Communiqués de presse - Finance
Increase in profits and new growth drivers: Twofold success for Rentabiliweb in 2011
Brussels, March 30, 2012
The Rentabiliweb Group (ISIN BE0946620946—Mnemo BIL) announces for its 2011 financial year further improvement in the Group’s operating margin and net profit.
CEO of Rentabiliweb Jean-Baptiste Descroix-Vernier commented: “2011 has been a year of further major advances for the Group, designed to anticipate the forthcoming changes in the world of the Internet. The launch on January 24th of Be2Bill, our optimized bank card payment offering, is one leading example of this. Our aim – as illustrated by the first contracts being signed after only two months of business – is to process €750 million worth of run rate* transactions by the end of 2012. After ten years of existence and constant expansion, 2012 will be a year in which the Group transitions towards a new period of strong growth. Rentabiliweb fully intends to make the most of the knowhow and complementary nature of its two sectors of business.”
Consolidated key figures
An offering geared to the needs and structural changes of the digital economy
As expected, revenues during the year was down slightly compared to 2010 (-7.5%), reflecting the rapid changes of the internet market in 2011. In B2B business (audience monetization for third parties) the creation of Facebook credits and the growing tendency of publishers to prefer payment by credit/debit card rather than debiting by operator invoices have had an adverse effect on Micropayment revenues. In parallel, the loyalty programmes, namely Mailorama, kept recording a high level of growth, in excess of 50%. These trends are set to continue into 2012.
The financial year also saw the launch of an innovative e-mail retargeting solution, allowing e-retailers to retarget web purchasers that they would not otherwise have been able to identify more accurately. Lastly, the commercial launch of the Be2Bill e-payment offering at the e-marketing exhibition in January 2012 embodies successfully the Group's strategy on the deregulated European Payment Services market, pursued since 2009.
In the face of heightened competition on the online dating market, B2C proprietary audience monetization now has a new business unit devoted to astrology, with the integration of Pure Voyance in April 2011. This has generated significant commercial and operational synergies. The acquisition is one way the Group has enhanced its digital entertainment network with quality, loyalty-building content that encourages cross-selling and an increase in ARPU.
Further improvements in gross profits and a high operating margin
During the year 2011, the Group's gross profits rose 13.5% to €47.6m, equivalent to 57.2% of revenues and up 10.6 percentage points on the 2010 gross profit rate.
The gross profit rate for B2B business rose by 10 points, equivalent to 35.4% of revenues. The gross profit rate is expected to keep rising gradually over the coming months, with increased earnings from Telecoms and direct marketing business, rollout of the e-payment offering and the internal development of telecoms routing platforms.
The B2C business is now reaping the first fruits of the operational synergies built up with the paid referencing teams, following the integration of Edencast and earnings from the astrology business. The gross profit for B2C business rose to 72.3% of revenues, compared to 62.4% in 2010, thanks to proper control of investments in search engine. In operational terms, digital content publishing has illustrated the Group's control of the sources of profitability leverage and the accuracy of its strategic anticipation regarding high-potential products.
Group EBIT reached €16m in FY 2011 (+3.2% compared to 2010), with a two-point increase in operational margin to 19.2% of consolidated revenues. This encouraging performance was recorded despite a major effort to provide the Group with the key competencies it requires to develop its business: seventy-nine new staff have been hired to provide additional resources for central technical, financial and administrative departments. Payroll costs came to €8.6m as of December 31 2011, compared to €6.7m one year previously (+ 28%). In addition, Marketing and promotional investment have increased compared to 2010.
Net profit up 31.9%
The settlement of a liability guarantee relating to a previous acquisition impacted the 2011 accounts, with extraordinary income of €2.7m booked under Other extraordinary income and expenditure, and expenditure for tax provision of €2.6m. As a result of this, the total tax burden for FY 2011 amounts to €7.6m compared to €4.9m in 2010.
Financial profit has improved by €107k compared to 2010. This is due mainly to the restructuring of bank relations commenced in 2011, as well the Group's investment policy being optimized.
Overall, consolidated net profit is up 31.9% on 2010, at €10.6m.
At the General Meeting on May 16, 2012, the Board of Directors will move to multiply the dividend paid on the 2011 financial year tenfold, to €0.40 per share.
A healthy financial position
The Group's free cash flow stood at €7.5m in 2011 (compared to €5.7m in 2010). This increase illustrates our teams' efforts on generating cash, notably with a significant improvement (+€1.1m) in WCR management. The investments linked to the development of our Payments businesswere €2.2m.
Rentabiliweb had net cash of €11.1m on December 31, 2011. This is after having funded €12.4m of acquisitions (price supplements for newly acquired companies and payment for the buyout of the Pure Voyance website). It is also after payment of the dividend for FY 2010 and an advance payment for FY 2011 distributed on November 7, 2011 (a total of €3.5m).
The Group's balance sheet is healthy, with no short or long-term debt. The Group had equity worth €71.4m as of December 31, 2011, compared with €63.4m at the end of December 2010.
Growth catalysts include the Group's unique position in card payment and direct marketing, as well as its Telecoms and Publishing services.
The group expects the trends observed in the second half of 2011 to continue into the first half of 2012, with a limited decline in revenues from the Micropayment business and ongoing work to improve publishing margins, particularly for Astrology.
The actions implemented in 2011 have helped structure the Group around complementary, high-potential knowhow: e-payment, direct marketing, and our Telecoms and Publishing services. In particular, Rentabiliweb is set to benefit from its unique positioning as regards card payments, thanks to its Be2Bill e-payment offering and its position as the first web specialist to be an acquiring bank dedicated to e-commerce.* Run rate : current month revenues extrapolated to a full year (multiplied by 12)
See this press release at: http://www.rentabiliweb-group.com/en/?p=5975
Consolidated balance sheet 2011 - Group Rentabiliweb
Consolidated Income statement 2011 - Group Rentabiliweb
Consolidated statement of cash flows 2011 - Group Rentabiliweb