Press Release in accordance with CONSOB Regulation No. 11971/1999 and subsequent modifications
RESULTS FOR FIRST 9 MONTHS 2008:
REVENUES OF EURO 126.1 MILLION, GROWTH ON THE FIRST NINE MONTHS OF 2007
(+13% ON LIKE-FOR-LIKE CONSOLIDATION SCOPE AND EXCHANGE RATES)
EBITDA* AND EBIT INCREASE TO EURO 22.0 MILLION (+32%) AND EURO 15.3 MILLION (+22%) RESPECTIVELY
GROWTH IN NET PROFIT TO EURO 11.4 MILLION (+9%)
Florence, November 10, 2008 -
The Board of Directors of Dada (MTA STAR: DA.MI), chaired by Paolo
Barberis, today approved the Interim report of the Dada Group at
September 30, 2008.
In the first
nine months of 2008, Dada consolidated its leadership in the community
and entertainment products and services via web and mobile, further
expanding its offer on an international basis. Through "Dada - The
Music Movement" (www.dada.it), the Company built strategic partnerships
with the leading major and independent labels worldwide, including Sony
BMG Music Entertainment, Warner Music Group, EMI and The Orchard,
providing over 2 million high quality licensed MP3 tracks which are
downloadable DRM-free.
Dada has also successfully launched its VAS activities on new high
potential growth markets such as Indonesia and India and expanded its
subscriber base and its international presence.
In the professional services and internet advertising businesses Dada
maintained its growth in domain & hosting activities which, through
further strengthening of its leadership at a European level with the
recent acquisition of the Amen Group, currently have 430 thousand
business clients and more than 1.3 million domains under management;
the web and mobile advertising performance was also strong with the
development of the new Group advertising platform, which offers
integrated solutions from domain to click.
Financial results
Dada Group recorded
Consolidated revenues
of Euro 126.1 million in the first nine months of the year, growth of
10% on the same period of the previous year. As described in further
detail below, on a like-for-like consolidation scope and exchange
rates, revenues would have recorded an annual growth of 13%. In
addition, the total revenues in the first nine months of 2008 from the
Joint Venture with Sony BMG Dada Entertainment LLC, not consolidated as
the investment is accounted under the equity method, amounted to USD 59
million.
The Dada.net division's contribution to
consolidated revenues was Euro 71.4 million (55% of Group revenues vs.
72% in the same period of 2007), while the DadaPro division contributed
Euro 57.9 million (45% of Group revenues vs. 28% in the first nine
months of 2007), growth of 71%.
It is recalled that the division performances were impacted
significantly by a change in the consolidation scope, particularly in
relation to the conferment of the VAS activities in the USA to the
Joint Venture and the contribution to revenues by Namesco and the Amen
Group.
International activities
accounted for 47% of consolidated revenues compared to 46% in the first
nine months of 2007; the change in the consolidation scope also
affected this figure: this percentage amounts to 55% if the Group share
of JV revenues is consolidated. International growth was achieved
thanks to significant growth on the Brazilian and Spanish markets.
EBITDA
grew by 32%, amounting to Euro 22.0 million (vs. Euro 16.6 million in
the first nine months of 2007), with a margin on consolidated revenues
of 17.4% - in line with the first six months of the year (vs. 14.4% in
the same period of 2007).
Group
Ebit
in the first nine months of the year was Euro 15.3 million (margin of
12%), growth of 22% on the same period of 2007 (Euro 12.6 million).
Amortisation and depreciation in the period amounted to Euro 5.6
million (Euro 3.5 million in 2007) and write-downs and non-recurring
charges amounted to Euro 1.1 million (Euro 0.5 million in 2007). The
increase is due to the investments made for the development of products
and capital expenditures.
Consolidated
Net Profit,
after minorities of Euro 0.3 million, amounted to Euro 11.4 million
(consolidated revenue margin of 9%), growth of 9% on Euro 10.5 million
in the first nine months of 2007.
The
Net Financial Position
at September 30, 2008 amounted to Euro -32.0 million (Euro -10.8
million at June 30, 2008): the increase is principally due to
investment activities relating to the purchase of 100% of the Amen
Group totalling Euro 17.5 million, a further 40% of E-Box for Euro 1.6
million and 10% of the Giglio Group for Euro 0.75 million.
Operating activities in the first nine months of the year generated
cash flow of Euro 15 million. The change in the consolidation scope had
a negative effect of Euro 2 million on the Net Financial Position.
Consolidation scope
Comparing the 2008 first nine months with the same period of the
previous year, it is noted that the following changes in the
consolidation scope took place:
- in the first quarter of 2007 the company Softec S.p.A. was fully
consolidated and subsequently sold in April 2007. The company was
therefore not included in the consolidation scope in 2008;
- in the first nine months 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 conferred in September, 2007 into
the Joint Venture and therefore they did not contribute to revenues in
2008;
- in the first nine months of 2008, the company Namesco Ltd, acquired
in July 2007, was fully consolidated and therefore only contributed to
revenues in the third quarter of 2007;
- from July 1, 2008, the Amen Group and E-Box Srl, not included in the
consolidation scope of the previous year, were fully consolidated;
- from July 1, 2008, due to the effect of the contractual agreements
related to the acquisition of a 10% stake on July 9, together with
put/call options to increase the shareholding up to 100% within two
years from the closing date at the sole discretion of Dada, and in
accordance with IAS/IFRS, the Giglio Group, owner of the Music Box
channel, was fully consolidated.
The total effect on consolidated revenues deriving from the above
changes on the consolidation scope of the Dada Group was lower revenues
of Euro 1.0 million.
Significant events in the third quarter of 2008
The extraordinary transactions carried out by the Group in the third quarter of the year are reported below:
- On July 3, 2008, the Dada Group acquired a further 40% stake of E-Box
S.r.l. (owner of Blogo), increasing its shareholding to 70%;
- On July 9, 2008, the Group acquired a 10% holding in the share
capital of Giglio Group S.p.A., owner of Music Box, together with
put/call options to increase its shareholding up to 100%. Music Box is
the Italian leader for music television channels on satellite platforms;
- On July 16, 2008, the Group acquired 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.
Outlook for the current year
In spite of the difficult international macro-economic outlook, based
on the results of the first nine months of 2008 and in the absence of
unexpected economic and market developments not currently foreseeable,
the guidance announced on August 1, 2008 relating to the current year
is confirmed.
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
