ANNUAL RESULTS Payment division continues to perform Turnover PAYMENT +44% at 17 million Operational breakeven

Transcription

1 ANNUAL RESULTS Payment division continues to perform Turnover PAYMENT +44% at 17 million Operational breakeven First favourable effects of strategic refocusing of Marketing and Telecom divisions Telecom returns to operational breakeven in the 2nd half of the year. Regulated information Brussels, 28 March 2017 at 07:00 Today Dalenys (ISIN BE Mnemo NYS) publishes its audited, yearly results that were approved by the Board of Directors on 23 March The results of reflect the ongoing performance of the Payment division that continues to increase its share of the European market, and its ability to reach the profitability threshold. The operating income of the Payment division has broken even after only 5 years of commercialisation, reflecting Dalenys s capacity to sell added-value services beyond a simple banking transaction service. The results of also reflect the refocusing made to the Marketing and Telecom divisions and the total synergy of their commercial strategy and operational management with the Payment division. The speed with which these action plans were implemented allowed the Telecom division to almost break even in operational terms in the second half of the year, and to divide by two the losses of the Marketing division compared to the 1st half of the year. Thibaut Faurès Fustel de Coulanges, Chief Executive Officer of Dalenys states, With a Run rate (*) of 2.6 billion at the end of January 2017 and 17 clients among the top100 of the French online businesses among, Payment Marketing specialist Dalenys has become a key player in the payment market in Europe. Following the success of the Payment division, we have aligned the Marketing and Telecom divisions more quickly to eliminate sources of losses, maximise the synergies between the business activities and deploy the best practices of the Payment division. With this reorganisation and restructuring, the Group is confident of reaching a Run rate of 5 billion looking ahead to 2018.

2 Results of business activity in : Payment division breaks even, Marketing and Telecom recover in H2 SIMPLIFIED CONSOLIDATED PROFIT AND LOSS STATEMENT INCOME STATEMENT 2015 Variation H1 (in thousands of euros) Proforma (*) Turnover 64,493 53,859 20% 33,394 Gross margin 28,546 23,543 21% 14,825 As % of the turnover 44.30% 43.70% +0.6bp 44.40% Other operating incomes % 261 Recurring operating expenses (18,601) (14,793) 26% (9,729) Payroll expenses (14,673) (12,329) 19% (7,645) Depreciations and amortisations (1,541) (1,674) -8% (957) Recurring operating income (5,821) (4,953) 18% (3,246) As % of the turnover -9.00% -9.20% +0.2bp -9.70% Other non-recurring operating income and expenses (1,620) (42) 3766% (1,044) Operating income (7,441) (4,995) 49% (4,290) As % of the turnover % -9.30% -2.2bps % Financial results 661 4,785-86% 294 Tax on income (912) 1, % 851 Consolidated net income (7,693) 1, % (3,145) As % of the turnover % 2.80% -14.7bps -9.40% (*) 2015 excluding BtoC division sold on 1 July 2015 and Repu7ation (Marketing Division) sold effective from 30 June RECURRING OPERATING INCOME BY DIVISION Recurring operating income by division (in thousands of euros) 2015 Proforma (**) Variation H1 Payment (16) (495) -97% 176 Marketing (1,213) (1,135) 7% (797) Telecoms (938) % (886) Corporate (3,653) (4,124) -11% (1,738) Recurring operating income (5,821) (4,953) 18% (3,246) (**) 2015 excluding Repu7ation (Marketing Division) sold effective from 30 June Breakeven of Payment division confirmed in The turnover of the Payment division for rose to 17.1 million over the year, up +44% on 2015, with an earned business volume of 1.7bn over the year, up by 77%. The strength and range of functionalities offered continues to make the Be2bill product attractive to third party providers. Be2bill launched the first Marketplaces payment service in (cashin/escrow/cash-out) both in Euros and other currencies throughout the SEPA area. Several local payment methods have also been integrated into the Be2bill product by emphasising the collection of payment flows and offering exclusive functionalities like direct reimbursement via 2

