In 2005, BRANCHEZ-VOUS! increased its sales by 53 % and produced net earnings of more than $ 550,000
Montréal, April 25, 2006 -- BRANCHEZ-VOUS! inc. (TSX Venture Exchange : BZV) had its best financial performance in 2005, according to the annual financial statements filed today. The fiscal year ended December 31, 2005 showed very good operating results, mostly due to a general increase in the advertising market compared to the previous year.The corporation¿s revenues were above $ 2.6 million in 2005, compared to slightly more than $ 1.7 millions in 2004, or an increase of 53 %. BRANCHEZ-VOUS! fully benefited from the increase of the Canadian Internet advertising market. ¿All signs point to a continued and significant increase of this market in the coming years¿, says Patrick Pierra, CEO of BRANCHEZ-VOUS!.
Gross profit increased buy 50 %, from $ 1.2 million in 2004 to almost $ 1.8 million in 2005. Earnings before other elements increased by 37 %, from $ 405,000 in 2004 to $ 553,000 in 2005.
In 2005, contrary to 2004, net earnings were the same as earnings before other elements. Consequently, net earnings were multiplied by 14, from $ 39,000 in 2004 to $ 553,000 in 2005. Basic and diluted earnings per share, which were nil in 2004, were almost 2 cents in 2005.
"Focusing all our efforts on Internet advertising and on French-language sites was fruitful", says Patrick Pierra. ¿We are now the specialists of Internet advertising on French-language sites in Canada. The numerous site publishing partners that we represent benefit from a marketing synergy with our news portal BRANCHEZ-VOUS.com. This allows us to offer our advertisers and agencies the largest range of specialized French-language sites, combined into a network whose reach now compares to one of the major portals, Sympatico-MSN and Canoe in Québec. As an independent player, representing media brands related to quality content targeting a specialized audience, we are in a good situation to consolidate the number 3 position in the advertising market next to these two Internet access providers' portals."
BRANCHEZ-VOUS! registered, in 2005, a net profit margin of 21 %. This margin was the same as its operating margin, because the losses registered by the corporation in 2000 and 2001 will protect it from paying a tax on corporate earnings. "We do not plan to keep the same profit margin over the long term, says Patrick Pierra. In the coming years, a profit margin of between 10 and 20 % would be a more sustainable goal. However, the profitability of our business model is now very solidly established."
These results contributed to increasing BRANCHEZ-VOUS! shareholders¿ equity, from $ 571,000 as at December 31, 2004 to $ 1,140,000 as at December 31, 2005, or almost 4 cents per share. From this amount, a little more than $ 1 million was in cash, cash equivalents, short-term and long-term investments. "This gives us financial flexibility and allows to start considering investing in new projects , like our BRANCHEZ-VOUS.tv video portal launched last November, small acquisitions or redistribution to shareholders", says André Bisson, Chairman of the Board of BRANCHEZ-VOUS!
In the fourth quarter of 2005, ended on December 31, 2005:
- the Corporation's revenues increased by 69 % compared to revenues of the fourth quarter of 2004. This increase was mostly due to an increase in advertising sales, but also to an increase in promotional contra exchange and capital gains on short term investments;
- Earnings before other elements increased by 27% compared to Q4 2004;
- Net earnings were $ 169,000, to be compared to a net loss of $ 79,000 in Q4 2004. This improvement is due to the increase of the income before other elements, as well as to the absence, in 2005, of any non recurring expense related to the long term investment that the Corporation hold in Passeport Media international Inc. until April 2005.
Table summarizing the main financial results
| Quarter ended December 31, 2005 | Quarter ended December 31, 2004 | Fiscal year ended December 31, 2005 | Fiscal year ended December 31, 2004 | |
| Revenues | $ 859,329 | $ 508,205 | $ 2,629,261 | $ 1,719,976 |
| Gross profit | $ 563,868 | $ 352,578 | $ 1,758,838 | $ 1,172,051 |
| Earnings before other elements | $ 169,848 | $ 133,296 | $ 553 053 | $ 404,595 |
| Net earnings | $ 169,848 | ($ 78,599) | $ 553,053 | $ 39,165 |
| Basic and diluted earnings per share | $ 0.01 | $ 0.00 | $ 0.02 | $ 0.00 |
BRANCHEZ-VOUS! has approximately 29.2 million shares outstanding.
BRANCHEZ-VOUS! Shareholders¿ annual and special meeting will be held on May 24 at 10:30 at 1, Place Ville-Marie, 37th Floor, Lafleur boardroom, in Montréal, Québec.
At the meeting, shareholders will be asked to consider and, if thought fit, to pass a special resolution in order to reduce its stated capital in order to absorb its deficit. To this effect, the special resolution stipulates that the reduction of stated capital will be equal to the amount of deficit that will be shown in the quarterly financial statements of the Corporation for the period ended March 31, 2006.
About BRANCHEZ-VOUS! inc.
BRANCHEZ-VOUS! inc. is a leading Montreal-based Internet media company. It owns and operates BRANCHEZ-VOUS.com (www.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 he French version of Canada411, LesPAC.com and ten sites owned and operated by Astral Media. The BRANCHEZ-VOUS! Network reaches over 2 million French Canadians every month.
BRANCHEZ-VOUS! is listed on the TSX Venture exchange under the symbol BZV. Additional information on the Corporation can be obtained on SEDAR (www.sedar.com) 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, CEO
Phone: 514 842-3838 ext. 249
http://www.branchez-vous.com/contacts/




