4.1 Revenue
In the 2005/2006 financial year SinnerSchrader earned revenue of € 15.8 million, thus exceeding the revenue of the previous year of € 14.3 million by 10.5 %. Following a strong first quarter, in which a growth rate of around 21 % in comparison to the previous year was achieved, the dynamics in the seasonally weak second quarter fell back to growth over the previous quarter of 6.1 %, but then rose again by the fourth quarter to reach a growth rate of 9 %, just slightly below the target corridor of 10 % to 15 %. With revenue of € 4.1 million in the fourth quarter, SinnerSchrader broke through the 4 million barrier for the first time since the first quarter of 2001/2002.
All three segments contributed to the revenue growth, with the biggest growth rates being achieved in Interactive Services again in the 2005/2006 financial year. Revenue with external customers in this segment amounted to € 5.2 million, 18 % more than in the previous year. Within the service portfolio of the segment, SinnerSchrader experienced an especially pleasing demand for operating services; this demand largely originated from customers who also have or had business relations with one of the other segments. By contrast, the growth of media services slowed down considerably in comparison to the previous year. This is not least due to the fact that SinnerSchrader, with its specialised orientation on so-called cost-per-order (CPO) transactions in the media segment, benefits only to a limited extent from the positive development in the online advertising market. No growth impetus came from analysis services in the year covered by the report because of the change in the business approach towards a larger share of consulting and project business.
Development of revenues 1) according to segments in € million
The rise in revenue in the Interactive Marketing segment amounted to 12.7 %. The volume of revenue with external customers was € 4.7 million in the 2005/2006 financial year. Consistent consolidation of some core customer relations and the acquisition of two large new high-potential customers in the second half of the financial year boosted growth. A temporary dip in growth in the second and third quarters was caused by the fact that a major customer from the automobile industry significantly reduced its orders to SinnerSchrader because of restructuring. However, this was more than compensated for by business with new customers, which underlines the fact that the Interactive Marketing segment has successfully established itself on the market.
In the Interactive Software segment, revenue with external customers rose by 2.5 % to reach € 5.9 million, which means that development in this segment was much more subdued in the year covered by the report than in the other two segments. If the services provided for other segments, especially Interactive Marketing, are taken into account, the growth rate rose to 5.4 %. A number of new customers were acquired in the segment, but these orders could not be expanded to an adequate size in the financial year. Business developed well with customers in the Banking and Financial Services sector, which is one of the main focal points of this segment. Here, the growth rate was just under 20 %.
With regard to the distribution of revenue from various sectors, this strong growth rate meant that the share of revenue from customers in the Financial Services sector, which had been falling steadily over recent financial years, rose again by three percentage points to 30 %. The share of the Media and Entertainment sector also increased greatly; in 2005/2006 it accounted for 13 % of total revenue (previous year: 7 %). The proportion of revenue from all other industries declined, falling to 23 % for Retail & Consumer Goods, 20 % for Transport & Tourism and 14 % for Communications & Technology.
Revenues according to sectors in %
With a revenue share of a good 17 %, the biggest customer came from the Financial Services sector. In the previous year it was a company from the Retail & Consumer Goods sector that led the customer list with a good 20 % share of revenue. In 2005/2006, the five biggest customers accounted for just under 61 % of total revenue, while the ten biggest customers accounted for 77 %. In the previous year, the comparable values were 64 % and 83 % respectively.
As in the previous year, two of the ten biggest companies were new customers. In total, revenue with new customers in the 2005/2006 financial year was € 2.4 million, which corresponds to a share of 15 %. In the previous year the figures were € 3.1 and 21 %.
Measured in terms of the proportion of overall revenue, the segments have continued to balance out due to the different growth rates: Interactive Software was responsible for 37 %, Interactive Services for 33 % and Interactive Marketing for 30 % of total revenue. In the previous year, the shares were 40 %, 31 % and 29 %.