3 API. Finally, was the year that anti-fraud tools were permanently optimised with the addition of automatic tags allowing suspicious transactions to be reviewed and the first results obtained from machine learning anti-fraud tools developed by the R&D team were gradually implemented. Throughout, the Payment division reached operational breakeven in a context of investments resulting in operational charges and the recruitment of new talent in the framework of the Power 5 plan. Marketing division: first effects of the action plan in the second half of the year Turnover reached 5.3 million in, down by 6% compared to 2015 (correction following the disposal of Repu7ation in the middle of the year, for 0.4 million, for the purpose of comparison). The targeting/retargeting activity was confirmed as commercially dynamic and profitable. Eperflex is positioned today as the best performing retargeting by solution in the French market in terms of conversion rate, and there are natural commercial synergies with Be2bill, the Payment division product. Following implementation of the action plan, essentially based on the re-energising of the product in the second half of the year, the Cashback activity has since concentrated on profitable growth and has already reduced its losses. Therefore, the Marketing division has recorded a loss of 1.2 million for the year, with a loss of 0.4 million in H2, compared to 0.8 million of operational losses in H1. Telecoms division almost returns to operational break-even in H2. Over the year as a whole, the turnover of the division rose to 42.1 million. The action plan and deep reorganisation of the Telecom division marked by the end of non-profitable products, increased selectivity of businesses and a structuring of procedures inspired by the Group s best practices. The plan was quickly deployed and allowed the division to break even in the second half of the year. Taking account of the Corporate division operating income reduced to (3.6) million in, compared to (4.1) million in 2015, the current consolidated operating income for the year is established at (5.8) million compared to (5.0) million in Net revenue The operating revenue is recorded at (7.4) million (compared to (5.0) million in 2015) after taking into account non-recurring revenue of (1.6) million for adjustments in tax credit relating to previous years. The financial result is positive at 0.7 million, compared to 4.8 million in 2015, and relates to financial interests received in the context of the disposal of BtoC. 3

4 The tax payable is established at 0.9 million ( 0.8 million of which are deferred tax payments) essentially relating to the impact of the finance law of 2017 that reduces the position of deferred taxes. Consolidated net income for is therefore established at (7.7) million. Dalenys also shows a solid financial structure with shareholder equity of 59 million, 20.7 million cash and borrowings of 4 million from a financial institution. The Group s cash consists of (i) the cash held on behalf of third parties in the context of the Payment activity for the amount of 13.8 million and (ii) its own cash of 6.9 million. Prospects The Group intends to develop the business by concentrating its investments and main deployments on its Payment activity, in synergy with the Telecoms and Marketing activities will confirm the technological advances of Be2bill in terms of international support, finding solutions to the problems of Marketplace and an omnichannel payment solution throughout the SEPA area, in Euros and other currencies. Looking ahead to 2018, the Group is therefore confident of reaching a Run rate of 5 billion Euros. (*)Run rate: yearly business volume earned based on the last month and projected over a full year. Next financial communication: Publication of 1st quarter turnover, 2017: 28 April 2017, before market opening. Read the press release on the Dalenys website: Annual Report : (Translation available mid-april 2017) 4

5 APPENDICES PAYMENT 2015 Variation Half yearly Turnover 17,070 11,862 44% 8,557 Gross margin 10,918 7,985 37% 5,805 As % of the turnover 64.0% 67.3% -3.4bps 67.8% Other operating incomes % 207 Recurring operating expenses (3,428) (2,775) 24% (1,849) Payroll expenses (7,094) (5,269) 35% (3,617) Depreciations and amortisations (667) (509) 31% (370) Recurring operating income (16) (495) -97% 176 MARKETING 2015 Pro forma (*) Variation Half yearly Turnover 5,344 5,712-6% 2,983 Gross margin 3,188 3,440-7% 1,861 As % of the turnover 59.7% 60.2% -0.6bp 62.4% Other operating incomes % 3 Recurring operating expenses (890) (1,646) -46% (563) Payroll expenses (2,942) (2,502) 18% (1,642) Depreciations and amortisations (604) (430) 40% (456) Recurring operating income (1,213) (1,136) 7% (797) TELECOMS 2015 Variation Half yearly Turnover 42,079 36,284 16% 21,854 Gross margin 14,441 12,118 19% 7,159 As % of the turnover 34.3% 33.4% +0.9bp 32.8% Other operating incomes % 8 Recurring operating expenses (12,236) (8,945) 37% (6,563) Payroll expenses (3,094) (1,999) 55% (1,422) Depreciations and amortisations (147) (384) -62% (67) Recurring operating income (938) % (886) CORPORATE Turnover Gross margin 2015 Variation n/a Half yearly As % of the turnover n/a n/a n/a n/a Other operating incomes % 44 Recurring operating expenses (2,045) (1,427) 43% (753) Payroll expenses (1,543) (2,559) -40% (964) Depreciations and amortisations (123) (351) -65% (64) Recurring operating income (3,653) (4,124) -11% (1,738) n/a 5

