Rentabiliweb: 2013 Interim Earnings

BRUSSELS, July 30, 2013 /PRNewswire/ --



 

• RETURN TO GROWTH WITH SEQUENTIAL IMPROVEMENT OF BUSINESS AND OPERATIONAL PERFORMANCES

• Rebound in activity in the 2^nd quarter of 2013:

B to B turnover: + 9% vs. 1^st quarter 2013

B to C turnover: + 17% vs. 1^st quarter 2013

• EBIT: €1.9 million in the 1^st half of 2013 vs. (€1.1 million) in the 2nd half of 2012

• GROWING COMMERCIAL SUCCESS OF BE2BILL AND CONFIRMATION OF THE ANNUAL OBJECTIVE

Regulated information

Today, the Rentabiliweb Group (ISIN BE0946620946 - Mnemo BIL) is publishing its financial statements for the first six months of fiscal 2013.

Commenting on the H1 results, Jean-Baptiste Descroix-Vernier, Chairman of the Group Board of Directors, stated:

"Our recent performances are a testament to the relevance of the strategic move made by the Group by accelerating its development around a complete payment service for retailers. The Group has been able to benefit from the convergence of its BtoB offers (payment, marketing and telecom interactivity), and therefore to benefit from the significant synergies existing between these various areas of expertise. Up to 15 July 2013, 400 retail accounts (DS) had been opened, versus 190 at the end of last December. Thanks to the success of the Be2bill offer, which is experiencing considerable word-of-mouth and customer satisfaction, our Group has returned to a new growth dynamism in terms of its activities and profitability."

Key figures for the first half of 2013

H1 2013 H1 2013 INCOME STATEMENT H1 2013 H2 2012 H1 2012 vs H1 2012 vs H2 2012 (in EUR thousands) Consolidated revenue 33 260 33 745 36 268 -8,3% -1,4% Gross margin 19 826 19 566 21 652 -8,4% +1,3% As a % of revenues 59,6% 58,0% 59,7% -0,1 point +1,6 point Recurring operating income 1 874 (1 095) 4 202 -55,4% +271,2% As a % of revenues 5,6% -3,2% 11,6% -6,0 points 8,9 points Operating income 1 397 (1 910) 3 098 -54,9% +173,1% As a % of revenues 4,2% -5,7% 8,5% -4,3 points +9,9 points Consolidated net income 1 098 (1 242) 2 355 -53,4% +188,4% As a % of revenues 3,3% -3,7% 6,5% -3,2 points +7,0 points

Evolution of the activity in the first half of 2013

B to B segment - The structuring efforts in 2012 are already bearing fruit

The B to B activity generated revenue of €14.1 million in H1 2013, versus €12.8 million in H1 2012. This 10% improvement is the fruit of the structuring efforts carried out in 2012, in order to accelerate the development of the payment solution. As such, the Group is capitalising on its converging approach to payment business lines, telecom interactivity and marketing.

Thanks to the combination of the payment solution, marketing and telecom activities, commercial, operational and financial synergies are already in place. They are supporting the growth rhythm of the revenue, with a 9% increase between the 1^st and 2^nd quarters of 2013, resulting in the turnaround of the current operating profit. While equal to (€868 million) at the end of June 2013 (versus (€988 million) in H12012, there has been a sequential improvement of more than €1.5 million between H22012 and H12013.

Strong momentum of the Be2bill payment solution

In the first half of 2013, the Be2bill payment solution asserted itself as an attractive and unique solution for retailers. Its strong momentum is based on:

• Confirmed commercial success

Excellent references have been signed in the last three months, such as Pecheur.com, Place Minute, Expertissim, LittleFashionGallery, Aquarelle, Netbet, Sarbacane, MODZ, Speeder, Turbopoker, Made.com, Solaris, Edagora and Lamaloli. This ramp-up means that the leadingcustomer in terms of business volume declined from 70% to 36%. These new references are indicative of the commercial strength of the Be2bill offer that is attracting retailers of all sizes (business volumes below €100,000 / month all the way to more than €5 million / month), as well as in very different business sectors (retail, gambling, fashion, luxury, equipment, decoration, dating, software…). Thanks to Be2bill's unique characteristics (increasing the transformation rate, reduction of abandoned transactions and fraud, rates), retail sites are generating more revenue while also being able to monitor their activity. The share of transactions entrusted to Be2bill ("ramp-up") is increasing each month with 100% of its customers.

• Solid and controlled growth

In H1, the strategy of capturing market shares had no impact on the commissioning rate, which stands between 0.8% and 1%. The solution's ramp-up also made it possible to reduce, by two thirds, the amount of time needed to take on a new customer (i.e. customers with a business volume of less than €5 million per month), which now requires fewer than 20 days, and sometimes even only one day!

• A consolidated offer (certifications, partnerships)

The Be2bill solution has obtained the highest level of transaction security with the PCI DSS Service provider level 1 label, while also being the first acquirer to be certified as a Visa Merchant Agent. The consolidation of the partnerships with Natixis Paiement, the various CMS and web agencies is transforming the latter into business finders and is contributing to the activity's growth.

