HI-MEDIA :Recovery in advertising business and significant increase in profitability after the downturn observed in H2

    HI-MEDIA :Recovery in advertising business and significant increase in
             profitability after the downturn observed in H2 2012

  oReturn to growth in advertising thanks to the success of new advertising
    solutions
  oProgression in banking payment activities and launch of the HiPay TPP
    platform
  oGross margin of €34.1 million (+9% vs. H2 2012) on a like-to-like basis
  oCurrent operating income of€4.4 million (+28% vs. H2 2012)

Paris, August 29, 2013, 7.45 AM- The online media group Hi-Media (code ISIN:
FR0000075988 - HIM, HIM.FR), one of the European leaders in internet  audience 
monetization, releases its results for the first half of 2013.

                            Main consolidated data

In millions of euros                     H1 2013 H2 2012 H1 2012
                                               
Turnover                                  93.1    93.9    100.8
Gross profit                              34.1    31.2    35.7
                                                         
Current operating income^[1]               4.4     3.4     6.7
Stock based compensation                  -0.3    -0.3    -0.3
Other non-current earnings and charges    -0.4    -1.1     0.7
Operating income                           3.7     1.9     7.1
Financial result                          -0.6    -1.0    -1.0
Share in SME income                         -     -0.3    -0.3
Pre-tax earnings                           3.0     0.7     5.8
Net income of the consolidated companies   2.2     0.5     5.5

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

Commenting on the results of the first half of 2013, Cyril Zimmermann, founder
and CEO of Hi-Media Group, said: "Despite a difficult month in May, the  first 
half-year confirms the strong orientation  of the Group's business, which,  in 
the context of a  sluggish economy, has managed  to significantly improve  its 
margins. Indeed, in a flagging European advertising market, the Group recorded
an increase of 3% in its turnover through the relevance and the success of its
new offerings (RTB, Video, Mobile, Special Operations). In Payment activities,
the dynamism of  banking payment activities  has been confirmed  and the  warm 
welcome for the new payment platform HiPay TPP opens up good prospects for the
end of the year. "

ANALYSIS OF THE ACTIVITY

In a lacklustre industry  outlook, Hi-Media, in  accordance with its  roadmap, 
managed to stabilise its consolidated  turnover compared with the second  half 
of 2012, to €93.1  million, mainly thanks to  the recovery of its  advertising 
business.

  oHiMedia

                  H1 2013 H2 2012 H1 2012
Sales (€M)²         45.0    43.7    44.4
Gross profit (€M)²  21.3    19.5    21.0

² 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).

On June 30,  2013, Advertising activity  amounted to €45.0  million, up by  3% 
compared with  the second-half  of 2012  despite the  fact that  the  European 
advertising market continues  to deteriorate in  2013, especially in  Southern 
countries.

This  performance  was  strongly  driven  by  the  team's  mobilisation,   the 
implementation of dedicated know-how and technologies, as well as the  current 
deployment  of  new  offers  across  the  Group's  geographical  markets.  The 
Ad-Exchange (RTB), video, mobile and  special operations now represent 40%  of 
the company's advertising activity vs. 25% a year ago.
Hence the company enjoys an ideal positioning to benefit from this  structural 
shift in  the market  while waiting  for  a clear  and sustainable  upturn  in 
advertising investments as a whole.

  oHiPay

                           H1 2013 H2 2012 H1 2012
Volume of transactions (€M)   219     198     207
Turnover (€M)³               48.0    50.2    56.5
Gross profit (€M)³           12.7    11.7    14.7

³ 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).

Over the  first-half of  2013, the  Payments activities  business  experienced 
contrasted development. In fact, the  micropayment remains in a  consolidation 
phase with an aging video-game generation, soon  to be replaced by a new  one. 
However, the global volume of transactions has increased by 11%, driven by the
continuous growth  of  automated-payment  transactions  via  HiPay  electronic 
Wallet (observed in gross  profit only). The banking  payment activity of  the 
first-half of  2013 appears  to have  grown by  almost 20%  compared with  the 
second half of 2012.

Consequently, even though as a whole, Payments activities sales are down by 4%
compared with the  second half  of 2012,  the gross  profit is  simultaneously 
rising by 9%.  During the second  quarter, HiPay has  launched a credit  card 
offer: HiPay  TPP  (third party  processing)  which  so far,  has  received  a 
promising reception on the market and  is thus expected to boost the  Payments 
activities' dynamism.

Significant improvement in the gross margin and operating margin

In a  context of  stable  activity, Hi-Media  has  managed to  increase  gross 
margins by around  €3 million compared  to the  second half of  2012 (+9%)  to 
€34.1 million. The consolidated  gross profit margin  (36%) improved by  three 
points, raised by the two activities.

