Alchimie Finalizes Commercial Contract Transfer to Digital Virgo
Overview of Alchimie's Recent Transition
Alchimie (FR0014000JX7 – ALCHI – PEA-PME eligible), a leading B2B streaming platform, has recently made significant strides in its business model. The company specializes in enabling brands and media to create dynamic themed video channels tailored to their content needs. In this latest move, Alchimie has confirmed the closing of its commercial contracts transfer to Digital Virgo, a known specialist in mobile payment and monetization solutions. This development comes after receiving necessary regulatory approvals.
Details of the Contract Transfer
On a previous date, Alchimie and Digital Virgo entered a memorandum of understanding aimed at the sale of three commercial contracts that pertain to operations in France. In addition to this, there was the divestment of their German subsidiary, which manages four more contracts outside of France. It is noteworthy that these contracts represented a substantial part of Alchimie's business, generating about 85% of its annual revenue over the last two years.
Strategic Shift for Alchimie
This transition signals a strategic pivot for Alchimie, which has been realigning its operational focus since 2022. The company is now set to streamline its organizational structure and optimize its financial resources moving forward. Alchimie will no longer be engaged in the historical activities related to the Direct Carrier Billing (DCB) agreements. These agreements previously allowed for digital service accessibility through telecom operators but have seen a considerable decline in revenue due to subscriber attrition—around 30% annually over several years—prompting a necessary reevaluation of its business strategy.
Emphasis on Video-On-Demand Services
With the transfer of these contracts now completed, Alchimie is dedicated to concentrating on the enhancement of its video-on-demand (VOD) channels. The company plans to significantly accelerate the deployment of its new VOD platform, known as videowall, which has been adopted by numerous partners. This platform aims to provide users with quality streaming options while expanding the editorial opportunities available for various channels.
Insights into Digital Virgo
Digital Virgo stands as a prominent global partner for telecom operators, providing state-of-the-art mobile payment solutions and monetization strategies. The company’s offerings include a highly automated payment management platform alongside a rich selection of monetization services across various sectors such as entertainment and digital ticketing. Digital Virgo operates in more than 50 countries worldwide, boasting an impressive revenue exceeding €400 million annually, supported by a robust team of over 800 experts dedicated to local partnership support.
Future Outlook for Alchimie
Looking ahead, Alchimie has scheduled its full-year 2024 financial results release post market close. This will undoubtedly offer further insights into the ramifications of this recent transition and the company’s trajectory in the evolving world of video streaming. As Alchimie works diligently to harness its technological assets and expand its VOD services, the future remains promising.
Frequently Asked Questions
What does the transfer to Digital Virgo mean for Alchimie?
The transfer allows Alchimie to focus on enhancing its video-on-demand services and streamlining operations while leveraging technological strengths.
What types of contracts were transferred?
The contracts transferred include historical DCB (Direct Carrier Billing) agreements associated with telecom operators, primarily subscriber bases.
How will this impact Alchimie's revenue?
Since these contracts accounted for 85% of Alchimie's revenue, the focus will shift toward rebuilding and growing revenue through innovative video services.
What is Alchimie's future strategy?
Alchimie will prioritize the deployment of its videowall platform and expand the editorialization of its video channels to attract and retain audiences.
Who is Digital Virgo?
Digital Virgo is a global partner specializing in mobile payment and monetization solutions, supporting telecom operators with effective payment management tools.
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