BRUSSELS, August 30, 2012 /PRNewswire/ --
Electronic payment service Be2bill : strategic growth driver for the coming period
On this day, the Rentabiliweb Group is publishing its accounts for the first six months of 2012.
Jean-Baptiste Descroix-Vernier, Chairman of the Group Board of Directors, states:
"In the last 18 months, the Group has undertaken an in-depth and significant reassignment of its human and financial resources in order to take up a long-term position, starting in 2013, in markets with a very high growth and margin potential we have identified : a global payment service to mechants. We are in line with the projected plan,the technical stepis completedand we arefrom now fullydedicatedtothe commercial one."
The strategic priority and growth drivers of the group are:
- Deploying the payment service and product platform, thanks to our Be2bill solution, in both the French-speaking and European markets from end of 2012.
- Accelerating the deployment of our Direct marketing offers, that are springboards for growth within an economic environment oriented towards data management of the cyber-buyer's identity.
- Continuing to provide web surfers with innovative online entertainment in keeping with their expectations.»
Key events from the 1st half of the year
- An impact of such strategy in books as management anticipations.
- The confirmation of the relevance of the Be2bill electronic payment offer that is providing the Group with a unique position within the French market.
- A strong adaptation and responsiveness ability in the BtoC field with the ramp-up of new growth driver such as astrology.
- An increase of the gross margin rate, with a constant perimeter.
- A solid financial situation and positive cash position.
Key figures for the first half of 2012
PROFIT AND LOSS STATEMENT 30-June-12 30-June-11 Change
(in thousands of euros)
Turnover 36,268 44,496 -18.5%
Gross margin 21,652 23,582 -8.2%
As % of the turnover 59.7% 53.0% +6.7%
Current operating income 4,202 7,996 -47.4%
ROC excluding Electronic payment activities 6,277 7,996 -21.5%
Operating income 3,098 10,268 -69.8%
Tax on profit or loss (713) (3,897) -81.7%
Consolidated net earnings 2,355 6,365 -63.0%
Evolution of the activity in the first half of 2012
BtoB: solid commercial progress with the Be2bill offer
In the first 6 months of the year, the BtoB activity generated a turnover of €12.8 million (€18.7 million in the 1st half of 2011). The BtoB division's sales are down primarily due to the discontinued marketing of Facebook Credits in June 2011 (versus €2.5 million in H1 2011). The Group also continued the restructuring of the Micro-Payment pole, while renouncing certain low margin or risky customers, such as the lottery sector; the other sectors are progressively changing over to electronic payment invoicing.
The Telecom division suffered from a difficult comparison with the strong growth in the 1st half of 2011, while the Direct Marketing activities maintained business levels similar to the ones seen in the first half of 2011, despite a significant tightening of the marketing budgets of advertisers or a deferral of these budgets to the 2nd half of 2012, as seen during the sales season.
New products such as the Eperflex e-mail retargeting solution, while still representing a negligible weight in the total BtoB turnover, are showing good market penetration rates. The solution has therefore been a clear success with both vendors and advertisers, and has won several invitations to tender with very large companies. The Eperflex offer notably makes it possible to retarget up to 45% of a site's audience, with opening rates of more than 30%.
In keeping with the strategy defined with the Board of Directors that targets a quick growth of market shares, the Be2Bill payment solution is focusing on the top 100 French e-retailers as a priority. The Be2Bill solution has secured signatures with first-rate brands, in retail industries (optical, clothing, home), luxury, gambling, travel and the digital sector (dating, astrology, etc.). On 30 June 2012, the Be2bill solution had collected the bank card flows for 13 retailers with an average commission in line with the expectations, i.e. close to 0.8%. On 30 August, 40 customers are already using the Be2Bill solution out of the 70 that have so far signed commitment contracts.
The commercial offer was presented to French e-retailers at the end of January 2012, during the e- marketing trade fair in Paris. Despite our forecasts, actual commercial operations did not begin until April 2012; as such, the first transactions were only invoiced in the second half of 2012.
Given a progressive ramp-up that reflects the time needed to implement and adapt the solution's architecture to the technical specifics of the large commercial platforms of our customers, the new electronic payment division's turnover is still marginal.
In the first half of 2012, the tool was enhanced with high added value functionalities for retailers, notably including the availability of tools to help increase conversion and to reduce the abandonment rate, together with retargeting solutions and financial reconciliation functions.
BtoC: the Astrology sector is becoming a true springboard for growth
In the 1st half of 2012, the turnover of the BtoC division was €23.5 million (€25.8 million on 30 June 2011), a slight sequential increase relative to the 2nd half of 2011, despite the continuing tense competitive context and strong pressure on the referencing costs in the Dating and Gaming sectors.
The Astrology sector posted very encouraging performances, leading to hopes of the quick growth of its weight within the BtoC division. The Astrology activity is confirming its role as a springboard for growth both in terms of turnover and earnings, and validating the relevance of the policy of allocating a growing share of the Group's marketing investments to this division. The Clairvoyance sector, a product that builds loyalty, is in fact showing an average subscription rate above that of the dating market, and therefore greater average earnings per user.
