Value creation

A large digital services Company with a strong market positioning  

The French digital advertising market in which we operate has been continuously growing, with a 10% CAGR over the 2013-2020 period (Source: Olivier Wyman).

The French market is now positioned as the second largest market in Europe for onlines sales, although it lags significantly behind in terms of digital transition compared to the average of European countries. Only 71% of French small and medium-sized companies have a website, when the European average is 77%( source: Eurostat 2019), which makes it an attractive market.

Only 9% of French businesses had an e-commerce sales channel in 2020 (source: Epicery).

With €437 million consolidated revenues, we are France's 3rd player in the digital marketing sector 

 We have a strong and solid positioning on those markets with high potential growth : 

  o   A large trafic on our media with 2.4 billion visits in 2020

  o   Popular mobile apps (PagesJaunes), used by about 21 million users per day on average

  o   A significant reach : 48% of the total amount of Internet and mobile users in France visit our media on a monthly basis (Source: Médiamétrie Nielson) 

 

A unique positioning combining rich local content, powerful data, local coverage and strong partnerships

We are the only player on the French market to offer customers a complete range of services that addresses all their digital needs through a one-stop shop 

Our ability to deliver value for our customers lies in the richness of our data, which enables us to carry out effective and highly targeted advertising campaigns

These rich and relevant data enable us to enter partnership agreements with major global Internet players (Google, Apple, Facebook and Bing (Microsoft)) by providing them our local content

Those partnerships with the GAFAMs, which generate today the biggest part of the growth of the Internet ecosystem, contribute to the growth of our media traffic. The deported audience, generated by those platforms, therefore contributes to the reinforcement of our customers’ digital presence. 

Our local presence and our omnichannel sale approach are key differentiating factors in our relationship with local customers; they represent a real barrier preventing our competitors and partners to enter our markets
 

Mutually beneficial partnerships with major global Internet players 

In addition to the agreements with the GAFAM mentioned above around local content, local search and campaigns on social media, we have developed partnerships to leverage our partners’ technologies (Google AdWords, BingAds, Facebook Ads) by integrating them in our packaged offerings

We bring value to those digital solutions and to our customers by leveraging on our cutting-edge expertise developed by Solocal: algorithm optimisation and real-time selection of key words, pricing tools…

These strong and mutually beneficial partnerships are an asset for Solocal in the sector in which we operate and represent a significant competitive advantage

High scalable technology platforms

- Another asset of Solocal lies on our ability to grow on a large scale our product offering, while meeting the specific needs of each customer, from large accounts to smaller businesses, thanks to the quality of our platforms, internally developed or integrated into a SaaS mode

- Our customers benefit from a wide range of programmatic tools developed by Solocal used to implement advanced visibility solutions, performance solutions and digital advertising on our proprietary media, on our partners’ media (GAFAMs) or on the local media

- Our customers also have access to a full range of ranking tools, a strong expertise of Solocal, allowing businesses to appear ahead of their competitors on digital media

- Our cloud integration capabilities enable us to further leverage our technology platforms and their scalability
 

A business generating recurring revenues 

Solocal benefits from a virtuous business model, which results from the transition to a subscription model, and the development of a single platform benefitting from powerful network effects. 

By exploiting the unique nature of this platform model, Solocal is turning into a "one-stop-shop" for local businesses of all sizes and for consumers, by offering a range of digital services allowing:

- to help professionals to develop and manage their activity through a B2B Solocal Manager platform;

- accelerate interactions between professional and consumers, particularly through a B2C PagesJaunes platform

This platform model combines with an internal innovation approach, enables the rapid rollout of new high-margin solutions on an industrial scale, thus generating profitable growth.

Solocal is developing a unique system of digital services for local businesses of all sizes, brought together within a single interface, Solocal Manager, which enables professional to develop and manage their activity efficiently.

In Q4 2020, 82% of order intake were made through subscription. Solocal anticipates that most 2021 order intake will be subscription-based.

 

 

 

2020: Guidance delivered in an unprecedented health crisis context

Like other players of the French economy, Solocal Group 2020 activity has been impacted by the Covid-19 health crisis, as well as by the lockdown and business shutdown measures implemented by the Government.

During the second quarter of 2020, at the height of the pandemic, the Group provided estimates in terms of revenues and EBITDA which took into account the impacts of the crisis. As at 31th December 2020, these targets have been delivered.

Solocal Group has also halved its debt and divided its financial costs by two, to 20 million euros per year.

Subscription mode successful roll-out

2020 was the year of consolidation of the new model, with the deployment of a new digital subscription service offering. For the full year 2020, 81% of sales were made on subscription products, representing an increase of +37pts compared to 2019.

The subscription model is a structuring element in the transformation of the business model because it must allow:

- churn reduction 

- an improvement in customer acquisition

- the cross-selling of customers

 

An experienced management team with a recognised know-how and a digital expertise 

The management of Solocal is monitored by a new Board of Directors, a new governance and a recently renewed Management team whose interests are fully aligned with those of all stakeholders

In addition to the expertise of the new Members who recently joined the team, the Management team benefits from the experience of members who have been at Solocal for many years.

Pierre Danon is Chairman of the Board and acts as Chief Executive Officer for a transitional period from 5th October 2020 to 5th April 2021.Following a selection process conducted over the past few months, the Board of Directors of Solocal has decided to appoint Hervé Milcent as CEO of Solocal as of April 6th, 2021. From this date, Solocal will return to a dissociated governance, with Pierre Danon again becoming Chairman of the Board of Directors.

The leadership of our existing Management team, combined with the recent contribution of new recruitments, will help further improve our product offering, our competitive position as well as our financial results

 

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