Claranova has reported another strong quarter, with organic constant currency revenue growth of 33% y-o-y in Q319, maintaining the same rate of growth as in H119. Geographic and product expansion are driving PlanetArt growth, while the recent acquisitions by Avanquest have reinvigorated the division. We have revised our revenue forecasts up to reflect stronger than expected growth, although this has a minimal impact at the EBITDA level.
Claranova continued to enjoy strong organic growth during Q319. Reported group revenues increased 69% y-o-y; excluding the impact of the Avanquest acquisitions and currency effects, group revenue grew 33% y-o-y. European expansion and the launch of the Photo Tiles product in H119 resulted in reported growth of 49% for the PlanetArt business (41% on a constant currency basis). The new monetisation methods from the acquired businesses in the Avanquest division have benefited both the acquired and existing businesses, driving organic growth of 22% for both parts of the division. At less than 2% of Q3 group revenues, myDevices is not yet making a material contribution but the development of new routes to market, including a recent partnership with Microsoft, provides the foundation for growth.
On the basis of better than expected growth in PlanetArt and Avanquest revenues in Q3, we have increased our FY19 revenue forecast by 2.0% and FY20 by 3.6%. As some of this upside is due to currency translation and we assume the company has increased marketing spend to acquire more customers, we make minimal changes at the EBITDA and EPS level.
Reflecting the different business models and minority interests for each division, we continue to use a sum-of-the-parts approach to valuation. Based purely on peer group averages per division, we calculate a fair value of €1.17 per share. However, once multiples are adjusted to reflect our views on the growth and profitability of each division, this increases to €1.31 per share (up from €1.28, driven by higher revenue estimates). Milestones that could provide upside to our forecasts include: successful adoption of FreePrints in India; growth of the acquired Adaware business; and distributors reselling the myDevices platform in the US and China.