HOPSCOTCH GROUPE: 2023 Annual results

Press Release
Paris, April 2, 2024 8:00 A.M
Section Annual Results

HOPSCOTCH: ANOTHER RECORD YEAR FOR ALL BUSINESS UNITS

Increase in gross margin in 2023 to €92.9m (vs. €86.1m in 2022)
Operating profit up to €9.9m in 2023 (vs. €9.4m in 2022)

HOPSCOTCH (Euronext Growth FR0000065278), a leading communications and marketing services group, presents today its consolidated annual results on December 31, 2023.

• Sales up to 271.4 million euros (+10%) and gross margin up to 92.9 million euros (+8%), again a record high in the group's history
  
  
• Operating profit totaled 9.9 million euros (+6%)
  
  
• Backed by its unique strengths and solid financial structure, Hopscotch aims to accelerate growth in all its markets
  
  
• Hopscotch's unique positioning at the crossroads of the experiential and the influential, places it at the heart of its clients' communication needs
  
  

In thousands of euros	2023	2022	Var
Turnover	271 373	246 809	+10,4%
Gross Margin (1)	92 934	86 148	+7,9%
Operating Profit	+ 9 927	+ 9 359	+6,0%
Net Income	+ 5 186	+ 5 970	-19,4%
Net Treasury	+ 20 774	+ 14 763	+40,7%

(1) Gross margin is defined by turnover minus external operating purchases.

Frédéric Bedin, Chair of the Board, Hopscotch:

"The year 2023 demonstrated the solidity of our value proposition, consolidated by our recent developments: the launch of Hopscotch Sport and the acquisition of Interface Tourism, now Hopscotch Interface Tourism. Thanks to our unique expertise, we aim to accelerate our international expansion, in particular by promoting our luxury, sports, tourism, lifestyle, and cultural businesses to the widest possible audience.

This momentum is made possible by the unfailing commitment of our teams and the trust placed in us by our clients. I would like to thank them in particular. "

Pierre-Franck Moley, Managing Director and Chair of the Board of Hopscotch Sopexa:

"With its positive reputation, the power of the Hopscotch brand, and its financial resources, the group presents itself as a consolidator in the market, enabling it to aim for strong growth in the coming years."

An Expanding International Group

Today, HOPSCOTCH employs around 1,000 people, half of whom work internationally in EMEA, North America, and Asia. Thanks to a strong entrepreneurial culture that encourages initiative at all levels, the group is agile and responsive to respond to a rapidly changing market.

Hopscotch's ability to integrate all communications activities under a single roof, and to benefit from a perfectly integrated international network, sets it apart from its competitors.

Continued Business Growth

As previously announced, the group's business is once again showing clear growth, thanks in particular to the continuing increase in events, but also to growth in the Public Relations and digital businesses. Positioned at the crossroads of the experiential and the influential, HOPSCOTCH is at the heart of its clients' communication needs.
Gross margin reached 92.9 million euros, again a record high in the group's history.

Solid Operations

With operating conditions well under control, the group confirmed a favorable profit margin, with consolidated operating profit of 9.9 million euros and a gross margin of 92.9 million euros, or 10.7%. This good performance includes investments in prospecting and innovation (including AI) in preparation for 2024 and its major sporting and cultural events. As a result, personnel costs have risen slightly more than necessary to support growth in 2023. Normative earnings would easily have exceeded 10 million euros without these exceptional charges.

Financial expenses were higher this year due to non-recurring entries (accounting charge of €850 thousand) relating to the rationalisation of the Group's legal structure and the deconsolidation of a discontinued business, as well as the renewal of the head office lease, which generated an accounting charge of €125 thousand in connection with IFRS 16.

After net financial expense of -€2,665 thousand, and income taxes of -€1,992 thousand, net income came to €5,185 thousand, down slightly due to the temporary surcharge linked to the financial loss.

Strongly Consolidated Financial Structure

The balance sheet structure has been consolidated, with shareholders' equity increasing to 31.5 million euros (28 million euros on December 31, 2022).

Financial debt excluding PGE (The French State Guaranteed Loan) amounted to 6.6 million euros, down 3.5 million euros on the previous year. At the same time, PGE (The French State Guaranteed Loan) debt fell by 4.4 million euros during the year, leaving a closing balance of 14.8 million euros.

