PagesJaunes Groupe Results for the 3rd Quarter of 2012

  PagesJaunes Groupe Results for the 3rd Quarter of 2012

                       Consolidated Revenues Down -2.4%

                       Internet Growth Continues +9.4%

                  Successful Refinancing and Debt Reduction

Business Wire

SÈVRES, France -- November 13, 2012

Regulatory News:

PagesJaunes Groupe (Paris:PAJ):

  *Consolidated revenues of €800million down -2.4% in the first nine months
    of the 2012 financial year
  *Internet revenue: 58% of consolidated revenues, up +9.4% at the end of
    September 2012
  *Gross operating margin of €362 million in the first nine months of 2012,
    i.e. 45.2% of revenues
  *Successful refinancing and immediate gross debt reduction of €417 million

On the announcement of PagesJaunes Groupe’s results for the 3^rd quarter of
2012, Jean-Pierre Remy, Chief Executive Officer, said:

"Our Internet businesses continued to grow faster than the market in the 3^rd
quarter (+9.4% at the end of September 2012), which makes it possible to
confirm our annual targets for revenue and gross operating margin. The
economic environment limits our visibility for 2013."

The Board of Directors approved the Group’s consolidated condensed accounts as
at 30 September 2012.

                              From 1               From 1
In millions of                Jan.                 jan.
euros                  to 30         to 30         Change
                              Sep                  Sep
                              2012                 2011
Group revenues         799.9         819.4         -2.4%
of which               463.3          423.6         +9.4%
Internet
in % of total          57.9%         51.7%         
Gross operating        361.8         380.9         -5.0%
margin
as % of                       45.2%                46.5%
revenues


I. Highlights

Internet growth outperforming the market

  *Internet revenues: +9.4% at the end of September
  *Search: +8.8% and Display, sites & digital marketing: +10.9% at the end of
    September

Very strong growth of mobile audience

  *+80% mobile visits^1 at the end of September 2012 buoyed by the growth in
    downloads on Android
  *PagesJaunes Groupe in the top 5 in terms of mobile audience in France at
    the end of August 2012^2
  *Almost 20 million mobile application downloads: 12 million for PagesJaunes
    and 7 million for Mappy
  *Launch of PagesJaunes (iPhone V5, Full App Android, Microsoft Windows 8),
    Rest’Oh!
  *Launch of Mappy GPS Free V3 and on-board car navigation

Development of indirect web audience and partnerships

  *25% of indirect audience, in particular through Bing, Google and Facebook
    (ZoomOn)
  *Continued verticalisation of content and offers (Public sector, Health
    care sector, ...)
  *Strong start with the “good deals” offer
  *Partnerships with NRJ Global Régions, Local.ch, American Express

II. Trend in fixed and mobile Internet audiences

                           From 1                From 1
In millions                Jan.                  jan.
of visits           to 30          to 30          Change
                           Sep                   Sep
                           2012                  2011
PagesJaunes                893.7                 812.6                 +10.0%
of which                   167.2                 99.1                  +68.7%
mobile
Mappy                      233.1                 209.3                 +11.4%
of which                   50.9                  21.6                  +135.6%
mobile
Other (a)           133.7          145.1          -7.9%
Total
excluding           1,260.5        1,167.0        +8.0%
123people
of which                   222.9                 123.7                 +80.2%
mobile
123people                  331.0                 489.7                 -32.4%
of which            24.9           33.8           -26.3%
mobile
Total               1,591.5        1,656.6        -3.9%
of which            247.8          157.5          +57.3%
mobile
Source:
PagesJaunes                (a) on a like-for-like basis
Groupe

The Internet audience for the Group’s sites (excluding 123people) grew by
+8.0% in the first nine months of 2012 compared with 2011, sustained in
particular by the strong growth in the number of mobile Internet visits up by
+80.2%. By the end of September 2012, the PagesJaunes, Mappy and
AnnoncesJaunes applications had been downloaded 20 million times across all
smartphones in France.

The Group’s Internet sites experienced strong audiences in the 3^rd quarter of
2012, with 20 million unique visitors in July 2012 (ranked 5^th amongst the
most visited sites in France whether fixed or mobile).

