Creactives Group (CREG) H1 2023 earnings summary

Executive summary

• FY 2022/23 production value rose 16% to €6.97m; sales including WIP reached €5.53m, up 11%, and ARR increased 31% to €4.83m.

• International customers generated 89% of revenue; the customer base grew from 41 to 45.

Financial highlights

• Sales and services revenue was €5.32m, up 24%; direct revenue rose 24% to €4.66m and indirect revenue rose 24% to €657k.

• Consolidated EBITDA was €390k, down 25%, reflecting higher personnel, IT, service, travel and listing-related costs.

• Consolidated net loss widened to €1.063m from €359k; higher depreciation and €323k of prior-year tax charges contributed.

• Gross margin was 43%, down from 47%; capitalized work of €1.25m lifted production value above sales including WIP.

Outlook and guidance

• Priorities include finalizing partnership agreements, advancing go-to-market activity and continued AI investment across the Vanessa platform and applications.

• Plans include deeper SAP integration, new use cases and expansion into additional European industries and North America; first-quarter FY 2023/24 revenue was higher than the prior year.

• Outlook cited higher recurring revenue as supportive despite global uncertainty.