Dalenys Confirms Its Target Aiming for a Run Rate of €2.2B by End 2016

Regulatory News:

Dalenys (Brussels:NYS) (Paris:NYS) (ISIN BE0946620946 -- Mnemo NYS) publishes its turnover at 30 September 2016 which increased to €48.9m, up 34% compared to the first 9 months of 2015.

Activity for the first nine months of 2016

(*) Proforma revenue
- excluding the BtoC division sold on 1 July 2015. The revenue published to 30 September 2015 under the BtoC division was €16.1m
- excluding Repu7ation (Marketing division) sold effective from 30 June 2016 - the revenue published in Q3 2015 for Repu7ation was €0.1m and has been removed for comparative purposes.

Thibaut Faurès Fustel de Coulanges, Chief Executive Officer of Dalenys states: "The robust growth of the Payment division is confirmed again this quarter by new commercial successes and the satisfaction of our existing clients who are entrusting an increasing proportion of their flows to us. Quarter after quarter, the progresses made make us increasingly confident in reaching our target of 5 billion euros in flows by 2018. The restructuring which aims to bring the Marketing and Telecom activities back to profitability has begun and will continue to have an impact in the short term. "

ACTIVITY PERFORMANCE

Payment division: continued growth and new commercial success

In the 3rd quarter the Payment division recorded a revenue of €4.0m, 30% higher than that of the 3rd quarter 2015 during which Dalenys had already noted a very strong increase in its revenue (+98% vs. Q3 2014).

The increase in revenue doesn't reflect yet the strong commercial momentum and the success achieved this summer on tenders with leading merchants. The Run rate (*) therefore rose to €1.9b at 31 October 2016, up 50% compared to the Run rate (*) for October 2015.

The volume of sales collected over the first nine months of 2016 is €1.22b, compared to €0.66b for the same period in 2015. As anticipated, the average commission applied to this volume of sales is down slightly, in favour of signing large volumes with leading retailers. It ended at 1.03% over nine months in 2016 compared to 1.18% in 2015. Over the first 9 months of the year, revenue for the Payment division thereby ended at €12.5m, up 61%.

The quality of the Be2Bill platform, the availability rate of which is higher than 99.9%, was also validated this quarter from a regulatory and technical point of view with, on the one hand, an extension of the ACPR payment-institution approval for the provision of transfer and SEPA direct debit services, and on the other hand, renewal of the highest level PCI DSS Level 1 technical certification for e-commerce and in-store payment.

The increase in business from existing clients and new major accounts signed over the last few months is allowing to set a target Run rate (*) of €2.2b by 31 December 2016, which would mean a significant step towards the 2018 target of €5b.

*Run Rate = volume of sales received during the final month extrapolated over the entire year.

Refocusing the Marketing division on email/retargeting, in synergy with Payment

The 33% drop in sales for the Marketing division as at the 3rd quarter (-€0.5m approx.) is essentially linked to the cash-back activity which has experienced an unfavourable base effect. In fact, client acquisition campaigns had sustained revenue in 2015 but impacted the margin negatively. This activity is currently being strengthened under the direction of the new division management.
Retargeting and email activities continue to grow in perfect synergy with the Payment division, and in accordance with the action plan announced in the half-year publication.
Finally, in line with the strategy for refocusing the Marketing division's activities, the 51% equity interest held in the Repu7ation joint venture has been sold to its director with effect from 30 June 2016, with a marginal impact on the division's revenue and a negligible impact on results.

Selective growth for the Telecom division on the most profitable activities

The growth of the Telecom division as at the 3rd quarter, +12%, is more moderate that seen in the first part of the year (+45%) in synch with the strategy of refocusing on activities with greater value-added.
Dalenys is deploying its action plan for the Telecom division effectively. Non-profitable services have been stopped and the product mix refocussed on 3 priority assets: interactive voice services for media, "wholesale" telephone flows for publishers and telecom operators and micropayment in France.

These actions are starting to demonstrate their effectiveness and should have a tangible impact on reducing operational losses in the 2^nd semester.

Upcoming financial communications:
2016 revenue publication: 15 February 2017 following market close

Read the press release on our website:
https://www.dalenys.com/en/news/2016-11-07-3rd-quarter-turnover-2016.html

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 Fintechs by Frenchweb in June 2016, 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: www.dalenys.com

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