BRANCHEZ-VOUS! increases its revenues by 51 % and its net earnings by 310 %
Montréal, August 18, 2005 -- BRANCHEZ-VOUS! inc. (TSX Venture: BZV) obtained excellent financial results in its second quarter, ended June 30, 2005. Compared to the same quarter of the previous year, revenue increased by 310%, gross profit increased by 42% and net earnings more than quadrupled. In the first six months of 2005, compared to the first six months of 2004, BRANCHEZ-VOUS!' revenues increased by 44%, gross profit by 41% and net earnings, by 206%.| Three months ended June 30, 20055 | Three months ended June 30, 2005 | Six months ended June 30, 2005 | Six months ended June 30, 2005 | |
| Revenues | $739,000 | $490,000 | $1,170,000 | $814,000 |
| Gross profit | $485,000 | $342,000 | $798,000 | $568,000 |
| Earnings before other elements | $210,000 | $131,000 | $283,000 | $192,000 |
| Net earnings | $210,000 | $51,000 | $283,000 | $93,000 |
| Basic and diluted earnings per share | $ 0.01 | $ 0.00 | $ 0.01 | $ 0.00 |
The increase in revenues is due to the growth of Internet advertising expenditures in Québec. BRANCHEZ-VOUS! focuses on selling advertising on Quebec-based and Canadian French-language web sites. The increase in gross profit and earnings before other elements directly flows from the increase in sales. The increase in net earnings is due to two factors: the increase in earnings before other elements and the absence, in 2005, of charges that the corporation had registered in 2004 - namely, share of the loss of a company subject to significant influence (the corporation's stake in this company has been sold in April 2005 at its accounting value) and corporate fees related to a projected reorganization (this project has been cancelled in December, 2004). "During the last few months, we benefited from the very fast growth of the Internet advertising market, explains Patrick Pierra, CEO of BRANCHEZ-VOUS!. We are glad to share the results of this growth with all the sites we represent. As our fixed costs structure has remained light, we were able to increase our profit margin. Moreover, our net earnings no longer suffer from non recurring elements in 2005 as they did in 2004." "The Internet advertising market in Quebec should go on growing fast and BRANCHEZ-VOUS!, which is one of the main players and the only independent. To grow with the market, we need to reinforce our team and to renew our product offering. That will probably affect our profit margin in the coming quarters but it should help us strengthen our position as a major player for the long term." As at June 30, 2005, the shareholders' equity was $ 854,000, cash and equivalent totalled $ 147,000 short term investments were $ 529,000. BRANCHEZ-VOUS! has approximately 28.9 million shares outstanding.
About BRANCHEZ-VOUS! inc.
BRANCHEZ-VOUS! inc. is a leading Montreal-based new media company. It owns and operates BRANCHEZ-VOUS.com, the largest independent portal in Quebec, which primarily targets an audience of active adult users working in and/or interested by technology; and it operates the BRANCHEZ-VOUS! Network, the largest French-language internet advertising network, comprised of approximately 50 web sites - including ten sites owned and operated by Astral Media. The BRANCHEZ-VOUS! Network reaches 2 million French Canadians every month.
Additional information on the Corporation can be obtained on SEDAR and at www.branchez-vous.com/inc/english
The TSX Venture exchange has neither approved nor disapproved the contents of this press release.
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Contact:
Patrick Pierra
President and CEO
Phone: 514-842-3838 ext. 249
http://www.branchez-vous.com/contacts/
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