^1 Excluding 123people
^2 Statistical indicator from Nielsen Médiamétrie: “Reach” rate for Mobile
Internet at 26.8% at the end of August 2012

III. Financial Results

                            From 1                From 1
In millions                 Jan.                  jan.
of euros             to 30          to 30          Change
                            Sep                   Sep
                            2012                  2011
Group                799.9          819.4          -2.4%
revenues
Internet             463.3          423.6          +9.4%
as % of group               57.9%                 51.7%
revenues
Printed                     316.2                 368.6                 -14.2%
directories
as % of group               39.5%                 45.0%
revenues
Other                       20.4                  27.2                  -25.0%
businesses
as % of group        2.6%           3.3%           
revenues
Gross
operating            361.8          380.9          -5.0%
margin
as % of                     45.2%                 46.5%
revenues
Internet                    206.2                 196.2                 +5.1%
as % of
Internet                    44.5%                 46.3%
revenues
Printed                     147.7                 175.8                 -16.0%
directories
as % of
Printed                     46.7%                 47.7%
directories
revenues
Other                       7.9                   9.0                   -12.2%
businesses
as % of Other
businesses           38.7%          33.1%          
revenues
Operating            322.8          350.3          -7.9%
income
Net financial               (95.0)                (92.0)                -3.3%
result
Share of the
result from          (0.7)          -0.1           na
associated
companies
Income before        227.2          258.2          -12.0%
tax
Corporate                   (88.2)                (95.9)                +8.0%
income tax
Corporate
income tax           38.7%          37.1%          
rate
Net income           139.0          162.3          -14.4%

The first nine months of 2012 saw Group consolidated revenues fall by -2.4%.

In a more difficult context, Internet businesses recorded a growth of +9.4%
over the first nine months of 2012, sustained in particular by “search”
activities and mobile development. On the other hand, the Printed directories
business fell by -14.2% over the first nine months of 2012.

Internet revenues represent 57.9% of the Group's revenue over the first nine
months of 2012 compared to 51.7% over the first nine months of 2011.

The Group’s gross operating margin was 361.8 million euros in the first nine
months of 2012, down -5.0% compared with the first nine months of 2011. The
gross operating margin rate stood at 45.2% in the first nine months of 2012
compared to 46.5% in the first nine months of 2011. This decrease is linked
with the commercial investment in the PagesJaunes business and subsidiaries.

The Group's operating income, down -7.9% over the first nine months of 2012
compared to the first nine months of 2011, reached 322.8million euros. The
decrease in operating income is mainly the result of the decline in gross
operating margin as well as the increase in depreciation and amortization
associated with the Internet developments.

The Group’s net income in the first nine months of 2012 was 139.0 million
euros, down -14.4%compared to the first nine months of 2011. This
deterioration was mainly associated with the decrease in operating income and
the increase in financial expenses following the partial refinancing of the
bank debt undertaken in May 2011. The average cost of gross debt (including
hedging instruments) stood at 5.26% in the first nine months of 2012 compared
to 5.56% in the first nine months of 2011 due in particular to the drop in the
Euribor rates and the drawings under the revolving credit line (for which the
margin is less than the average margin). Moreover, the tax rate changed from
37.1% over the first nine months of 2011 to 38.7% over the first nine months
of 2012, mainly impacted by the additional 5% contribution levied on
corporation tax since the end of 2011.

IV. Financial structure

Net debt^3 stood at 1,735.3 million euros at 30 September 2012 compared with
1,891.7 million euros at 31 December 2011 and 1,905.8 million euros at 30
September 2011.

At 30 September 2012, the group had headroom of 15% for its financial leverage
covenant, which was 3.65 times an aggregate close to GOM and of 35% on its
interest coverage ratio which was 4.06 times the net interest expenses^4.

The Group’s net cash flow declined by -9.0%, from 181.6 million euros in the
first nine months of 2011 to 165.2 million euros in the first nine months of
2012. At 30 September 2012, the Group had net cash and cash equivalents of
521.1 million euros, of which 281.4 million euros was due to the RCF credit
facility which was drawn on at the beginning of 2012.

The Group has successfully refinanced its bank debt:

  *The Group obtained the consent of 98% lenderson its refinancing request.
    Lenders agreed to extend to September 2015 the maturity of over 91% of the
    facilities A1 and RCF maturing in November 2013.
  *Pro-forma refinancing, gross debt amounts to 1,814 million euros^5.  The
    deleveraging of the Group is on going with 417 million euros^5 of
    immediate reduction in gross bank debt and 191 million euros of
    contractual amortisation by April 2015.
  *The refinancing process is expected to be fully completed by end of
    November 2012 and will have a limited impact over the fiscal year
    financial expenses. On a full year basis, the increase in average cost of
    gross debt will be contained to 91^5 bps.