The cash position remains strongly positive at 42.2 million euros, including the unused EMP of 14.8 million euros.
The net financial position is therefore positive and improving, at 20.8 million euros versus 14.8 million euros last year.

The Executive Board therefore proposes to the Annual General Meeting of May 30, 2024 to distribute a dividend of 0.65 euros per share, an increase of 30% (0.50 euros in 2023).

2024 Perspectives

Since the release of Covid, the events business has seen a strong rebound, a structural phenomenon that responds to a need for physical meetings, whether B2C or B2B. At the same time, the growing complexity of communications, the impact of influencers and the associated reputational risk all call for greater expertise in mastering what companies have to say.

We continue to see good momentum in activities linked to public relations and mastering reputational challenges (Social Media, Influence, Public Affairs, Public Relations, Content), which has resulted in numerous gains in newbiz.

In January 2024, Hopscotch finalized the acquisition of the 4 companies making up the Interface Tourism group in France, Spain, Italy and the Netherlands, which will become Hopscotch Interface Tourism.
The transaction, half in cash and half in newly issued shares, will be accretive: in 2023, the gross margin generated by Hopscotch Interface Tourism will exceed 8 million euros, and the operating margin will exceed 15%.
By consolidating the Tourism division in 2024, the Group's gross margin will exceed 100 million euros, and operating margin should improve.

Thanks to its solid financial structure, the group will pursue its strategy of external growth, with an international focus, and continue to strengthen its position in growth areas such as influence, with, for example, the recent integration of a team of 12 specialized consultants.

Hopscotch thus aims to become a leading communications group worldwide.

CSR

HOPSCOTCH has been fully committed to the ecological transition for over 15 years now, a conviction and mobilization recognized by numerous labels and certifications over the years (Agence Active label certification, and Ecovadis). The roup puts its experience and expertise to work for its clients, for whom these issues are becoming increasingly important. In this respect, HOPSCOTCH is mobilized to accompany changes in regulations, and more particularly the entry into force of the CSRD, which will necessarily give rise to needs in terms of responsible communication.

AI

HOPSCOTCH sees this technology as a way of making certain services more efficient and thus optimizing consulting value, but also as an opportunity to invent and offer new business lines. The group has invested in its own platform and set up a team of experts to keep abreast of technological developments. AI is already rightly integrated into many client operations.

HOPSCOTCH Groupe will publish its turnover for Q1 2024 on May 2, 2024, after market close.

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Shareholder Contact

Pierre-Franck MOLEY - Directeur Général - Tel. [phone] - [e-mail]

Press Contact

Jodie KNOEPFLER CONSCIENCE - Assistant to the Executive Board - Tel. [phone] - [e-mail]

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About HOPSCOTCH Groupe

HOPSCOTCH is an international communications group created in France and run by its founders and managers, all guided by an entrepreneurial vision driven by complementary expertise. HOPSCOTCH's credo? Global PR, based on an unprecedented mix of influence, digital, events, public relations and marketing services, for both lifestyle and corporate clients.

HOPSCOTCH brings together in France (Paris, Lyon, Lille, Marseille) and internationally (4 continental hubs in Asia, America, Europe & the Middle East) nearly 1,000 employees who are experts in all areas of communications: influence, events, activation, digitalisation, internal communications, public affairs, marketing services, etc.
Convinced that the value of a company or organisation lies in the care given to its relational capital, HOPSCOTCH structures its expertise around its own brand "Hopscotch" (Event / PR / Travel / Decision-makers / Congresses / Luxury / Sport), and specialised agencies: AD crew, heaven, Hopscotch Interface Tourism, Human to Human, Le Public Système Cinéma, Le Public Système PR, Sagarmatha, Hopscotch Sopexa.

HOPSCOTCH now has an integrated international network, with 40 offices on 5 continents, enabling it to operate in more than 60 countries.

Listed on Euronext Growth Paris (ISIN Code: ALHOP FR 00000 6527 8), the group will have a turnover of €271 million and a gross margin of €93 million in 2023.

To follow us: www.hopscotchgroupe.com and on LinkedIn / X / Instagram @HOPSCOTCHgroupe

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