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RENTABILIWEB: 2014 HALF-YEARLY RESULTS

BRUSSELS, July 30, 2014 /PRNewswire/ --

2014 HALF-YEARLY RESULTS

Continued revenue growth

Run rate for bank card collections in excess of €560 million

Strategic investment initiative is maintained

Regulated information  

RENTABILIWEB GROUP (ISIN BE0946620946 - trading symbol BIL) is today publishing its financial statements for the first six months of the 2014 fiscal year.

The first half of fiscal 2014 saw a new acceleration in the development of Be2bill, Rentabiliweb's bank card payment solution. The online activity has confirmed its growth and its popularity with e-merchants quarter after quarter, and posted a run rate* of €560 million for bank card collections at 30 June. Over the half-year Rentabiliweb maintained its investment initiative, which is wholly self-financed.

Jean-Baptiste Descroix-Vernier, the President of Rentabiliweb Group announced, "During the first half of this fiscal year, we continued an active, self-financed investment policy. We are making this effort as our priority is still to win market shares in the bank card services sector. The success enjoyed by our online solution Be2bill has convinced us to continue in this direction, so that, starting in the fall, we can break into the card-present market, for which the challenges are increasingly similar to those of the online market. Our expertise in the field of shopping cart conversion will provide genuine value-added for card-present merchants."

* Run rate for bank card collections: payments collected in June projected over an entire year  

Key figures for the first half of 2014  

    (in EUR thousands)         S1 2013       S1 2014           S1 2014
                                                            vs S1 2013
    Consolidated revenue        33 260        33 905             +1,9%
    Gross margin                19 826        19 819             -0,0%
    Gross margin rate            59,6%         58,5%       -1,2 points
    EBITDA                       2 673         1 782            -33,3%
    As a % of revenues            8,0%          5,3%       -2,8 points
    EBIT                         1 874         1 064            -43,2%
    As a % of revenues            5,6%          3,1%       -2,5 points
    Operating income             1 397         1 193            -14,6%
    As a % of revenues            4,2%          3,5%        -0,7 point
    Net consolidated income      1 098         1 630            +48,4%
    As a % of revenues            3,3%          4,8%        +0,9 point

Operations  

The consolidated revenue for Rentabiliweb Group is €33.9 million, up by almost 2% compared to the first half of 2013.

For the B to B segment, the revenue for the first half of 2014 is €15.1 million, an increase of 7% compared to the first half of 2013.

Over this first half-year, the Direct Marketing and Telecom business lines enjoyed strong commercial momentum, associated with the contracts signed at the end of 2013, and therefore posted an increase in their revenues. The micropayment business line, which is not seen as strategic given the size of the market and its prospects, saw negative growth, as expected.

The continued ramp-up of Be2bill in the online payment sector  

During the first half of 2014, the bank card services for online payments, driven by the Be2bill solution, continued to win market shares, in particular with major leading e-merchants, such as Allopneus.com, which is the 12th leading French e-merchant (source: ecomercemag, 17/06/2014). Be2bill now covers all the vertical markets, from retail and digital, to travel and the sharing economy.

Thus, at 30 June 2014:

  • The run rate for bank card collections exceeded €560 million, an increase of 47% compared to €381 million at 31 December 2013, and 39% compared to 31 March 2014.
  • The average commission rate remained close to 1%, even though major clients have adopted the Be2bill solution. This shows the Group's capacity to monetize its value-added for shopping cart conversion and fraud management, above and beyond classic bank card processing.

A new stage in the development of Be2bill: card-present payment solutions  

Following on from its success in the field of online payment, Rentabiliweb has taken a strategic initiative by deciding to deploy its payment solution on the card-present market, which in France is estimated at more than €500 billion in transactions per year (ten times the size of the online payment market).

A dedicated team is being set up and major investments in R&D, hardware and software are being made in order to ensure the quality and innovative nature of this offering, as Rentabiliweb believes that the line between online and offline retail is becoming increasingly blurred. Be2bill's approach, which is based on optimum shopping cart conversion, will help to provide value-added for card-present merchants. The Group will launch this solution during the second half of 2014.