Following the refinancing of 97% of the Group debt over the last 18 months,
the Group debt ^ maturity profile^6 is more favorable:

  *Bank debt tranche A1 and RCF 1: principal of 72 million euros maturing in
    November 2013,
  *Bank debt tranche A3, A5 and RCF 3: principal of 1,392 million euros
    maturing in September 2015 and
  *Senior secured notes: principal of 350 million euros maturing in June
    2018.

The Group confirms its commitment of suspending its dividend until its net
indebtedness reaches a level corresponding to 3 times EBITDA^7.

^3 Net debt corresponds to the total gross financial debt plus or minus the
fair value of derivative asset and/or liability hedging instruments and minus
cash and cash equivalents.
^4 Excluding the change in the fair value of hedging instruments, amortisation
of loan issue expenses and accretion income.
^5 Increase of average cost of debt on a full year basis excluding impact of
contractual amortisation: +113 bps of weighted margin of bank debt which
represents 81% of total debt
^6 At the end of the conclusion and the entry into force of the necessary
endorsements. Gross debt corresponding to bank and bond debts, excluding Other
debts of €60 millions as at September 2012.
^7 As defined in the facility agreement with financial institutions

V. Outlook for 2012

The Group confirmed its objectives for 2012:

  *Expected decrease in revenues between -1% and -3%;
  *Acceleration of growth in Internet businesses, which will represent close
    to 60% of total revenues in 2012;
  *Expected gross operating margin between €470 million and €485 million.

About PagesJaunes Groupe

PagesJaunes Groupe is the leader in France in local advertising and
information, generating €1.1 billion in consolidated revenues in 2011.
PagesJaunes Groupe’s services can be accessed in particular through fixed and
mobile Internet, printed directories (the PagesJaunes and PagesBlanches
directories), directory enquiry services by telephone and SMS (118008).

PagesJaunes Groupe’s fixed and mobile Internet sites, primarily
pagesjaunes.fr, mobile.pagesjaunes.fr, mappy.com and annoncesjaunes.fr, are
visited by more than one Internet user in two in France each month.

PagesJaunes Groupe has a sales force of more than 2,200 commercial advisers in
France and Spain and provides a comprehensive range of advertising products
for its local and national advertising customers. With €575 million in
Internet revenues in 2011, representing over 52% of its consolidated revenues,
PagesJaunes Groupe is the largest European operator in terms of Internet
advertising revenues.

PagesJaunes Groupe is listed on NYSE Euronext Paris (PAJ). Information on
PagesJaunes Groupe is available at www.pagesjaunesgroupe.com.

This document contains forward-looking statements. Although PagesJaunes Groupe
believes its expectations are based on reasonable assumptions, these
statements are subject to numerous risks and uncertainties. Important factors
that could cause actual results to differ materially from the results
anticipated in the forward-looking statements include, among other things:the
effects of competition,PagesJaunes usage levels, the success of investments by
the PagesJaunes Groupe in France and abroad, and the effects of the economic
situation. A description of the risks borne by the PagesJaunes Groupe appears
in section 4 “Facteurs de risques” of the PagesJaunes Groupe’s “Document de
Référence” filed with the French financial markets authority (AMF) on 26 April
2012. The forward-looking statements contained in this document apply only
from the date of this document, and PagesJaunes Groupe does not undertake to
update any of these statements to take account of events or circumstances
arising after the date of said document or to take account of the occurrence
of unforeseen events. All accounting data are presented in non-audited
consolidated form.