Current operating  income  rose by  €1  million (+30%  vs.  H2 2012)  to  €4.4 
million, due to higher technical and marketing costs related to the launch  of 
new advertising and payment products.

Operating income amounted to €3.7 million  against €1.9 million in the  second 
half of 2012, up  more than 90%.  One-time charges related  to the process  of 
refocusing are  now  more  limited. Financial  income,  mainly  consisting  of 
expenses related  to the  Group's debt,  decreased over  the period  to  -€0.6 
million against -€1.0 million in the second half of 2012.

The tax charge of 0.8 million brings the net profit after tax at 2.2  million, 
compared to 0.5 million euros for the second half of 2012.

STRONG FINANCIAL SITUATION

Hi-Media has a solid  financial structure with  a long-term indebtedness  (€17 
million) limited  relative  to its  shareholders  equity (€117  million).  The 
available cash position stands at €13.5 million as of June 30 2013.

2013 PERSPECTIVES

In a  highly-pressurized advertising  market which  is undergoing  large-scale 
transformation, traditional  display devices  are set  to continue  to  suffer 
while new market segments  will keep on growing.  The Group, which is  ideally 
positioned to  benefit  from  undergoing  structural  changes,  anticipates  a 
further expansion of  its advertising  activities in  the second  half of  the 
year.

We should see an encouraging  pick-up in the payment  area towards the end  of 
the year, in  large part as  a result  of the dynamism  of banking  activities 
(wallet and TPP) as well as the stabilization of micropayment activity.

A limited review has  been performed by  the Group auditors  on the half  year 
2013 accounts from which  the corresponding report has  been issued. The  half 
year accounts have been approved by Hi-Media SA's Board of Directors on August
26^th 2013. The financial report  relative to the financial statements  closed 
on 30 June 2013 is  available on the Company's  Internet site, at the  address 
www.hi-media.com under the Corporate Information heading.

About Hi-Media group
Hi-Media is one  of the leading  European digital media  groups. Its  economic 
model is  based  on  two  revenue sources:  online  advertising  via  Hi-Media 
Advertising  and  content  monetization  via  HiPay.  Present  in  9  European 
countries, the group employs approximately  470 people and generated sales  of 
198 million euros in 2012. Independent since its creation in 1996, the company
is listed in the NYSE Euronext Paris compartment C, and is included in the CAC
Small and  CAC  All-Tradable indices.  ISIN  code: FR  0000075988  /  Trading 
symbol: HIM.
More information on www.hi-media.com and on our blog http://blog.hi-media.com/

Financial communication: Third quarter 2013 information: 5 November 2013 after
market closing 
Contact
Citigate Dewe Rogerson
Investor contact: Agnes Villeret: 0033 (0)1 53 32 78 95 -
agnes.villeret@citigate.fr.
Press contact: Servane Taslé: 0033 (0)1 53 32 78 94 - 0033 (0) 6 66 58 84 28 -
servane.tasle@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   Hi-Media,   please   refer   to   our   Internet    site 
http://www.hi-media.com under the Corporate Information heading.
This press  release  may  contain some  forward-looking  statements.  Although 
Hi-Media 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.  Hi-Media operates  in  a 
continually changing  environment  and  new risks  could  potentially  emerge. 
Hi-Media assumes  no obligation  to update  these forward-looking  statements, 
whether to reflect new information, future events or other circumstances.

Group's summary consolidated financial statements

Consolidated income statements for the half-years ending on 30 June 2013, 2012
second semester and 30 June 2012

                                                                    
In thousands of euros                                 H1 2013 H2 2012 H1 2012
Sales                                                  93 075  93 897 100 839
Charges invoiced by the media                         -59 007 -62 689 -65 142
Gross profit                                            34 067  31 208  35 696
Purchases                                             -13 182 -11 992 -12 300
Payroll charges                                       -14 391 -13 449 -14 992
Depreciation & Amortization                            -2 126  -2 350  -1 690
Current operating profit                                 4 368   3 417   6 714
(before stock based compensation)
Stock based compensation                                 -248    -346    -322
Other non-current income and charges                     -425  -1 123     725
Operating profit                                         3 695   1 948   7 117
Cost of indebtedness                                     -678    -796    -889
Other financial income and charges                         44    -172    -107
Earnings of consolidated companies                       3 062     980   6 120
Share in the earnings of the companies treated on an
equity basis                                               -21    -298    -340
Earnings before taxes of the consolidated
companies                                                3 041     682   5 780
Income tax                                               -819    -212    -321
Income tax on non recurring items                           0       0       0
Net income of the consolidated companies                 2 222     470   5 459
Including minority interests                              203     227     220
Including Group Share                                    2 019     244   5 240
                                                                    