Progress of the Gross Margin rate
In the 1st half of the year, the Group's Gross Margin amounted to €21.7 million versus €23.6 million in the 1st half of 2011, indicative of an increase of 6.7 points for the gross margin rate, to 59.7%.
In the first half of 2012, the BtoB Division's gross margin rate climbed by more than 12 points relative to the first six months of the previous fiscal year, to 40.3%, with the €300,000 decline of the Gross margin being primarily due to the sequential slowdown of the activities in the Telecom division.
The BtoC gross margin rate is virtually stable at 70.2%, as the gross margin was penalized by the increased weight of the traffic generated by affiliates.
Evolution of the Operational Income marked by the competitive impact and the launch of Be2Bill
The Group's Current Operating Income stands at €4.2 million, a decline of 47.4%.
In BtoB, this reflects the impact of the new hires in the 2nd quarter of 2011 for the purpose of strengthening the sales teams in the direct marketing division, even as the economic situation dipped in the waning months of 2011 and the first half of 2012. It further results from the effects of the advertising investments incurred for the direct marketing activity, as well as the expenses related to the design and deployment of the electronic payment activity. As such, excluding the impact of the new electronic payment activity, the decline of the current operating income is equal to 21.5%, in line with the changes of the activity.
In reality, the BtoB division is showing the contribution of Be2bill, negative at this point in the amount of €2.1 million, which reflects, as indicated, the operational costs resulting from the investment and recruiting efforts as of the 2nd half of 2011. In all, over 3 years, the Group will have devoted €2.6 million to investments and €1.9 million in operating expenses in order to design and develop the electronic payment platform dedicated to e-commerce.
In the 1st half of 2012, the Current Operating Income of the BtoC division remained on a comparable level with 2nd half of 2011 thanks to good personnel management and as a result of the rationalisation efforts and developments undertaken in the last 12 months.
The contribution of the central departments is in line with both the first and second halves of 2011, amounting to €2.1 million.
Over and above the decline posted on the level of the ROC, the decline of the Operational Income, amounting to €3.1 million, can primarily be explained by the existence of exceptional and non-recurring costs during the six-month period (primarily the non-payment of a price supplement and a payment default by one of our customers after the bankruptcy of one of its partners), whereas the Group had recorded, in the 1st six months of 2011, exceptional income of €2.5 million (unwinding of a guarantee of liabilities related to a previous acquisition).
In the end, the Consolidated Net Earnings for the first half of 2012 are equal to €2.4 million.
A very solid financial situation
For the first six months of fiscal 2012, the available cash flow is equal to €1.1 million, which takes into account the aforesaid operational performances and notably that of the Be2Bill activity, and a negative change of the working capital requirement primarily due to the fact of catching up a temporary offset of supplier payments.
The cash flows related to financing operations are equal to €4.2 million, notably due to the payment of the balance of the 2011 dividend in cash, for €3.6 million.
The Group continues to post a solid financial structure with shareholders equity, on 30 June 2012, equal to €70.0 million with no financial indebtedness.
Prospects
In line with the performances in the first half of the year, the impact of the economic situation, household consumption and the advertising market could continue to weigh on the profitability of the BtoB division in the second half of the year, to a similar degree as in the first half.
Particularly for Be2Bill, the second half of 2012 will be devoted to:
- ramping up with existing customers;
- the gradual start of production of first-rate retailers;
- the expansion of the offer for the acceptance of bank cards, with the integration of new payment instruments (AMEX, etc.);
- the design of a converging and multi-channel payment offer between online collections and so-called "local" collections, i.e. in the store;
- the internationalisation of its offer as of the end of 2012.
For the BtoC division, the Group is confirming an objective for the operational profitability level that is in line with the levels recorded in fiscal 2011.
Next communication
Publication of the turnover for the third quarter of 2012: on 9 November 2012
The press release can be found on the group's institutional site:
http://www.rentabiliweb-group.com/en/?p=6526
About Rentabiliweb
Created in 2002, the Rentabiliweb Group provides professionals and webmasters with the most extensive platform of monetization services for their traffic, notably including payment and micro-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) in order to be able to offer online collection solutions. 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, meeting and dating, women's sites and well-being, humour and entertainment.
Listed in compartment B of the Euronext Brussels and Paris, the Group currently has 20 subsidiaries in Europe, Canada and Asia, and it employs approximately 200 people around the world. In 2010, Rentabiliweb generated a turnover of more than €90 million euros and an EBITDA of €16.8 million, a 39.4% increase.
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) as it has received the OSEO "Innovative company" label, as well as PCI-DSS certification for its bank card collection platform.