Appendix 1: Quarterly trend in fixed and mobile Internet audiences
                              From 1                   From 1
In millions of         July              July             Change
visits                        to 30 Sep                to 30 Sep
                              2012                     2011
PagesJaunes                   285.4                    268.6                   +6.3%
of which mobile               64.6                     39.2                    +64.8%
Mappy                         84.9                     73.3                    +15.8%
of which mobile               24.2                     9.3                     +160.2%
Other (a)              44.3              40.7             +8.8%
Total excluding        414.6             382.5            +8.4%
123people
of which mobile               90.4                     49.5                    +82.6%
123people                     102.7                    138.0                   -25.6%
of which mobile        9.1               12.0             -24.2%
Total                  517.3             520.5            -0.6%
of which mobile        99.5              61.5             +61.8%
Source:
PagesJaunes                   (a) on a like-for-like basis
Groupe


Appendix 2: Quarterly consolidated income statement
                              From 1                   From 1
In millions of         July              July             Change
euros                         to 30 Sep                to 30 Sep
                              2012                     2011
Revenues               274.9             285.1            -3.6%
External                      (54.4)                   (61.4)                  11.4%
purchases
Other operating
income and                    (1.4)                    (1.7)                   17.6%
expenses
Salaries and           (89.5)            (86.6)           -3.3%
charges
Gross operating               129.6                    135.4                   -4.3%
margin
as % of                47.2%             47.5%            
revenues
Legal employee                (4.8)                    (3.6)                   -33.3%
profit-sharing
Share-based                   (0.2)                    (0.4)                   50.0%
payment
Depreciation
and                           (9.5)                    (6.3)                   -50.8%
amortisation
Gain and losses               0.0                      (0.1)                   na
from disposals
Acquisition            -                 (0.2)            na
costs of shares
Operating                     115.1                    124.8                   -7.8%
income
as % of                41.9%             43.8%            
revenues
Financial                     1.3                      0.1                     na
income
Financial              (31.3)            (34.9)           +10.3%
expenses
Net financial          (29.9)            (34.8)           +14.1%
result
Share of profit
or loss of an          (0.3)             (0.0)            na
associate
Income before          84.9              90.0             -5.7%
tax
Corporate              (33.0)            (33.1)           0.3%
income tax
Net income             51.9              56.8             -8.6%
of which
attributable
to:
- shareholders
of PagesJaunes                51.9                     56.8                    -8.6%
Groupe
-
non-controlling        -                 -                -
interests


Appendix 3: Consolidated income statement at the end of September
                              From 1                   From 1
In millions of         Jan.              Jan.             Change
euros                         to 30 Sep                to 30 Sep
                              2012                     2011
Revenues               799.9             819.4            -2.4%
External                      (164.3)                  (178.6)                 8.0%
purchases
Other operating
income and                    (2.0)                    (5.1)                   60.8%
expenses
Salaries and           (271.8)           (254.8)          -6.7%
charges
Gross operating               361.8                    380.9                   -5.0%
margin
as % of                45.2%             46.5%            
revenues
Legal employee                (11.6)                   (10.5)                  -10.5%
profit-sharing
Share-based                   (0.7)                    (1.1)                   36.4%
payment
Depreciation
and                           (26.5)                   (18.0)                  -47.2%
amortisation
Gain and losses               (0.1)                    (0.3)                   66.7%
from disposals
Acquisition            -                 (0.7)            na
costs of shares
Operating                     322.8                    350.3                   -7.9%
income
as % of                40.4%             42.8%            
revenues
Financial                     3.9                      2.6                     50.0%
income
Financial              (98.9)            (94.7)           -4.4%
expenses
Net financial          (95.0)            (92.0)           -3.3%
result
Share of profit
or loss of an          (0.7)             (0.1)            na
associate
Income before          227.2             258.2            -12.0%
tax
Corporate              (88.2)            (95.9)           8.0%
income tax
Net income             139.0             162.3            -14.4%
of which
attributable
to:
- shareholders
of PagesJaunes                139.1                    162.3                   -14.3%
Groupe
-
non-controlling        -                 -                -
interests


Appendix 4: Consolidated cash flow statement
                              From 1                   From 1
In millions of         Jan.              Jan.             Change
euros                         to 30 Sep                to 30 Sep
                              2012                     2011
Gross operating               361.8                    380.9                   -5.0%
margin
Legal employee                (11.6)                   (10.5)                  -10.8%
profit-sharing
Non monetary
items included                (1.6)                    4.0                     na
in GOM
Net change in                 1.0                      0.4                     na
working capital
Acquisition of
tangible and           (29.2)            (29.0)           -0.6%
intangible
fixed assets
Operational                   320.4                    345.9                   -7.4%
cash flow
in % of GOM                   88.6%                    90.8%
Financial
result pay out                (79.0)                   (68.6)                  -15.1%
or cash
Corporate              (76.2)            (95.7)           +20.4%
income tax paid
Net cash flow                 165.2                    181.6                   -9.0%
Increase
(decrease) in                 279.7                    (22.9)                  na
borrowings and
bank overdrafts
Dividends paid                -                        (162.7)                 na
Acquisitions of
investment
securities and                (1.3)                    (19.7)                  na
subsidiaries,
net of
cash acquired
Other net cash
used in                (0.7)             (5.2)            +86.3%
investing
activities
Net cash                      443.0                    (29.0)                  na
variation
Net cash and
cash
equivalents at         78.1              103.5            -24.6%
beginning of
period
Net cash and
cash                          521.1                    74.5                    na
equivalents at
end of period


