Document de Référence D.05-0266 - PDF (1.5 Mb

Reference document
2004
2004
(extracts)
2
Situation and outlook, by the Chairman
3
Presentation of the group
• Consolidated financial data .............................................................................. 3
• History of the company and the group ...................................................... 4
• Jet Multimédia group activities and its positioning .............................. 4
• The market and competition ............................................................................ 14
Situation and outlook
During the year, our group reported 20% growth in revenues, plus an increase in profits.
Jet Multimédia also improved its position on the general public services market, especially in
the domain of mobility. In that respect, integration of Mediaplazza.com was a major step in our
development which enables the group to distribute content and services via the networks of
more than 120 telecom operators in almost 50 countries.
In the field of professional services for large companies and administrations, we have
enhanced our offers, whether in the telephony market and multimedia contact centres by
developing voice recognition, or the Internet market with solutions for secure platform facilities
management and outsourcing of e-mail message systems.
The industrial, marketing and commercial synergies developed with our "shareholder-partner",
Neuf Telecom, boosted our positioning.
Outlook
The prospects for Jet Multimédia group are very promising, thanks to our deliberate orientation
towards fast-growing markets.
On the basis of the scope of consolidation integrating the Mediafusion business acquired in
January 2005, group revenues amounted to approximately € 200m for 2004, which gives us a
prime position on the European market. In 2005, we expect to make about 50% of our revenues
on the international market, and 50% of our revenues from general public services.
Furthermore even after the acquisition of Mediafusion, Jet Multimédia still has substantial cash.
We have the means to finance our growth and accomplish other acquisitions.
So, all the conditions are combined, in the framework of the strategy we have defined, for
Jet Multimédia to continue growing by improving profitability.
Manuel Cruz
Chairman of the Executive Board
2
Presentation of the group
1. CONSOLIDATED FINANCIAL DATA
Statutory data
In millions of euros
2004
2003
2002
144.2
6.0
7.0
8.3
6.1
120.0
4.9
6.2
7.5
5.8
108.5
-3.5
-1.2
1.8
0.1
9.9
9.4
4.4
8.5
70.5
0.2
41.1
22.6
124.8
8.2
59.1
0.3
33.8
17.3
106.6
11.0
92.2
0.6
69.1
20.3
137.7
Total dividends paid
0.0
0.0
0.0
By unit
Current result per share (in euro)
Net profit per share (in euro)
Net profit diluted per share (in euro)
0.82
0.72
0.68
0.75
0.70
0.67
-0.11
0.01
0.01
Revenues
Operating result
Current result
Net attributable profit before goodwill depreciation
Net attributable profit after goodwill depreciation
Cash flow
Authorised capital
Shareholders’ equity
Long-term debt
Available cash (note 1)
Net value of fixed assets
Total balance sheet
Note 1 : in 2003, public offering by Jet Multimédia for its own shares in order to reduce its capital by 40.2 million euros.
Segmentation by activity
P&L account
In million of euros
Distribution
platform
& multimedia
hosting
Specialized
communication
& advertising
Total
group
124.3
104.3
93.9
19.9
15.7
14.6
144.2
120.0
108.5
Operating profit 2004
Operating profit 2003
Operating profit 2002
3.4
3.5
-5.6
2.6
1.4
2.1
6.0
4.9
-3.5
Current profit 2004
Current profit 2003
Current profit 2002
4.4
4.8
- 3.3
2.6
1.4
2.1
7.0
6.2
-1.2
Revenues 2004
Revenues 2003
Revenues 2002
Segmentation by geographic lovation
P&L account
In million of euros
France
Italy
Total
group
Revenues 2004
Revenues 2003
Revenues 2002
130.7
106.6
97.1
13.5
13.4
11.4
144.2
120.0
108.5
Operating profit 2004
Operating profit 2003
Operating profit 2002
5.1
4.2
-3.6
0.9
0.7
0.1
6.0
4.9
-3.5
Current profit 2004
Current profit 2003
Current profit 2002
6.1
5.6
-1.3
0.9
0.6
0.1
7.0
6.2
-1.2
3
Presentation of the group
2. HISTORY OF THE COMPANY AND THE GROUP
1989-1993
Creation and development of the group under the name of Jet Lag.
1995
Listing on the Hors Cote (OTC) market.
1996
Introduction of Jet Multimédia on the Second Marché of the Paris Bourse.
1997-2001
Very active internal and external growth policy:
• Launch and international development of Europe Explorer, first Internet access supplier without
subscription.
• Acquisition of Call, MTDI, Europe Action, Icor, Avenda, De Viris, Publiclair and Victoire Multimédia and the
assets of CDTel.
2000
Friendly takeover of 9 Telecom Network, French subsidiary of Telecom Italia, of the capital of Jet Multimédia.
Disposal of Europe Explorer to 9 Telecom Network.
2002
Disposal of 9 Telecom Network by Telecom Italia to the Louis Dreyfus Communications group (LDCOM), then a
simplified takeover of 9 Telecom Network on Jet Multimédia following the change of indirect control.
2003
Public offering by Jet Multimédia for its own shares to reduce its capital by 40.2 million euros.
Acquisition of Oxone Technologies.
2004
Acquisition of Mediaplazza.com.
Disposal of the stake held in Métaphora.
2005
Acquisition of the Mediafusion group in Spain.
3. ACTIVITIES OF THE JET MULTIMEDIA GROUP AND ITS POSITIONING
For the general public, Jet Multimédia ensures, directly or indirectly, the creation, aggregation, distribution and promotion of
mobile content and services for WAP, i-mode, SMS and MMS, etc., Internet sites, and audiotex and telematic services. With
locations in France, Spain, Italy Canada and Morocco, Jet Multimédia markets content for mobiles (ring tones, logos, videos,
Java games, etc.) in almost 50 countries on the 5 continents. Jet Multimédia is also a partner to the major French, Spanish
and Italian audiovisual medias for their interactive services.
For large corporations, administrations and organizations deploying strategic online services (e-commerce, multichannel
customer relationship, e-administration, etc.), Jet Multimédia provides high value added hosting services for Internet
applications (Web site hosting, facilities management of IP security platforms, outsourcing of e-mail message systems, etc.),
advanced telephony services (virtual call centres, multi-channel contact centres, alert emission platforms, etc.) as well as
marketing applications via mobiles (push SMS) and fax.
Jet Multimédia group activities in 2004 were organized into subsidiaries grouped into two main divisions:
The distribution platform and multimedia hosting: the platform primarily groups the activities of Jet Multimédia Hosting, Oxone
Technologies, IB Telematic, Mediaplazza.com and Icor structures in France and Jet Multimedia Srl and its subsidiaries in Italy,
Mediaplazza Canada Inc. in Canada and Maroxone in Morocco.