APPENDICES
RENTABILIWEB - Consolidated profit and loss statement
PROFIT AND LOSS STATEMENT 30 june '12 30 june '11 Change
(in thousands of euros)
Revenue 36 268 44 496 -18,5%
Gross margin 21 652 23 582 -8,2%
As % of the turnover 59,7% 53,0% +6,7%
Other operational earnings 3 8 -57,1%
Recurring operating expenses (11 798) (11 263) +4,7%
Payroll expenses (4 968) (3 887) +27,8%
Depreciation and amortisation charges (687) (444) +54,7%
Recurring operating income 4 202 7 996 -47,4%
As % of the turnover 11,6% 18,0% -6,4%
Other non-recurring operating income and expenses (844) 2 509 -133,6%
Other payroll expenses and payments in shares (261) (237) +10,0%
Operating income 3 098 10 268 -69,8%
As % of the turnover 8,5% 23,1% -14,5%
Financial results (30) (6) +399,2%
Tax on profit or loss (713) (1 918) -62,8%
Tax on non-current elements 0 (1 979) -100,0%
Consolidated net Income 2 355 6 365 -63,0%
As % of the turnover 6,5% 14,3% -7,8%
RENTABILIWEB - Current operating income by activity sector
First half of 2012 BtoB BtoC Hold. Co. TOTAL
(in thousands of euros)
Turnover 12 768 23 500 0 36 268
Gross margin 5 150 16 502 0 21 651
As % of the turnover 40,3% 70,2% 0,0% 59,7%
Current operating income (988) 7 262 (2 072) 4 202
As % of the turnover -7,7% 30,9% 0,0% 11,6%
First half of 2011 BtoB BtoC Hold. Co. TOTAL
(in thousands of euros)
Turnover 18 704 25 791 0 44 496
Gross margin 5 346 18 236 0 23 582
As % of the turnover 28,6% 70,7% 0,0% 53,0%
Current operating income 1 933 8 086 (2 022) 7 997
As % of the turnover 10,3% 31,4% 0,0% 18,0%
RENTABILIWEB - Consolidated balance sheet
BALANCE SHEET ASSETS Notes 30 june '12 31 dec '11 30 june '11
(in thousands of euros)
Goodwill 50 624 50 800 50 683
Intangible fixed assets 1 4 475 4 600 3 452
Tangible fixed assets 2 1 259 1 308 1 218
Other financial assets 242 364 396
Deferred tax assets 1 099 1 011 1 029
Non-current assets 57 700 58 083 56 778
Customers and other debtors 3 29 836 30 899 29 994
Current tax assets 3 129 2 422 333
Net cash and cash equivalents 4 7 906 11 053 16 421
Current assets 40 870 44 373 46 748
GENERAL TOTAL ASSETS 98 570 102 456 103 526
BALANCE SHEET LIABILITIES Notes 30 june '12 31 dec '11 30 june '11
(in thousands of euros)
Issued capital 5 23 348 23 307 23 307
Group reserves 43 938 37 155 42 156
Group translation differences (21) (56) (40)
Group results 2 355 10 575 6 370
Treasury shares (932) (603) (615)
Inst. settled in company shares 1 316 1 056
Minority interests 1 1 (3)
Shareholders equity 70 005 71 435 71 175
Long-term provisions 82 86 1 050
Financial liabilities 3 3 6
Deferred tax liabilities 433 616 524
Non-current liabilities 518 705 1 581
Short-term provisions 171 171 0
Financial liabilities 0 3 1
Suppliers and other creditors 6 23 088 24 593 28 225
Current tax liabilities 4 789 5 550 2 544
Current liabilities 28 048 30 316 30 771
GENERAL TOTAL LIABILITIES 98 570 102 456 103 526
RENTABILIWEB - Table of consolidated cash flows
Consolidated statement
of cash flows 30 june '12 31 dec '11 30 june '11
(in thousands of euros)
Net earnings from integrated
companies 2 355 10 575 6 370
Elim. of the amortisations
and provisions 624 (860) 504
Elim. of the variation of
deferred taxes (271) (251) (359)
Elim. of disposal capital
gains or losses 0 0 0
Other proceeds and expenses
having no incidence on the cash (297) (79) 1 946
Incidence of the change in
working capital requirements (941) 1 104 1 297
Net acquisitions of fixed
assets (455) (3 018) (1 236)
Net cash from operating
activities * A 1 015 7 471 8 522
* Before financial investments, capital operations and financing operations
Financial acquisitions and
price supplement payments (378) (12 346) (10 726)
Variation of the financial
assets (1) (1) 752
Impact of changes in scope
of consolidation (22) 193 196
Capital increase 94 18 18
Dividends paid (3 559) (3 477) (750)
Treasury shares transactions (330) 12 0
Repayment of loans and other
debts 0 673 (76)
Net cash from investment
and financing operations B (4 195) (14 927) (10 587)
Change of the cash and
cash equivalents A+B (3 180) (7 456) (2 065)
Net cash and cash equivalents
at beginning of the period 11 053 18 528 18 528
Net cash and cash equivalents
at end of the period 7 906 11 053 16 421
Impact of exchange rate
variations 33 (19) (42)
Net increase (decrease) in
cash and cash equivalents (3 180) (7 456) (2 065)
