Half-year results 2016: continued growth at Emakina Group

Half-year results 2016: continued growth at Emakina Group

Income of EUR 38,594,000, up 19%; EBIDTA of EUR 2,596,000, up 6%

BRUSSELS, (EMBARGO until 5.30 pm) –
Emakina Group (Alternext Brussels: ALEMK:BB) announces its half-year results for 2016 today.


1. Key figures half-year 2016

In thousands of EUR

H1 2015

H1 2016






Earnings before interest, depreciation and amortisation (EBITDA)




Operating margin




Result before tax



+ 380

Net result



+ 344

2. Key events first half-year 2016

a)    New business

In 2016, new national and international clients chose an Emakina group agency as their partner. These included, among others: Agrifirm-Nuscience, Aspern Smart City, Balta Group, Bridon Bekaert Ropes Group, Carglass, De Persgroep, Groupe Holder, Héléna Rubinstein, HEMA, Högl Shoe Group, Kodak Alaris, Louvre Hôtels, Marktplaats (Ebay), Mr. Green, Naspers, Ores, Parrot, Puratos, Paula's Choice, REWE Group, Sigfox, Ter Beke, and Wolford.

b)    Acquisition

Emakina acquired 100% of the capital in the Swedish digital agency Dempsey in Stockholm. This operation has a workforce of 15 and, by building on the commercial partnership signed in 2013, enables the Emakina group to strengthen its presence in the Scandinavian countries.

c)     Internationalisation

In geographic terms, the share of the turnover recorded outside Belgium now accounts for 57% of the consolidated income for the first half of 2016, compared with 50% in the same period in 2015.

d)    Integration and Synergies

The significant expansion of the group in the past few months calls for major efforts as regards integration and synergy among the various entities of the group. In practical terms, this involves deploying joint management platforms and better sharing of respective know-how, available resources and technologies.

e)    Talents

Talent is the main asset within Emakina Group, which does everything possible to attract extraordinary people and help them evolve. At Emakina Group, talented individuals develop their capacities: through contact with their colleagues and with demanding clients; by receiving training; by taking part in research and development programmes.

f)     Partnerships

Through its commercial partners, Emakina Group offers its clients a wide geographic scope as well as unique local know-how. Its partners are: Asiance (Korea); Bubblegum (Spain); Domino (Italy); Metia (Great Britain, United States and Singapore); Piramit (Turkey) and SinnerSchrader (Germany).

3. General comment

Good growth in activities

During the first half of 2016, total sales amounted to EUR 38,594,477 compared with EUR 32,462,191 in the first half of 2015, representing an increase of 19% (+5% at constant scope).

As stressed above, the international expansion continues, with over 57% of income recorded with clients located outside Belgium. At the same time, income recorded with Belgian clients continues to increase, recording a rise of 3% in the first half of 2016 compared with the same period in 2015.

As a reminder, the acquisition in September 2015 of the Diamond:dogs communication group in Vienna, Salzburg, Zurich and Zagreb, as well as the acquisition in January 2016 of the Dempsey agency based in Stockholm are the most recent examples of Emakina's wish to operate more widely in Europe in order to offer its international clients the best possible support.

Development of EBITDA

The earnings before interest, depreciation and amortisation (EBITDA) amounted to EUR 2,595,804 (EUR 1,939,479 at constant scope) in the first half of 2016, compared with EUR 2,453,590 in the first half of 2015, an increase in absolute value of 5.8%. Expressed as a percentage of total sales, the EBITDA passed from 7.6% to 6.7% (5.7% at constant scope) in the first half of the year between 2015 and 2016.

This development of the operating margin can be attributed to a range of factors  (occupancy rate, cost structure, etc.) but the main element to be highlighted is the very strong growth in activity recorded in 2015 (25%) and early 2016 (19%) which required major efforts regarding the integration of new entities into the group as well as the structuring of the collaboration processes within the group, which inevitably affected performance at the start of 2016.

Sharp rise in current profit and net profit

The current profit (EUR 1,054,967) over the first half of 2016 rose by 81% compared with the same period in 2015, aided by ‘off-EBITDA’ elements such as (i) a reversal of provisions for doubtful claims following the settlement of a dispute, (ii) an improved financial result, (iii) stable amortisation charges on tangible and intangible fixed assets (including goodwill).

