AUDIOVALLEY (EPA:ALAVY) - AudioValley announces the sale of Storever.

Transparency directive : regulatory news

06/12/2019 07:30

Press release

www.audiovalley.com

December 6, 2019 - 7:30 am CET
AudioValley: Sébastien Veldeman - press@audiovalley.com -
Actifin: Victoire Demeestère - vdemeestere@actifin.fr -

AudioValley announces the sale of Storever:
- To focus on 100% digital audio solutions that are now the priority
- To strengthen the Group's financial resources

AudioValley, an international specialist in BtoB digital audio solutions, (ISIN
Code: BE0974334667/Ticker: ALAVY) is today announcing the signature of an
agreement to sell Storever, an international agency that designs and markets
in-store point-of-sale communication with audio and/or video solutions, to
Italian company M-Cube. M-Cube has been active in point-of-sale digital and
multimedia marketing since 2001. Once M-Cube incorporates Storever's clients
into its portfolio, the expanded Group will considerably strengthen its
position on the European market, with some 45,000 points of sale in over 80
countries worldwide, and will become the leading European group in the in-
store radio and digital communication sector.

The sale price was EUR15 million. AudioValley owned 80.97% of Storever's
capital before the sale. A long- standing Group business since 2003, Storever
became a key player in the sale of in-store audio solutions on the European
market. With a customised solution for every brand, Storever's in-store radio
programmes are designed to fit with the company's broader marketing initiatives
and help to enhance brand visibility, win over and maintain a base of loyal
customers and increase point-of-sale revenue. Sold in the form of multi-year
subscriptions for each point of sale, as of 30 June 2019 over 16,000 points of
sale used this type of solution.

Storever had 46 employees at the end of June 2019 (33% of the Group's
headcount) and generated revenue of EUR7.7m in 2018, for current operating
income before amortisation of EUR2.0m. In the first half of 2019, revenue for
the division totalled EUR3.8m, for current operating income before amortisation
of EUR1.1m. Storever's net debt at the end of June 2019 was EUR3.5m.

This transaction will enable AudioValley to concentrate on its higher-growth
100% digital audio solutions: Targetspot, an online radio audience aggregation
and monetisation solution, and Jamendo, a rights management and music licensing
sales platform. Over the first nine months of 2019, these two divisions
(Targetspot and Jamendo) generated combined revenue of EUR15.3m, an increase of
28.9% year- on-year.

Income from these sales will help to improve the financial structure of the
Group, which has reiterated its intention to prepay the outstanding debt under
the terms of the seller credit obtained when acquiring a majority stake in the
Radionomy/Targetspot division. AudioValley recently reached an agreement with
Vivendi to prepay a total amount of EUR16m (the nominal amount outstanding at
30 June 2019 was EUR24.6m) on the following schedule:
  - EUR13m to be paid by 20 December 2019; and
  - the balance of EUR3m to be paid by 31 March 2020.

After taking into consideration the change in scope associated with the sale of
Storever, AudioValley is now targeting revenue in excess of EUR22m for 2019
(excluding discontinued operations), which represents proforma growth1 of 30%.
This growth is expected to drive a sharp improvement in operating income before
amortisation and provisions in 2019 compared to 2018 (excluding discontinued
operations), continuing the trend witnessed in the first half of the year.

               Future updates (after the stock market closes):

                             FY 2019 Turnover
                             27 January 2020

                             FY 2019 Results
                             21 April 2020

CONTACTS

AUDIOVALLEY
Sébastien Veldeman
+ 32 (0)2 466 31 60
press@audiovalley.com

ACTIFIN, financial communication
Victoire DEMEESTERE
+33 (0)1 56 88 11 11
vdemeestere@actifin.fr

ACTIFIN, financial press relations
Jennifer Jullia
+33 (0) 1 56 88 11 19
jjullia@actifin.fr

(1) After eliminating Storever from 2018's figures.

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29/04/2020 17:40

AUDIOVALLEY (EPA:ALAVY) - AudioValley announces the sale of Storever.

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