Intershop Communications AG, leading independent provider of innovative solutions for omni-channel commerce, generated net revenues of EUR 23.8 million in the first six months of 2014, which represents a 6% decline on the previous year. Licensing revenues climbed 33% to EUR 2.4 million. At EUR 21.4 million, services, maintenance, and other revenues were down by 9% on the previous year, which was exclusively due to lower revenues from two major customers.
Ludwig Lutter, Chief Financial Officer of Intershop Communications AG: We continue to push our transformation from a service provider to a product company. Despite the significant increase in license revenues in the first half of 2014 we still came out below our expectations. Our goal for the second half of this year is to accelerate the growth in licensing revenues.
Gross profit improved by 4% to EUR 7.6 million, while the operating result (EBIT) came in at a negative EUR -4.3 million., Among other things, this is due to continued high expenditure on sales and marketing (+11% to EUR 6.4 million) and the fact that the positive license revenue effects have not entirely materialized yet. Intershop s earnings before interest, taxes, depreciation, and amortisation amounted to EUR -2.2 million (previous year: EUR -1.1 million). Total operating expenses increased by approx. 17% to EUR 11.9 million. The cost ratio is expected to decline in the second half of the year. Earnings per share stood at EUR -0.14 at the six-month stage (previous year: EUR -0.10).
Intershop s net assets and financial position remains stable, with the equity ratio at a high 65%. Liquid funds amounted to EUR 6.4 million as of the interim balance sheet date. Moreover, Intershop generated positive operating cash flow of EUR 0.5 million.
The first half of the year saw Intershop win numerous new customers, especially in the new target segments of fast-growing small and medium-sized online customers. Among them are Ekosport, the French market leader in skiing and outdoor equipment, Trony, a leading Italian hi-fi electronics retailer, GartenXXL, a subsidiary of Germany s Tengelmann Group, and Papier Liebl, a medium-sized office supplies company. Music Store, the fifth largest mail-order supplier of music instruments and an existing customer of Intershop, also changed to the new, flexible Intershop 7 platform in the context of its ongoing expansion.