Press releases - Finance

Stable revenues on 9 first months 2011

Published 2011-10-20

The Rentabiliweb Group (ISIN BE0946620946 -- Mnemo BIL) reported revenues of €64.2m as at 30 September 2011, at the same level in 2010.

The 3rd quarter revenues are reported at 19,7 M€ down by 16.1% compared to the 3rd quarter 2010, due to:

-  a change in the accounting methods of revenues in the payment and micro-payment businesses. For payments by bank card, Rentabiliweb is no longer booking the volume of the client's transactions in its revenues, but only its own commission. This decrease in revenues is purely accounting and has no impact on the operating profit of the company ;

-  a negative base effect (Q3 2010 revenues were posted with a record growth of 40.1% versus same quarter in 2009) ;

-  the renewed policy aiming to focus on profitability ; some business sectors has being abandoned ;

-  the allocation of a large part of the Group's resources to the implementation of new products, particularly to the launch of the bank card payment business unit which has been widely structured in 2011.

“After years of strong increases, in 2011, the Group focused on implementing growth opportunities for 2012 to 2015, while improving the operational margin of existing activities. The group is detailed its objectives for 2001 : increase of the yearly operating profit despite significant expenses linked to the new bank card business unit and continued growth of  cash back and astrology,” says Jean-Baptiste Descroix-Vernier, Chairman of Rentabiliweb.

B2B revenues analysis

The 2nd half of 2011 was marked by Facebook's implementation of facebookcredits in June 2011. By creating its exclusive virtual money, Facebook has stopped the opportunity to monetize the Facebook applications using micro-payment solutions.

At the same time, the gradual shift from publishers (particularly casual gaming publishers) from payment by phone to payment by bank card has leading to an automatic loss in group revenues, as only the commission is reported in revenues for bank card payments.

Rentabiliweb should be able to benefit from these trends from 2012 through the launch of its payment solutions.

B2C revenues analysis

The 22% decline in B2C revenues in the 3rd quarter is mainly attributable to dating activity. The competition on the sector is very high, forcing the sector's players to strongly increase their advertising budgets. As the profitability criteria were no longer being satisfied, Rentabiliweb has chosen to reallocate its resources on development of other activities in mainstream publishing less competitive, in which the online market share is still weak, such as female well-being, personal coaching and astrology.

It has also been decided to close the Canadian subsidiary as its potential return on investment was deemed insufficient. This close will not have major impacts on the 2011 books.

Outlook

The last quarter of 2011 should take place under similar conditions to those of the third quarter.

On a full year basis, the Group anticipates an operating profit over 2010 levels.

In 2012, the group will conduct an offensive B2B strategy mainly targeted on its cash-back, telecoms and bank card payment activities.

Regarding B2C, the Group expects a sharp acceleration in the female well-being and astrology divisions, especially as cross sales from synergies between these loyalty-generating contents are not yet fully exploited.

Targeted international developments are now focused on southern Europe.

View the press release on the Group's institutional website: www.rentabiliweb-group.com/en/?p=5274