Press Release in accordance with CONSOB Regulation No. 11971/1999 and subsequent modifications
FIRST QUARTER REPORT 2006:
REVENUES AT EURO 22.7 MILLION (+56% COMPARED TO Q1 2005)
EBITDA AT EURO 3.4 MILLION (+13% and a margin of 15%, in spite of strong investments for international growth)
EBIT AT EURO 2.4 MILLION (+8%, margin of 11%)
NET FINANCIAL POSITION INCREASES TO EURO 23.9 MILLION
* Consolidated revenues at Euro 22.7 Million: +56% compared to Q1 2005.
* Compared to Q4 2005 revenues from international operations have doubled and now represent 31% of consolidated sales.
* EBITDA at Euro 3.4 Million (Euro 3 Million in Q1 2005), in spite of strong investments for the start-up of international operations whose benefits will be seen in the coming quarters given the important growth in the customer base.
* EBIT at Euro 2.4 Million (Euro 2.2 Million in Q1 2005).
* Net profit of Euro 1.7 Million, an increase of 30% compared to Q4 and in line with the same period in the previous year.
* Net Financial Position at March 31, 2006 equal to Euro 23.9 Million, compared to Euro 23 Million at the end of 2005.
Florence, May 9 2006 - The Board of Directors of DADA (MTAX STAR: DA.MI) today approved the DADA Group Consolidated Quarterly report at March 31, 2006.
The first quarter of 2006 confirmed the leadership of DADA in Italy in the community and entertainment products and services market accessible both via web, through the pc, and via mobile. In relation to this, it is recalled that the DADA Consumer offer is characterised by a wide range of “Mobile Entertainment” and “Community” digital products and services via web and mobile – through the SMS/MMS channel and the presence on the ‘Decks’, i.e. the micro-portals, of the main mobile phone operators. In this context, the DADA Group has achieved significant growth in terms of subscriptions, expressed through the brands www.dadamobile.com and www.supereva.com and the new beta.dada.net, which now represents 74% of the consolidated sales.
The quarter was marked by the success of the internationalisation process of DADA services in the VAS mobile world: the DADA consumer offer is now available to users of over 20 mobile operators worldwide, in particular in Italy, the USA, the UK, Germany, France, Portugal, China and Australia, for a total “addressable market” of over 700 million mobile users on second and third generation networks.
Evidence of the localisation success of DADA’s products internationally is highlighted by the fact that at March 31, 2006 the sales from international operations doubled compared to Q4 2005 and represent 31% of the DADA Group’s consolidated sales.
Economic-financial results
At Group level, the first quarter of 2006 recorded consolidated sales of Euro 22.7 million (an increase of 56% compared to the same period of the previous year) and a positive consolidated EBITDA of Euro 3.4 million with a margin on consolidated sales of 15%.
In the sales comparison with the fourth quarter of 2005 (equal to Euro 23.5 million) it should be recalled that there was a positive contribution in relation to both the definition of revenue recoveries with some telephone operators in part referring to previous quarters of the year, and that on a prudent basis were not credited to the income statement given the uncertainty on these items, and also the different contractual method of recognising revenues from some operators. The pro-forma growth in consolidated revenues, taking into account the above-mentioned operations would have been 20% in the first quarter of 2006 compared to the fourth quarter of 2005.
In relation to margins in the first quarter, it is also recalled that the DADA Group undertook significant investments aimed at developing the customer base of the entertainment and community subscription services, whose benefits will be seen in the coming quarters.
The operating result in the first quarter of 2006 was a profit of Euro 2.4 million after depreciation and amortisation of Euro 0.8 million (in the first quarter of 2005 this aggregate was a profit of Euro 2.2 million), equal to a margin on revenues of 11%.
The consolidated net profit was Euro 1.7 million, an increase of 30% compared to the further quarter of 2005 and in line with the first quarter of 2005.
The short-term Net Financial Position at March 31, 2006 was a positive amount of Euro 23.9 million (Euro 23 million at December 31, 2005). During the first three months of 2006, there was therefore an increase in the absolute value of Euro 0.9 million, equal to 4% of the opening Net Financial Position. This was in spite of the above-mentioned investments, in particular in relation to international expansion.
The Board of Directors of DADA also nominated Angelo Falchetti as Managing Director of the Company, conferring similar powers to the Chairman Paolo Barberis. The Board then nominated the members of the Internal Control Committee as the directors Salvatore Amato (Chairman of the Control Committee), Raffaello Napoleone and Danilo Vivarelli; the members of the Remuneration Committee as the directors Barbara Poggiali (Chairman of the Remuneration Committee), Salvatore Amato and Danilo Vivarelli. Finally it is recalled that, in accordance with the Self Governance Code of Listed Companies, Raffaello Napoleone and Danilo Vivarelli are independent directors of the Company.