The revenue for the B to C segment during the first half of 2014 totals €18.8 million, a slight decrease (-2%) compared to the year-ago figure, with no impact on EBIT. These performances correspond to Rentabiliweb's expectations for the online content publishing market. The Group's strategy involves generating significant margin levels on these B to C activities, which are also a testing ground for functionalities that can potentially enrich the Group's payment solutions.

EBIT  

The initial investments made for the deployment of the payment solution on the card-present market inevitably impacted the EBIT for the B to B segment, which totalled (€1.6 million).

The B to C segment has confirmed its capacity to generate solid, long-term levels of profitability and posted EBIT of €4.6 million for the first half of 2014.

The EBIT for the Corporate division (primarily the Group's overheads) is (€1.9 million), in line with the first half of 2013, due to the stability of the Group's structure.

Overall, the consolidated EBIT totalled €1.1 million for the first half of 2014.

Financial position and cash flow  

The Group ended the first half of 2014 with a financial position that is still extremely robust. The surplus cash at 30 June 2014 was €11.6 million, up by €5.8 million compared to 31 December 2013. This increase can be explained by both a significant improvement in working capital and by the increase in the credit balance of the settlement accounts, due to increased bank card collections.  

The shareholders' equity was €72.3 million at 30 June 2014. Rentabiliweb self-financed all of its investments and therefore currently does not have any debt.

Prospects  

Rentabiliweb will continue its strategy of winning market shares and of developing its online and card-present payment solutions. The Group also intends to expand internationally within the SEPA, via the subsidiary incorporated in the Netherlands at the start of the year.

For its Be2bill online payment solution, Rentabiliweb's ambition is to reach a run rate** for expected payments of more than two billion euros and a run rate for bank card collections of more than one billion euros at 31 December 2014.

In order to achieve these milestones, the Group plans to continue its investments over the second half of 2014, while maintaining EBIT at least equal to that posted for the first half-year.

** Run rate for expected payments: payments expected in December projected over an entire year  

Next press release  

Publication of Q3 revenue: 5 November 2014.

Download the press release from the Group's institutional site:  

http://www.rentabiliweb-group.com/en/?p=9425

APPENDICES  

INCOME STATEMENT 

Group  

    (in EUR thousands)         S1 2013       S1 2014           S1 2014
                                                            vs S1 2013
    Consolidated revenue        33 260        33 905             +1,9%
    Gross margin                19 826        19 819             -0,0%
    Gross margin rate            59,6%         58,5%       -1,2 points
    EBITDA                       2 673         1 782            -33,3%
    As a % of revenues            8,0%          5,3%       -2,8 points
    EBIT                         1 874         1 064            -43,2%
    As a % of revenues            5,6%          3,1%       -2,5 points
    Operating income             1 397         1 193            -14,6%
    As a % of revenues            4,2%          3,5%        -0,7 point
    Net consolidated income      1 098         1 630            +48,4%
    As a % of revenues            3,3%          4,8%        +0,9 point

B to B  

    (in EUR thousands)                 S1 2013       S1 2014           S1 2014
                                                                    vs S1 2013
    Consolidated revenue                14 096        15 081             +7,0%
    Gross margin                         6 813         6 986             +2,5%
    Gross margin rate                    48,3%         46,3%         -2 points
    Other operating incomes                 68             7            -89,0%
    Recurring operating expenses       (3 798)       (3 932)             +3,5%
    Payroll expenses                   (3 488)       (4 249)            +21,8%
    EBITDA                                -405       (1 187)           -193,2%
    As a % of revenues                   -2,9%         -7,9%         -5 points
    Depreciations and amortizations      (463)         (424)             -8,3%
    EBIT                                  -868       (1 612)            -85,7%
    As a % of revenues                   -6,2%        -10,7%       -4,5 points

