Financial Press Releases
Press Release in accordance with CONSOB 11971/1999 and subsequent modifications
RESULTS FOR FIRST NINE MONTHS 2007:
STRONG INCREASE OF REVENUES TO EURO 115.1 MILLION
(+44% compared with the same period of 2006)
DADA’S INTERNATIONAL BUSINESS REPRESENTS 46% OF ITS TURNOVER
EBITDA* AND EBIT BOTH GREW TO EURO 15.7 MILLION (+41%) AND EURO 11.7 MILLION (+54%) RESPECTIVELY
NET PROFIT TO EURO 9.6 MILLION, EQUAL TO 8.4% OF REVENUES
Florence, November 8, 2007 - The Board of Directors of Dada S.p.A. (MTAX of Borsa Italiana), under the chairmanship of Paolo Barberis, today approved the Quarterly Report at September 30, 2007.
Thanks to Dada.net’s multimedia community (http://www.Dada.net), available via web and mobile, Dada has become a reference point for 12 million young users who express themselves in more than 40 countries in the world through their “personal space” sharing thoughts, photos, music and videos.
Every day approximately 40.000 new users become part of the community Dada.net which has recently registered a strong growth of subscribers in particular in Brazil, the United States and Spain.
What distinguishes Dada.net from other social networks active worldwide, is the convergence of a wide number of features – from entertainment/infotainment to social networking and dating – in a rich and unique catalogue based on a subscription fee and available via Internet and mobile.
Economic Financial Results
In the third quarter of 2007, Dada Group registered consolidated revenues of Euro 41.8 million, an increase of 33% compared with the same period of the previous year.
The Division Dada.net (community & entertainment services) has contributed to the consolidated sales of the third quarter by 69% while the Divisions Dada.pro (professional services for online presence of individuals and companies) and Dada.adv (sale and purchase of web and mobile advertising spaces belonging to the Group or third parties) impacted respectively by 18% and 13% on the turnover.
During the third quarter of 2007, Dada Group’s International growth has successfully continued, in fact international revenues represented 49% of consolidated sales, compared to 46% of the third quarter of 2006.
The Ebitda was positive at Euro 5.4 million, before write-downs and extraordinary items for Euro 0.1 million, with a margin percentage on revenues of 13% (in the third quarter of 2006 the Ebidta was Euro 3.9 million).
The Ebit of the third quarter of 2007 was positive at Euro 3.9 million (9.4% of consolidated revenues), with an increase of 54% compared with the third quarter of 2006, where it was Euro 2.6 million (8.2% of consolidated sales).
The consolidated net profit was positive at Euro 3.1 million, equal to 7% of the consolidated revenues, while in the third quarter of 2006 it was positive at Euro 4.6 million. Last year’s result had been positively impacted by the gain deriving from the sale of Planet com S.p.A. equal to Euro 2.2 million.
In the first nine months of 2007 the consolidated revenues of the Group were equal to Euro 115.1 million, with an increase of 44% compared with the result of the same period of 2006 and the Ebitda was at Euro 15.7 million, growing 41% compared with the first nine months of 2006. The Ebit of the first nine months of 2007 was Euro 11.7 million (up by 54% compared with the same period of 2006) and presented a margin on revenues of 10%. The net profit of the first nine months of 2007 was Euro 9.6 million, registering an increase of 5% compared to Euro 9.2 million of the same period of 2006 with an impact on consolidated revenues equal to 8.4%.
The short-term consolidated net financial position as at September 30, 2007, was positive at Euro 7.4 million compared to Euro 11.8 at December 31, 2006. The absorption of the financial resources is largely due to the investments made for the acquisition of 100% of the capital of the company Namesco Ltd. – UK leader in domain registration and hosting services - agreement announced past July.
The acquisition was executed by the subsidiary company Register.it S.p.A. for 24.5 million Pounds cash (approximately Euro 36.2 million), fully paid at closing. The acquisition was financed in part by Register.it’s liquid assets and in part by means of a medium-long term bank loan of Euro 30 million. The total net financial position as at September 30, 2007 was valued at Euro 18.3 million.
Perimeter of consolidation
Comparing the third quarter of 2007 with the previous periods, it is noted that in Q3 2006 the company Softec S.p.A. was entirely consolidated with a contribution to sales of Euro 0.6 million and that in Q3 2007 the company Namesco Ltd. was entirely consolidated giving a contribute all together of Euro 3.4 million.
Extraordinary operations
Besides the acquisition of Namesco Ltd., UK leader in domain registration and hosting services, the third quarter of 2007 has also been characterized by the fulfillment of the agreements regarding the creation of the company “Dada Entertainment LLC”, Joint Venture on equal terms which will offer, at the beginning only to American users, a wide range of quality services for entertainment via internet and mobile.
The Officer responsible for preparing Dada S.p.A accounting documents, Federico Bronzi, certifies that, in compliance with the requirements of the second paragraph of section 154 bis of the Consolidated Finance Act, the financial information contained herein reflects the accounting entries, records and the books.
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* EBITDA: before write-downs and extraordinary items
