Dalenys: 2017 Third-Quarter Revenues

Payment business volume: +67% to €738 million
Continued growth in Payment revenues: +54%

BRUSSELS--()--Regulatory News:

Dalenys (Brussels:NYS) (Paris:NYS) (ISIN BE0946620946 – Ticker NYS) is reporting its revenues for the third quarter of 2017, up 15% year-on-year to €17.8 million. Revenues for the first nine months of 2017 came to €48.6 million, stable compared with 2016.

Business for the first nine months of 2017

  Third quarter   First nine month
in thousand euros   Q3 2017   Q3 2016   Change   9M 2017   9M 2016*   Change
Dalenys   17,835   15,520   15%   48,645   48,425   0%
Payment   6,124   3,976   54%   16,512   12,533   32%
Marketing   1,235   996   24%   3,796   3,489   9%
Telecom   10,476   10,548   -1%   28,336   32,402   -13%

(1) Pro forma excluding Repu7ation (Marketing division) sold as of June 30, 2016; The published turnover in H1 2016
amounted to € 0.4 million and was restated for comparative purposes

Thibaut Faurès Fustel de Coulanges, Dalenys’ Chief Executive Officer: “Growth accelerated for the Payment business in the third quarter, benefiting from the technological appeal of our solutions and our perfect alignment with the payment requirements of leading e-merchants. In-store business or international flows now represent a significant percentage of business and Dalenys is effectively positioned to support the cross-channel and multi-channel strategies of all leading merchants across Europe. Natixis’ acquisition of a majority interest in our capital will enable us to further accelerate our development and confirm our potential in Europe”.

Payment division: progress with in-store business and international operations

Be2bill’s business volume climbed to €738 million in the third quarter of 2017, up 67% from the third quarter of 2016. For the first nine months of 2017, the business volume totaled €2.0 billion, 65% higher than in 2016. This progress has been particularly strong for the in-store business, with the level of payments processed multiplied by 2.7 in one year to now represent almost 12% of the business volume for the third quarter of 2017.

The Group is also particularly active on the international segment, with flows outside of France representing 24% of the business volume for the first nine months of 2017 and continuing to progress quickly. The Group is continuing to focus its footprint on Europe in order to have a balanced product mix with strong contributions.

The average commission rate stabilized over the first nine months of 2017 at 0.82%, compared with 0.98% for the full year in 2016.

Building on these strong commercial trends, revenue growth accelerated in the third quarter to +54% compared with the third quarter of 2016, taking growth for the first nine months of 2017 up to +32%.

The run rate1 at end-September 2017 came to €2.9 billion, compared with €1.7 billion one year earlier. The level of payments processed by the Be2Bill platform shows a significant increase thanks to continued market share gains and the confidence of existing customers.

Be2bill is one of the few European platforms able to process and collect flows whatever the sales channel (online and/or offline), throughout the SEPA area, in euros or other currencies, online, with light terminals (mPOS, dongle) or conventional terminals. Be2bill offers retailers a connected payment solution, as well as a centralized and fully reconciled offer making it easy for international merchants to develop and deploy omnichannel and cross-channel strategies.

Marketing division: business accelerating

In line with expectations, the Marketing division is reporting strong growth in revenues, linked to the robust commercial development of Eperflex, the email-based targeting and retargeting solution. The deployment of campaigns signed up during the first half of 2017 and the new customers brought on board have made it possible to achieve a significant increase in business, consolidating the leading position in France for email retargeting and remarketing with tier 1

e-commerce operators.

Revenues from the Mailorama cashback and loyalty program are decreasing, in line with expectations following the reorganization launched at the end of 2016 aiming to support the development of lower but more profitable revenues.

This division’s revenues came to €1.2 million for the quarter, up 24% from the third quarter of 2016.

The Group is still confident that it will be able to maintain its robust growth and is reaffirming its commitment to deploying Payment Marketing solutions that enable merchants to fully benefit from synergies between various products, maximizing conversion rates.

Telecoms division: effective divestment at end-October

The Telecoms division’s contribution to revenues was stable for the third quarter with €10.5 million (-1%). Dalenys has announced that it sold its Telecoms division to the Digital Virgo group on October 23, 2017 (press release available here: https://www.dalenys.com/en/actualites/2017-10-26-natixis-acquires-dalenys-shares.html). The entity sold is fully aligned with the Digital Virgo group’s growth strategy, further strengthening its Business Solutions division. The Telecoms business will benefit from an optimum environment following its acquisition and a positive outlook for the development of its activities. This sale was a condition precedent for Natixis to acquire the interests held by Dalenys’ main shareholders.

Next financial date:
Publication of 2017 full-year revenues: February 15, 2018 (after close of trading)

To see the press release on Dalenys’ website, visit:
https://www.dalenys.com/en

About Dalenys
Dalenys is France’s leading fintech (2016 and 2017 Frenchweb rankings). As payment marketing expert, it supports Europe’s biggest merchants and e-merchants to increase their revenues and maximize their conversion rates. With the direct marketing solutions Eperflex and Mailorama, and the omnichannel payment solution Be2bill, Dalenys covers the entire sales cycle, from customer acquisition to in-store, on-line and mobile payments. Dalenys has more than 160 employees in France and elsewhere in Europe. Dalenys is a subsidiary of Natixis since October 2017.

1 Run rate = volume of sales received during the final month extrapolated over the full year

Contacts

Investor Relations / Press Relations
CALYPTUS
Mathieu Calleux, +33 1 53 65 37 91
mathieu.calleux@calyptus.net

Contacts

Investor Relations / Press Relations
CALYPTUS
Mathieu Calleux, +33 1 53 65 37 91
mathieu.calleux@calyptus.net