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July 2012



Over the past year, Netbooster made a important transformation. This step was necessary after several years during which the group has multiplied pan-European acquisitions (8 between 2006 and mid 2011) without really trying to properly integrate it. This transformation was made in 4 steps : 1/ shareholder with the rise in capital of R.Zier ; 2/ managerial with the renewal of a large part of the management team ; 3/ operational with a major reorganization of the suply, of budget process and of legal entities ; 4/ financial with the renegotiation of the convertible bond and the achievment of a capital increase of € 5,36 M in February 2012.
Operating in a market still growing, NetBooster is an actor mastering the entire spectrum of digital communication, including the latest innovations in social networks, AdExchange (on which it is leader in Europe with over 100 active clients and that could eventually represent 20% of the Display market), able to support the advertisers at the European level, mainly on the three most important markets such as France, Germany and the UK. After an encouraging first quarter, the group’s strategy should enable it to post in 2012 a good sales momentum. Also backed by the full integration of recent acquisitions, (MetaPeopole and TradeDoubler Search), we believe that Netbooster expected to grow its consolidated gross margin of 35%.
In terms of results we expect a lot this year. Netbooster must confirm his recovery and finally demonstrate its ability to generate good levels of profitability. With the full-year impact of restructurings, the rise of higher value added offers and the establishment of billing performance, Netbooster should issue in 2012 an EBITDA/ Gross Margin ratio greater than 11%.
The medium-term prospects are also favorable (2011-2014 CAGR in gross margin of 17.4% and EBIT by 67.5%).
After updating our valuation model, our target price now stands at € 3.43 (vs. € 3.85) a potential of 64.9%. We therefore confirm our Buy opinion.
Loïc Wolf
+ 33 (0) 1 71 18 13 37