HI-MEDIA : Annual results 2013: Activity recovery at year end and upturn outlooks in profitability in 2014

Press release - Paris, March 13, 2014 - 7.45 am

ANNUAL RESULTS 2013: ACTIVITY RECOVERY AT YEAR END AND UPTURN OUTLOOKS IN PROFITABILITY IN 2014

 The recovery of the activity at the end of the year 2013 is driven by HiMedia and

 End of the technological investments program in 2013.

 An upturn in profitability is expected for 2014.

FR0000075988 - HIM, HIM.FR), releases its annual results for the 2013 fiscal year.

Profit and loss statement, cash-flow statement and consolidated balance sheet provided in the appendix to this press

release

Commenting on the full year 2013 figures, founder and CEO of HiMedia Group Cyril Zimmermann said: "Over the past two years, we have sacrificed our profitability for significant investments and a deep mutation. Today, the Group approaches 2014 with optimism since the changes completed have allowed driving activity and margins up progressively. The 2013 exercise has thus represented a low point from which the company initiates a full recovery of its financial performances".

1 Current operating income before depreciation and amortization

2 Before stock based compensation and non-current earnings and charges

Press release - Paris, March 13, 2014 - 7.45 am

BUSINESS ANALYSIS

3 According to the IFRS international accounting standards, in certain cases, the company books the gross volume of the sales of advertising spaces, while in other cases it books the gross profit generated on the sale of spaces (notably in Sweden and on the Group's proprietary sites).

In 2013, the advertising operations have increased by 1% to €89 million, an improvement that was gradually sustained along the year.
The success of the new offers has been confirmed and compensates with the traditional display operations contraction. Overall the 4 growth pillars improved by +78% over 12 months and now account for 40% of the Group's advertising activity (vs. 23% in 2012).
Geographically, France's and Northern European countries' dynamism compensate with the still standing issues encountered in Southern Europe. The latter should see improvements in 2014 and benefit from the more recent launch of new offers.
The gross margin has stabilized at a 45% solid level.

4 According to the IFRS international accounting standards, the company books the gross volume of transactions in certain cases and only the gross profit on transactions in other cases (notably within the framework of banking payment activities).

The volume of transactions increased at a sustained rate in 2013 (+11%). The gross profit, representative of the overall payments methods developed by the Group, declined by 4% over the year, yet with a rise of 14% over the last quarter due to the considerable boost of the new offers in banking payment.
In 2014, the Group should see its business volume improve and its gross profit is predicted to grow again.

Press release - Paris, March 13, 2014 - 7.45 am

ANALYSIS OF THE PROFIT AND LOSS STATEMENT

In 2013, HiMedia Group achieved a consolidated turnover of €185 million, a 4.8% dip, and a gross profit of e64.9 million, limiting the downturn to 3%. The gross margin reaching 35% has therefore slightly improved.
Despite a deep mutation of the company and the current unfavourable economic climate to growth, the Group managed to keep focus on its investments priorities set to reach its transformation of its technological and human assets.
Operational charges (purchases and HR expenses) remained stable yet the depreciation rose by 0.9 million Euros (+22%), result of technological investments carried out over the past few years. The Current Operating Income represents €6.8 million (vs. €10.1 M in 2012).
In addition, the Group has recorded exceptional charges essentially linked to activities or
entities which have encountered strategic and operational restructuring, litigation and default on
partnerships for a global amount of €1.7 M. The operating income amounted at €4.6 M.
The financial results improved by €0.5 million taking into account the debt reduction (-8 million Euros). The income tax charges almost doubled to €1 million due to the decline of the capitalisation of losses carried forward on the period, taking the net result after tax to €1.9 million.

FINANCIAL SITUATION

HiMedia Group has a solid financial structure with a limited long-term debt (€13 Million)
compared to the shareholder equity (€117 million).
The available cash flow reached 10 million Euros on the 31st of December 2013.

OUTLOOKS

Over the past two years the group has sacrificed its profitability in order to rethink its business model in the light of an unfavourable economic climate and a very sluggish advertising market.
Based on solid and renewed fundamentals - new technological platform and new range of products - HiMedia Group's strategic choices and efforts started paying in 2013. They should consolidate in 2014 and along the following years, allowing the group to significantly improve its financial performances.

An audit has been performed by the Group auditors on the full year 2013 accounts from which the corresponding report will be issued. The full year accounts have been approved by Hi-Media SA's Board of Directors on March 11,

Press release - Paris, March 13, 2014 - 7.45 am

2014. The financial report relative to the financial statements closed on December 31, 2013 is available on the

Company's website, at the address www.hi-media.com under the "Investors" heading.

HiMedia Group guides advertisers, publishers and retailers on the development of their digital strategies. Operating in two business areas, digital advertising - HiMedia - and online payment - HiPay, its experts offer the solutions that are best adapted to boosting clients' revenues.

Established in 8 European countries, the group employs approximately 470 people and generated sales of €185 million in 2013. Independent since its creation, the company is listed on the NYSE Euronext Paris Compartment C and is included in the CAC Small and CAC-All Tradable indices.

Code ISIN: FR 0000075988 / Mnémo: HIM.

More information on www.hi-media.com and on our blog http://blog.hi-media.com/ Facebook: https://www.facebook.com/HiMediaGroup
Follow us on Twitter: @himedia
LinkedIn: http://www.linkedin.com/company/himediagroup

Next financial communication: Quarterly information (1st quarter 2014) published on the 6th of May

2014

Agnès V ILLERET (IR): 0033 (0)1 53 32 78 95 - 0033 (0)6 66 58 82 61 - agnes.villeret@citigate.fr

Audrey BERLADYN (P RESS ): 0033 (0)1 53 32 84 76 - 0033 (0)6 68 52 14 09 - audrey.berladyn@citigate.fr

This press release does not constitute an offer to sell, or a solicitation of an offer to buy Hi-Media shares. If you wish to obtain more complete information about HiMedia Group, please refer to our Internet site http://www.hi-media.com under the Investors heading.

This press release may contain some forward-looking statements. Although HiMedia Group considers that these statements are based on reasonable hypotheses on the publication date of this release, they are by their very nature subject to risks and uncertainties that could cause the actual results to differ from those indicated or projected in these statements. HiMedia Group operates in a continually changing environment and new risks could potentially emerge. HiMedia Group assumes no obligation to update these forward-looking statements, whether to reflect new information, future events or other circumstances.

Press release - Paris, March 13, 2014 - 7.45 am

Press release - Paris, March 13, 2014 - 7.45 am

Press release - Paris, March 13, 2014 - 7.45 am

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