B to C  

    (in EUR thousands)                 S1 2013       S1 2014           S1 2014
                                                                    vs S1 2013
    Consolidated revenue                19 164        18 824             -1,8%
    Gross margin                        13 013        12 833             -1,4%
    Gross margin rate                    67,9%         68,2%       +0,3 points
    Other operating incomes                  0             1               n/a
    Recurring operating expenses       (6 848)       (6 745)             -1,5%
    Payroll expenses                   (1 399)       (1 402)             +0,2%
    EBITDA                               4 766         4 687             -1,7%
    As a % of revenues                   24,9%         24,9%         +0 points
    Depreciations and amortizations      (147)          (95)            -35,3%
    EBIT                                 4 619         4 592             -0,6%
    As a % of revenues                   24,1%         24,4%       +0,3 points

Corporate  

    (in EUR thousands)                 S1 2013       S1 2014          S1 2014
                                                                   vs S1 2013
    Consolidated revenue                     0             0              n/a
    Gross margin                             0             0              n/a
    Gross margin rate                      n/a           n/a              n/a
    Other operating incomes                  2           103              n/a
    Recurring operating expenses          -539          -801           +48,6%
    Payroll expenses                   (1 152)       (1 020)           -11,5%
    EBITDA                             (1 689)       (1 718)            -1,7%
    As a % of revenues                     n/a           n/a              n/a
    Depreciations and amortizations       -189          -198            +4,9%
    EBIT                               (1 878)       (1 916)            -2,0%
    As a % of revenues                     n/a           n/a              n/a

Consolidated statement of financial position 

    BALANCE SHEET: ASSETS           2013     S1 2014

    Goodwill                       50 624     50 624
    Fixed assets                    5 883      5 687
    Deferred tax assets             4 106      5 228
    Customers and other debtors    25 731     22 634
    Payable tax assets              4 130      3 425
    Cash and cash equivalents       5 779     11 583
    OVERALL TOTAL ASSETS           96 252     99 181
    BALANCE SHEET: LIABILITIES
    Equity                         71 042     72 327
    Provisions                       908        921
    Financial liabilities            13         12
    Deferred tax liabilities         888        518
    Suppliers and other creditors  20 034     22 569
    Payable tax liabilities         3 367      2 834
    OVERALL TOTAL LIABILITIES      96 252     99 181

Consolidated statement of cash flows   


    (in thousands of euros)                                              S1 2014   S1 2013

    Net earnings from integrated companies                                 1 630     1 098
    Elim. of the amortisations and provisions                                793       761
    Elim. of the variation of deferred taxes                              (1 148)     (667)
    Elim. of disposal capital gains or losses                                  9         0
    Other proceeds and expenses having no incidence on the cash             (454)     (260)
    Incidence of the change in working capital requirements                5 706       519
    Net acquisitions of fixed assets                                        (677)     (934)
    Net cash from operating activities *                           A       5 858       518
    * Before financial investments, capital operations
      and financing operations

    Financial acquisitions and price supplement payments                    (126)      154
    Variation of the financial assets                                          1         0
    Impact of changes in scope of consolidation                                0         5
    Capital increase                                                           6         0
    Dividends paid                                                             0         0
    Treasury shares transactions                                              63      (458)
    Repayment of loans and other debts                                         0         4
    Net cash from investment and financing operations              B         (56)     (294)

    Change of the cash and cash equivalents                       A+B      5 802       224

    Net cash and cash equivalents at beginning of the period               5 779     7 806
    Net cash and cash equivalents at end of the period                    11 583     7 995
    Impact of exchange rate variations                                         1       (35)
    Net increase (decrease) in cash and cash equivalents                   5 802       224

CHANGE IN CONSOLIDATED EQUITY   

 

 

                                                                Instruments
                                       Net                       settled in
    (in thousands of euros)         profit                              the
                                   for the Revaluation Treasury   Company's
                                      year    reserves   shares      shares

    Position at                      1 114           0   (1 589)      2 132
    December 31, 2012
    Share capital increase               0           0        0           0

