Q1 2025 Results

                 PRESS RELEASE                                                                  Boulogne-Billancourt, 29 April 2025

Q1 2025 Revenue and Activity

Maurice Lévy, CEO of Solocal, comments: “As soon as our financial restructuring was completed in the summer of 2024, we quickly embarked on an in-depth transformation of Solocal, with the aim of giving the company and its employees a new future by placing the customer at the heart of our operations. After an observation phase, the first projects were launched last November: overhaul of the commercial approach, simplification of the offering, and deployment of new, more comprehensible offers. An initial launch was made with a new range of Websites which should enable us to regain positive momentum in this market, while strengthening recurring revenues. At the same time, other structuring projects are making good progress, such as the simplification of IT tools and the improvement of customer relationship. Special mention should be made to the very substantial increase in the PagesJaunes audience: +13% over the full year 2024.

Even more fundamentally, we have embarked on a major project to transform the company's culture, so as to instill at all levels the values of operational performance, simplicity in operating methods, innovation and collaborative solidarity. Once completed, this immense task should put Solocal back on the path to profitable growth, while restoring pride in our customers and our teams.

Together, we are going to make PagesJaunes a useful local information website for the whole population, and Solocal the best partner for small and medium-sized businesses for their digital presence. The current financial year should lay the foundations for a turnaround that will pave the way for “Year 1” of growth in 2026. I am well aware that we are still a long way from the finish line, but I am very proud to be leading this ambition, surrounded by clear-sighted, committed and talented employees, with whom we are going to bring this transformation to a successful conclusion.”

1.      Revenue and backlog

Q1 2025 Group revenue amounts to €82.9 million, down -0.5% compared to Q1 2024. Regicom’s contribution (integration since 31 July 2024) represents €11.0 million, revenue on a like-for-like basis is down -13.7% during the first quarter. This variation is mainly due to the weak commercial performance of sales in acquisition over the quarter. On this priority issue, the sales reorganization has now been finalized and should gradually bear fruit.

Group order backlog amounts to €215.8 million as of 31 March 2025, slightly higher than the Group order backlog as of 31 December 2024 (€209.6 million).

Group revenue for Q1 2025 is as follows:

                                  In € million                                                     Q1 2024           Q1 2025             Change                  Share

Connect activity (24% of Q1 2025 revenue), which includes digital presence, is down 14% compared to Q1 2024 at €19.7 million.  

Booster activity (58% of Q1 2025 revenue), which includes advertising activities, is up 4% compared to Q1 2024 at €48.5 million. 

Websites activity (18% of Q1 2025 revenue), which includes the full range of websites is up 6% compared to Q1 2024 at €14.8 million.

2.      Sales performance

Q1 2025 sales performance, measured by order intakes, amounts to €88.2 million compared to €81.6 million in Q1 2024. Renewal order intakes amount to €53.2 million in Q1 2025 compared to €54.0 million in Q1 2024. Order intakes from acquisition activities amount to €34.9 million in Q1 2025 compared to 27.6€ million in Q1 2024.

Group order backlog amounts to €215.8 million as of 31 March 2025, up 3% compared to 31 December 2024.

Based on estimates to date, this order backlog will generate sales of around 31% in the second quarter of 2025, 42% in the second half of 2025 and 27% thereafter.

3.      Recent events and strategic advances

Solocal pursued its transformation project, with the primary objective of satisfying the customers who place their trust in the company by being irreproachable in every respect. Significant events in the first quarter were:

-       The set-up of a sales organization that enables better monitoring and acquisition of customers.

-       The launch of a new "website" range involving 48-month offers.

-       The progress of other projects implemented as part of a three-pronged recapture strategy: CLEAN (eliminate all tasks that are unnecessary, redundant, obsolete, etc.), REPAIR (put the organization, tools, and operating methods in good working order) and BUILD (build the tools and proposals of the future, many of which based on AI).

-       The approval of a project to transform Solocal into a European Company (Societas Europaea - SE) by the Board of Directors on 18 March 2025. The project will be submitted to a vote at the Annual General Meeting on 5 June 2025.

On April 29 2025, the Board of Directors noted the resignation with immediate effect of Mrs. Marguerite Bérard from her position as Board member, following her appointment at the head of ABN Amro. Maurice Lévy, Chairman and Chief Executive Officer, and all the members of the Board of Directors warmly thank Mrs. Marguerite Bérard for her commitment and contribution, and wish her every success. In her place, the Board of Directors has co-opted Mrs. Nathalie Boy de la Tour. 

