BRANCHEZ-VOUS! increased its sales by 41 % and modified its share capital in the first quarter of 2006
Montréal, May 24, 2006 -- BRANCHEZ-VOUS! inc. (TSX Venture Exchange : BZV) disclosed its interim financial results for the quarter ended March 31, 2006 during the Annual General Meeting of its shareholders, this morning, in Montreal. Compared to the quarter ended March 31, 2005, revenues increased by 41 % and gross profit increased by 29 %, while net earnings decreased by 30 % - mostly due to investment in product development and marketing. Earnings per share remained nil.Table summarizing the main financial results
| Quarter ended March 31, 2006 | Quarter ended, March 31, 2005 | |
| Revenues | $ 605,408 | $ 430,160 |
| Gross profit | $ 404,418 | $ 313,472 |
| Net earnings | $ 50,484 | $ 72,396 |
| Basic and diluted earnings per share | $ 0.00 | $ 0.00 |
The increase in sales and gross profit is due to the sustained growth of the Internet advertising market. The decrease in net earnings is due to an increase in salaries, content development and acquisition expenses and marketing expenses. ¿The active competition we face from large portals and several traditional media web sites forces us to strengthen our team and continually invest in developing and promoting our products¿, says Patrick Pierra, CEO of BRANCHEZ-VOUS!. ¿However, the growth in sales should allow us to get a higher net profit margin in the next three quarters.¿
During its annual general meeting, shareholders approved the reduction of the share capital for an amount of $ 1,750,000, which allowed to entirely eliminate the accumulated deficit fo the corporation. The balance sheet of BRANCHEZ-VOUS! inc. now shows a share capital of $ 1,191,000 and neither a cumulated deficit nor cumulated earnings. ¿This modification of our share capital will allow us, should we choose to do so, to use the net earnings we plan to generate in the future to distribute a dividend or buy back some shares,¿ says André Bisson, Chairman of the Board of BRANCHEZ-VOUS!.
On another matter, on April 24, 2006, the Corporation granted 460,000 options to buy shares of the corporation, at the exercise price of $ 0.16, to officers, directors and a key employee. This now brings to 702,600 the total number of options which are currently active.
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 and has approximately 29.2 million shares outstanding. 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/
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