Cint

Second quarter 2024

• Effective from the first quarter 2024, Cint implemented changes in its financial reporting. Pro forma figures are presented for the purpose of comparability.
• On a pro forma basis net sales decreased by 2.0 percent to EUR 42.1m (42.9 pro forma) and by 2.7 percent on a constant currency basis. Reported net sales last year amounted to EUR 67.8m.
• Gross profit amounted to EUR 36.6m (37.7 pro forma) corresponding to a margin of 87.0 percent (87.9 pro forma). Reported gross profit last year amounted to EUR 42.6m and reported gross margin last year was 62.9 percent.
• EBITA amounted to EUR 7.1m (6.3) with an EBITA margin of 16.9 percent (14.8 pro forma). Reported EBITA margin last year was 9.3 percent.
• EBIT amounted to EUR -5.1m (-5.7) with an EBIT margin of -12.1 percent (-13.3 pro forma). Reported EBIT margin last year was -8.4 percent.
• EPS, before dilution amounted to EUR -0.03 (-0.02).
• Adjusted EPS, before dilution amounted to EUR 0.01 (0.02).

January - June 2024

• On a pro forma basis net sales decreased by 0.6 percent to EUR 78.5m (79.0 pro forma) and by 0.8 percent on a constant currency basis. Reported net sales last year amounted to EUR 127.7m.
• Gross profit amounted to EUR 66.9m (68.6 pro forma) corresponding to a margin of 85.3 percent (86.9 pro forma). Reported gross profit last year amounted to EUR 78.6m and reported gross margin last year was 61.6 percent.
• EBITA amounted to EUR 8.6m (7.2) with an EBITA margin of 11.0 percent (9.2 pro forma). Reported EBITA margin last year was 5.7 percent.
• EBIT amounted to EUR -13.5m (-15.8) with an EBIT margin of -17.2 percent (-20.0 pro forma). Reported EBIT margin last year was -12.4 percent.
• EPS, before dilution amounted to EUR -0.07 (-0.06).
• Adjusted EPS, before dilution amounted to EUR 0.01 (0.02).

Significant event after the end of the period
In July 2024 Cint announced that the company is carrying out an efficiency program resulting in a reduction of approximately 10 percent of the personnel costs. As part of the organizational changes, Jake Wolff, Cint’s Chief Revenue Officer, and Mike Misel, Chief Supply and Partnership Officer, have made the decision to leave the company.

CEO Giles Palmer comments:
We closed the second quarter of 2024 with steady sales performance and improved profitability. Net sales for the quarter amounted to EUR 42.1m, a slight decrease compared to EUR 42.9m pro forma in the same period last year. The decline was driven by a temporary reduction in supply due to the migration of panel providers to the new platform. These issues peaked in May and our estimation is that they caused a reduction in net sales of circa EUR 2m in the quarter. Our Media Measurement business continues to perform well, with growth from both existing customers and new client logos.

A gross margin of 87.0 percent combined with lower operating expenditures resulted in an improved EBITA margin of 16.9 percent (14.8 pro forma).

Net cash flow for the quarter was EUR -0.5m influenced by net working capital and the quarterly loan amortization payment of EUR 2.3m.

The consolidation of our technology platforms into the new unified Cint Exchange is progressing. Most of the work is on plan but two areas are delayed - the new front end is roughly three months behind plan and the hosted panel system is two months behind plan.

During the transition period, as we migrate our customers and panel providers to the new platform and phase out the legacy systems, we do not anticipate decisive year-on-year sales growth, especially given the persisting macroeconomic challenges. However, we expect the typical seasonal sales pattern to persist, with stronger performance in the second half of the year compared to the first. In conclusion, we expect the second half of 2024 to deliver improved profitability, due to higher seasonal sales combined with the impact of the cost reduction described above.

Presentation today at 10.00 a.m. CEST
The report will be presented by Giles Palmer, CEO and Niels Boon, CFO at 10.00 a.m. CEST today via a webcast conference call. Follow the webcasted presentation and conference call live at: webcast

For participation in the telephone conference, please make sure you are connected to the conference call by calling in and registering a few minutes before the conference begins.

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The presentation material and a recorded version of the conference will be available at Cint™ Investors.