4.      Outlook for 2025: confirmation of objectives 

Given the evolution of the Group order backlog in line with expectations of  the first quarter, the stability of the churn rate and the initial effects of the commercial reorganization underway, the Group is in a position to renew its objective of stabilizing revenue in 2025, under the full-year impact of the integration of Regicom.

Solocal is also continuing to step up its efforts to control costs, with a view to restoring its EBITDA margin to around 15% over the full year.

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The quarterly financial information presented in this press release is unaudited.

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Disclaimer:

This document has been prepared by Solocal Group for information purposes only. It does not constitute or include any advice or recommendation by Solocal Group (or any other person) regarding Solocal Group's securities or regarding the advisability of any transaction or the making of any investment decision. It does not constitute or include any confirmation or undertaking by Solocal Group (or any other person) regarding the present or future value of Solocal Group's business, its securities, its subsidiaries or any other assets of Solocal Group. This document and the information it contains do not constitute an offer to sell or subscribe, or a solicitation of an order to buy or subscribe, Solocal Group securities in Australia, Canada, Japan or the United States of America or in any other country in which such an offer or solicitation would be prohibited. The dissemination, publication or distribution of this document in certain countries may constitute a violation of applicable laws and regulations. Consequently, people physically present in such countries and in which this document is disseminated, distributed or published must inform themselves of any such local restrictions and comply with them. This document must not be circulated, published or distributed, directly or indirectly, in Australia, Canada, Japan or the United States of America. This document is not a promotional communication and does not constitute a prospectus within the meaning of Regulation 2017/1129 of the European Parliament and of the Council of June 14, 2017, on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market and repealing the Prospectus Directive 2003/71/EC (the “Prospectus Regulation”). 

The information in this document is presented for information purposes only and does not purport to be complete, and no person shall rely in any respect on the information contained herein or its accuracy, precision or completeness. Any purchase of securities must be made solely on the basis of the information contained in the AMF-approved Prospectus published on the Company's and AMF's websites.

Forward-looking statements

This document contains forward-looking statements based on current opinions and expectations regarding future events. These forward-looking statements may include projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and/or expectations with respect to future financial results, events, operations and services, and product development, as well as statements regarding performances or events. These statements are generally identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates”, “plans”, “projects”, “may”, “should” or the negative thereof and similar expressions. These statements are not guarantees of future performance and are subject to inherent risks, uncertainties and assumptions about Solocal Group and its subsidiaries and investments, trends in their businesses, future capital expenditures and acquisitions, developments relating to contingent liabilities, changes in global economic conditions or in Solocal Group's principal markets, competitive market conditions and regulatory factors. The outcome of these events is uncertain, and may differ from those currently anticipated, which could have a material adverse effect on our expected results. Actual results may differ materially from those anticipated or implied in these forward-looking statements. All forward-looking statements contained herein are made as of the date of this document. Except as required by applicable law, Solocal Group undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information or future events. For further information on these risks and uncertainties, please consult the documents filed by Solocal Group with the AMF and, in particular, the Universal Registration Document which will be filed with the AMF.

Definitions

Group: Represents the consolidated scope of Solocal, including Regicom, which has been consolidated since July 31 2024.

Like-for-like basis: Represents the consolidated scope of Solocal excluding Regicom.

Order intake: Orders recorded by the sales force, that give rise to a service provided by the Group for its customers.

Order backlog: The order backlog corresponds to the outstanding portion of revenue yet to be recognized as of 31 March 2025 from order bookings such as validated and committed by customers. For subscription-based products, only the current commitment period is considered.

Secured revenue: The recognition of future revenue from past order intake as validated and committed by customers to date (net of cancellations already noted) and which should give rise to a future service.

Churn: Number of churned clients on a given period. 

Churn rate: number of churned customers (including winbacks) on a LTM basis divided by the number of customers BoP.

EN - Solocal - www.solocal.com

As the pure player in digital marketing in France, Solocal supports local businesses – VSEs, to SMBs, Large Companies or local authorities – in their digital transformation and business development. Every day, hundreds of thousands of companies in France trust its innovative digital solutions: Relational Presence, Web design, E-commerce and Digital advertising. With its iconic brand PagesJaunes, Solocal helps internet and mobile users find professionals that meet their needs. Powered by scalable technological platforms, geolocated data, a massive audience, and unique commercial coverage across France, Solocal collaborates with the GAFA to maximize the effectiveness of its digital services. Its subsidiary, Regicom, complements this offer by providing local businesses with high-performance solutions in e-commerce, project management, and digital strategy. Together, Solocal and Regicom work to boost local economic activity by offering innovative and high-performance digital tools.