KERLINK (EPA:ALKLK) - First-half 2021 revenue: +59% to €7.6m (vs. H1 2020)

Transparency directive : regulatory news

22/07/2021 17:45

First-half 2021 revenue: +59% to EUR7.6m (vs. H1 2020)
Sustained recovery in all business activities in Q2 2021: +79% to EUR3.9m (vs.
Q2 2020)
Acceleration in the US driven by the roll-out of Helium's IoT network "The
People's Network"

PRESS RELEASE
Thorigné-Fouillard, 22 July 2021, 5:45 p.m.

Thorigné-Fouillard, France - Kerlink (ALKLK - FR0013156007), specialising in
IoT networks and solutions, published its first-half 2021 revenue today. Group
revenue totalled EUR7.6m in the first half, for a 59% increase compared with
first-half 2020. The Group posted an excellent second quarter, driven in
particular by the sales of stations intended for roll-out in the Helium
network: +79% compared with Q2 2020, which was particularly affected by the
health crisis, and +11% compared with Q2 2019.

The improvement in business activity in the first quarter was confirmed in the
second quarter. The Group is benefiting from:

* Its leading position on the IoT connectivity market, allowing it to take full
advantage of the global recovery under way following the impact of the pandemic
in 2020 and trade restrictions owing to border closures;

* Its aggressive strategy of gaining market share through an ecosystem of
distribution partners, which was expanded in 2020 to include emblematic players
(such as Amazon Web Services, Richardson RFPD, Cal-Chip Connected Devices) in
various geographical regions;

* New market opportunities with innovative technological solutions driven by
the Group and its technical partners, including Microshare and Smart Traffik;

* Recurring revenue with its long-standing clients.

Increasing contribution from private network operators

Revenue by
business line
In thousands                            Reminder    H1     H1          Reminder
of euros      Q2 2021  Q2 2020  Change  Q2 2019    2021   2020  Change  H1 2019

Private
operators       3,564    1,885    +89%    2,912   6,847   3,975   +72%   5,359

Historic &
alternative
telecom
operators         292      270     +8%      563     731     790    -7%   1,103

Total           3,856    2,155    +79%    3,475   7,578   4,765   +59%   6,462

IFRS ? Unaudited 2021 figures

Private network operators accounted for over 90% of Group revenue in the first
half, demonstrating the success of Kerlink's strategic shift towards these
players for more than two years. Sales prospecting momentum was maintained in
2020, resulting in the strengthened identification of new prospects for this
type of customer.

In addition, the sales initiatives carried out in 2020 served to double the
number of distribution partnerships formed with players in the IoT ecosystem.
This strategy, aimed at increasing the Group's outlets for promoting its
solutions, is producing results. It is enabling Kerlink to generate strong
revenue growth from private network operators. Sales at 30 June 2021 in the
private market segment were up 72% compared with H1 2020 (EUR6.8m versus nearly
EUR4.0m) and 28% compared with 30 June 2019.

Strong growth in equipment sales in the second quarter

Revenue by
type of sale
In thousands                            Reminder    H1     H1          Reminder
of euros      Q2 2021  Q2 2020  Change  Q2 2019    2021   2020  Change  H1 2019

Equipment       3,084    1,451   +113%    2,753   6,009   3,184   +89%    4,815

Services          772      704    +10%      720   1,569   1,581    -1%    1,647

Total           3,856    2,155    +79%    3,473   7,578   4,765   +59%    6,462

IFRS - Unaudited 2021 figures

More heavily impacted by health restrictions in 2020, equipment sales benefited
the most from the recovery in activity. Revenue from these sales exceeded EUR6m
in the first half, compared with EUR3.2m in 2020 and EUR4.8m in 2019.

Over the period, the Group recorded sales growth resulting from the partnership
with Cal-Chip Connected Devices, as part of the deployment of the long-range
and low-consumption IoT network of the US company Helium. This network is based
on Helium's LongFi(tm) technology, which combines the LoRaWAN(r) wireless
protocol with Helium blockchain technology, allowing any LoRaWAN(r) sensor to
transfer data via the network.

