2020 Full-Year Results
EBITDA up significantly year-on-year
Business recovery initiated in Q4 2020
Q1 2021 Revenue up 43% to EUR3.7m
Thorigné-Fouillard, 15 April 2021, 5:45 p.m.
Thorigné-Fouillard, France - Kerlink (AKLK - FR0013156007), specialising in
IoT networks and solutions, is today publishing its 2020 consolidated full-year
results and revenue for Q1 2021.
In the wake of nine months impacted by the global health crisis, business
secured a gradual recovery as the year drew to a close, with Q4 2020 posting a
two-year high. Revenue ended the year down 14%, automatically impacting
full-year results. Against this backdrop, the Group was able to adapt its
organisation and maintain its cash holdings while stepping up its sales
development efforts in the private network operators' segment (city,
industries, companies, etc.). In 2020, the Group also doubled the number of
distribution partnerships with IoT players, paving the way for business
Consolidated financial statements
On 13 April 2021, the Board of Directors approved the consolidated financial
statements for the financial year ended 31 December 2020.
In thousands of euros 2020 2019
Revenue 11,184 13,038
Gross margin 4,829 5,956
Gross margin rate 43.2% 45.7%
Other operating costs -8,025 -10,981
EBITDA -3,196 -5,027
Depreciation and amortisation -3,075 -3,636
Operating income (expense) -6,271 -8,663
Financial income (expense) 554 -79
Income tax -9 -1,817
Group net income (expense) -5,726 -9,843
IFRS - Audited financial statements
Kerlink trusted by leading private network operators Strengthening the partner
Private operators further increased their contribution to Group revenue, now
accounting for more than 80% of annual revenue. Sales were down 11% in this
top-priority market segment. Despite the restrictive health measures
established by governments in 2020, direct marketing momentum remained strong
and efforts to identify new prospects were significantly increased. The breadth
of the client portfolio and the depth of the Group's range of solutions set it
back on the growth track towards the end of the year.
The Group also took advantage of the various lockdowns to expand its partner
ecosystem during the year, focusing on Kerlink's three target segments: Smart
Cities (with Pilot Things and Sensing Vision), Smart Industries (with Smart
Traffik, Microshare and Zenner IoT Solutions GmbH) and Smart Territories (with
GI Supply in Japan, for example). At the end of the year Kerlink announced
partnerships with iconic players such as Richardson RFPD and Amazon Web
In the historic and alternative telecom operators' segment, revenue for the
financial year totalled EUR1.7m (-29%).
Services: rise in service revenue, recurring revenue sources
Revenue from services totalled EUR3.1m, i.e. 28% of full-year revenue vs. 25%
last year. Sales of value- added services (operation and maintenance of IoT
networks, administration and geolocation of connected equipment, Reference
Design expertise and professional services) fell just 5% over the period.
All clients using the Group's application solutions enjoyed full continuity of
service, with Kerlink's teams having the remote tools they need to supervise
service platforms and keep them in working order, regardless of their
Equipment sales were hit harder by the first lockdown, resulting in total
full-year revenue of EUR8.1m, down 17%.
Revenue growth in the Americas and EMEA Sharp decline in France
In 2020, 53% of Group revenue was generated internationally, a significant
increase on 2019 (+40%). In the Americas, annual sales rose sharply (+54%),
significantly gathering pace towards the end of the year. APAC (Asia-Pacific)
business was encouraging at the beginning of 2020 but was dampened by the
effects of the crisis. The successive lockdowns have delayed projects for some
of the Group's customers in this part of the world. Revenue in the EMEA
(Europe, Middle East and Africa) excluding France rose 17% compared to 2019.
The drop in French sales was mainly associated with historic telecom
Significantly improved results
Despite the decline in business, results improved significantly over the year,
reflecting the Group's restructuring efforts starting in 2019. The gross margin
stood at EUR4.8m, i.e. 43.2% of revenue for the financial year, compared to
45.7% in 2019. This figure includes the commercial gestures made on several
major projects, the impact of which is expected in 2021. The gross margin was
also affected by tensions in supply prices for certain electronic components,
triggered by the pandemic.
Operating expenses totalled EUR8m vs. EUR11m in 2019. This reduction can be
partially attributed to the Employment Protection Plan ("ESP"), launched by the
Group at end-2019 before the Covid-19 crisis. Additional provisions were
recorded to protect the company's financial position. Kerlink demonstrated its
resilience during this unprecedented crisis by limiting the use of short-time
work and temporarily deferring certain expenses, alongside the de facto
decrease in travel costs. These measures were implemented without undermining
the Group's ability to step up its sales momentum or the transformations
planned once the crisis is over.
Lastly, EBITDA amounted to -EUR3.2m in 2020 vs. -EUR5.0m in 2019, an
improvement of nearly EUR2m.