Appendix 5: Consolidated balance sheet
In millions of                30-Sep-12                31-Dec-11               30-Sep-11
euros
ASSETS                                                  
Total
non-current                   221.6                    215.3                   206.9
assets
Net goodwill                  93.9                     94.1                    93.8
Other net
intangible                    70.3                     66.4                    60.9
fixed assets
Net tangible                  26.3                     28.2                    26.9
fixed assets
Other
non-current
assets of which        31.2              26.6             25.2
deferred tax
assets
Total current                 992.1                    667.8                   558.6
assets
Net trade
accounts                      324.3                    439.3                   326.7
receivable
Prepaid                       101.2                    109.4                   102.0
expenses
Cash and cash                 524.0                    82.7                    79.0
equivalents
Other current          42.6              36.4             50.8
assets
TOTAL ASSETS           1,213.7           883.1            765.5
LIABILITIES
Total equity           (1,984.3)         (2,120.9)        (2,150.6)
Total
non-current                   2,057.4                  2,040.4                 2,032.3
liabilities
Non-current
financial                     1,992.2                  1,981.5                 1,971.7
liabilities and
derivatives
Employee
benefits -                    57.6                     51.2                    52.4
non-current
Other
non-current            7.6               7.6              8.3
liabilities
Total current                 1,140.6                  963.6                   883.7
liabilities
Bank overdrafts
and other                     287.6                    8.5                     15.4
short-term
borrowings
Deferred income               571.0                    636.6                   583.2
Employee
benefits -                    101.4                    118.3                   99.7
current
Trade accounts                79.0                     94.3                    85.9
payable
Other current          101.7             105.9            99.5
liabilities
TOTAL                  1,213.7           883.1            765.5
LIABILITIES


Appendix 6: Consolidated net debt
In Millions of                30-June-12               31-Dec-11               30-June-11
euros
Cash and cash          524.0             82.7             79.0
equivalents
Gross Cash             524.0             82.7             79.0
position
Bank overdrafts        (3.0)             (4.6)            (4.5)
Net Cash               521.1             78.1             74.5
position
Bank borrowings               (1,600.1)                (1,600.2)               (1,600.2)
Bond borrowings               (350.0)                  (350.0)                 (350.0)
Revolving
credit line                   (281.4)                  -                       -
drawn
Loan issuance                 27.8                     33.4                    35.6
expenses
Capital leases                (0.1)                    (0.1)                   (0.1)
Liabilities in
respect of                    -                        -                       (1.9)
hedging
instruments
Fair value of
hedging                       (62.7)                   (56.4)                  (54.3)
instruments
Accrued
interest not                  (14.4)                   (7.4)                   (16.4)
yet due
Other financial        (10.3)            (12.1)           (11.7)
liabilities
Gross financial        (2,291.2)         (1,992.8)        (1,999.0)
debt
of which                      (299.0)                  (11.3)                  (27.4)
current
of which               (1,992.2)         (1,981.5)        (1,971.7)
non-current
Net cash (debt)        (1,770.1)         (1,914.7)        (1,924.5)
Net cash (debt)
excluding fair
value of
financial              (1,735.3)         (1,891.7)        (1,905.8)
instruments and
loan issuance
expenses

Contact:

PagesJaunes Groupe
Press
Delphine Penalva, 01 46 23 35 31 / 06 68 53 72 36
dpenalva@pagesjaunes.fr
or
Isabelle Thillou, 01 46 23 37 56
ithillou@pagesjaunes.fr
or
Investors
Elsa Cardarelli, 01 46 23 40 92
ecardarelli@pagesjaunes.fr
 
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