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PRESS CONTACT:
Shigeyoshi Fujiwara
Corporate Communication,
Faith Inc.
mail_to_ir@faith.co.jp
TEL: +81-(0)3-5776-6255 |
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Faith sells Digiplug, European contents distribution solution business |
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| Tokyo-March 12, 2007 - Faith Inc. (hereinafter referred to as “Faith; TSE stock code: 4295) is pleased to announce of the sale of all the shares of Digiplug S.A.S., French subsidiary. |
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| (1) Purpose |
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Since 2002, Faith has expanded its contents distribution business, which mainly creates, distributes and markets ringtone and realtone services for mobile phones in U.S. and Europe, establishing Moderati, Inc. (hereinafter referred to as “Moderati”) in May, and merging and acquiring Digiplug S.A.S. (hereinafter referred to as “Digiplug”) in August. And also, Faith acquired 51.1% shares of AnyMusic Limited in China (hereinafter referred to as “AnyMusic”) in December. In addition, Faith expanded its service areas including South America through mergeｒ and acquisition of TakeNET Group in Brazil in March 2005.
On the other hand, under the situation where the competition between mobile operators has been fierce, the business pressure has been much stricter accordingly based on fierce competition among many contents providers or tendency to be distributed contents by mobile operators themselves. Particularly in the U.S. and European markets where high-quality contents have been required, Faith has recognized that there exist the limits of the sole effort within the Faith Group for the future growth.
Therefore, Faith has decided to sell its contents distribution solution business in Europe, following the sale of its content distribution business in the U.S. |
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| (2) Details |
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Faith sells all shares of Digiplug S.A.S., French subsidiary, which provides distribution solutions relating to contents for music labels, to Accenture Holdings BV. |
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| １．Profile of Digiplug |
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1) Name of Company
2) Representative
3) Address
4) Date of Establishment
5) Business Summary
6) Fiscal Year End
7) Number of Employee
8) Capital Stock
9) Shareholders
10) Financial Highlights |
Digiplug. S.A.S.
CEO Boris Lacroix
Paris, France
March, 1998
Digital contents distribution solution
December
58
859,000 Euro
Faith, Inc. 85%
（Unit: Thousand Euro） |
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Year Ending Dec. 2005
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Year Ending Dec.2006（Forecast) |
| Sales |
4,039 |
7,166 |
| Operating Profit |
△1,802 |
△8 |
| Pretax Net Profit |
△1,701 |
△179 |
Net Profit
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△1,643 |
19 |
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| 11）Asset |
（Thousand Euro） |
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Year Ending Dec. 2005
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Year Ending Dec.2006（Forecast) |
| Asset(Gross) |
4,431 |
4,482 |
| Asset(Net) |
△25 |
△6 |
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| 2. Transferee |
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1) Name of Company
2) Representative
3) Address
4) Business Summary
5) Business Relations |
Accenture Holdings BV.
Mr John Coltsmann
Hague, the Netherlands
Investment company
Nil |
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| 3. Detail of the shares transfer |
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1)Number of shares held before the transfer
2)Number of shares transferred
3)Number of shares held after the transfer |
730,150 (85% of outstanding shares)
730,150 (Transfer price：15,215,000 Euro)
Nil(Nil of outstanding shares) |
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| 4. Schedule |
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9 March, 2007 (French time) Conclucion of the contract that all the Digiplug stock Faith owns is transferred to Accenture.
9 March, 2007 (French time) Transaction of the stock transfer |
| 5. Financial Impact |
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Extraordinary gain on the sale is 2.3 billion Yen at consolidated basis, and 2 billion Yen at non-consolidated basis. 2006 fiscal year ended December and the extraordinary gain was already incorporated into Faith Group 2006 financial forecast announced on 9 Feb. 2007, so no material impact to 2006 Faith Group performance.
Faith group is now working for the projection for Fiscal Year 2007 (Year Ending March 2008) and will announce it as soon as available. |
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About Faith, Inc.
Faith was the first company in the world to design and apply “ring tones” for mobile telephones and expanded its business activities not only within Japan, but also into 21 countries throughout the world including North America, Europe, the Asia-Pacific region and South America. Moreover, the company provides electronic money service used for settlement of accounts for on-line games, music distribution and e-commerce. In the future, Faith further aims to be a high added-value service company through the creation on a global scale of “a new scheme for the distribution of digital contents” in various environments such as mobile telephones and PCs.
For more information, visit http://www.faith.co.jp/ |
