Press Release in accordance with CONSOB Regulation No. 11971/1999 and subsequent modifications
FIRST HALF RESULTS 2008:
GROWTH IN REVENUES TO EURO 81.3 MILLION (+11% on first half 2007;
+17.4% on like-for-like consolidation scope and exchange rates)
EBITDA* AND EBIT INCREASE TO EURO 14.4 MILLION (+40%) AND EURO 10.4 MILLION (+35%) RESPECTIVELY
GROWTH IN NET PROFIT TO EURO 8 MILLION (+24%)
ACQUISITIONS OF BLOGO, MUSIC BOX AND AMEN GROUP COMPLETED IN JULY
Firenze, August 1, 2008 -
The Board of Directors of Dada (MTAX STAR: DA.MI), chaired by Paolo
Barberis, today approved the consolidated results of the Dada Group as
at June 30, 2008.
In the first
half year of 2008, Dada, through its Dada.net division, consolidated
its growth on international markets and its leadership in Italy in
community and entertainment products/services via web and mobile thanks
to further expansion of its product range. In June, "Dada - The Music
Movement" community was launched - a social music community of quality
music content that can be downloaded legally from a vast catalogue at a
competitive price within the Social Networking interactive model via
Web and Mobile.
The DadaPro division, in the first half of the year, recorded continued
growth in both domain & hosting, which currently has over 400
thousand business clients and more than 1.2 million domains under
management, and in web and mobile advertising, driving the growth of
the new Group advertising platform, which will offer integrated
solutions from domain to click.
During 2008, Dada reorganised its activities into 2 business areas:
Dada.net (community & entertainment services) and
DadaPro
(professional services and advertising on the Internet), which includes
the activities of the previous division Dada.adv. In order to provide
comparative results, the 2007 figures have been adjusted.
Financial results
Consolidated revenues in the first half-year amounted to Euro 81.3 million, a growth of 11% on the first half of 2007.
The Dada.net division's contribution to consolidated revenues was Euro
48.2 million (58% of Group revenues vs. 73% in the first half of 2007)
while the DadaPro division contributed Euro 35.4 million (42% of Group
revenues vs. 27% in the first half of 2007), growth of 72%.
It is recalled that the division performances were impacted
significantly by a change in the consolidation scope, in particular
regarding the conferment of the VAS activities in the USA to the Joint
Venture, as described below.
International activities
accounted for 45% of consolidated revenues compared to 44% in the first
half of 2007: the change in the consolidation scope also affected this
figure. International growth was achieved through a strengthened
presence in countries in which the Group already operates (the
contribution of the Spanish and Brazilian markets continues to be
significant) and through the opening of new markets - initial results
of the launch of Dada.net in India and Indonesia were positive. On
like-for-like exchange rates, growth in the first half of 2008 would
have been 13%.
EBITDA grew by 40%,
amounting to Euro 14.4 million (compared to Euro 10.2 million in the
first half of 2007), with a margin on consolidated revenues of 18%.
The
EBIT
in the first half of 2008 was Euro 10.4 million (revenue margin of
13%), a growth of 35% on the first half of 2007 (Euro 7.7 million).
Amortisation and depreciation in the period amounted to Euro 3.4
million (Euro 2.1 million in 2007) and write-downs and non-recurring
charges accounted for Euro 0.5 million (Euro 0.4 million in 2007).
The consolidated
Net profit was Euro 8 million (10% of consolidated revenues), growth of 24% on Euro 6.5 million in the first half of 2007.
The
Net Financial Position
at June 30, 2008 amounted to Euro -10.8 million compared to Euro -16.8
million at the end of 2007: the improvement is due to a cash inflow of
Euro 6.1 million, which includes Euro 1.2 million deriving from the
exercise of the first stock option plan approved by the BoD on June 20,
2005.
Consolidation scope
Comparing the 2008 first half with the same period of the previous year, it is noted that:
- in the first half of 2007, Softec S.p.A. was fully consolidated for
the first three months of the year. This company was subsequently sold
in April 2007, and therefore not included in the consolidation scope in
2008.
- In the first half of 2007, the activities of the company Dada Usa
Inc. relating to the VAS activities on the American market were still
included. These activities were contributed 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
half of 2008.
- In the first half of 2008, the company Namesco Ltd., acquired in July
2007, was fully consolidated, and which did not contribute to revenues
in the first half of 2007.
The total effect on the consolidated revenues of the above changes to
the consolidation scope is lower revenues of Euro 3.2 million;
consequently, the annual growth in revenues in H1 2008 would have been
15% instead of 11%. On like-for-like consolidation scope and exchange
rates, consolidated revenues of the Dada Group for the first half of
2008 would have recorded an annual growth of over 17%.
Subsequent events to the end of the first half year 2008
The three extraordinary transactions concluded after the first half-year of 2008 are reported upon below:
- on July 3, 2008, the acquisition of a further stake of 40% in E-Box
S.r.l., owner of Blogo, the most visited vertical blog network in
Italy, increasing the holding of the Company to 70%.
- On July 9, 2008, the acquisition of a 10% holding in the share
capital of Giglio Group S.p.A. owner of Music Box, leader in Italy in
the music television channel segment on satellite platforms, together
with put/call options up to 100% of the company.
- On July 16, the acquisition of 100% of the Amen Group, a leading
European provider of professional domain and hosting services in
France, Spain and Portugal, and also present in the British, Dutch and
Italian markets. This operation will place the Dada Group among the
leading European companies in the sector, with over 400 thousand
business clients and more than 1.2 million domains, of which 70%
outside of Italy.
Outlook for the current year
In response to the emerging economic and market scenario, a business
strategy was implemented during the year by the Dada Group focussed on
the activities/countries with the fastest return on investments, in
order to generate a higher Ebitda margin and higher cash flow compared
to the previous year. This strategic choice follows up on the
commitment to continually grow revenues, although at a lower growth
rate than that forecasted at the end of the previous year. The 2008
consolidated revenues target is therefore over Euro 170 million - a
result which does not include the revenues from the US activities
transferred to the Joint Venture with Sony BMG deconsolidated from
October 1, 2007; in the first half of 2008, the total revenues of the
JV (not consolidated as the investment is recorded under the equity
method) were USD 40 million. The above-mentioned revenue target is
growth over 2007 revenues (Euro 158.5 million - inclusive of the
contribution from the US activities for the first 3 quarters of 2007).
Based on the results in the first half of 2008 and on business activity
for the current year and also taking into account the extraordinary
transactions undertaken in the period, at the present moment - provided
the general economic and market outlook does not deteriorate which is
not currently foreseeable - the forecast for the full year 2008 is of
an Ebitda of over Euro 28 million compared to Euro 22.5 million in
2007, and above that previously communicated: it is recalled that in
December 2005 guidance was provided to the market on the projected
growth of the Dada Group margin which estimated a CAGR of the Ebitda
for the three-year period 2005-2008 of 15-20%, equal to Euro 19.3-22.0
million projected in the year 2008.
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
