business FOR THE FIRST NINE MONTHS OF 2024
_____
Net sales: €155.4 million (+6.8%)
Gross margin: €121.7 million (+3.5%)
Continuous growth for digital marketing business
with its gross margin +14.1%
Paris, November 29, 2024 (6:00 p.m.) – DÉKUPLE Group, a European data marketing and communications expert, is reporting its net sales for the first nine months of 2024.
Bertrand Laurioz, Chairman and CEO: “During the third quarter of 2024, DÉKUPLE confirmed its strong model in a slower overall environment, with our net sales increasing +3.0%, bringing our combined growth for the first nine months to +6.8%.
Our digital marketing activities, which now represent 64.0% of our consolidated net sales (versus 58.8% a year ago), are continuing to build on their dynamic growth levels despite a more cautious economic climate . Gross margin increased +14.1%, supported by our consulting business, the expansion of our marketing solutions and agencies, the international development of our sales and the integration of new areas of expertise, such as Groupe Grand Mercredi and the Le Nouveau Bélier agency since summer 2023, as well as Ereferer since summer 2024.
Our portfolio-based activities are continuing to release their investments with the aim of acquiring repeat customers, even though the Magazine business recorded a -7.5% contraction in net sales, penalized by an unfavorable context for consumption. In addition, our Insurance business is benefiting from the strengthening of our supplementary health offering, supported by an innovative and differentiated marketing approach.
We are continuing to expand our areas of expertise in Digital Marketing, increasing synergies and taking advantage of our capacity for innovation, especially with Artificial Intelligence, to offer solutions that closely match the specific needs of our clients. In terms of external growth, our recent acquisition of GUD.Berlin, a German communications agency, is accelerating our international expansion, while the acquisition of CoupdePoing, a BtoB specialist, will further strengthen our presence in the loyalty market, with new perspectives for internationals. development.
This quarter highlights DÉKUPLE’s resilience despite economic uncertainty. More than 1,000 staff are dedicated to fulfilling our ambition to become the European leader for data marketing. Thanks to their commitment and our solid financial position, we are ready to face the challenges that await us and are moving forward with confidence to a new year of profitable growth, in line with our commitment to innovation and performance.”
KEY FIGURES FOR THE FIRST NINE MONTHS
For the first nine months of 2024, the DÉKUPLE Group is reporting consolidated net sales1 of 155.4 million euros, +6.8% increase compared to the same period of 2023. Gross margin2 reached 121.7 million euros, with an increase of +3.5% from year to year.
During the third quarter of 2024, the Group recorded net sales growth of +3.0%, confirming the positive business trends, despite the challenges related to the current economic context.
Decomposition of group change net sales by business line since the beginning of the year:
| €m | 2024 9 months |
2023 9 months |
AmENdmENT |
| Digital Marketing | 99.4 | 85.5 | +16.2% |
| Magazine | 50.0 | 54.1 | -7.5% |
| safety | 6.0 | 5.9 | +2.4% |
| Net sales | 155.4 | 145.5 | +6.8% |
Breakdown of the change in the Group’s gross margin by business line since the beginning of the year:
| €m | 2024 9 months |
2023 9 months |
AmENdmENT |
| Digital Marketing | 65.7 | 57.6 | +14.1% |
| Magazine | 50.0 | 54.1 | -7.5% |
| safety | 6.0 | 5.9 | +2.4% |
| Gross margin | 121.7 | 117.5 | +3.5% |
DIGITAL MARKETING: SOLID AND DIVERSIFIED GROWTH
The Digital Marketing business is continuing to build on its strong growth trends, with its gross margin increasing +14.1% to €65.7 million.
- Consultation: Gross margin reached €33.0 million, up +11.0%, reflecting the continued development of subsidiary Converteo, a key player for data and digital strategy consulting. With more than 450 consultants, Converteo supports leading brands to meet their data and AI challenges while diversifying its offerings to meet the needs of its customers more effectively. Its international expansion continues, with the opening of a subsidiary in the United States and new offices in New York and Montreal.
