Financial highlights (CONSOLIDATED)

Double-digit growth on all the main financial KPIs (net sales, EBITDA, net profit)

Robust and triple digit, cash flow generation (+145%)

A genuinely multinational business with a presence in 5 countries: 35% of sales are from Croatia; 32% from Italy; 26% from Slovenia; 5% from Switzerland; 2% from Serbia.

NET SALES equal to Eur 5,3 MILLION versus Eur 4 Million as OF 31 DECEMBER 2016 (+34%)

EBITDA equal to Eur 530 THOUSAND versus Eur 355 THOUSAND as OF 31 DECEMBER 2016 (+49%)

NET RESULT EQUAL TO Eur 239 THOUSAND versus Eur 155 THOUSAND as OF 31 DECEMBER 2016 (+54%)

CASH FLOW FROM OPERATING ACTIVITIES AMOUNTED TO EUR 856 THOUSAND VERSUS Eur 348 THOUSAND as OF 31 DECEMBER 2016 (+145%)

Net financial position equal to Eur 2,5 MILLION, of which: EUR 2,6 MILLION (cash and cash equivalent); EUR 124 THOUSAND (CURRENT FINANCIAL DEBT) and EUR 9 thousand (NOn-current financial debt)

Giandomenico Sica, Chairman of the Board of Directors of DHH, commented: “2017 has been a great year for DHH. We made three new acquisitions – in total, they are eight acquisitions in these first three years since we started our venture – without losing our focus on organic growth, cash flow generation and margins scalability. In 2018 we are working hard to consolidate our portfolio companies further and to make new investments to grow our group. We just launched CloudSeed, a program to invest in the most promising start-ups in our region, in a joint venture with Seeweb, co-founder and technological partner of DHH. Furthermore, we launched several activities to develop our brand equity. DHH is a quite young entrepreneurial project – started in July 2015 – and in this first phase of our initiative, we focused very much on delivering results. Now that results are self-evident we have started building the brand”.

Milan, 28 March 2018. The Board of Directors of DHH S.p.A. (DHH.MI | WDHH21.MI) (ISIN shares IT0005203622 | ISIN warrants IT0005203689), a tech company whose mission is to create the “Internet Platform of the Emerging markets of Europe”, today reviewed and approved the consolidated financial statements and the draft financial statements as at 31 December 2017, which will be resolved by the shareholders’ meeting of 30 April 2018.

Performance of the Group

MAIN RESULTS 2017
(All amounts are in EURO)
31.12.2017 31.12.2016 Delta
Net SALES  

5.289.151

 

3.947.870

+34%
EBITDA  

530.806

 

355.610

+49%
NET RESULT 238.958  

155.222

+54%
CASH FLOW FROM OPERATING ACTIVITIES  

856.248

 

348.440

+145%

 

In 2017 net sales related to the core – web hosting and domain registration – services were equal to 5.289.151 EUR, with an increase of 1.341.281 EUR if compared to 2016.

Other revenues were equal to EUR 68.809 with an increase of EUR 52.921 if compared to 2016. 

Business performance by company

MAIN RESULTS 2017
(All amounts are in EURO)
31.12.2017 31.12.2016 Delta
DHH.SI 1.357.202 1.282.691 +6%
DHH D.O.O. (Croatia) 1.495.874 1.254.258 +19%
DHH SRB 101.562 80.650 +26%
TOPHOST 1.199.484 1.244.734 -4%
INFONET 346.459 78.602 +341%
HOSTING IT 17.649 6.934 +155%
DHH ITALIA 489.721 NA NA
DHH SWITZERLAND 281.201 NA NA

Despite a negative yearly performance, Tophost registered a +16,3% growth in gross sales during the second half of 2017 (Gross sales 2H2017 vs. Gross sales 2H2016).

