Syzygy AG: Sales of EUR 40.7 million with an EBIT margin of 6.4 per cent

Third quarter with significant growth in sales and EBIT compared to difficult second quarter

Bad Homburg (pta/22.10.2020/18:17 UTC+2) * Sales of EUR 40.7 million in the nine-month period (-15 per cent compared to previous year)
* EBIT margin of 6.4 per cent (previous year 8.7 per cent)
* Sales in core German market down by 8 per cent, with EBIT margin of 13 per cent
* Operating income EUR 2.6 million
* Net income EUR 1.5 million
* Third quarter with significant increase in sales and EBIT compared to second quarter, positive development in all business segments
* Outlook for 2020: forecast confirmed with sales set to fall by 10 to 20 per cent and positive EBIT margin in the mid single-digit range expected

The SYZYGY Group generated sales of EUR 40.7 million in the first nine-month of the financial year, representing a decrease of 15 per cent compared to the previous year. The core German market saw sales of EUR 33.4 million with a continuing strong EBIT margin of 13 per cent. Sales declined significantly in the international markets, however, particularly in the US and UK, leading to a loss of EUR 0.6 million. This resulted in the proportion of sales generated in Germany rising to more than 81 per cent.

The SYZYGY Group's operating income (EBIT) came in at EUR 2.6 million, with the EBIT margin declining from 8.7 per cent to 6.4 per cent.

Financial income was negative at EUR -0.6 million, meaning that total net income after taxes is around EUR 1.5 million. Earnings per share are EUR 0.11.

	Q3-2020	Q3-2019	Change	9M-2020	9M-2019	Change
Sales (kEUR)	13,737	16,065	-14%	40,685	47,631	-15%
EBIT (kEUR)	1,059	1,355	-22%	2,606	4,163	-37%
EBIT margin	7.7%	8.4%	-0,7pp	6.4%	8.7%	-2,3pp
Financial income (kEUR)	-167	-102	n.a.	-555	-121	n.a.
Earnings before tax (kEUR)	892	1,253	-29%	2,051	4,042	-49%
Net income (kEUR)	639	915	-30%	1,456	3,007	-52%
Earnings per share (EUR)	0.05	0.07	-29%	0.11	0.22	-50%
Operativer Cash Flow (TEUR)	-962	-65	n.a.	3.548	-6.284	n.a.

Outlook:
The impact of the coronavirus pandemic was apparent from March onwards and reached its peak in the second quarter. Changes in our clients' spending behaviour led to a downturn in sales and made it more difficult to win new business. The SYZYGY Group took early action and responded to client needs, with the result that the third quarter saw a significant increase in sales and profit compared to the second quarter. This trend is set to continue, so that business can be expected to recover.

SYZYGY is confirming its forecast and expects sales to fall by between 10 and 20 per cent in the 2020 financial year. We anticipate an EBIT margin in the mid single-digit range.

The full quarterly report will be available at http://ir.syzygy.de from October 26, 2020.

About the SYZYGY Group

SYZYGY is a leading consultancy and implementation partner for transformation of marketing and sales. SYZYGY designs, creates and orchestrates digital experiences and products for brands, companies and people. The Group's core services are strategy, products and activation, with technology as the connecting and scaling element.

Founded in 1995, the SYZYGY Group is listed on the German stock exchange and employs some 600 people across four countries. It has offices in Bad Homburg, Berlin, Frankfurt, Hamburg, Munich, London, New York and Warsaw. The WPP Group is the majority shareholder, with a 50.3% stake.

In addition to the main brand, SYZYGY, and strategy consultancy firm diffferent, the Group includes Polish design studio Ars Thanea. Its clients include prestigious brands such as BMW, comdirekt bank, Commerzbank, Consorsbank, Daimler, Deutsche Bank, Kyocera, Lufthansa, Mazda, Miles & More, mobile.de, o2, PayPal, Porsche, health insurer Techniker Krankenkasse and Volkswagen.

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