemin, declared: “During 2023, Alchemin has developed new growth drivers, transforming its historical model towards SaaS and VPaaS (Video Platform as a Service) models. The 2023 results are in line with the defined trajectory with a gross margin rate of 61% and a positive EBITDA 2024 will be marked by the acceleration of the deployment of our new offers, with the aim of fully benefiting from the commercial traction initiated in. over the past year, taking into account these elements, we confirm that we are targeting a 2024 turnover of nearly 8 ME, and will ensure that we preserve a healthy cost structure.
General meeting: June 7, 2024.
Next financial publication: 2024 half-year results, October 23, 2024 after market close.