Consolidated balance sheets as of 30 June 2013 and 31 December 2012

                                                        
 ASSETS - In thousands ofeuros          30 June 2013         31 Dec 2012
 Net goodwill                                    121 995             121 315
 Net intangible fixed assets                      11 327              10 873
 Net tangible fixed assets                         1 475               1 701
 Deferred tax credits                              8 010               7 362
 Other financial assets                            3 647               3 386
 Non-current assets                               146 455             144 637
 Customers and other debtors                      59 933              67 442
 Other current assets                             25 609              24 928
 Current financial assets                             14                  15
 Cash and cash equivalents                        13 527              14 483
  Actifs non courants et groupes
 d'actifs destinés à être cédés                    1 529               1 529
 Current assets                                   100 613             108 396
 TOTAL ASSETS                                     247 068             253 033
                                                        
                                                        
                                                        
 LIABILITIES - In thousands ofeuros     30 June 2013         31 Dec 2012
 Share capital                                      4 562               4 562
  Premiums on issue and on
 conveyance                                      123 975             123 975
 Reserves and retained earnings                   -9 500             -15 255
 Treasury shares                                  -3 810              -3 537
  Consolidated net income (Group
 share)                                            2 019               5 483
 Shareholders' equity (Group share)               117 247             115 228
 Minority interests                                1 000               1 237
 Shareholders' equity                             118 247             116 466
  Long-term borrowings and financial
 liabilities                                      17 239              20 054
 Non-current provisions                            1 330               1 246
 Non-current liabilities                             478                 727
 Deferred tax liabilities                            434                 496
 Non-current liabilities                           19 482              22 522
  Short-term financial liabilities
 and bank overdrafts                              20 257              19 910
 Current provisions                   -  -
 Suppliers and other creditors                    70 169              74 970
  Other current debts and
 liabilities                                      18 913              19 164
 Current liabilities                              109 339             114 045
 TOTAL LIABILITIES                                247 068             253 033
                                                        

Table of consolidated cash flows for financial year 2012 and for the
half-years ending on 30 June 2013 and on 30 June 2012

                                                               
In thousands of euros                   30 June 2013 31 Dec 2012 30 June 2012
Net income                                      2 222       5 930        5459
Ajustments for :                                                
Depreciation of the fixed assets               1 959       3 609        1244
Value losses                                       -           -            -
Investment income                                  -           -            -
Cost of net financial indebtedness               678       1 685          889
Share in associated companies                     21         638          340
Net income on disposals of fixed
assets                                             2        -529         -348
Costs of payments based on shares                248         669          322
Tax charge or proceeds                           819         533          321
Operating profit before variation of the
operating capital need                          5 948      12 535         8227
Variation of the operating capital
need                                             931       6 820        3 054
Cash flow coming from operating
activities                                      6 879      19 354       11 281
Interest paid                                   -705      -1 692         -912
Tax on earnings paid                          -1 163      -3 392       -1 633
NET CASH FLOW RESULTING FROM OPERATING
ACTIVITIES                                      5 012      14 271        8 737
Income from disposals of fixed assets              0           1            -
Valuation at fair value of the cash
equivalents                                        -           -            -
Proceeds from disposals of financial
assets                                             0           1            -
Disposal of subsidiary, after
deduction of cash transferred                      -           -            -
Acquisition of a subsidiary                     -263      -1 952       -1 129
Acquisition of fixed assets                   -2 454      -5 249       -2 716
Variation of financial assets                   -231         147           13
Variation of suppliers of fixed assets          -125         -18          150
Effect of the perimeter variations                                         -
NET CASH FLOW COMING FROM INVESTMENT
ACTIVITIES                                     -3 072      -7 070       -3 682
Proceeds from share issues                        10          -1           -1
Redemption of own shares                        -273      -2 332       -1 994
New borrowings                                 1 782       1 983            -
Repayments of borrowings                      -3 669      -6 758       -3 236
Other financial liabilities variation           -554      -3 065       -4 227
Dividends paid to minority interests            -194        -442         -399
NET CASH FLOW COMING FROM FINANCING
ACTIVITIES                                     -2 898     -10 616       -9 857
Effect of exchange rate variations                 3         -10            -
NET VARIATION OF CASH AND OF CASH
EQUIVALENTS                                      -955      -3 425       -4 802
Cash and cash equivalents on January 1        14 483      14 739       17 908
CASH AND CASH EQUIVALENTS AT THE END OF
^THE PERIOD^(1)                                13 527      14 483       13 106
                                                               



-------------------------

[1]Before stock based compensation and non-current earnings and charges

Hi-Media: H1 2013

------------------------------------------------------------------------------

This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

Source: HI-MEDIA via Thomson Reuters ONE
HUG#1725642
 
Press spacebar to pause and continue. Press esc to stop.