This branch includes all activities of production, aggregation and distribution of content as well as hosting, consulting, design,
development and integration of online services such as client relation telephone solutions, Audiotel and Minitel services,
applications for WAP, i-mode, SMS and MMS mobile phones, complex web Internet sites integrating databases, electronic
commerce and online payment, facilities management of IP platforms and outsourcing of e-mail message systems, for
companies and administrations wanting to deploy a strategy of presence on all networks.
This line of business accounted for 86% of consolidated revenues in 2004 compared with 87% in 2003.
4
Presentation of the group
Specialized communication - Advertising with Jet Média that operates in communications consulting for the promotion of
services online, buying and selling advertising space in media such as the free press, magazine press, radio, direct marketing
and Internet.
Jet Média is a vector of promotion and marketing for companies wanting to establish their brand in an extremely competitive
universe, by the promotion of a web site address, a phone number, a short SMS+ service number or a WAP service code. Jet
Média also has a communications consulting agency activity for a regional clientele. This line of business accounted for
14% of consolidated revenues in 2004 compared with 13% en 2003.
Change in group activity by division and technology
In millions of euros
2004
2003
2002
Distribution platform and multimedia hosting
Of which
Audiotel / Telephony
Internet, E-business and Monetics
Mobile services
Minitel
Other activities
124.3
60.1
37.9
11.2
7.9
7.2
104.3
66.5
22.7
1.5
8.7
4.9
93.9
58.1
14.8
0.5
12.8
7.7
Specialist communications and advertising
TOTAL
19.9
15.7
14.6
144.2
120.0
108.5
M€
160
140
120
Breakdown of the distribution platform
and multimedia hosting by technology
100
+19%
+11%
80
6%
9%
60
40
20
+27%
+8%
0
30%
49%
2002
2003
2004
Others
Distribution
and multimedia
hosting
Mobile services
Specialized
communications Advertising
Internet, e-business
& monetics
Minitel
Audiotel & telephony
6%
M€
140
Change in the distribution platform and multimedia hosting
activity by technology
+47%
120
+647%
100
-9%
80
+35%
Others
Mobile services
60
Minitel
40
Internet, e-business & monetics
20
-10%
Audiotel & telephony
0
2003
5
2004
Presentation of the group
3.1. THE DISTRIBUTION AND MULTIMEDIA HOSTING DIVISION
The Jet Multimédia activity consists of managing and distributing online services, as well as producing and/or assembling
content making up these services (web sites and Internet, Intranet or Extranet e-business applications, Audiotel telephone
services, client relation telephone platform management, Minitel services, WAP mobile services, i-mode SMS, MMS, etc.) for
its own behalf and that of editors, major media, companies and administrations.
This activity relies on an infrastructure made up of technical sites hosting group servers, in France (metropolis and overseas
territories), in Italy and Spain (as of 2005). These hosting and distribution platforms are interconnected by a network
infrastructure consisting of high bandwidth liaisons rented Jet Multimédia from telecom operators.
The activity also relies on the group’s human resources, namely the design teams (multimedia designers, IT graphists, sound
engineers), development (project managers, engineers, computer specialists and developers) and production (system
engineers, database administrators, network engineers, security engineers, operating technicians).
The group distribution platform and multimedia hosting services stand out by their capacity to offer partners all available
online technologies, so that they can maximise their return on investment by a demultiplication of their presence on all
networks: Internet, Audiotel, Telematic (Minitel) and Mobiles (voice, SMS, MMS, i-mode, WAP, etc.).
Recognised ability in all trades combined with a strong implication in some sectors of activity has enabled Jet Multimédia to
acquire a strong position on the French market for distribution and hosting of online multi-platform services. The advantages
procured by the alliance with Neuf Télécom allowed Jet Multimédia to win major tenders launched by large public or private
accounts: Banque de France, Assistance Publique - Hôpitaux de Paris, Crédit Immobilier de France, CNIEG, Fédération
Nationale Agricole, etc.
BtoC and BtoBtoC activities – Online services for the general public:
From the very start, the Jet Multimédia group developed a general public business based on the Minitel, which then
extended with Audiotel and recently took off with mobile services. This BtoC and BtoBtoC business consists of creating,
distributing and promoting interactive multimedia services for the general public:
- downloading music, pictures, videos, etc.
- personalisation of mobile telephones: logos, ring tones, games, etc.
- interactive services for games, competitions, quizzes, polling, voting, etc.
- convivial services: messages, dialogue, "chat", dedications, etc.
- sale of added value content: news, sport, weather, astrology, etc.
Marketing & technological intelligence
- Market watch
- Technology assessment
- Integration of software tools
- Handset tests
Aggregation of content & licenses
- Music labels & cinema
- Cartoon editors
- Photographs
- Brands
Management of services
- Hosting & supervision
- Animation, monitoring of games
- Production of statistics
- Digital Rights Management
Production of content
- Logos, screen images
- Animations
- Videos
- Games and Java applications
6
Presentation of the group
Today, the Jet Multimédia group is strongly positioned on the added value services market for mobile telephones and with
the subsidiary Mediaplazza.com has the leading world base of content for mobiles with a catalogue of more than
30,000 references: monophonic ring tones, polyphonic ring tones and MP3, black & white and colour logos, animated screen
images, answer-machine messages, vocal dedications, Java games, etc. Mediaplazza.com offers the first world distribution
platform by affiliation of content for mobiles, federating more than 20,000 affiliates (Internet sites, media, webmasters, etc) in
almost 50 countries, interconnected with more than 120 telecom operators. Mediaplazza.com also has a studio for the
development of Java games for mobile telephones which has designed and produced more than 25 games.
The development strategy of Jet Multimédia general public services activity is now part and parcel of an international effort
which goes well beyond the frontiers of the French market. Mobile operators, content editors, Internet gateways, audiovisual
media and the press have a real partner with Jet Multimédia for application packages and content ready for use to
generate additional revenues.
BtoB activities – Services online for companies and administrations:
The positioning of Jet Multimédia is that of a "distributor – hoster", working closely with partners in their strategy of online
presence. Jet Multimédia provides them with a technical platform linked to all telecom networks opening their information
systems and their dat-bases to the outside world, and the skills of group teams in application design and integration:
Suppliers of
services and
content
Users
Internet
Mobility
Telephony
Minitel
The "large accounts" activity of Jet Multimédia is concentrated on hosting of multi-channel online services integrating
Internet, fixed and mobile telephony. Its mission consists of being “a one-stop shop for hosting voice and data applications”.
