AudioValley is studying several ways to secure funding for its Winamp division

For the full year, the AudioValley Group had sales of 28.3 million pounds, compared to 19.5 million pounds in 2020, an increase of +48.2% at constant exchange rates compared to 2020. It reflects the strong recovery, particularly felt from the second quarter, And on a larger scale, the acceleration of digital audio adoption globally.

The Targetspot division (accounting for 92% of the group’s sales) continued to benefit from the adoption of digital voice by advertisers looking for new distribution channels for their ad campaigns. Represents an increase in turnover of 50%.
Europe fared very well (+32%, 7.9 ME) although there was still some impact from the Covid crisis, while the US outperformed with an increase of 60% (18 million)! 11 new business partnerships signed in 2021 at Targetspot, many in the second half; So it will have a positive impact in the coming months, pointing to a good year 2022.

For its part, the Winamp division (8% of group sales), of which Jamendo is a part, and which markets the business of 45,000 musicians, was heavily affected by the Covid crisis at the beginning of the year (Q1 in down 13% compared to the first quarter of 2020), and then recovered To end in balance with a slight growth of 1.8% compared to 2020, at 2.2 million euros. Bridger was officially launched in April 2022.

Consolidated gross margin continued to grow, increasing from 47.5% to 48.5% (after increasing from 44.3% in 2019 to 47.5% in 2020).

At the end of fiscal year 2021, the financial result was -2.8 million pounds compared to -1.9 million pounds in 2020. Half (-1.4 million pounds) is due to recognition of a non-convertible premium (4%) convertible bonds (this effect) was not present In 2020 accounts), -900 JOD relates to interest on bonds and convertible bonds and -300 JOD relates to interest on factoring.
In aggregate, the group recorded a negative net result of -6.4 ME, compared to -4.8 ME in 2020. As mentioned earlier, this result is affected by -3.5 ME by returning the accounting data which has no cash impact to the group.

As at December 31, 2021, the Group’s equity amounted to 16.6 million euros. Closing cash rose at €2.8 million, compared to €0.8 million at the end of 2020, impacted by the major investments made (a significant boost to the dedicated team) to develop the Winamp division.

The fiscal debt represents 17.6 million euros for the 2021 fiscal year, compared to 15.3 million euros at the end of 2020.

2022 forecast

2022 is off to a very good start for the Targetspot division (see first-quarter revenue below). The 11 new contracts signed in 2021 should bear fruit this year and help support the division’s growth. “We anticipate a continuous shift of advertising campaigns from traditional FM radio to digital audio media (smartphone apps, smart voice assistants, podcasts, video games, etc.) that allows for better targeting of audiences,” the department states.
The launch of Bridger’s new copyright management business (based on collective copyright management liberalization in Europe) is expected to start generating revenue from the second half of 2022. It targets an estimated €10 billion market in Europe, aiming for it to carve out a share .

However, given the massive staffing plan launched in 2021, which significantly affects the cash position of the group pending first revenue, the group is studying several ways to secure funding for the Winamp division after the start of June 2022.

Revenues for the first quarter of 2022

60% growth in Europe for Targetspot!
Revenue for the first quarter continues to grow very well by 30% compared to the first quarter of 2021 (+21.5% at constant exchange rates), to reach €6.6 million.
This growth impetus comes from the Targetspot division, which generated revenue of €6.1 million, up 34.6% (+25% in cc), compared to €4.6 million in the first quarter of 2021.
Growth was led by the US (+23%; +13.1% at constant exchange rates) and Europe, which posted an impressive recovery, with sales up 60.4% compared to the first quarter of 2021.

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