Viadeo: Results for the 3rd Quarter of 2015

Regulatory News:

Viadeo (Paris:VIAD) (FR0010325241- VIAD, PEA-SME eligible), France’s leading Professional Social Network, has today announced consolidated financial results for the third quarter of 2015 (up to 30 September 2015) as approved by the board on 30 October 2015.

Dan Serfaty, Viadeo CEO, stated: "Viadeo’s corporate activities (B2B activities involving both companies and professionals) outside of China were up by 14.4% in the third quarter of 2015. Within this area of activity, marketing/advertising services grew by an impressive 53.2% in relation to the third quarter of 2014. The stability shown by our recruitment and training activities within this quarter was primarily down to our decision to reorganize and strengthen our corporate development teams, a process that has taken place over the last six months in order to make them more efficient and better-suited to these fast-growing B2B markets. This work is now complete.

Turnover outside of China was down 4.4% compared with the third quarter of 2014 and this drop is closely linked to the continued decrease in online subscriptions. This loss will be countered by the development and commercialization of our new, "vertical” paid services (such as the launch of our platform dedicated to freelance professionals in September 2015).

Overall, we are still taking strides to align our business model with the latest developments in the professional world. As such, the emphasis placed on corporate development activities and the mobilization of our business capabilities represent our key areas of focus for the coming months. These areas will represent our primary focus in the coming months. With the continued development of company and professional-centered B2B activities, both of which represent important areas of growth for Viadeo, we have complete confidence in this model’s ability to generate results, firstly as a complement to and subsequently as a replacement for our subscription activities and services to individuals.”

In the period up to 30 September 2015, revenues from Corporate services showed sustained growth, with a 12% increase in activities outside of China compared with this same period in 2014, and this increase demonstrates the dynamism and potential of this key revenue stream. In total, revenue accumulated outside of China up to 30 September 2015 showed a slight decrease of 4% compared with the first nine months of 2014.

A key event in this third quarter was the launch of the company’s new "Freelance” B2B platform. This feature brings a new type of platform to market, helping freelance professionals to find new clients for a monthly fee of €19.90. The feature fits perfectly into the aforementioned strategy of verticalizing our services and this strategy is set to be implemented further still at the start of November 2015 with the launch of a major new platform designed specifically for professionals actively looking for a job.

"In terms of international activity, and more specifically China, Viadeo reaffirms their desire to minimize the impact that Tianji has on cash consumption and overall results in the very short term and is currently considering the full range of options available to this end,” Dan Serfaty continued. "Despite the ever-promising nature of the Chinese market, the powerful member base in this area, and a successful shift towards mobile usage, Viadeo acknowledges that the transition towards monetization is slower for this market than for others, a situation that has been rendered even more complex by the exponential growth of mobile usage in China. Viadeo plans to reallocate resources to maximize development in France, which will free up further room for maneuver to work on our performance.”

The group’s consolidated revenue levels to the end of September 2015 remained fairly stable (-2%) compared with the same period in 2014.

Upcoming financial press releases:

2015 annual revenue, to be released 19 February 2016.

About Viadeo
Viadeo is a global leader in the world of professional social networking with 65 million members worldwide and is France’s number one PSN with over 10 million members in the country. Regardless of industry or location, Viadeo provides all professionals – be it an entire company or an individual – with the ability to maximize their potential for success by enabling them to adopt and to master tools emerging alongside the latest developments in the job market. From strengthening your professional network to increasing your visibility and developing your employability, Viadeo provides members with the keys to success in the world of recruitment and employment online and on mobiles.

For all additional information, please visit corporate.viadeo.com

As a reminder, Viadeo’s total revenue consists of three different types of revenue:

• Revenue from Recruitment and Training Services, an area of strategic focus for the Group, incorporating three main product families: job offers on the Group’s website and mobile applications, access to the member database via a specialized interface to meet recruiters’ requirements, and "Employer Brand” communication products;
• Revenue from Marketing and Advertising Services, which includes marketing in the form of global communication campaigns of advertising products such as banners published on the Group’s sites and emails sent to members. These operations target members based on certain profile criteria;
• Revenue from online memberships. Based on a "Freemium” model, the Group offers members the option of purchasing an online subscription, which provides access to a broader range of features reserved for "Premium” members.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151103006422/en/