Revenue from service offerings (operation and management software for IoT
networks, value-added applications and expert professional services) was stable
at EUR1.6m over the period.

Take-off in US sales

Revenue by
geographic region
In thousands                            Reminder    H1     H1          Reminder
of euros      Q2 2021  Q2 2020  Change  Q2 2019    2021   2020  Change  H1 2019

NCSA
(Americas)        460       51   +802%       87   1,314    124   +960%     112

APAC
(Asia Pacific)    228      158    +44%       68     485    341    +42%     342

EMEA
(Europe,
Middle East,
Africa)         3,168    1,946    +63%    3,319   5,779  4,300    +34%   6,008

Total           3,856    2,155    +79%    3,473   7,578  4,765    +59%   6,462

IFRS - Unaudited 2021 figures

In the Americas region, the positive trend in sales owed largely to revenue
from the partnership with Cal-Chip Connected Devices in the United States. The
agreements signed with Microshare also contributed to the region's strong
take-off, with half-year revenue having increased by a factor of ten year on
year.

In 2020, business activity in the APAC region (Asia Pacific) slowed
significantly owing to the effects of the crisis. New business has illustrated
a pick-up in activity in the last few months in some countries in the region.
Business activity is increasing in Japan despite the health emergency measures
still in force at the beginning of the third quarter. Overall, revenue in the
Asia-Pacific region rose 42% to EUR0.5m in the first half.

In the EMEA region (Europe, Middle East, Africa), revenue was up 34% compared
with the first half of 2020. Revenue came out at EUR5.8m, close to the total in
first-half 2019 (EUR6.0m over a comparable period, business activity at the
time having been carried out in part with telecom operators).

2021 Outlook

Since the beginning of the year, growth momentum has continued and the order
book is still very strong. It allows Kerlink to approach the end of the year
with confidence despite the caution imposed by the evolution of the health
situation and continuing tensions on supply prices and lead-times of certain
electronic components. Having strengthened its financial position through a
highly successful fundraising in April, Kerlink is in a position to supplement
its industrial capacity for the coming months and meet growing demand for
equipment.

About Kerlink
Kerlink Group is a leading global provider of end-to-end connectivity solutions
for designing, deploying, and operating public & private low power/wide area
(LPWA) Internet of Things (IoT) networks. Its comprehensive product portfolio
includes industrial-grade network equipment, best-of-breed network core,
operations and management software, value-added applications and expert
professional services, backed by strong R&D capabilities. Kerlink specializes
in enabling future-proof intelligent IoT connectivity for three major domains:
Smart City & Quality of Life - urban operations, utilities & metering, retail &
public places, infrastructure & hubs, health; Smart Building & Industry -
buildings & real estate, industry & manufacturing, asset monitoring & tracking,
and Smart Agriculture & Environment - precision agriculture, cattle monitoring
& farming, environment & climate, and wildlife protection. More than 140,000
Kerlink installations have been rolled out with over 350 clients in 70
countries. Based in France, with subsidiaries in the US, Singapore, India and
Japan, Kerlink is a co-founder and board member of the LoRa Alliance(r) and the
uCIFI Alliance(tm). It is listed on Euronext Growth Paris under the symbol
ALKLK.

For more information, visit www.kerlink.com

or follow us on our social media - Twitter @kerlink_news, LinkedIn #Kerlink,
YouTube - Kerlink

Upcoming events
H1 2021 consolidated results
23 September 2021, after market close

www.kerlink.com

Investor contact:
Actifin
Benjamin Lehari
+33 (0)1 56 88 11 25
blehari@actifin.fr

Financial Press contact:
Actifin
Isabelle Dray
+33 (0)1 56 88 11 29
idray@actifin.fr

Press and Market Analysts contact:
Mahoney Lyle
Sarah Lyle
+33 (0)6 75 85 60 42
slyle@mahoneylyle.com

www.kerlink.com
Linkedin Kerlink
Twitter @kerlink_news
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26/03/2024 18:00

KERLINK (EPA:ALKLK) - First-half 2021 revenue: +59% to €7.6m (vs. H1 2020)

Transparency directive : regulatory news

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