Financial Press Releases
Press Release in accordance with CONSOB Regulation No. 11971/99 and subsequent modifications
FIRST QUARTER RESULTS 2008:
GROWTH IN CONSOLIDATED REVENUES AT EURO 40.6 MILLION
(+15% on first quarter 2007).
GROWTH IN EBITDA* AND EBIT
AT EURO 7.0 MILLION (+61%), AND EURO 5.3 MILLION (+57%)
NET PROFIT AT EURO 3.9 MILLION (+42%) AND 10% MARGIN ON REVENUES.
Florence, May 9, 2008 - The Board of Directors of Dada S.p.A. (MTA STAR: DA.MI), chaired by Paolo Barberis, today approved the consolidated results as at March 31, 2008.
Financial results
Consolidated Revenues at Group level in the first quarter of 2008 amounted to Euro 40.6 million compared to Euro 35.4 million in the first quarter of 2007, a growth of 15%; considering the changes to the consolidation scope described in detail below, the growth in revenues would have been 29%.
Revenues of the Dada.net division accounted for 58% of Group revenues in the quarter while the DadaPro division, which includes the Dada.Adv activities from the beginning of the current year, accounted for 42% of consolidated revenues. Foreign revenues contributed 45% of consolidated revenues; the Brazilian and the Spanish markets were particularly strong. These results were impacted upon by two factors: the conferment of the US activities and the inclusion of Namesco Ltd. in the consolidation scope of the DadaPro division as further described below.
The consolidated
EBITDA of the Group in the first quarter 2008 amounted to Euro 7.0 million compared to Euro 4.4 million in the same period of the previous year, registering growth of 61% and a margin on revenues of 17%.
The consolidated
EBIT in the first quarter 2008 was Euro 5.3 million and revenue margin of 13%, a strong growth on the first quarter of 2007 of Euro 3.4 million (+57%). This result includes amortisation and depreciation on tangible and intangible fixed assets totalling Euro 1.6 million, while write-downs and non-recurring charges amounted to Euro 0.1 million.
The
Net Profit was Euro 3.9 million and 10% of consolidated revenues, compared to Euro 2.8 million in the first quarter of 2007, a growth of 42%. Current income taxes in the period amounted to Euro 1.2 million, principally relating to Irap regional taxes and income taxes of foreign companies. In the first quarter of 2007, the tax charge was Euro 0.2 million. It is noted that tax losses carried forward amount to approximately Euro 60 million.
The consolidated
Net Financial Position at March 31, 2008 was debt of Euro 13.1 million compared to debt of Euro 16.8 million at December 31, 2007, a total positive cash flow of Euro 3.7 million.
Consolidation scope
Comparing the quarter with the same period of the previous years, it is noted that:
- in the first quarter of 2007 the company Softec S.p.A. was fully consolidated, a company subsequently sold in April 2007, and therefore not included in the consolidation scope in 2008.
- additionaly, in the first quarter of 2007, the activities of the company Dada Usa Inc. relating to the VAS American market were still included. These activities were conferred in September last year into the Joint Venture Dada Entertainment LLC, held 50% with Sony BMG, and therefore these activities do not contribute to revenues in the first quarter of 2008.
- in the first quarter of 2008 the company Namesco Ltd. was fully consolidated, acquired in July 2007, and therefore not contributing to revenues in the first quarter of 2007.
The total effect on the consolidated revenues of the above changes to the consolidation scope would have been higher sales of Euro 5.2 million; consequently the growth in sales in 2008 over 2007 would have been 29% instead of 15%.
The Dada Group, from the current year, has adopted the new interpretation of the IASB in relation to prepaid charges with the consequent recording of the user acquisition costs in the income statement when incurred. The change in the application of this accounting principle had a negative impact on the net equity at December 31, 2007 of approx. Euro 6.2 million, while the effect on the income statement was positive for approx. Euro 1.2 million before the tax effect. For further information reference should be made to the Report.
Outlook for the current year
At present, there are no elements which alter the guidelines announced on December 4, 2007, although the current business climate advises caution.
Subsequent events to the end of the quarter
On January 9, 2008, the transfer of the entire share capital from Dada S.p.A. to Dada.net S.p.A. of the company Media Dada Science and Development (Beijing) Co. Ltd., which distributes Dada.net’s products in China, was completed at book value. On January 30, 2008 Register.it S.p.A. completed the full acquisition of Nominalia S.l., acquiring the remaining 25% of the company shares, for an amount of Euro 1.3 million.
Approval of corporate reorganisation plan
The Board of Dada S.p.A. also approved, in order to rationalise the corporate holdings in line with the current organisational structure, the conferment of a business unit related to the Dada.net (web and mobile community services) service currently offered to public from Dada.net S.p.A. and of the Dada.Adv business unit (advertising on web and mobile services) respectively into the wholly owned subsidiaries Dada.net S.p.A. and Register.it S.p.A.: the rationalisation will permit the business divisions to focus on their respective “core” activities and better aid the decision-making process. The procedure will be undertaken in compliance with the normal regulation for such operations with the involvement of the two subsidiaries. These operations will be fiscal neutral and will have no significant effects on the statutory financial statements of Dada S.p.A. or on the consolidation, and in particular will not result in any gain or loss in Dada S.p.A., as the operations will be at book values with the wholly owned subsidiaries.
Appointment of a Statutory Auditors
Finally, the Board took notice of the resignation, effective as of May 31, 2008, of the Statutory Auditor Massimo Cremona for personal reasons. Pursuant to law and the company by-laws he will be replaced by the alternate statutory auditor Mr. Claudio Pastori.
***
The executive responsible for the preparation of the corporate accounting documents of Dada S.p.A., Mr. Federico Bronzi, declares, in accordance with article 154 bis, paragraph 2, of the Consolidated Finance Act, that the accounting information contained in the present press release correspond to the underlying accounting documents, records and accounting entries.
* EBITDA: before write-downs and extraordinary items