Consulting
Integration
MULTI
CHANNEL
VALUE
ADDED
HOSTING
7
Evolution
Maintenance
Presentation of the group
The demand of large accounts, companies and administrations concerns services with increasingly more transactions: CRM,
e-business, remote-administration, etc. The Jet Multimédia group offers them solutions adapted to their needs by playing the role
of platform architect and integrator of technologies, thanks to partnerships signed with major suppliers of equipment and
software technologies.
The hosting activity includes the following technological offers:
• Internet :
o
o
o
o
o
Internet / Intranet / Extranet: dedicated hosting and management of application platforms
Security platforms for VPN-IP to Internet interconnection
Outsourcing of e-mail & messaging systems
Audio and video streaming
Secure micro-payment and payment solutions by bank card / monetics
• Interactive telephone and Audiotex services:
o Audiotel & IVS – Interactive Vocal Server with TTS (Text To Speech) and ASR (Automated Speech Recognition)
o CRM: management of incoming/outgoing calls with ACD (Automated Call Distribution) and CTI (Computer
Telephony Integration)
• Mobility: SMS, WAP, MMS, i-mode, etc
• Telematics: Web to Minitel in VdXML technology
The success of Jet Multimédia depends on an approach focussed on quality, with an industrial approach of hosting projects
based on extremely strict engineering processes:
• Upstream:
o Definition of architecture and components
o Integration of solutions / packaged technologies / development entrusted by our clients to computer engineering
companies or web agencies
o Development of specific software, if necessary
o Deployment – functional tests – load tests
• Downstream: evolutive equipment maintenance, software and applications
3.1.1. Audiotel and telephone services for client relations
With a leading position in France as regards development, hosting and distribution of Audiotel and telephone services for
client relations, Jet Multimédia has a perfect control of the telephone business: delivering personalised information, access
to data-bases, secure payment transactions, routing to call centres, use of text to speech technologies and voice
recognition.
All the know-how of the Jet Multimédia teams is combined here. Consulting services optimise the choice of numbers,
definition of the economic model and technological solutions. Our recording and sound production studio and our
know-how in the development field contribute to the enhancement of all vocal applications.
Our IVR (Interactive Voice Response) servers are divided among five platforms in France (three in metropolitan France and
two in the overseas territories), a platform in Italy and a platform in Spain (as of 2005), enabling the hosting or facilities
management of any project, deploying standard or specific architecture. Finally, Jet Multimédia proposes a solution to
optimise the impact of the telephone service, via promotion campaigns and special operations.
Jet Multimédia forms a major telephone server centre in the French market, with:
- a capacity of over 15,000 telephone lines,
- a national network in France with a presence in France and the overseas territories,
- a presence in Italy and Spain (as of 2005),
- audio servers, ACD (Automated Call Distribution) and CTI (Computer Telephony Integration) based on Monicom
technologies (specific to Jet Multimédia) and Netcentrex/MG2,
- voice recognition servers (4,000 simultaneous access using Telisma technology) and text to speech (Acapela / Elan
Speech technology),
- several digital recording studios,
- traffic at the end of 2004 in excess of 15 million calls per month (excluding Spain).
8
Presentation of the group
Jet Multimédia combines all the necessary skills to provide consulting, creation, sound engineering, IT development and
quality control of interactive telephone applications. Jet Multimédia deploys the most advanced technologies, such as voice
recognition and text to speech, placing them at the disposal of vocal service projects.
2004 saw a change in the product mix of the interactive telephone services activity. The tactic was to privilege services in the
domain of client relations and services for companies, generating a better margin than the high-traffic Audiotex services but
with low added value, in a very competitive French market.
Audiotex
Jet Multimédia runs the hosting and distribution of audiotex services for partners with large audiences such as:
- in France: Française des Jeux, PMU, TF1, FranceTélévisions, Canal+, LCI, Eurostar, Crédit Agricole, Crédit Lyonnais,
Société Générale, RMC,…
- in Italy: Mediaset, Canale 5, Rusconi Editore, Mondadori Editore, RAI,…
Audiotex services are services with shared revenues whereby both the supplier of the information or services is paid and the
telecom operator routing the communication.
In France, Audiotel operates mainly thanks to the France Télécom phone kiosk service, introduced in 1992, which allows
invoicing and recovery of remunerations due from service users. The service consumer pays both for the connection (cost of
transport and management of telecommunications) and the fees for consulting the service. The telecom operator pays the
suppliers and distributors of the services for the design and distribution of applications and content used by the end users.
Alternative operators are on this market but to date they have a very small share.
Customer relationship – management of incoming/outgoing phone call flows
In the domain of customer relationship services, Jet Multimédia continued deploying in 2004 the Service Platforms project
which involves setting up a national IVS (Interactive Vocal Server) + ACD (Automated Call Distribution) + CTI (Computer
Telephony Integration) platform to concentrate and direct phone calls to all the Caisses Primaires d’Assurance Maladie (the
social security offices that deal with beneficiaries and the medical profession). At the end of 2004, more than 85% of French
beneficiaries can call their Caisse Primaire via this platform, and obtain information either by automated means, or by
contact with one of the 3,000 phone operators.
The acquisition in 2003 of Oxone Technologies enabled Jet Multimédia to include the Hyperphone Contacter range in its
portfolio of solutions intended for the rapid distribution of phone, SMS and fax messages to a large number of people.
Depending on the context, this solution can be used for client relations or the distribution of alert messages, and is a really
interactive information system. As an information distributor, it is also a very efficient tool for the management of substantial
phone traffic involved in repetitive information. The applications are numerous and especially concern real estate agencies,
job search services or temporary work agencies. In 2004, this solution raised special interest in the distribution sector, for its
proactive client relations applications. In fact, its flexibility gives it tremendous efficiency to improve the client relations of
companies who no longer just want to answer their clients by making a call centre available, but prefer to provide a real
information service to clients in real time.
The total traffic of Jet Multimédia (Audiotel, shared cost numbers, incoming calls, outgoing calls) exceeded 165 million calls
and 360 million minutes of communications in 2004.
