DGAP-Adhoc: ad pepper media International N.V. maintains profitable growth

Nuremberg, Amsterdam, October 12, 2018

ad pepper media International N.V. generated sales of EUR 27,642k in the first nine months of 2018 (Q1-Q3 2017: EUR 23,314k). On a like-for-like basis, the Group's sales growth thus amounted to 18.6 percent. ad pepper media, the performance agency specializing in lead generation and target group targeting, continued to post the most dynamic business performance. Nine-month sales here grew by 66.4 percent to EUR 8,050k (Q1-Q3 2017: EUR 4,837k). In the past third quarter, sales growth at ad pepper media even rose to 86.7 percent. The Webgains affiliate network reported (like-for-like) growth of EUR 88k, or 1.3 percent, resulting in revenues of EUR 7,057k in the first nine months of the financial year (Q1-Q3 2017: EUR 6,970k). Sales growth in this segment accelerated in the past third quarter, rising to 6.2 percent. Nine-month sales growth at the performance marketing agency ad agents decreased to 8.9 percent with revenues of EUR 12,535k (Q1-Q3 2017: EUR 11,507k), a development due to an 11.2 percent reduction in third-quarter sales.

The Group's gross margin rose by EUR 1,219k, or 9.3 percent, to EUR 14,285k in the first nine months (Q1-Q3 2017: EUR 13,066k). Operating expenses at the Group for the same period increased to EUR 13,604k (Q1-Q3 2017: EUR 12,415k). With EBIT of EUR 682k (Q1-Q3 2017: EUR 651k) and EBT of EUR 732k (Q1-Q3 2017: EUR 641k), the Group exceeded the respective previous year's figures. At EUR 926k, the Group's EBITDA roughly matched the previous year's figure (Q1-Q3 2017: EUR 955k). Segment EBITDA at ad pepper media rose sharply to EUR 1,633k (Q1-Q3 2017: EUR 965k). Due to higher personnel and marketing expenses, segment EBITDAs at Webgains and ad agents decreased to EUR 226k (Q1-Q3 2017: EUR 552k) and EUR 78k (Q1-Q3 2017: EUR 754k) respectively.

For the final quarter now ahead, we expect to see a continuation of the overall positive trend, albeit with lower profitability compared with the previous year's period. This is mainly due to a weaker than expected business from new clients at the ad agents segment. Hence, given the results for the third quarter of 2018 and in view of our estimates for the fourth quarter, the Management Board now views achievement of the target of generating full-year Group EBITDA at least at the previous year's level (2017: EUR 2,209k) as no longer likely.

The report on the first nine months of 2018 will be published on November 15, 2018.

Comparison of key figures (preliminary and unaudited) for Q1-Q3/2018
and Q1-Q3/2017:

*On a like-for-like basis, i.e. applying IFRS 15 to the equivalent period in the previous year, sales for the previous year's period amounted to EUR 23,314k and the Group's sales growth came to 18.6 percent.

** Including securities

For further information:
Dr. Jens Körner (CEO)
ad pepper media International N.V.
+49 (0) 911 929057-0
ir@adpepper.com
www.adpeppergroup.com