- Marketing Solutions and Agencies – France: The gross margin reached 29.7 million euros, an increase of +19.4%. This factor adds to a stretching effect3 for 2.4 million euros, related to the consolidation from July 2023 of Groupe Grand Mercredi, a marketing expert for the over 50s, and Le Nouveau Bélier, a consulting agency for advertising strategies and retail experts, as well as Ereferer, a platform specialized automated Netlinking, as of June 2024. On a like-for-like basis, offers increased by +10.3%, supported by the rapid development of activities in China and the expansion of technological solutions in France and internationally. Among other developments, this growth has been reflected in the success of the solutions offered by Smart Traffik (Okube) and Rocket Marketing.
- Solutions and Agencies – Spain: Gross margin reached EUR 2.9 million, stable compared to a year ago, due to a less favorable base effect in the third quarter.
| Gross margin (€m) | 2024 9 months |
2023 9 months |
AmENdmENT |
| Consultancy – France | 33.0 | 29.8 | +11.0% |
| Marketing Solutions and Agencies – France | 29.7 | 24.9 | +19.4% |
| Marketing Solutions and Agencies – Spain | 2.9 | 2.9 | -0.3% |
| Digital Marketing Gross Margin | 65.7 | 57.6 | +14.1% |
MAGAZINE: BUSINESS CONTINUITY INVESTMENTS
The Magazine business recorded a gross margin of €50.0 million, down -7.5%, with a gross sales volume of4 of €133.1 million, marking a decrease of -7.3%. This contraction is less pronounced than for the active open subscription portfolio, which fell 9.3% to 1.916 million subscriptions on September 30, 2024. This relative stability is related to increased publisher prices and greater publication frequency of publications. special in 2024.
In a challenging consumer environment, the Group is continuing to target the most profitable customer segments through tailored marketing campaigns, new offers and new partners. These actions aim to support the contract portfolio and further strengthen the Group’s key role alongside print publishers.
INSURANCE: SALES PROGRESS
Gross margin for DÉKUPLE Assurance, specializing in affinity insurance brokerage based on data marketing, reached €6.0 million, up +2.4% from last year. This progress is being supported by an innovative marketing approach, especially for health insurance, which is helping to further strengthen the policy portfolio.
PREDICTION
Faced with a slowdown in the general economic environment during the second half of 2024, the DÉKUPLE Group remains resilient and is continuing to move forward with its Ambition 2025 strategy, aiming to become a European data marketing leader. With strong financial resources available, the Group is continuing to invest in its magazine and insurance activities to develop its portfolios generating recurring income. Additionally, Digital Marketing offerings are continuing to expand through organic growth and strategic acquisitions. The group is continuing to explore growth or acquisition opportunities, in France and elsewhere, to further strengthen its capacity to support its customers with their development.
About DÉKUPLE
DÉKUPLE is a European leader in cross-channel data marketing and communication. Its expert skills combining consulting, creativity, data and technology enable it to support brands with transforming their marketing to drive their business performance. The group designs and implements customer acquisition, loyalty and relationship management solutions for its partners and customers across all distribution channels. The group works with more than 500 brands, from major groups to mid-market firms, in Europe and worldwide.
Founded in 1972, DÉKUPLE recorded net sales of €200 million in 2023. Present in Europe, China and North America, the Group employs more than 1,000 people guided by its core values: a spirit of conquest, respect and cooperation.
DÉKUPLE is listed on the regulated market Euronext Paris – Division C. ISIN: FR0000062978 – DKUPL – www.dekuple.com
contacts
DECOUPLE
Investor Relations and Financial Information
tel: +33 (0)1 41 58 72 03 -relations.investisseurs@dekuple.com
CALYPTO
Cyril Combe – phone: +33 (0)1 53 65 68 68 – dekuple@calyptus.net
1 Net sales (determined in accordance with the French professional status for subscription sales) include only the amount of remuneration paid by the magazine publishers; for subscription sales, net sales correspond to a gross margin, deducting the cost of magazines sold from the amount of recorded sales. For purchase and management commissions related to the sale of insurance policies, net sales include current and future commissions issued, earned up to the accounting reporting date, net of cancellations.
2 For the digital marketing business, gross margin represents the total amount of net sales (total invoices issued: fees, commissions and purchases charged to customers) minus the total amount of costs for outside purchases made on behalf of customers. It is equal to net sales for the magazine and insurance business lines.
3 The scope effect is calculated (i) by eliminating the net sales of companies acquired during the period or comparable periods and (ii) by eliminating the net sales of companies sold during the period or comparable periods. As a result, like-for-like business does not take into account this stretching effect for the period in question.
4 Gross sales volume represents the value of subscriptions sold.