This consolidation strategy for the Be2bill offer will continue in the second half of 2013, with a focus on:

• Accelerating the acceptance and collection strategy involving new payment instruments (other than Bank Cards (CB), Visa, Mastercard, Amex, Paypal, etc.);
• The continuing roll-out of the cross-channel collection offer that will allow retailers to steer, monitor and optimise their online and off-line transactions.

B to C segment - The profitability-based strategy is advancing

The B to C revenue, equal to €19.2 million in the 1^st half of 2013 versus €23.5 million at the end of June 2012, showed a positive turnaround in the 2^nd quarter of 2013, with 17% growth relative to the 1^st quarter of 2013. The B to C activity therefore has returned to growth in 2013, thanks to overall restructuring and the implementation of new marketing levers.

During this six-month period, in keeping with its strategy, Rentabiliweb continued its marketing investments (promotional investments, purchases of keywords and databases) in order to strengthen its future growth and perpetuate its profitability. The EBIT is therefore equal to €4.6 million in the 1^st half of 2013 (vs. €7.3 million in the 1^st half of 2012). Nevertheless, this includes a sequential improvement of +23% between H22012 and H12013.

Increased discipline with the structural costs

The consolidated operating profit stands at €1.4 million, versus €3.1 million at the end of June 2012, and was marked by the decline of the activity and of the current operating profit of the B to C segment. Nevertheless, it also includes 9% lower structural costs. This cost optimisation led to a savings of €0.5 million between H22012 and H12013, i.e. a 24% gain. Overall, the Group's net profit was equal to €1.1 million at the end of June 2013.

A solid financial situation

The Rentabiliweb Group completed the 1^st half of 2013 with surplus cash of €8 million, an increase since 31 December 2012, while also having continued its investments in B to C, intensified the development of its payment solution, and continued the careful management of its WCR.

Moreover, the Group has a solid financial structure with consolidated equity, on June 30, 2013, of €69.4 million, still without any recourse to financial indebtedness.

Outlook

The payment solution continued with its anticipated roll-out inH1. The business volume is increasing on a regular basis, with a daily collections record reached on 7 July (start of the sales season). This increased market share will continue in the 2nd half of the year, with Be2bill being very well-positioned to fully benefit from the year-end sales.

70% of the annual objective has already been signed and secured, and nearly 35% already collected. Rentabiliweb can therefore at least confirm its runrate objective to 31 December 2013, i.e. €750 million for the payment solution. The solution has already been calibrated to absorb 10 times more transactions per minute than is the case at present, with no major additional investments. In fact, the financial structure of the Rentabiliweb Europe subsidiary was strengthened by means of a capital increase, subscribes by the parent company, of more than €5 million in June 2013, which will make it possible to finance future growth while meeting the prudential ratios.

The Group's current strategy should make it possible to reach a consolidated 2013 EBIT that shows growth relative to 2012, with a slightly lower turnover that is indicative of the streamlining on the most profitable activities.

Next communication

Publication of the revenue for the third quarter of 2013: November 6, 2013.

The press release can be found on the Group's institutional site: http://www.rentabiliweb-group.com/en/?p=8031

About Rentabiliweb

Created in 2002, the Rentabiliweb Group provides professionals and webmasters with the most extensive platform of monetisation services for their traffic, notably including payment solutions. It has been definitively approved as a Payment establishment by the Banque de France and is a member of the Bank Card Consortium (GIE Cartes Bancaires); it offers online collection solutions using the Be2bill solution. It is also developing affiliation programmes, an offer consisting of online advertising network solutions, and interactive vocal services to off-line media; it has recognised expertise in the fields of loyalty-building and Direct Marketing solutions.

Rentabiliweb is also one of the leading French-language vendors, with a bouquet of services that covers the full field of general public entertainment: astrology, community services, family games, general public services and advice for Web surfers, dating, women's sites and well-being, humour and entertainment.

Listed in Euronext compartment C in Brussels and Paris, the Group currently has 20 subsidiaries throughout Europe and America, and it employs more than 230 people around the world. In 2012, Rentabiliweb generated revenue of more than €70 million and an EBIT of €1.1 million. Rentabiliweb is a company that is fully committed to its social responsibility within its business sectors, and it rigorously applies the ten principles set down by the UN in its capacity as a participant in the Global Compact. The Group is eligible for FCPIs (innovation investment mutual fund), and has the OSEO "Innovative company" label.