9
Presentation of the group
Telephone services business indicators
Number T2 operator connections (a T2 liaison = 30 simultaneous telephone accesses)
2001
223
2002
333
2003
478
2004
520
2001
110,156,120
3,077,560
113,233,680
2002
145,293,492
3,388,378
148,681,870
2003
155,231,542
3,654,657
158,886,199
2004
163,522,926
2,451,188
165,974,114
2002
5,028,465
191,923
5,220,388
2003
6,465,349
214,719
6,680,068
Number of T2
Telephone traffic managed (in number of calls)
Geographic location
France
Italy
Total number of calls managed
Telephone traffic managed (in number of hours connection)
Geographic location
France
Italy
Total number of hours managed
2001
4,373,577
177,131
4,550,708
2004
5,901,313
181,039
6,082,352
3.1.2. L’Internet
Hosting of Internet / e-business and Intranet / Extranet application sites, facilities management of IP platforms,
outsourcing of e-mail/messages
E-business and Internet are of great importance in the online strategy of enterprises, especially major accounts. The Internet
activity of Jet Multimédia has a special place for e-business and hosting of sites and strategic Intranet and Extranet
applications, as well as outsourcing of critical platforms linked to an IP network (secure Internet access for VPN-IP, email/message servers).
Our Internet hosting activity includes the following technological offers:
o Dedicated Internet / Intranet / Extranet: hosting and management of application platforms
o Security platforms for interconnection of VPN-IP to Internet
o Outsourcing of messages / e-mail
o Audio and video streaming
o Micro-payment and secure payment solutions by bank card / monetics
Jet Multimédia has a complete electronic commerce platform integrating most standard technologies for Internet and
e-business:
• Open Source: Linux, Apache, MySQL, PHP, SPIP, etc. technologies
• Proprietary technologies: Microsoft, Oracle, etc.
2004 was underscored by the commercial development of the IP security platforms offer launched in 2003. This solution lets
clients secure interconnection between a VPN-IP (virtual private network interconnecting several sites) and Internet, by
entrusting Jet Multimédia with the facilities management of a security platform managing all network filtering services,
protection against attacks (virus and worms, spam, intrusions) and management of nomad access. To do that, the network
and security specialists of Jet Multimédia have developed a modular offer including firewall, proxy, filtering software, antivirus,
antispam, detector and authentifying system technologies. In 2004, the Banque de France, Assistance Publique – Hôpitaux
de Paris, Crédit Immobilier de France, CNIEG, etc. opted for this solution.
2004 also saw the launch by Jet Multimédia, in partnership with Microsoft, HP, Ensim and Trend Micro, of its message/e-mail
hosting offer "Jet Hosted Exchange". This solution was designed on the proven grounds that the message system is now a
sensitive tool in a company, it must be secure, available and make employees work easier. But, the administration of a
message system requires skills and costly resources. Jet Multimédia wanted to satisfy company requirements by developing
a solution which capitalises on a solid experience in hosting, accessible via a simple, modular economic model. With this
solution, Jet Multimédia offers French enterprises the first outsourced message platform based on Hosted Exchange 2003. This
solution is deployed very rapidly, enabling client companies to profit immediately from its advantages, both in terms of
functions, and reduction of cost thanks to the pooling of skills and technical resources. This offer was chosen by B Braun
France and the Fédération Nationale Agricole in 2004.
10
Presentation of the group
Paying Internet – micro-payment solutions
Already present for some years on the paying Internet market offering solutions to pay for content, Jet Multimédia added
plurimedia virtual purse management (PMV) functions to its EasyClick micro-payment solution, enabling payment of Internet
content in a very flexible manner. The Jet Multimédia offer capitalises on fifteen years of experience of telematics and sale
of premium content. EasyClick PMV includes EasyClick, a micro-payment system and affiliation management combined with
the principal kiosks (Audiotel, Kiosk Micro, SMS+) and Safetis, a secure payment system by bank card, and prepaid card
systems. These systems can be used alone or integrated with a very flexible and evolutive solution of virtual purses which,
depending on the law in force in each country, allow immediate or deferred credit and debit. Discussions are underway to
include W-Ha technology and therefore, payment solutions on invoice from Internet access suppliers partners to the system
(Wanadoo, Club-Internet and Tiscali).
The acquisition of Oxone Technologies increased the volume of group activity on the paying Internet market. In fact, as of
2002 and 2003, Oxone Technologies took a significant position in the paying Internet market, with offers used by general
public service suppliers, especially directed to an adult public. This market is extremely competitive, with great volatility in the
forming of partnerships and strong pressure on prices.
Internet activity indicators
Bandwidth available (in Mb/s)
Geographic site
Lyon
Paris
Grenoble
Vélizy
Courbevoie
Total Internet bandwidth
2001
10
164
100
274
2002
10
255
265
2003
24
14
130
168
2004
16
12
1,155
40
1,223
Number of DNS (Domain Name Servers, site addresses of the type www.nomdedomaine.com) managed
2002
2,900
2003
2,480
2004
1,468
2001
2002
2003
2004
Number of secure payments
82,858
115,043
71,566
304,610
Including hosted services
Including external services
21,553
61,305
15,908
99,135
66,636
4,930
303,952
658
Number of DNS
2001
3,390
Number of secure payments managed on our monetic platforms
3.1.3. Mobile Services
The telephone services market is driven by the explosion in mobile telephony. With more than 44 million mobile phones en
service at the end of 2004, the market for nomad online services now represents a real mass market. Reception of information
on mobile phones, thanks to multi-access technologies, is the centre of Jet Multimédia concerns. Simplicity of use of SMS
services and the wealth of WAP and i-mode services are the key, really complementary words in Jet Multimédia’s mobile
service offers.
Mobile services include services intended for the general public, for access to 'information at all times and places, but also
services for client relations as well as services for internal use in companies, such as nomad access to an intranet.
Jet Multimédia is the ideal counterpart adapted to each stage of the project guaranteeing its partners total access to their
applications thanks to expertise in SMS platforms and WAP and i-mode gateways, letting them profit from the group’s
privileged relations with all the mobile operators. Jet Multimédia worked closely with its partners who wanted to start WAP
services and have them referenced on the kiosk platforms of operators, Vodafone Live! for SFR, Orange World for Orange. In
the same way, Jet Multimédia acquired a know-how in development and deployment of i-mode services, thus adding value
to the content distributed on the Bouygues Telecom i-mode platform. Finally, Jet Multimédia plays a very active role in the
development of Gallery, the mobile multi-operator kiosk whose traffic developed strongly in 2004.
11
Presentation of the group
Jet Multimédia has also managed interactive vocal services for several years on behalf of mobile operators, especially
Bouygues Telecom and SFR, with added value content routed through group servers. Apart from this technical aspect,
Jet Multimédia works on enhancing the value on mobile phone content already available on plurimedia servers.
In 2004, Jet Multimédia worked on the development of the premium SMS services market where it took a position as soon as
experiments started in January 2002. Jet Multimédia now hosts more than 160 SMS+ services on more than 50 short numbers
among the 350 short numbers open to the public at the end of 2004, in partnership with high-audience actors like
FranceTélévisions, La Française des Games, Tiercé Magazine, Disney Channel or Bouygues Telecom. These services had a
total traffic of almost 9 million SMS+ in 2004.
