2013-2014 Q1 Sales up by 3%

Nearly 50 % of sales made in online business

For the first quarter of 2013-2014 (July – September), sales totaled €21.7M, with 48% realized through online activities – downloads of software, mobile apps, services, web-to-print and hosting. 

Compared to the same period of the previous year, this sales figure is down slightly (-1.5%) due to the unfavorable changes in the exchange rates. In pro forma data (constant exchange rate and scope), sales are up by 3.1% from the first quarter of the 2011-2013 financial year.

July-Sept.   2013

July-Sept.   2012

Change

Online

10.4

9.2

13.0%

Offline

7.6

9.2

-17.4%

Total   BtoC

17.9

18.4

-2.7%

BtoB

3.8

3.7

+2.7%

Total

21.7

22.1

-1.5%

Sales in the first quarter of the year (traditionally the year’s weakest quarter because of the summer months) came primarily in web-to-print services (€2.5M) which were up by 69%, and hosting services (€1.8M), up 29%. Along with downloads of software and apps (€6.1M), all of the Group’s online businesses now accounts for one-half the total sales for the period.

The growth posted for online activities (+15.6%) in pro forma data offsets the drop in sales in physical distribution of software (-13.3% pro forma), the decline in which has in fact slowed in relation to the same period last year.

B2B sales ate also up by 8% (pro forma), with sales of €3.8M.

Confirmation of the shift in the Group’s activities 

With online activities now accounting for half the sales in the first months of this new fiscal year, Avanquest today has successfully completed the first phase in its transformation into an Internet player.

With the arrival of the new Managing Director, Pierre Cesarini, in May 2013, Avanquest has been working for the last six months on the second phase of this transformation, based on a strategy to get back to a trajectory of growth and sustainable profitability, and to guide the Group into a cycle of value creation.

Anticipating new digital trends, making innovation and the product the core of our considerations for developing unique solutions in growing markets where we can distinguish ourselves from the competition, and taking a dominant position – these are the main focuses of Avanquest’s new strategy,” according to Pierre Cesarini, Group Managing Director.

These approaches will be introduced to the market on December 16.

“On that occasion, we want to show the Avanquest’s new face and new ambition with regard to the huge opportunities presenting themselves to us, both in terms of the products we will be launching in the coming weeks and from the perspective of how our sales have evolved over several years,” Pierre Cesarini concludes.

Avanquest - Press release - Sales Q1 2013-2014PDF