Q3: Strong organic growth EBITDA up 60%

October 24, 2012

NetBooster wins global budget of Emirates

NETBOOSTER (FR0000079683 – ALNBT), the independent leader in the European digital communication market, today published sales and gross earnings for Q3-2012.

Strong growth of gross earnings and EBITDA in the third quarter

Netbooster reported sales of €88.9m in the first nine months of the 2012 financial year, up 66% from the same period in FY2011. This sharp growth was driven by the positive impact on the first two quarters of Metapeople's consolidation on 1 June 2011. Business remained brisk in the third quarter with sales of €27.7m, showing 10% organic growth compared with Q3-2011.

Gross earnings, the real indicator of activity owing to the inclusion of advertising space purchasing in Metapeople's sales, amounted to 23,5%, helped by a positive group structure effect. Q3 gross earnings came to €8.2m, i.e. organic growth of more than 9%.

EBITDA for the first nine months of the year came to €2m, up €1.8m from the year before. Growth of the profit margin gained momentum in Q3 with EBITDA of €0.8m, up 60% from Q3-2011. This was the 5th consecutive quarter of EBITDA growth since the management reshuffle and the company's reorganisation. After factoring in the positive seasonality effect in the last quarter of the financial year, Netbooster showed an EBITDA margin of 11.5% year on year, in line with its objective to raise EBITDA to 11% of gross earnings in 2012.

Major new contract with Emirates demonstrates success of new service offers

Netbooster significantly outperformed the digital communication market, which continued to adopt a wait-and-see attitude under the impact of the economic environment. The group gained market share on the back of an international positioning, giving it access to large customers, and its innovative service offers. The group inter alia launched the new SmartSearch solution, which combines search marketing with new functionalities based upon Ad-exchange.

Netbooster's new service offer helped it to win a major contract involving management of the Emirates group's search marketing strategy in all of Emirates' markets in the world. This partnership will already start generating revenue at the end of 2012 and make this prestigious airline one of Netbooster's foremost clients. As part of this contract, Netbooster will open an office in Dubai, extending its geographical coverage to the Near/Middle East region, where digital media are a booming growth market.

Confirmation of objectives for 2012

Encouraged by the growth recorded in the first nine months of the year and the strategic contract signed with the airline Emirates, Netbooster confirms its objectives for FY2012, i.e. a more than 25% increase in gross earnings and an EBITDA margin of over 11%.

Raphaël Zier, Chairman and CEO of Netbooster Group, commented: "Growth in the first nine months of the year and the steady recovery of profit margins reflect the committed efforts made by the teams of Netbooster. Winning the Emirates contract on the back of an innovative technological and commercial strategy provides a wonderful incentive to continue our efforts to seize the phenomenal opportunities created by the digital revolution. We are committed to this aim and can confidently be expected to achieve our medium-term growth and profitability objectives."

About NetBooster Group
NetBooster, is an independent interactive communications group that makes its comprehensive expertise of digital marketing available to its clients to guarantee the best possible performance for their investments. The agency invests heavily in R&D and covers the entire chain of online marketing through its European network: search engine optimisation and marketing, display, affiliation, online media, creation, eCRM and social networks, with a recognised expertise in tomorrow’s digital marketing (Social Networks, Video, Ad Exchange, etc.). For the 2011 financial year, NetBooster Group reported consolidated gross profit growth of 21% to €27.7 million. It carries the OSEO seal of approval as an “Innovative Business” and thus its shares are eligible for FCPIs (French mutual funds). Shares in NetBooster are traded on the NYSE Alternext Paris.

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Samira CHAKKAF ANDALOUCI
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Financial communication
CM-CIC SECURITIES
Stéphanie STAHR
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