SMS activity indicator
Number of SMS managed
Geographic location
France
Italy
Total SMS traffic
2001
434,667
199,455
634,122
2002
5,934,870
321,158
6,256,028
2003
19,903,391
274,475
20,177,866
2004
28,382,086
641,897
29,023,983
3.1.4. Telematics and Minitel
Telematics (Minitel) was the group’s first line of business at the beginning of the 90s. Almost fifteen years experience in this field
gave Jet Multimédia recognised skill in integration of flows, access to data-bases and electronic commerce, and in
consulting public service information, and more recently, opening of web sites to the Minitel.
Because of the sustained growth of the Internet and mobile telephony, both of which are substitution technologies providing
substantial advantages, the French market for Minitel services is falling sharply: a drop of 25% in traffic in minutes and
revenues, with a 18% drop in repayments to editor services. At the end of 2004, 34% of the population aged 15 and over had
access to Minitel services at least, and there are only 3.9 million Minitel terminals in service (sources: France Télécom and ART).
The group’s Minitel activity includes edition, delegated edition and management of interactive general public services and
professional data-bases, an activity that involves collecting information or data, processing it, enhancing it, promoting and
distributing. The group’s edition of services activity has always been very present on general public market segments
(astrology, intelligence tests, games, health and diet tips, messages and dialogues, etc.). Investments in edition of general
public Minitel services have taken a hard knock following the widespread fall in this market. The business of editing content
for the Minitel is also positioned on the semi-professional and professional market with applications like stock market services
in direct and financial information. The relatively good resistance of these high added value services enabled the Jet
Multimédia Minitel activity to decline less in value than volume of traffic.
Jet Multimédia has a high capacity Minitel server centre hosting almost 600 Minitel services. In addition to hosting services on
its own systems, Jet Multimédia offers facilities management services, for example the management of the 3615 EDUTEL
service for the Ministry of National Education.
Minitel activity indicator
Minitel traffic managed (in number of hours connection)
Total number of hours connection
2001
1,704,000
12
2002
1,110,049
2003
530,367
2004
421,956
Presentation of the group
3.2. THE SPECIALIZED COMMUNICATION AND ADVERTISING DIVISION
In addition to the hosting platform and multimedia distribution activity, to help partners promote efficiently their general
public online services, the Jet Multimédia group developed a Specialist Communications - Advertising activity with Jet Média,
a communications consulting agency and advertising space purchasing group, having acquired a very strong position in the
free press and magazine press (women’s and TV papers).
The activity of the Jet Multimédia group is structured around three strong ideas:
• Ensuring the continuity of the chain of multimedia content distribution services by setting up a communications tool
capable of draining large flows of connection to content by giving a certain control in buying space thanks to our
agency specialised in general public products.
• Controlling the processing of large media flows, with a package allowing the announcer to be simultaneously present
in approximately 400 free press supports but receiving just one invoice with documentary evidence from all the supports
concerned. This activity comes with service contracts with the main French free press editors.
• Providing advice in communications based on past experience in editorial products.
Most of the online services editors are group clients, they entrust us with buying of space and the design of their campaigns,
and also creation of campaigns for suppliers of professional services. Group offers, which historically were mainly present in
the free press, were completed three years ago by a specialist advertising service in the magazine press, which boosted the
portfolio of Jet Multimédia titles with the weeklies (Voici, Nous Deux, Télé Poche, Télé Star, Télé Loisirs, Télé 2 Semaines) and
monthlies (Mon Jardin-Ma Maison) and professional reviews (La Revue Fiduciaire, la Revue Comptable).
In 2004, Jet Multimédia developed the activity of communications consulting launched in 2003.
This business provides clients with added value in terms of:
• Consulting and marketing: strategic consulting, direct marketing, brand identity,
• Creation and production: creation studio, production, edition, POS & packaging,
• Media planning and space buying.
13
Presentation of the group
4. THE MARKET AND COMPETITION
The Jet Multimédia group is one of the rare players in Europe to enjoy a transversal position on several segments of the online
services market, both in terms of technologies deployed and presence on the value chain. That is why the market and
competition should be considered activity by activity and not globally.
Jet Multimédia has been present for more than fifteen years on the online services market where it is one of the major players
in France. In this respect, and not just to anticipate market evolution but especially to play a leading role in putting forward
propositions, Jet Multimédia has been member for a great many years of the following professional associations:
- ACSEL - Association pour le Commerce et les Services En Ligne.
- GESTE - Groupement des Editeurs de Service en Ligne.
- SPMT - Syndicat Professionnel des Médias de Télécommunications.
- OMT - Office de Médiation Télématique.
Thanks to its representation in these professional bodies, Jet Multimédia has taken part in the policy discussions of the Conseil
Supérieur de la Télématique (CST) and the Comité de la Télématique Anonyme (CTA) as well as the SMS+ association.
4.1. THE DISTRIBUTION AND MULTIMEDIA HOSTING DIVISION
In this sector, Jet Multimédia is confronted by a multitude of rivals, both in B to B and general public activities.
For the BtoB activity, competition is from:
- Traditional hosting players, derived from telematics : Atos-Origin Multimédia division, Prosodie/MGN and France Télécom
Hébergement,
- Foreign players and operators (especially Anglo-Saxon) located in Europe and France on the Internet hosting market:
BT Fluxus, Colt, Easynet, IBM Global Services, Tiscali Entreprises.
Today, by the number, quality and diversity of its client references, Jet Multimédia is among the leading online service hosting
providers for companies in France. Its online experience based on fifteen years in the business and its capacity to offer global
solutions including Internet, interactive telephone services, mobile WAP/i-mode/SMS services, Minitel or Fax set it apart from
purely Internet or purely Audiotel suppliers who respond only partially to customer needs, especially major accounts.
In this context, three firms off strong rivalry for the Jet Multimédia hosting platform and multimedia distribution. They are
Prosodie/MGN, part of the Multimedia division of the Atos-Origin group, and to a lesser extent, the France Télécom group
(France Télécom Hébergement, Equant and CVF). The size of their structures, the technical capacity of the server platforms
(IT systems and multi-network telecom liaisons integrating Internet but also fixed and mobile telephony) as well as the
experience of their teams make them serious competitors for hosting and distribution of strategic and transactional online
services requiring substantial IT architectures and networks and to guarantee a secure infrastructure for the strategic projects
of clients.
For the BtoC and BtoBtoC activity, competition in France is more dissipated, especially in the domain of mobile services.
