SoLocal Group

Decrease of Q3 Internet Revenues -5%

Regulatory News:

SoLocal Group (Paris:LOCAL):

Q3 2017 :

• Internet revenues : -5%¹, i.e. -1%² in the first 9 months

Outlook for 2017 revised downwards :

• Internet revenue growth : around -1% ³
• EBITDA⁴ : ≥ € 190m

When releasing the Q3 2017 revenues, Eric Boustouller, Chief Executive Officer of SoLocal Group, quoted: « With mobilization of all SoLocal teams, I will do everything possible to get as close as possible to previously announced 200 million euros EBITDA outlook. However, at this stage I cannot commit to more than 190 million euros of EBITDA for 2017. I am confident in our capability to generate and accelerate the growth of the Company, - the 4% growth of the Internet sales orders of the quarter testifies to this - but this requires, among other things, to re-invent deeply our Local Search and to accelerate strongly our Digital Marketing. The actions are initiated, but it will probably take time to fully materialize: we must therefore commit actions now allowing us to drastically reduce our costs. Beyond the first measures taken as soon as I arrived allowing to cut costs by more than 15 millions euros in the second half of 2017 and on a recurring basis, there are many other short-term levers, as well as more massive actions in the medium-term that will go through the industrialization and digitization of our processes and our organization. I will detail all of these actions and the strategic plan in which they will take place, on 15 February, at the occasion of the publication of the 2017 annual results. »

¹ Q3 2017 vs Q3 2016 – ² 2017 vs 2016 - ³ 2017 vs 2016, scope : continued activities - ⁴ Recurring EBITDA, scope : continued activities

I. Revenues

SoLocal Group's revenues for the third quarter and first 9-month of 2017 were as follows :

In millions of euros		Q3 2016		Q3 2017		Change		9M 2016		9M 2017		Change
Internet revenues		156		148		-5%		478		471		-1%
Local Search		120		107		-11%		363		342		-6%
Number of visits (in million)		616		634		+3%		1 822		1 890		+4%
ARPA1 (in €)		245		229		-6%		728		724		-1%
Number of clients (in thousand)		490		466		-5%		499		472		-5%
Digital Marketing		36		41		+13%		115		130		+13%
Penetration rate (in number of clients)		23%		24%		+1pt		23%		24%		+1pt
Print & Voice revenues		41		29		-29%		124		92		-26%
Revenues		197		177		-10%		602		563		-6%

¹ Average Revenue Per Advertiser