Half year results 2022:
Production growth of the year + 8.8%
Strong profitability of Blockchain services business,
with an EBITDA of 12.1%
Sustained investment in The Blockchain Group’s platforms
Good orientation of the business for the future:
Puteaux, October 31, 2022. The Blockchain Group (“TBG”), leader in blockchain support in France, publishes the half year results as at 30 June 2022 (***).
|(in thousands of Euros)||06.2021
Pro forma **
Pro forma **
|of which Platforms
Pro forma **
|Production in the year *||13,675||14,880||11,833||3,047||+ 8.8%|
* includes research tax credit
** The data relating to the pro forma accounts as at 30 June 2021 include the companies acquired on 1 Juneuh quarter 2021. The data relating to the pro forma accounts as at 30 June 2022 exclude some exceptional charges relating in particular to specific investments made to prepare the subsidiary Eniblock for listing.
The data presented has not been subject to limited review as of 30/06/2021 and 30/06/2022.
Increased operating production
The Blockchain group (” TBG “) Carried out on 1uh half year 2022, production for the year of € 14.9 million, up 8.8% compared to the 1stuh semester 2021.
80% of this is split into blockchain services and 20% into revenues from the Group’s software platforms.
Growth was driven in particular by the acceleration of the Eniblock platform® and the good performance of blockchain advisory support for TBG clients. This technology enjoys strong demand from companies who see in its many applications the opportunity to offer their customers innovative and secure solutions as part of their various offerings.
Acceleration of investments in support of growth
To support the development of its sales and the enrichment of its platforms, TBG has strengthened its human capital and called qualified subcontractors to invest in its various software solutions.
Depending on their destination, some of these charges have been capitalized and others have been kept as operating costs.
Pro forma EBITDA is thus close to breakeven at -0.1 million euros. By activity, TBG’s services business recorded an EBITDA margin of over 12%, similar to that achieved for TBG as of June 30, 2021. In contrast, the platforms’ EBITDA recorded a loss of € 1.5 million. , which reflects the main investments of the Group for this activity and which is consistent with their stages of progress.
After accounting for an amortization fund and provisions for € 0.8 million, the operating result shows a loss of € 0.8 million. In the absence of other significant elements, the net result amounted to -0.9 M €.
Consideration of exceptional items in the first half of 2022
To prepare for the listing of its subsidiary Eniblock on Euronext Growth, TBG took action
1uh mid 2022 significant internal resources to finalize some developments. The company believes these costs are exceptional and not part of a normal operation. These resources were also unable to contribute to the revenues from the Services business during this period. The amount of these non-current charges in the period amounts to 1.6 million euros.
At the same time, TBG carried out some reallocations of resources, in particular following the development of the “CAMP” for the training of Blockchain engineers, in professional retraining. The total of these exceptional charges amounts to 0.5 million euros.
Taking these items into account, the statutory consolidated net loss is equal to 2.9 million euros.
The Blockchain Group anticipates the continuation of the good trend of its sales in the 2th semester, driven by the general dynamics around blockchain technology and in particular for B2B applications.
Driving its recurring revenue growth strategy, TBG had Eniblock’s securities admitted to listing on Euronext Growth on September 20, 2022, in order to strengthen its reputation and diversify its funding sources. Thus the Eniblock platform® intends to continue in 2022 the necessary developments for the ramp-up of its software solutions.
To ensure the success of its platforms, the group will also accelerate the implementation of blockchain projects for all types of assets, the adoption of Web3 and the conquest of new important accounts.
Xavier Latil, President and CEO of TBG, comments: “Our Group overcame many challenges during 1uh mid 2022. We have accelerated the ramp-up of our Eniblock platform®through new implementations with our beta-tester customers, the provision of new features or the improvement of the user experience.
This occurred in conjunction with the preparation of the listing of our subsidiary Eniblock. We have continued our efforts to seek out new customers and are delighted to see real momentum in the B2B blockchain market in general and the attractiveness of TBG offerings in particular. We are well positioned to respond to numerous inquiries from businesses and communities, and our order collection is there to back it up. Investments are needed more than ever to ensure growth in a disruptive market. “
|About the Blockchain Group
The Blockchain group is the French leader in blockchain. From consulting to technological services, passing through research and development and its SaaS platform, the group helps companies to seize all the opportunities offered by blockchain and web3, along the entire value chain.
More information on the website: www.theblockchain-group.com
|EURONEXT Growth Paris Mnemonic: ALTBG ISIN: FR0011053636
Reuters: ALTBG.PA Bloomberg: ALTBG: FP
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(***) Due to the change in perimeter and the need for harmonization of the information system, the half-yearly financial report of the consolidated statutory financial statements at 30 June 2022 will be published on the TBG investor website by Thursday 17 November, 2022 after the close of the market.