Numerous small structures, still independent or integrated in large international groups, operating on the market of distribution
and hosting of SMS services, downloading of logos and ring tones or creation and hosting of WAP and i-mode services. In this
contested world are to be found, in France: 123 Multimédia, Atchik, Atos-Origin, Avedya, Buongiorno France, Cellcast, CVF,
K-Mobile, Mobileway, Mobivillage, Netsize, Phonevalley, Plurimédia, Prosodie, ScreenTonic, Utel. On the European level,
competition includes players such as Buongiorno en Italy, I-Touch and Monstermob in the UK, Movilisto in Spain, Jamba and
WapMe in Germany. On the world level, major actors on this market are the Japanese Index Corp, For-Side, Faith, Cybird and
North American firms Jamdat and Zingy, subsidiary of For-Side.
4.1.1. Audiotel and interactive telephone services
Online services that can be consulted by phone exist in France since the beginning of the 80s and developed fast at the
beginning of the 1990s when France Télécom launched the Audiotel kiosk system. With several types of access numbers, the
Audiotel lets you sell different types of services at different prices and according to adapted commercial conditions
combining lump-sum invoicing and invoicing per time.
Statistics on Audiotel activity was released again by France Télécom in 2004, after a break in 2002 and 2003. Figures show that
strength of this market, as in three years the number of services open to the public rose from 11,200 to 12,987 (+16%) while
traffic went from 882 to 973 million minutes of connection (+10%).
14
Presentation of the group
Global traffic for Audiotel in France :
Year
Number of services
Number of calls (in millions)
1998
7,650
694
1999
7,750
723
2000
9,009
769
2001
11,200
882
2002
11,900
N/C
2003
N/C
N/C
2004
12,987
973
Source : France Télécom
The process of opening Audiotel to the competition was started in 1999 and for Jet Multimédia it produced its first effects in
2002, especially with a joint offer with 9 Telecom for numbers with shared revenues. But the commercial impact on 2003 and
2004 was weak, inasmuch as France Télécom has major advantages for editors and server centres (the guarantee of
repayments) that alternative operators cannot offer under the same commercial conditions.
The server centres and service suppliers now have “transferable” shared revenues numbers, that is to say that can be
transferred from one telecom operator to another. This is important for general public Audiotel services whose audience is
linked to the memorisation by consumers of access numbers in which substantial promotion budgets have been invested.
In the Audiotel market, the main rivals of Jet Multimédia are Prosodie and Atos-Origin and to a lesser degree, CVF (France
Télécom group).
The group’s Audiotel activity slipped slightly in 2004 in a highly contended market. In fact, by deciding not to sacrifice returns
for growth, Jet Multimédia preferred services that generate a better margin, and especially professional services on shared
cost numbers described below, rather than high traffic Audiotel services but with low added value.
Even so, Jet Multimédia continued installing, for the distribution of large audience content (TF1, France Télévisions, Française
des Jeux, PMU), short 3BPQ numbers that can be used to access new generation vocal service gateways. The traffic on these
short numbers, easier to promote among the public than traditional Audiotel numbers, contribute to the dynamism of the
Audiotel market.
4.1.2. Development of the shared cost number activity
Over and beyond Audiotel as such, namely the phone services accessible on additionally taxed numbers called shared
revenue numbers, the group has developed the business of company phone services accessible on special numbers known
as shared cost numbers. These numbers, which go by the name Numéro Vert, Numéro Azur and Numéro Indigo at France
Télécom, are also, because of the opening of this market to the competition, proposed by other operators, especially Neuf
Telecom and Cegetel. These numbers allow a company to communicate with its clients, partners or retailers by means of a
unique national number, whose price varies from completely free (the cost of the call is paid by the company called) to a
maximum price of 0.15 €/minute, with intermediary levels (prix of a local call and 0.12 €/minute).
The group opened such services for major accounts, foremost of whom is the Caisse Nationale d’Assurance Maladie. Via the
number 0820 900 900, insured parties can consult the social security data-bases and know when they will be reimbursed their
medical expenses and for how much. Via numbers 0 820 900 9XX (a number is attributed to each Caisse Primaire d’Assurance
Maladie), insured parties can reach a phone councillor for a rapid personalised answer.
The capacity of Jet Multimédia to manage very large volumes of calls on servers allows it to make increasingly sophisticated
offers, of the virtual call centre type. These offers consist in concentrating on a number of national calls that can then be
dispatched to local structures who will process them. Intelligent call distribution mechanisms as a function of factors like the
geographic origin of the call or the type of request are applied on the central reception server, which affords considerable
flexibility and optimises means and resources. That is why Jet Multimédia was chosen again by the Caisse Nationale
d’Assurance Maladie for its Service Platforms project, which consists of deploying an IVS + ACD + CTI national server to
concentrate and dispatch all phone calls to all the social security centres. At the end of 2004, with this application alone Jet
Multimédia reported monthly traffic of more than 2.5 million calls and about 7.5 million minutes, even though the system was
not fully deployed and only 85% of the French population insured was likely to access the service.
New contracts were signed as of the autumn 2004, especially with major public services or service enterprises, and start of
production as of the first half of 2005 will sustain growth of this activity over the coming years.
15
Presentation of the group
4.1.3. Internet, hosting of web sites and IP platforms and micro-payment solutions
The strong growth of e-commerce and the use of the Internet in relations between companies and administrations, their
clients and suppliers have modified the problem of Internet hosting and boosted the emergence of players capable of
proposing high added value services and meet the needs of major accounts.
The priority of these clients is the capacity to lead the site visitor or user to achieve the purpose of the hit in the best possible
conditions and complete all necessary operations. For example, in the case of an online commerce site, these operations will
be the consulting of the catalogue, capture of the order, validation of the order form and delivery conditions, then the secure
payment transaction. In this context, it is essential that e-commerce sites are interfaced with different systems: logistics, online
payment, central reservation, and more generally company IT systems. Furthermore, to be commercially competitive, sites
should offer functions of the latest technology: data-base management, integration of the global information system,
personalised marketing tools, etc.... Naturally, sites must provide maximum availability, which means operating 24 hours a
day, 7 days a week, an easily extendable processing capacity and a totally available bandwidth (connectivity) to receive
sudden increases in visitors without dysfunction or saturation.
The Internet hosting market in Europe is very competitive and still quite fragmented. The main factors of competition in this
market include expertise in engineering of Internet systems, the capacity to ensure good connectivity to Internet and to
provide good administration tools, service to the client, network capacity, reliability, constant service and adaptability,
extensive geographic coverage, a recognised name, technical expertise, a variety in the functions of operations and
services proposed (shared or dedicated server, global management of the platform and applications), the capacity to
maintain and develop distribution channels, client support, prices, pertinence of time delays for the introduction of new offers,
security of networks, financial resources and conformity with industrial standards.