Operating income of -EUR6.2m included a decrease in depreciation and
amortisation (EUR3.1m in 2020 vs. EUR3.6m in 2019), mainly due to the
activation of R&D expenses for EUR0.3m in 2020 versus EUR0.8m in 2019.
Financial income increased EUR633K, including the revaluation of the earnout on
the purchase of the remaining WYRES shares.
Group net income was negative in 2020 at -EUR5.7m, representing a major
improvement on 2019 (- EUR9.9m).
Well-managed financial position
Shareholders' equity stood at EUR6.6 million at 31 December 2020, compared with
EUR12.5 million at 31 December 2019. This decrease was mainly due to losses of
The business downturn resulted in positive change in WCR of EUR727k.
The Group's cash position stood at EUR6.5m at 31 December 2020.
The Group reiterated that it took out medium-term loans from BPI France and its
historic banking partners over the year, for a total of EUR2.75 million, in
addition to a government-backed loan of EUR2.25 million.
Global financial liabilities totalled EUR8.1m at end-2020 (excluding lease debt
according to IFRS 16).
An excellent Q1 2021
The recovery initiated in Q4 2020 carried over into Q1 2021. Over the period,
Group revenue stood at EUR3.7m, up 43% year-on-year and 24% compared to Q1
Growth was mainly driven by private network operators, in line with the
strategic shift initiated by the Group over the past two years.
In the Americas, in addition to a tech deal announced with Microshare and
Aramark for Smart Building solutions in March, the upturn in sales can be
partially attributed to initial revenue from a partnership established in 2020
with Cal-Chip Connected Devices for the deployment of an IoT network ("The
People's Network") launched by the US firm Helium.
This global network offers long-range, energy-efficient public wireless
coverage. Its deployment is made possible by Helium's LongFi(TM) technology,
which combines the LoRaWAN(r) wireless protocol with Helium blockchain
technology, allowing any LoRaWAN(r) sensor to transfer data via the new
network. By creating its blockchain, the Helium network decentralised IoT
network coverage, paving the way for the deployment of a global open wireless
network, capable of combining various LoRaWAN(r) stations and available
worldwide, in a cost-effective way.
Thanks to the partnership with Amazon Web Services announced in December, the
Group will be working with a top-tier provider in the area, showcasing Kerlink
solutions. The Americas posted revenue of EUR0.8m in Q1 2021, a more than
ten-fold increase year-on-year. The Group is accelerating its growth in this
part of the world.
Revenue in the Asia-Pacific region rose 41% to EUR0.3m. Circumstances vary
depending on the country, but positive signs are pointing to a business
recovery. The subsidiary made a strong local contribution to new contracts with
distributors based in Europe.
Revenue in the EMEA (Europe, Middle East and Africa) rose 11% year-on-year.
Solid performances in Q1, coupled with a promising order pipeline in early Q2,
have ensured that Kerlink can face the coming months with confidence, despite
the caution imposed by developments in the health crisis year-to-date and
pressure on supply prices for certain electronic components. Otherwise, the
Group remains confident it can weather the crisis thanks to its sound financial
position and a range of commercial and technological solutions that has now
found its market.
Appendices: Q1 2021 revenue
Breakdown by business line and geographic region
Revenue by business line At 31 At 31
In thousands of euros March 2021 March 2020 Change
Historic & alternative telecom operators 439 520 -16%
Private operators 3,283 2,089 +57%
Total 3,722 2,609 +43%
Revenue by geographic region At 31 March At 31
In thousands of euros 2021 March 2020 Change
Kerlink Group is a leading global provider of connectivity solutions for
designing, launching, and operating public & private Internet of Things
networks. Its comprehensive product portfolio includes industrial-grade network
equipment, best-of-breed network core, operations and management software,
value-added applications and expert professional services, backed by strong R&D
capabilities. Kerlink specializes in enabling future-proof intelligent IoT
connectivity for three major domains: Smart Cities - metering, parking, street
lighting, waste management, air quality & pollution, building & facilities,
assets monitoring... Smart Industries - fleet & asset tracking, energy &
utilities, oil, gas & mining, airports, harbors, infrastructure, manufacturing,
retail... and Smart Territories - precision agriculture, environment protection
and rural towns & areas. More than 120,000 Kerlink installations have been
rolled out with more than 330 clients in 69 countries. Based in France, with
subsidiaries in the US, Singapore, India, and Japan, Kerlink is a co-founder
and board member of the LoRa Alliance(r) and the uCIFI Alliance(TM). It is
listed on Euronext Growth Paris under the symbol ALKLK.
For more information, visit www.kerlink.com or follow us on Twitter
First Half Year Revenue: July 22, 2021, after market close
+33 (0)1 56 88 11 25