The net result (EUR 585,461) for the first half of 2016 more than doubled compared with 2015 due to the favourable development in the current result combined with stable tax charges. Thanks to this net profitability, the group is able to strengthen its equity base.

As a reminder, the amortisation of consolidated differences (compulsory under Belgian accounting standards) had a negative impact of EUR 909,263 on the company’s net result in the first half of 2016 compared with EUR 826,980 in the first half of 2015. This element of Belgian accounting law, which imposes systematic amortisation, weighs significantly on the consolidated net result.

4. Financial health

In 2016, the group’s financial health is stable thanks to the strengthened equity base, a level of financial indebtedness in line with the group’s growth, working capital requirements under control and the availability of credit lines adapted to the strong growth.

5. Outlook for 2016

The Emakina Group management is maintaining its forecasts made at the start of the year and expects an increase in its sales for the year 2016 as a whole based on the current order book.

6. Senior management statement

The Board of Directors states that to the best of its knowledge, the condensed and consolidated interim financial statements as closed on 30 June 2016, drawn up in accordance with Belgian accounting standards, give a faithful picture of the assets, the financial situation and the results of the Emakina group. The annual financial report contains an accurate account of the information that has to be included in it.

7. Sundry

a)    Auditor’s report

The auditor has confirmed that his audit of the consolidated accounts is complete in terms of substance and has not revealed any significant adjustment to be made to the accounting data presented in the 2016 half-year report.

b)    Belgian accounting standards

All the consolidated figures set out in the annex have been established in accordance with Belgian accounting standards (in particular as regards the mandatory amortisation of goodwill).  These figures provide a summary of the financial results that will be presented in detail in the 2016 half-year report.

c)     Shareholders’ diary 2016

24 March 2017:   Publication of annual results 2016

1 April 2017:        Annual report 2016 (brochure)

24 April 2017:      General meeting of shareholders.

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Karim Chouikri          
Chief Executive Officer            +32(0)2 400 40 75        [email protected]

Frédéric Desonnay   
Chief Financial Officer            +32(0)2 788 79 26        [email protected]

Luc Malcorps              
Director of Media Relations    +32(0)2 788 79 73        [email protected]


Emakina Group S.A.
Rue Middelbourg 64A
1170 Brussels

VAT 0464.812.221
ISIN BE 0003843605



In accordance with the Alternext Brussels regulations, all the regulatory information is included in the Emakina Group half-year financial report 2016 which contains all the regulatory information.

This report is available on our website, www.emakina.com (“Financial - Reports” section).

About Emakina Group SA

Emakina Group, an EPAM Systems, Inc. company (NYSE: EPAM), is one of the leading digital groups of independent digital agencies, with 26 offices in 18 countries in Europe, the Middle East, Africa and North America.

Learn more at www.emakina.group and follow us on Twitter @EmakinaGroup.

About EPAM Systems

Since 1993, EPAM Systems, Inc. (NYSE: EPAM) has leveraged its advanced software engineering heritage to become the foremost global digital transformation services provider – leading the industry in digital and physical product development and digital platform engineering services. Through its innovative strategy; integrated advisory, consulting and design capabilities; and unique ‘Engineering DNA,’ EPAM’s globally deployed hybrid teams help make the future real for clients and communities around the world by powering better enterprise, education and health platforms that connect people, optimize experiences, and improve people’s lives.

Selected by Newsweek as a 2021 Most Loved Workplace, EPAM’s global multi-disciplinary teams serve customers in more than 40 countries across five continents. As a recognized leader, EPAM is listed among the top 15 companies in Information Technology Services on the Fortune 1000 and ranked as the top IT services company on Fortune’s 100 Fastest-Growing Companies list for the last three consecutive years. EPAM is also listed among Ad Age’s top 25 World’s Largest Agency Companies and in 2020, Consulting Magazine named EPAM Continuum a top 20 Fastest-Growing Firm.

Learn more at www.epam.com and follow us on Twitter and LinkedIn.

Emakina Group SA
Rue Middelbourg 64A
1170 Watermaal-Bosvoorde
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VAT 0464.812.221