Press Release in accordance with CONSOB Regulation No. 11971/1999 and subsequent modifications
The Dada Parent Company and Consolidated Financial Statements as at 31/12/2006 were approved at the Shareholders’ Meeting:
Consolidated Revenues €111.4 MLN (+59.4% compared to 2005)
EBITDA* of Euro 15.7 MLN (+23%)
NET Profit of Euro 12.5 MLN (+74%)
At the Dada Shareholders’ Meeting the parent company and consolidated accounts of the Company for the year ended December 31, 2006 were unanimously approved:
- Group Revenues for 2006 equal to €111.4 million (+ 59,4% compared to 2005),
- Consolidated EBITDA equal to €15.7 million (+23%),
- NET Profit of €12.5 million (compared with € 7.2 million in 2005),
- The Dada Group Net Financial Position as at December 31, 2006 was a positive cash position of Euro 11.8 million after the acquisitions of Nominalia, Upoc Networks and Tipic.
At the Meeting, the shareholders' of Dada also confirmed the appointment of the new members to the Board of Directors, Riccardo Stilli and Roberto Ravagnani, and has renewed the Dada Board of Directors’ delegation to make share available for them to acquire.
Florence, April 20th, 2007 – Today, at the Shareholders’ Meeting of Dada S.p.A. (MTAX STAR, Italian Stock Exchange: DA.MI), under the chairmanship of Paolo Barberis, the parent company and consolidated accounts of Dada for the year ending December 31, 2006, were unanimously approved, as proposed by the Board of Directors in the meeting of March 9, 2006.
In 2006, Dada’s market share in the web and mobile community and entertainment services continued to expand in domestic and international markets. Dada is present in 15 countries with the multimedia community Dada.net (www.dada.net), with a total subscriber base of over 7 million users and average daily growth of around 20,000 new paying subscribers, mainly in the USA, Brazil and Spain.
In the first months of 2007 the Dada Group has obtained further international expansion, particularly in emerging countries.
The beginning of the year also saw the acquisition of 30% of E-Box S.r.l., which owns the Blogo platform, the most visited vertical blog platform in Italy and the agreement signed with Google for the launch of friend$ in Italy, the USA, Brazil, Spain and France, the first worldwide business model which allows the sharing of web-advertising revenues between Dada, Google and the Dada.net users.
In 2006, Dada Group Revenues amounted to Euro 111.4 million (up 59.4% compared to the previous year, while the consolidated EBITDA* was Euro 15.7 million (up 23% compared to Euro 12.7 million in 2005).
The Operating Result in 2006 was a profit of Euro 10.8 million, an increase compared to Euro 8 million in the previous year. Amortisation and depreciation of intangible and tangible fixed assets amounted to Euro 4 million, an increase compared to Euro 3.3 million in the previous year, due to the investments made in product development and capital expenditure during the year. The Net Profit also improved significantly, amounting to Euro 12.5 million and equal to 11% of the consolidated revenues, compared to Euro 7.2 million in the previous year.
The 2006 consolidated financial reporting differed compared with the previous year for the following reasons:
- In 2005 the companies Ad Maiora S.p.A. and Planet Com S.p.A. were included for the whole 12 months, whereas in 2006 just Planet S.p.A. were consolidated for the first 6 months. These two companies were sold in December 2005 and July 2006 respectively. The overall pro-forma effect of this change meant that there were higher revenues of Euro 4.3 million recorded for 2005 compared to 2006.
- In 2006 the consolidated report included the results of 5 months of Nominalia S.L. (acquired at the end of July 2006), 4 months of UPOC Inc. (acquired at the end of August), 3 months of Tipic Inc. (acquired in October) and 1 month of the Dada Brazil company (created in July but operative from December). The revenues of these acquired companies totalled Euro 2.8 million in 2006.
The Dada Group Net Financial Position as at December 31, 2006 was a positive cash position of Euro 11.8 million (Euro 23 million at the end of 2005). This decrease is principally due to the investments made for the acquisitions of Nominalia SL, leader in the Internet domain sector in Spain, UPOC Networks Inc., a well established provider of web and mobile value added services in the US and Tipic Inc., an international leader in the blog and social networking sector with the Splinder and Motime brands.
In 2006, the Parent Company Dada S.p.A. recorded a similar result to that at Group level. Total revenues amounted to Euro 68 million, an increase of 51% compared to 2005. The Operating Result amounted to Euro 4.3 million and the short-term Net Financial Position of Euro 3.5 million, compared to Euro 11.3 million at December 31, 2005. This reduction is also related to the financing provided to Group companies for the investments previously described.
The shareholders also resolved upon the destination of the net profits of the Parent Company Dada, equal to €7.266.833: a 5% legal reserve and the remaining portion extraordinary reserve.
Other resolutions of the Shareholders’ Meeting
At today’s Dada Shareholders’ Meeting the appointments were confirmed of new Directors of Dada S.p.A., Riccardo Stilli, Chief Financial Officer, and Roberto Ravagnani, Operations, Development and Compensation Director both of the RCS MediaGroup S.p.A., who were already selected by the Board as non-executive directors during 2006. Their curricula can be found on the Dada Corporate website here:
http://dada.dada.net/en/investor_relations/bilanci_e_relazioni/homecontents.php
The Baord of Directors were granted authorisation by the Shareholders without objection to buy up to a maximum number of ordinary shares representing one tenth of the share capital; these are to be made available within 18 months of the authorisation, thereby giving the Company important strategic and operational flexibility for buying and selling, exchanging, awarding shares, as well as in order to buy into the company.
According to the Board of Directors’ proposal to purchase shares, up to a maximum number of ordinary shares representing 10% of the share capital, for a price not less than 20% and not higher than 10% of the reference price registered on the day before each single purchase. The operations related to the stock purchase will be performed in accordance with the regulations of the Italian Stock Exchange (Borsa Italiana S.p.A.) which states that the negotiations for the buying and selling proposals can not be combined. The Company does not have any shares in its subscriptions at the moment.