APPENDICES

Consolidated profit and loss statement

INCOME STATEMENT June 30, 2013 June 30, 2012 Change (in EUR thousands) Consolidated revenue 33 260 36 268 -8,3% Gross margin 19 826 21 652 -8,4% As a % of revenues 59,6% 59,7% -0,1 point Other operating incomes 70 3 n/a Recurring operating expenses (11 185) (11 798) -5,2% Payroll expenses (6 039) (4 968) +21,6% Depreciations and amortizations (799) (687) +16,3% Recurring operating income 1 874 4 202 -55,4% As a % of revenues 5,6% 11,6% -6,0 points Other non-recurring operating income and expenses (3) (844) -99,6% Valuation of stock options and granted shares (474) (261) +81,7% Operating income 1 397 3 098 -54,9% As a % of revenues 4,2% 8,5% -4,3 points Financial costs, net (60) (30) +98,7% Corporate income tax (239) (713) -66,5% Consolidated net income 1 098 2 355 -53,4% As a % of revenues 3,3% 6,5% -3,2 points

Current operating income by activity sector

B to B June 30, 2013 June 30, 2012 Change (in EUR thousands) Consolidated revenue 14 096 12 768 +10,4% Gross margin 6 813 5 150 +32,3% As a % of revenues 48,3% 40,3% +8,0 points Other operating incomes 68 3 n/a Recurring operating expenses (3 798) (3 395) +11,9% Payroll expenses (3 488) (2 332) +49,6% Depreciations and amortizations (463) (413) +12,1% Recurring operating income (868) (988) +12,1% As a % of revenues -6,2% -7,7% +1,6 point B to C June 30, 2013 June 30, 2012 Change (in EUR thousands) Consolidated revenue 19 164 23 500 -18,4% Gross margin 13 013 16 502 -21,1% As a % of revenues 67,9% 70,2% -2,3 points Other operating incomes 0 1 n/a Recurring operating expenses (6 848) (7 379) -7,2% Payroll expenses (1 399) (1 736) -19,4% Depreciations and amortizations (147) (126) +16,7% Recurring operating income 4 619 7 262 -36,4% As a % of revenues 24,1% 30,9% -6,8 points Holding June 30, 2013 June 30, 2012 Change (in EUR thousands) Consolidated revenue 0 0 n/a Gross margin 0 0 n/a As a % of revenues n/a n/a n/a Other operating incomes 2 0 n/a Recurring operating expenses (539) (1 024) -47,3% Payroll expenses (1 152) (901) +27,9% Depreciations and amortizations (189) (148) +28,1% Recurring operating income (1 878) (2 072) +9,4% As a % of revenues n/a n/a n/a

Consolidated balance sheet

ASSETS June 30, 2013 December 31, 2012 June 30, 2012 (in EUR thousands) Goodwill 50 624 50 624 50 624 Intangible assets 4 069 4 221 4 475 Property, plant and equipment 1 469 1 161 1 259 Other financial assets 275 246 242 Deferred tax assets 3 390 2 607 1 099 Non-current assets 59 827 58 860 57 700 Trade and other receivables 21 588 27 344 29 836 Current tax assets 3 710 4 179 3 129 Cash and cash equivalents 7 995 7 806 7 906 Current assets 33 293 39 329 40 870 TOTAL ASSETS 93 120 98 189 98 570 EQUITY AND LIABILITIES June 30, 2013 December 31, 2012 June 30, 2012 (in EUR thousands) Share capital 23 396 23 396 23 348 Group reserves 44 308 43 578 43 938 Group currency translation differences (10) (46) (21) Group profit 1 068 1 114 2 355 Treasury shares (2 047) (1 589) (932) Instruments settled in the Company's shares 2 605 2 132 1 316 Non-controlling interests 35 0 1 Equity 69 354 68 585 70 005 Non-current provisions 751 751 82 Financial liabilities 3 3 3 Deferred tax liabilities 430 426 433 Non-current liabilities 1 184 1 181 518 Current provisions 186 202 171 Financial liabilities (2) 5 0 Trade and other payables 17 655 23 784 23 088 Current tax liabilities 4 742 4 433 4 789 Current liabilities 22 582 28 423 28 047 TOTAL EQUITY AND LIABILITIES 93 120 98 189 98 570

Consolidated cash flow table

Consolidated statement of cash flows June 30, 2013 June 30, 2012 (in thousands of euros) Net earnings from integrated companies 1 098 2 355 Elim. of the amortizations and provisions 761 624 Elim. of the variation of deferred taxes (667) (271) Elim. of disposal capital gains or losses 0 0 Other proceeds and expenses having no incidence on the cash (260) (297) Incidence of the change in working capital requirements 519 (941) Net acquisitions of fixed assets (934) (455) Net cash from operating activities * A 518 1 015 * Before financial investments, capital operations and financing operations Financial acquisitions and price supplement payments 154 (378) Variation of the financial assets 0 (1) Impact of changes in scope of consolidation 5 (22) Capital increase 0 94 Dividends paid 0 (3 559) Treasury shares transactions (458) (330) Repayment of loans and other debts 4 0 Net cash from investment and financing operations B (294) (4 195) Change of the cash and cash equivalents A+B 224 (3 180) Net cash and cash equivalents at beginning of the period 7 806 11 053 Net cash and cash equivalents at end of the period 7 995 7 906 Impact of exchange rate variations (35) 33 Net increase (decrease) in cash and cash equivalents 224 (3 180)