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Paris, 22 January 2008: the Internet group Hi-Media (ISIN code FR0000075988 - HIM, HIM.FR), one of the European leaders in interactive advertising and electronic micro-payments, announces its sales figure for the fiscal year ending on 31 December 2007.
Activities |
2006 |
2007 |
Pro forma change |
Total change |
Advertising network |
33.8 |
50.1 |
33% |
48% |
Micro-payment |
33.4 |
48.0 |
31% |
43% |
Direct marketing |
4.6 |
6.1 |
34% |
34% |
Total |
71.8 |
104.2 |
32% |
45% |
1. New growth record at year end
Commenting on the sales figure for fiscal 2007, Cyril Zimmermann, President and Chief Executive Officer of Hi Media, stated: “The increase of our sales figure in 2007 is in line with our objective of exceeding €100 million and reaching €15 million in current operating income*. In particular, during the last quarter, our pro forma growth once again accelerated to 37%, versus respectively 28%, 29% and 34% in the three previous quarters. The group continues to derive the bulk of its earnings from the advertising network and micro-payments, while fully benefiting from its leadership positions in both of these domains. Thanks to the integration of FOTOLOG, carried out last November, 2008 will be a major step in the transformation of Hi-Media into an integrated online media group. This year, while increasing our income, we will make key investments consistent with our mid-term strategy.”
In the fourth quarter, Hi-Media generated a sharply higher sales figure, at €31.3 million.
*Before consideration of the cost of the stock-options and free shares
Activities |
Q4 2006 |
Q4 2007 |
Pro forma change |
Total change |
Advertising network |
11.9 |
16.6 |
38% |
40% |
Micro-payment |
9.7 |
12.8 |
32% |
32% |
Direct marketing |
1.1 |
1.9 |
72% |
72% |
Total |
22.6 |
31.3 |
37% |
38% |
The earnings of the sites belonging to the group also experienced accelerated growth in the fourth quarter (+46% pro forma and even +64% for Fotolog), thanks to the launch of new sites (www.toutlecine.com, www.programme-tv.com) and to the strong development of the audiences of the group’s older sites (www.jeuxvideo.com, www.blogorama.fr, www.actustar.com).
The successful implementation of the Publishing development strategy has been accompanied by the very good and quick integration of Fotolog, whose earnings (consolidated as of 1st December) ballooned to $480,000 (€326,000) in the last month of the year (for the overall fiscal year, Fotolog generated a sales figure of $2.6 million, i.e. €1.8 million, higher than the forecasts announced at the time of the acquisition, and despite the dollar’s slide).
2. The very good performances in 2007 and the excellent growth prospects for 2008 are encouraging the group to continue its investments in the development of new sites
The group’s management has as its stated objective a sales figure of €140 million in 2008, i.e. an increase in the area of 35%.
The sites held by the group should represent 10% of the total sales figure and nearly 20% of the consolidated gross margin. In view of these good financial prospects and the audience successes experienced by all of the Publishing sites at the end of the fiscal year (26.7 million unique and non-duplicated users*, including 12.6 million in Europe in November 2007 according to comScore), Hi-Media has decided to intensify the audience development efforts for the sites published in 2007, and to launch several new projects in the coming months:
*The non-duplicated audience of a group of sites is counted by subtracting, from the sum of the audiences specific to each site, the visitors shared by several sites
- Strengthening of the entertainment field (www.jeuxvideo.com, www.toutlecine.com, www.programme-tv.com, www.blogorama.fr, www.fotolog.com) with the launch of a site about music and the extension of jeuxvideo.com to the German market;
- Enhancement of the offer for women (www.actustar.com, www.psychonet.fr) with the launch of a new dedicated site;
- Development of a news/current events sector with the launch of the www.mon-sondage.com site, of the debate site www.contre-feux.com and through a partnership with the site www.sport.fr for the launch of a new version.
2008 will also see the launch of the Hi Pay electronic wallet, anticipated in March.
Thanks to the support of the teams and business lines already integrated by Hi-Media, the cost of these projects should be under €5 million. While some of them will become profitable before the end of the year, they will all make a positive contribution to the Group’s profitability as of 2009. Their financing will be provided by the cash reserves and by the currently unused indebtedness capacity (€21 million). Hi-Media does not expect to carry out a capital increase to finance its growth or make acquisitions.
As such, while intensifying its development efforts, the Group will be able to increase its current operating income* and has an objective of 17 to 18 million euros for fiscal year 2008.
*Before consideration of the cost of the stock-options and free shares
Financial communications calendar:
Tuesday 11 March 2008: publication of the complete results for fiscal 2007, after market hours.
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