    Appropriation of earnings       (1 114)          0        0           0

    Dividends paid                       0           0        0           0

    Net profit for the period        2 869           0        0           0

    Currency movements                   0           0        0           0

    Changes in consolidation scope       0           0        0           0

    Other changes                        0           0     -913         841

    Position at                      2 869           0   (2 502)      2 973
    Decembre 31, 2013
    Share capital increase               0           0        0           0

    Appropriation of earnings       (2 869)          0        0           0

    Dividends paid                       0           0        0           0

    Net profit for the period        1 611           0        0           0

    Currency movements                   0           0        0           0

    Changes in consolidation scope       0           0        0           0

    Other changes                        0           0       63        -128

    Position at                      1 612           0   (2 439)      2 844
    June 30, 2014

Table continues

                                                                Currency
    (in thousands of euros)          Share             Group translation
                                   capital Premiums reserves differences

    Position at                     23 396   14 105   29 473         -46
    December 31, 2012
    Share capital increase               0        0        0           0

    Appropriation of earnings            0        0    1 114           0

    Dividends paid                       0        0        0           0

    Net profit for the period            0        0        0           0

    Currency movements                   0        0        0          -7

    Changes in consolidation scope       0        0        0           0

    Other changes                        0        0     -386           0

    Position at                     23 396   14 105   30 202         -53
    Decembre 31, 2013
    Share capital increase               3        3        0           0

    Appropriation of earnings            0        0    2 869           0

    Dividends paid                       0        0        0           0

    Net profit for the period            0        0        0           0

    Currency movements                   0        0        0          12

    Changes in consolidation scope       0        0        0           0

    Other changes                        0        0     -298           0

    Position at                     23 398   14 109   32 773         -41
    June 30, 2014

Table continues

                                         Equity
    (in thousands of euros)        attributable
                                   to owners of Non-controlling
                                     the parent       interests   Equity

    Position at                          68 585               0   68 585
    December 31, 2012
    Share capital increase                    0               0        0

    Appropriation of earnings                 0               0        0

    Dividends paid                            0               0        0

    Net profit for the period             2 869              48    2 917

    Currency movements                       -7               0       -7

    Changes in consolidation scope            0               6        6

    Other changes                          -458               0     -458

    Position at                          70 989              54   71 042
    Decembre 31, 2013
    Share capital increase                    6               0        6

    Appropriation of earnings                 0               0        0

    Dividends paid                            0               0        0

    Net profit for the period             1 611              18    1 630

    Currency movements                       12               0       12

    Changes in consolidation scope            0               0        0

    Other changes                          -363               0     -363

    Position at                          72 255              72   72 327
    June 30, 2014

About Rentabiliweb  

Founded in 2002, Rentabiliweb Group offers businesses and webmasters the leading platform of website traffic monetisation services (e.g. payment and micropayment solutions). It has been definitively approved as a Payment Body by the Banque de France and as a member of the French Bank Card Group (Groupement Carte Bancaire) for the provision of online payment solutions, with the Be2Bill solution. It also runs affiliate programs, offers online advertising space brokerage and interactive voice services for offline media, and provides acclaimed expertise in loyalty programs and direct marketing.

Rentabiliweb Group is also one of the premier French-language content publishers, with a package of services spanning the full range of mass-market entertainment including astrology, community services, casual gaming, services for the general public, advice for Internet users, personal ads and dating, women's wellbeing, humour, entertainment and more.

Listed on Compartment C of the Euronext Brussels and Paris stock markets, the Group currently has 20 subsidiaries in Europe and America, with a workforce of over 250 worldwide. In 2013, Rentabiliweb Group reported revenue of €72 million and operating income of €3.2 million. Rentabiliweb Group is a socially responsible company in its sectors of activity, and rigorously applies the 10 principles laid out by the UN Global Compact. The Group is eligible for FCPI investment funds and was awarded the OSEO "Innovative company" kitemark. Group shares are eligible for French PEA-PME share savings plans.

 

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