SOLOCAL (EPA:LOCAL) - A much more limited impact of the second lockdown on the Group’s business activity
Transparency directive : regulatory news
27/11/2020 07:30
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PRESS RELEASE
Boulogne-Billancourt, 27th November 2020
A much more limited impact of the second lockdown on the Group's business
activity 2020 & 2021 ambitions unchanged
Prior to the Combined General Meeting which will be held today behind closed
doors at 4.00pm (CET time), Solocal issues a trading update with more detailed
statements on the impact of the 2nd lockdown established in France since 30th
October 2020.
Trading update in November 2020
The measures taken by the French government in the context of a 2nd lockdown
are very different from the restrictions implemented under the 1st lockdown in
March, April & May 2020. Solocal immediately offered additional services and
signed local partnerships to support closed businesses. The impact of the 2nd
lockdown on the Group's business activity is thus significantly lower compared
to the effects of the latter - with a limited decrease in order intake(1),(2)
of around -10% over the month of November(4) 2020 in comparison to the same
period in 2019.
A -68%, -78%, and -61% decrease in Digital order intake had been observed over
the first three weeks of last spring's lockdown (week 12, 13 & 14), in
comparison to the same weeks of 2019, while the Group recorded Digital order
intake(1),(2) between +5% and -25% over the first three weeks of November 2020
(weeks 45, 46 & 47) compared to the same weeks in 2019(1),(2).
Order backlog
Solocal's order backlog(3) as at 31st October 2020 breaks down as follows:
In million euros 30/09/2020 31/10/2020 Change
Digital order backlog 293.4 279.4 -4.8%
Print order backlog 1.3 1.0 -23.5%
Total order backlog 294.7 280.4 -4.8%
The total order backlog(3) amounted to EUR280 million as at 31st October 2020,
down -5% compared to 30th September 2020. This decrease can be explained by a
stronger revenue recognition than order intake in October.
As a reminder, as at 30th September 2020, based on management estimates, the
conversion rate of order backlog into revenues had been announced at 62% over
2021 and 7% over 2022. In light of the current environment and further analysis
done by management, this rate has been re-evaluated around 60% over 2021 and
around 10% over 2022. This change has no impact on the disclosed order
backlogs' amount (EUR293 million as at 30th September 2020 & EUR279 million as
at 31st October 2020).
Outlook
At this time, despite the caution needed in the current health crisis in
France, the Group maintains its 2020 guidance and its ambitions for 2021.
Next major dates in the financial calendar
The next financial calendar dates are as follows:
* Annual Results 2020 on 18th February 2021.
Notes
(1) Comparable scope. 2019 and 2020 figures are restated from the figures of
the subsidiary QDQ, sold on 28th February 2020
(2) Digital order intake, Solocal SA scope, in value and net of cancellations
(3) Based on order intake net of cancellations. Order intake backlog EoP =
Order intake Backlog BoP + order intakes of the quarter - revenue of the
quarter.
(4) the month of November includes the 3 mentioned weeks (45, 46 and 47) plus
the Sunday November the 1st
Definitions
Order intake: Orders booked by the salesforce, that gives rise to a service
performed by the Group for its customers
Order backlog: The order backlog corresponds to the outstanding portion of
revenue yet to be recognised as at 31st October 2020 from order bookings such
as validated and committed by customers. For income from subscriptions, only
the current commitment period is considered
This press release contains forward-looking statements. These forward-looking
statements are based on Solocal Group's current beliefs, assumptions and
expectations of its future performance, taking into account all information
currently available. Although Solocal Group's management believes that the
expectations reflected in such forward-looking statements are reasonable,
investors are cautioned that forward-looking statements are subject to various
risks and uncertainties, many of which are difficult to predict and generally
beyond the control of Solocal Group, that could cause actual results and
developments to differ materially from those expressed in, or implied or
projected by, the forward-looking statements.
EN - About Solocal - www.solocal.com
Solocal is the digital partner for all local companies in France, from VSEs, to
SMBs or Large Companies with networks. Our job; vitalize local life. We strive
every day to unveil the full potential of all companies by connecting them to
their customers thanks to our innovative digital services. We advise over
330,000 companies all over France and support them to boost their activity
thanks to our digital services (Relational Presence, Websites and Digital
advertising). We also bring users the best possible digital experience with
PagesJaunes, and Ooreka, and our GAFAM* partners.
We provide professionals and the public with our high audience services,
geolocalised data, scalable technology platforms, unparalleled commercial
coverage across France, our privileged partnerships with digital companies and
our talents in terms of data, development and digital marketing. Solocal
moreover benefits from the "Digital Ad Trust" label. To know more about Solocal
(Euronext Paris "LOCAL"): let's keep in touch @solocal
*GAFAM : Google, Microsoft/Bing,, Facebook, Apple, Amazon
Press contacts
Charlotte Millet
+33 (0)1 46 23 30 00
charlotte.millet@solocal.com
Edwige Druon
+33 (0)1 46 23 37 56
edruon@solocal.com
Investor contacts
Julie Gualino-Daly
+33 (0)1 46 23 42 12
jgualino@solocal.com
Colin Verbrugghe
+33 (0)1 46 23 40 13
cverbrugghe@solocal.com
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