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Preliminary Financial Results for the Second Quarter of Fiscal Year 2020

Autor: Mark Tiedens
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NEWS

Financial strength and Blackstone investment set the foundations for future growth

HH Global announces its unaudited financial results for the second three months of fiscal year 2020, ended September 30, 2019.

Second quarter 2020 financial highlights

  • 17.7% revenue increase, from £92.4 million in the same period last fiscal year to £108.7 million. Year-to-date revenue was £215.5 million, a 19.6% increase compared to £180.2 million in the same period of FY 2019
  • 35.1% net revenue increase, from £20.9 million in the same period last fiscal year to £28.2 million. Year-to-date net revenue was £55.4 million, a 32.7% increase compared to £41.7 million in the same period of FY 2019
  • 86.5% increase of non-GAAP adjusted EBITDA, from £3.7 million in the same period last fiscal year to £6.9 million. Year-to-date non-GAAP adjusted EBITDA was £13.1 million, a 70.3% increase compared to £7.7 million in the same period of FY 2019

Business highlights

  • On the 3rd of December, HH Global reached an agreement with funds managed or advised by Blackstone Tactical Opportunities in relation to a £100m strategic minority equity investment in HH Global. Blackstone’s equity investment and extensive experience will enable HH Global to accelerate growth in its core business, broaden its service offering and pursue acquisitions globally. The investment will also allow HH Global to grow its newly developed data and digital multi-channel marketing offering with a global buy and build strategy.
  • The company continued its strong performance, securing  commitments for enterprise contracts with the collective total of over £85 million of annual gross revenue at full run rate. Half of its conversions came from existing clients,  underscoring high client adoption and satisfaction rates  
  • Rolled out its  data-powered "Customer Experience" service line with an existing global financial services and insurance client and an existing global life sciences client, leveraging the capabilities of recently acquired  Blueberry Wave 
  • Released its first Innovation with Purpose sustainability report,  detailing its sustainability strategy, achievements, and alignment to the UN Sustainable Development Goals - 17 goals to tackle poverty, inequality, and climate change by 2030.

"This quarter’s financial results solidify the incredible growth that we have achieved over the past seven years,” said  Robert MacMillan, HH Global Chief Executive Officer. “Our new partnership with Blackstone, together with our strong financial results, solid client partnerships, and successful integration of  recent acquisitions set the foundations for future growth and expansion. We are excited by our market potential."

Edward Parsons, Group Chief Financial Officer of HH Global, said: "Top and bottom-line growth trends have not abated. The investments made over the past years to establish a global platform with uniform financial processes are paying off with double-digit growth across all of our regions while keeping costs under control and increasing EBITDA performance. Our platform is well suited to support our future growth plans."