Key performance indicators
Gross sales volume and net asset value are economic indicators that measure the ADLPartner Group's performance
Gross sales volume
Gross sales volume represents the value of subscriptions and other products sold.
Net sales represent:
- For subscription sales: the amounts paid by magazine publishers, with sales generated by the company in its capacity as a press agent. Net sales therefore correspond to a gross margin, deducting the cost of magazines sold from the amount of sales recorded,
- For other products sold: sales revenue.
Gross sales volume is reported before any discounts or cancellations. It therefore represents the most stable and standard indicator for the group's performances.
Gross sales volume from continuing operations was down 0.5% at €276.2 million in 2018 compared with €277.6 million in 2017.
Gross sales volume can be broken down as follows:
|By geographic region (€ million)|
|By product offering (€ million)|
|Others (insurance and marketing services)||37.7||23.0|
Net asset value
The portfolio of open-ended subscriptions managed by the Company represented 2,982,313 units at 31 December 2017. It came to 2,824,390 subscriptions at 31 December 2018. It should be noted that all group companies hold the financial rights relating to each open-ended subscription.
The value of the portfolio of open-ended subscriptions, net of taxes (group share), rose from €106.7 million at 31 December 2017 to €104.7 million at 31 December 2018.
This change in the real asset value is not reflected in the consolidated financial statements.
The value of the portfolio of open-ended subscriptions is calculated by determining the present value of the future net revenues that these subscriptions will generate throughout their useful life. These revenues are determined accurately using the statistical information accumulated by the Company over several years concerning the behavior of such subscriptions in France and for its subsidiaries.
The life curve of subscriptions recruited by a promotional campaign makes it possible to determine, at any time, the residual life expectancy of subscriptions with great accuracy. The net contribution still to be received can be determined by applying the average revenues observed and the margin on direct costs (with discounts deducted) to the number of remaining subscriptions.
For mixed subscriptions with a firm 12-month commitment, the value of the portfolio determined in this way is restated for the margin on direct costs, already recognized in the group’s accounts. Indeed, net sales and the outstanding costs for the firm commitment period are recorded in the group’s accounts as soon as subscriptions are activated with publishers.
The present value of this contribution, calculated by applying a rate based on the money market rate, gives the value of this portfolio of subscriptions. This value is then corrected for any underlying tax.
The value of the portfolio of open-ended subscriptions, net of taxes (group share), can be broken down as follows
|Value of ADL'S portfolio (exclusive of tax - Group share), (€ thousands)|
|at 31/12/2018*||at 31/12/2017*|
* Value of the portfolio according to IFRS 15
Factoring in the portfolio value (group share) and consolidated shareholders’ equity (group share), net asset value (group share) is up 0.3% from €123.3 million at 31 December 2017 to €124.0 million at 31 December 2018. The net asset value does not include an estimate of the net future income of the portfolio of insurance contracts held by the group.
Net asset value can be broken down as follows:
|at 31/12/2018*||at 31/12/2017*|
|Total||Group share||Minority interrests||Total||Group share||Minority interrests|
|Consolidated shareholders' equity||21,240||19,331||1,909||16,639||16,989||-350|
|Value of ADL's portfolio (net of taxes)||104,674||104,674||0||106,654||106,654||0|
|NET ASSET VALUE||125,914||124,005||1,909||123,293||123,643||-350|
* Values of the portfolios and shareholders’ equity according to IFRS 15
Net asset value (group share) represents €31.3 per share (excluding treasury stock).