DGAP-News: SinnerSchrader AG

SinnerSchrader has continued the current 2016/2017 financial year with a good third quarter. From 1 March 2017 to 31 May 2017, SinnerSchrader earned sales revenues of 15.2 million euros and exceeded the comparable value of the previous year by 13.3 per cent and that of the preceding second financial quarter by 11.1 per cent. For the first time in its history, SinnerSchrader earned quarterly revenue of more than 15 million euros.

In the quarter of the report, the growth was earned in business with major existing clients, not least in the automobile industry, whose demand for the digital expertise of SinnerSchrader is still high. At the end of May 2017, SinnerSchrader won through in a competition for another budget from Volkswagen and will now also assume the digital lead position for this brand. It is also pleasing that in the third quarter of 2016/2017 SinnerSchrader has grown at rates of more than 50 per cent over the previous year, both in its content marketing business and in its mobile business.

The operating result (EBITA) in the third quarter of 2016/2017 came out at 1.4 million euros, almost corresponding to the level of the previous year. However, this result contains direct costs in the amount of just under 0.2 million euros incurred by SinnerSchrader in connection with the conclusion and implementation of the merger agreement signed with Accenture on 20 February 2017. Adjusted by these costs, the EBITA in the third quarter of the current financial year improved by 10 per cent in comparison to the previous year. The operating margin was 10.2 per cent in the quarter of the report on the basis of the adjusted EBITA.

Accumulated over the first three financial quarters of 2016/2017, SinnerSchrader earned sales revenue of a good 42.0 million euros in the period up to 31 May 2017, and increased the previous year's value by 10.2 per cent. In the nine-month period, SinnerSchrader earned an operating result (EBITA) in the amount of 4.0 million euros or 3.6 million euros from the revenue after the transaction costs arising from the merger with Accenture. The previous year's result was exceeded by almost 47 per cent and 31 per cent, respectively.

In the nine-month period, the net income reached 2.4 million euros. Without the transaction costs, a net income of 2.7 million euros would have been earned. Compared with the net income from the first nine months of the previous year, this corresponds to an improvement in profit of 27 per cent or 42 per cent, respectively. SinnerSchrader generated diluted earnings per share of 0.21 euros and before transaction cost of 0.24 euros, respectively.

Based on the nine-month figures, SinnerSchrader feels that it is well on the way to achieving the revenue forecast of more than 56 million euros and - adjusted by the effects of the merger agreement with Accenture - the forecasts of between 5.8 million and 5.9 million euros for the EBITA and at least 4.0 million euros for the net income. As announced in the notification of 20 February 2017, further costs for employee-related expenditure of up to 3.8 million euros may be incurred in conjunction with the merger agreement over and above the transaction costs. In addition, negative tax impacts of up to 0.5 million euros cannot currently be ruled out completely.

The operating cash flow was slightly negative in the first nine months of the financial year, as in the previous year, due to a temporary rise in the working capital. Given the inflow of funds from the sale of treasury stock within the context of implementing the agreements with Accenture, the outflows of funds from the dividend payment in January 2017 and from investments were largely offset, so the amount of liquid funds on 31 May 2017, at just under 5.8 million euros, was only 0.3 million euros below the level of 31 August 2016.

The sale of treasury stock caused a considerable increase in shareholders' equity. On 31 May 2017 it had grown by 2.8 million euros above the level of 31 August 2016. The shareholders' equity ratio was thus more or less stable in comparison to the closing level of the previous year, in spite of the expansion of the working capital, at 59.7 per cent. There were 536 employees at the end of May, 31 more than at the end of the previous year.

The full report of the SinnerSchrader Group for the third financial quarter and the first nine months of the 2016/2017 financial year can be found at http://www.sinnerschrader.ag/en/reports as of 6 p.m. on 13 July 2017.

ABOUT SINNERSCHRADER

SinnerSchrader is one of the leading digital agencies in Europe with the focus on the design and development of digital products and services. More than 500 employees work on digital transformation for companies such as Allianz, Audi, comdirect bank, ERGO, Telefónica, TUI, Unitymedia and VW. SinnerSchrader was founded in 1996, has been listed on the stock exchange since 1999 and has offices in Hamburg, Berlin, Frankfurt am Main, Munich, and Prague. Since April 2017, SinnerSchrader has been part of Accenture Interactive.

http://sinnerschrader.com

PRESS CONTACT

Carmen Fesenbeck
Corporate Communications
presse@sinnerschrader.com

INVESTOR RELATIONS CONTACT

Thomas Dyckhoff
CFO
ir@sinnerschrader.com

SinnerSchrader Aktiengesellschaft
Völckersstraße 38
22765 Hamburg
T. +49. 40. 39 88 55-0
F. +49. 40. 39 88 55-55