Jet Multimédia took the firm decision to operate in hosting complex and transactional sites, most frequently hosted on
architectures dedicated to the needs of each client, but also in basic offers on shared servers. Jet Multimédia hosting
contracts are generally signed for an average two year period, which allows the group to benefit from recurring revenues
during that period.
The method of invoicing for hosting is related to parameters such as:
- The number de servers used (hosting on dedicated servers) or the volume of disk space used (shared hosting),
- The volume of information distributed and thus consumption of IP bandwidth,
- Use of software licenses (data-bases, server applications, personalisation tools, middleware),
- The level of service and availability (SLA - Service Level Agreement).
After a very marked pause in 2001 and 2002, the group noticed a recovery in demand as of 2003, especially from major accounts
for whom Internet and e-business are strategic subjects where investments must be increased or renewed. To move ahead and
attempt to go faster than the market, Jet Multimédia hopes to profit from a growth relay with new offers included in the catalogue
in 2004. So, since autumn 2004, a large number of commercial propositions are made to provide major accounts with IP security
platforms solutions and "Jet Hosted Exchange". Several contracts have been signed with large enterprises and administrations,
including the start of production during 2005 which should boost development of the group’s Internet activity.
The activity in micro-payment solutions on Internet, reinforced on the acquisition of Oxone Technologies, is very competitive and
Jet Multimédia is confronted with a host of players in a fiercely competed market (AlloPass, PayByTel, NetPlusAudio, ValueClick,
MagicPass, PayToGet, Rentabiliweb, etc.) offering solutions comparable to its EasyClick / Clicktime / AllôTicket offer. On this market
Jet Multimédia profits from its strong technical capacity.
16
Presentation of the group
4.1.4. Mobile services
The sector of mobile services is especially dynamic since 2003. Jet Multimédia managed to take a position in this sector, firstly
by developing and hosting SMS services then by becoming a big player in the mobile Internet market, i.e. for interactive
services using WAP and i-mode technologies.
SMS services
Jet Multimédia took a position on the SMS market as of 2001, implementing its own multi-operator platform to emit and
receive SMS. The group was among the first operators on the SMS kiosk market, a paying system enabling an exchange of
information by SMS between a user and an application hosted on a server.
Jet Multimédia is working on the development of this market which experienced very fast and substantial development. Jet
Multimédia hosts and distributes more than 160 services in France on more than 50 short SMS+ numbers among the 350 short
numbers available to the public. Total traffic total in the SMS+ kiosk market reached a volume of 228 million SMS+ and
135 million euros of revenues in 2004 (source: Association SMS+). Jet Multimédia’s share of the traffic was more than 8.8 million
SMS+ in 2004, giving it market share of about 4% by volume in France.
According to the report published at the beginning of 2005 by the SMS+ association:
- 500 short numbers were reserved at the end of 2004 and 70% of those numbers (or 350 numbers) were commercially
open,
- 143 service editors have at least one short SMS+ number,
- 47% of SMS+ numbers reserved are on the P6 system (0.35 € per SMS),
- P7 (0.5 € per SMS) and P8 systems (1 € or 1.5 € per SMS) opened during 2004 and developed fast in 2004 representing
44% of reserved numbers.
Global SMS traffic in France
Year
Number of SMS (in millions)
2001
3,234
2002
5,969
2003
8,089
2004
10,456
Source : A.R.T. - Observatoire des mobiles
Situation of SMS+ activity in 2004
EVOLUTION IN THE NUMBER OF SMS-MO SENT
2004/2003 : +66% OF TRAFFIC
NET REVENUES (in €, excluding transport)
2004/2003 : +92% OF REVENUES
80,000,000
40,000,000
70,000,000
35,000,000
60,000,000
30,000,000
50,000,000
25,000,000
40,000,000
20,000,000
30,000,000
15,000,000
20,000,000
10,000,000
10,000,000
5,000,000
0
Quarter 1
Quarter 2
2003
Quarter 3
0
Quarter 4
2004
Quarter 1
Quarter 2
2003
Source : Association SMS+
17
Quarter 3
2004
Quarter 4
Presentation of the group
The mobile Internet - services and WAP and i-mode content
The mobile Internet is a very dynamic sector. According to studies published in 2003 and 2004, the period 2005-2010 will be
underscored by an explosion in the use of mobile services:
• 64% of the French aged 11 to 19 have already downloaded a ring tone (source: Médiamétrie),
• More than 10 million mobiles in France use multimedia services - WAP, i-mode, MMS or e-mail – i.e. 25% of the range
(source: ART),
• Transactions from mobiles could represent € 53bn in 2009 in the world (source: ARC Group),
• Mobile Java services could represent € 15bn in 2008 in the world (source: ARC Group),
• Java games could represent a market of € 1bn in 2005 and 6bn by 2010 in the world (source: ScreenDigest).
The Jet Multimédia group has developed WAP know-how since 2000, but this technology developed far slower than forecast
and it was only as of 2003 that it took off with the marketing and promotion by gateway operators of Vodafone Live! (SFR)
and Orange World (Orange) after the launch at the end of 2002 by Bouygues Telecom and its i-mode gateway.
In 2004, mobile WAP and i-mode services, presented to the public as mobile Internet, developed very hard, in a context of
renewal of the mobile terminal range where the volume of 2.5G WAP and GPRS compatible terminals rose fast. Jet
Multimédia actively looked for partners who wanted to start WAP services and have them referenced on Vodafone Live!,
Orange World and i-mode operator platforms, as well as on the multi-operator Gallery kiosk which expanded very fast.
According to Orange, the Gallery kiosk includes 324 services open at the end of 2004, accessible to a range of 7 million
compatible terminals (76 mobile telephone references), and already representing a total of 5 million purchases in 2004. Just
for December 2004, 500,000 visitors alone made 2 million hits, these visitors made approximately 2.5 purchases a month for an
average basket of 1.60 euros net per purchase. Gallery is in the process of taking a position in the kiosk system for mobiles, as
was the case for Audiotel in the time of the fixed phone and Minitel.