6 Balance sheet status BALANCE SHEET ASSETS 2015 Goodwill 4,855 4,855 Intangible assets 1,618 2,212 Property, plant and equipment 1, Other financial assets 40,075 44,443 Deferred tax assets 6,648 7,441 Non-current assets 54,228 59,873 Trade and other receivables 17,071 20,866 Current tax assets 3,230 4,581 Net cash and cash equivalents 20,701 16,279 Current assets 41,003 41,727 TOTAL ASSETS 95, ,599 BALANCE SHEET LIABILITIES 2015 Share capital 23,408 23,398 Group reserves 41,489 36,255 Group translation differences 0 (6) Group share of income (7,657) 5,237 Treasury shares (1,011) (1,739) Inst. settled in company shares 2,551 2,551 Minority interests 0 8 Shareholders equity 58,780 65,704 Long-term provisions Financial liabilities 5,776 2,621 Non-current liabilities 6,357 3,595 Short-term provisions 0 72 Financial liabilities 7 (15) Suppliers and other creditors 30,086 32,243 Current tax liabilities 1 0 Current liabilities 30,094 32,300 TOTAL OVERALL LIABILITIES 95, ,599 6

7 INCOME STATEMENT 2015 Turnover 64,493 70,330 Gross margin 28,546 35,218 As % of the turnover 44.30% 50.10% Other operating incomes Recurring operating expenses (18,601) (20,360) Payroll expenses (14,673) (14,004) Depreciations and amortisations (1,541) (1,594) Recurring operating income (5,821) (438) As % of the turnover -9.00% -0.60% Other non-recurring operating income and expenses (1,620) (42) Operating income (7,441) (480) As % of the turnover % -0.70% Financial results 661 4,774 Tax on income (912) 926 Consolidated net income (7,693) 5,221 As % of the turnover % 7.40% Net earnings - Group share (7,657) 5,237 Net earnings - minority interests (36) (16) Net earnings per share (0) 0 Diluted earnings per share (0) 0 7

8 Cash flow statement table 2015 Net earnings from integrated companies (7,693) 5,221 Elim. of the amortisations and provisions 1,141 1,543 Elim. of the variation of tax 2,237 (2,121) Elim. of disposal capital gains or losses (64) 5 Incidence of the change in working capital requirements 1,702 7,385 Cash flow relating to operational activities (A) (2,677) 12,033 Net acquisitions of fixed assets (1,296) (1,137) Variation of the financial assets 3,547 (4) Impact of changes in scope of consolidation 94 (5,644) Capital increase 23 0 Treasury shares transactions Issuance of loan 4,000 0 Cash flow relating to investment and finance (B) 7,096 (6,567) Increase (decrease) in cash and cash equivalents A+B 4,420 5,466 Net cash and cash equivalents at beginning of the period 16,279 10,802 Net cash and cash equivalents at end of the period 20,701 16,279 Impact of exchange rate variations 2 10 Increase (decrease) in cash and cash equivalents 4,420 5,466 About Dalenys Founded in 2002 by Jean-Baptiste Descroix-Vernier, Dalenys -NYS- (formerly Rentabiliweb) offers Payment Marketing solutions that aim to increase revenues for online and point-of-sale merchants. Ranked #1 of French Fintech by Frenchweb in June, Dalenys offers solutions that integrate transactional and marketing data to increase the conversion of the customers during their purchasing path. With over 200 employees in France and abroad, publicly traded on Euronext Brussels and Paris (C compartment), the company rigorously applies the ten principles laid out by the UN Global Compact and is eligible to the FCPI investment funds and to the French PEA-PME savings plan. Dalenys website: Investor Relations / Press Relations Calyptus Mathieu Calleux mathieu.calleux@calyptus.net +33 (0)