BRUSSELS, April 20, 2011 /PRNewswire-FirstCall/ --
- An Immediately Accretive Acquisition Enabling the Group to Enhance its Addictive Content and to Expand its Databases of Female Users
Rentabiliweb announces it has acquired 100% of the shares of SBSR, the no. 3 French-language online astrology and fortune-telling services platform, featuring the Purevoyance brand.
A comprehensive platform of astrology, fortune-telling and personal coaching services
SBSR provides astrology services and puts Web users in direct, privileged contact with professional consultants (astrologers, numerologists, tarologists and more). The platform offers free and paid services via all media.
This interactive, Web 2.0-oriented service features the premier forum dedicated to this sector, with more than a half-million contributions and over 1,000 new posts every day. SBSR is active on social networks, and its Facebook application already has more than a million registered users.
More than 15,000 consultations are given every month by nearly 70 professional practitioners and consultants, accessible via Internet, telephone and other channels. Today, SBSR has nearly 1.3 million e-mail addresses in its database, including 800,000 highly active Web users, 70% of whom are women.
Sustainable and responsible astrology
Unlike other providers, the Purevoyance platform has for several years been committed to following the recommendations, basic principles and ethics codes of the French National Institute of Divining Arts (INAD), which aims to protect customers from any form of abuse and false advertising, and to help them find trustworthy practitioners.
SBSR adheres to the principles laid out by INAD, i.e. "honesty, sincerity, and fair pricing for a consultation by a qualified professional with specific knowledge, who must provide reasonable rates accessible to all and inform customers of these rates beforehand."
For the past 23 years, INAD has been working to build ethical standards for the industry and protect consumers. This organization is backed by France's Directorate General for Competition, Consumer Affairs and Repression of Fraud (DGCCRF) and Ministry of Commerce, Artisan Trades, Small and Medium-sized Businesses, Tourism and Services, who have approved the usefulness and founding principles of the Institute.
A booming industry on Internet
Active on the French-language market (France, Belgium, Switzerland, Luxembourg and Canada) since 2004, SBSR is one of France's three major players in online fortune telling, with nearly 2 million visits per month and more than 500 new members per day. It has several sites based on specific topics, including several brands that are well established on the Internet and mobile telephone platforms, such as purevoyance.com and its iPhone application.
In 2000, the French Ministry of Economy estimated annual sales for this sector (offline and online) at over EUR 3.2 billion and, according to INAD, there were over 15 million consultations given to around 3 million customers by 100,000 professionals. The share of online activity is still small, but is seeing very fast growth.
Quickly identified and activated synergies
With this operation, the Group is enriching its B-to-C digital entertainment division with high-quality, loyalty-building content that drives cross selling and increased revenues per user.
Rentabiliweb is also expanding its audience of women likely to be interested in the cashback, health and well-being, online dating and family games services already available as part of its digital entertainment package.
From a technical standpoint, in addition to hosting services, the Rentabiliweb Group can provide SBSR with all of the tools and means of payment required to monetize its services, including online or telephone consultations, bankcard, SMS or IVS payments, special telephone numbers (0800) and interactive voice services.
Finally, SBSR will benefit from Rentabiliweb's expertise in traffic acquisition and optimization of Internet and mobile device customer recruitment costs, enabling it to easily exceed the current volume of 500 new users per day.
An operation that immediately creates value
"Since it was founded in 2004, SBSR has seen double-digit growth," explains Samuel Bouskila, Chairman of SBSR. "We have managed, by ourselves, to become one of the top three players in the sector on Internet in France. With Rentabiliweb, the aim is to speed up this growth by capitalizing on the expertise of the most innovative, most highly-skilled digital entertainment group in the field of monetization on Internet and mobile devices."
"This company fits in perfectly with our strategic aims in the B-to-C sector," adds Jean-Baptiste Descroix-Vernier, Chairman of Rentabiliweb Group. "A well-designed, serious product, a solid, booming market on Internet, professional staff and a fast-growing company whose story has only just begun."
An immediately accretive operation
In 2010, SBSR's revenues reached EUR 2,119,000, up 16%. It showed gross profits higher than 50% of its revenues and an EBIT of EUR 324,000 in 2010. Cash reserves stood at EUR 417,000 as of 31 December 2010 and the company had no debt, proof of its ability to self-fund its development.
The acquisition involves 100% of SBSR's shares and voting rights. The amount of the transaction is EUR 1,689,000 in cash and provides for a maximum of EUR 1,000,000 as an additional cumulative payment for the 2011 and 2012 financial years.
Given the anticipated, identified commercial synergies and economies of scale, the operation will be immediately accretive for shareholders. As part of the transaction, the founder and manager of SBSR Online has promised to remain with the company for at least three years and will soon join Rentabiliweb's Management Committee.
Read this press release at: http://www.rentabiliweb.org/actualites/?p=2679
Founded in 2002, the Rentabiliweb Group offers Internet professionals and webmasters the largest platform of website traffic monetization services, namely payment and micropayment solutions. It has been accredited as a Payment Institution by Banque de France to provide online payment solutions. It also runs affiliate programs, offers online advertising space brokerage and interactive voice services for offline media and provides renowned expertise in loyalty programs and Direct Marketing.
Rentabiliweb is also one of the premier French-language publishers, with a package of services spanning the full range of mass-market entertainment, from community services, family games and services for the general public to recommendations for Internet users, personal ads, dating services, women's content, well-being and more.
Listed on Compartment B of the Euronext Brussels and Paris stock markets, the Group today has 17 subsidiaries in Europe, Canada and Asia, employing 200 staff members around the world. In 2010, Rentabiliweb's revenues topped EUR 90 million with an EBITDA of EUR16.8 million, a 39.4% increase.
Rentabiliweb is a socially responsible company in its sectors of activity, strictly applying the ten principles laid out by the UN Global Compact. Awarded the "Innovative Company" label by OSEO, the French Innovation Agency, the Group is eligible for Innovation Mutual Funds (FCPIs), and has received PCI-DSS certification for its bankcard payment platform.
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