Beyond its service hosting and distribution activity, Jet Multimédia enlarged its positioning by coming in upstream on the
content market, in edition and delegated edition. The acquisition in April 2004 of Mediaplazza.com was a decisive step in
that direction. Mediaplazza.com offers a series of solutions related to the development of mobile technologies and content
on the Internet. In less than three years, Mediaplazza.com built the first platform for the sale of mobile content using the power
of the Internet and the web as a distribution channel. Today, Mediaplazza.com is present throughout the world, and
agreements with more than 120 telecom operators means it can offer the content of its catalogue in almost 50 countries. The
network of Mediaplazza.com Internet sites and its partners has an audience of 60 million visitors every month, which places
the Jet Multimédia group, at the start of 2005, in the Top 400 of Internet audiences worldwide, all site categories included.
The Jet Multimédia group has developed an original approach to the content market for mobiles, using Internet as a
promotion and sales channel. This approach is confirmed by the projections in growth of the number of surfers and mobile
phone users in the world. During the period 2004-2007, the number of surfers could grow by 44%, from 934 million to 1.35 billion.
During the same time span, the number of mobile users could go from 1.4 to 2.1 billion, i.e. growth of 50%.
Forecast of the number of mobile users
in the world (in millions)
Forecast of growth in number of surfers
In the world (in millions)
2,500
1,600
+44%
1,400
+50%
2,000
1,200
1,000
1,500
800
1,000
600
400
500
200
0
0
2004
2005
2006
2004
2007
Source : Computer Industry Almanac
2005
2006
2007
Source : Ins-Stat/MDR
The integration of Mediafusion, the Spanish leader in services for mobiles, acquired in January 2005 by the Jet Multimédia
group, will further strengthen the clout of services for mobiles in the group’s overall activity, and so accelerate growth.
Mediaplazza.com, is already present in almost 50 countries, and has started development in South America and Mediafusion,
leader en Spain, will be able to enhance its content catalogue for Hispanic mobiles in the framework of this development.
18
Presentation of the group
In this market of creation, aggregation, distribution and promotion of content for mobiles which has become a global market,
the Jet Multimédia group is confronted by international competition, made up of European North American and Japanese
rivals.
The main actors in Europe, on this actively consolidating market, are:
- In France: 123 Multimédia (subsidiary of Japan’s Index Corp which took the firm over in 2004) is a major player on a
market where CellCast, DigiPlug (subsidiary of the Japanese group Faith since August 2002) also operates, K-Mobile
(subsidiary of the America AG Interactive since the summer of 2004) and Mobivillage (subsidiary of Japan’s For-Side
since the end of 2004).
- In Italy: Buongiorno, the Italian group which bought GSMBox at the end of 2004, also present in France.
- In the UK: I-Touch and Monstermob.
- In Spain: Movilisto (subsidiary of I-Touch).
- In Germany: Jamba and WapMe.
At the world level, the main actors on this market are the Japanese Index Corp, For-Side, Faith, Cybird and North Americans
Jamdat and Zingy (subsidiary of For-Side).
4.1.5. Telematics and Minitel
In 1978, France launched the Videotex programme so as to equip every French home with a computer terminal. After an
experimental and initial development period, France Télécom opened the Télétel kiosk in February 1984 accessible by calling
3615, which enables suppliers of information to be remunerated. The Minitel market developed strongly to reach its climax in
the middle of the 90s, then to decline as of 1997.
Because of the now important penetration of the Internet among the general public, the drop in traffic on Minitel services
which has accelerated in the last three years now affects all types of service. After a slump in traffic (in time volume) of 21.6%
in 2003, the Minitel market posted a further drop in 2004 of 25% (source: France Télécom).
At the end of 2004, according to France Telecom, the decline in the range of dedicated Minitel terminals is offset by new
accesses from PCs and Internet www.minitel.com gateway, such that 34% of the population aged between 15 and over has
access to Minitel services.
The tables below show the evolution of the main Minitel market indicators in France:
Number of terminals
Year
Minitel terminals installed
1998
5.9
1999
5.6
2000
5.1
2001
4.9
2002
4.8
2003
4.5
2004
3.9
2002
685
46.8
2003
574
36.6
2004
475
27.5
2002
313
2003
255
2004
208
(in million units, excl. PC with emulator)
Source: France Télécom
Global Minitel traffic, excl. Electronic phone directory
Year
Number of calls (in millions)
Number of hours consulting
(in millions)
1998
1,176
80.5
1999
1,121
74.7
2000
992
66.3
2001
832
57.5
Source: France Télécom
France Télécom payments to service providers
Year
France Télécom payments
(in millions of euros
1998
518
1999
503
Source: France Télécom
19
2000
444
2001
368
Presentation of the group
Evolution of Minitel traffic
Rate of decline 2000-2004
Source: France Télécom
Service editors are paid from reimbursements made by France Télécom who invoices consumption in the phone bill to the
final user. These payments are in proportion to the cost of communication for the editor service codes. In 2004, payments
represented about 208 million euros, down 18% on 2003 (source: France Télécom).
In 2004, Jet Multimédia recognised that traffic for general public services (messages, chat, games, astrology, etc.) continued
falling. On the other hand, financial and stock exchange information services as well as corporate information services
resisted better. The result of these two trends led to a fall of 9% in Minitel activity revenues for Jet Multimédia in 2004, less than
the fall in the market. Incoming years the group expects a regular fall in the Minitel activity, whose weight in overall group
activity has become insignificant.
4.2. THE SPECIALIZED COMMUNICATIONS AND ADVERTISING DIVISION
The group has a strong position on the advertising market for online services in the traditional media. In fact, Jet Média is in
the top 5 buying groups in the French free press and has access to magazine press journals, especially women’s and TV press,
which are offered as promotion tools for web sites, services for mobiles and Audiotel or Minitel services.
The group is up against all the communication and general advertising agencies who can provide their services to distributors
of online services.
To our knowledge there is no detailed data indicating the share of online services by advertise in the traditional media.
Nevertheless, we find that after a drastic reduction in advertising investments for Internet sites following the explosion of the
new economy bubble, there has been a recovery in the last two years. This is notable due to the development of the mobile
personalisation services market (downloading of logos, ring tones, games, etc.) which involves buying of space for the
promotion of the content and Audiotel and SMS+ numbers so they can be bought. Furthermore, Jet Média profited in 2004
from the launch by a major press group partnering new TV press papers. These bi-weeklies, which bolster the offer for
advertisers, were a real boost for the market and contributed to the strong growth of Jet Média revenues. One can imagine
that a redistribution of advertising investments will occur in 2005.
The group, which mainly works in the free and magazine press, has a very strong position among players from the telematics
world, who produce general public services like games, astrology and chat. On this segment, Jet Média has no organised
competition. In its traditional advertising agency activity developed since the end of 2003, competition comes from
advertising agencies in the Rhône-Alpes region.
20
Presentation of the group
21
04 37 48 22 91 - 123
www.jetmultimedia.com