Month 2016 2017 Delta
Jul 82.201,43 87.183,02 6,06%
Aug 69.754,99 78.203,41 12,11%
Sep 82.400,74 107.846,91 30,88%
Oct 113.868,82 129.623,23 13,84%
Nov 101.354,31 120.053,47 18,45%
Dec 96.980,36 113.203,12 16,73%

When entered in DHH the company was in a turnaround situation, with a descending trend (-7,6% in bookings during the second half of 2016, if compared with the second half of 2015).

Since its inclusion in the group, DHH made the management team of Tophost stronger, with new hires, and then focused on a series of actions that produced the change in trend:

  • The quality of service has been improved with new updates (e.g., WordPress 1-click install; ability to renew multiple subscriptions; new UX for webmail; free SSL and https support).
  • New high margin products and services have been introduced in the offering (e.g., Topweb Plus and renewal after expiration service);
  • The digital marketing strategy of the company has been completely redesigned (ref. focus on SEO, SEM, Facebook Adv and content marketing) with a focus on brand awareness.

All these actions resulted in an improvement of the renewal rate, with an increase in sales and margins in the second half of 2017.

The double-digit growth trend is also confirmed in the first months of 2018.

The consolidated net financial position was equal to EUR 2.481.347, of which: EUR 2.614.511 (cash and cash equivalent); EUR 124.234 (current financial debt) and EUR 8.930 (non-current financial debt).

The net equity was EUR 7.333.322. 

The Group CONSOLIDATED pro-forma* RESULTS 2017

MAIN RESULTS 2017
(All amounts are in EURO)
PRO-FORMA* CONSOLIDATED Delta
Net SALES 5.670.110  

5.289.151

+7%
EBITDA 886.405  

530.806

+67%
NET RESULT  

509.383

238.958 +113%

*  The consolidated pro forma is not audited by the audit firm but it has been checked the mathematic accuracy.

The consolidated pro-forma p&l includes the full results of the acquisitions made during the year, while the officially consolidated p&l comprises only the pro-quota results after the acquisition date of the new companies.

Furthermore, all direct and indirect costs related to being a company publicly listed on the Italian Stock Exchange have been deleted in the pro-forma consolidated p&l as at 31.12.2017, together with all direct and indirect costs related to M&A and extraordinary activities.

The consolidated pro-forma is unaudited and has been prepared:

  • to have a comparable representation to the consolidated p&l;
  • to have a description to compare DHH to its private peers, which are not listed and don’t afford this kind of costs.

Material events occurred during the financial year ended 31 December 2017 and subsequently occurred

During 2017 DHH focused on developing its business strengthening its market position and improving its corporate governance increasing the number of qualified persons.

More specifically, the following material events took place on the dates indicated below:

10TH FEBRUARY 2017 – To develop its business, DHH entered into a framework agreement with Mr. Sergio Ravera aimed at acquiring from the latter:

  1. Bee Bee Web SA, a Swiss company, involved in the business of web hosting;
  2. And the Italian reseller of Bee Bee Web to strengthen the group presence in the Italian market.

20TH MARCH 2017 – DHH purchased from Studio4Web a branch of business dedicated to web hosting.

26TH APRIL 2017 – DHH appointed Guido Busato as an independent director of the Company.

12TH MAY 2017 – DHH completed the first part of the transaction with Mr. Sergio Ravera. In particular, DHH acquired from Mr. Ravera (i) 60% of the share capital of Bee Bee Web SA and (ii) 100% of the share capital of Hosting Star S.r.l (previously Artera S.r.l.), the Italian reseller of Bee Bee Web.

30TH MAY 2017 – In the context of the reorganization of the structure of its Group and with a purpose of simplification DHH:

(i) approved the merger of Hosting IT j.d.o.o./Infonet d.o.o. (two subsidiaries of DHH) and after that, the incorporation of Infonet d.o.o. into DHH d.o.o;

(ii) approved the acquisition by DHH SpA for the full participation of DHH.si d.o.o. (the Slovenian subsidiary of DHH S.p.A.) holding in both its subsidiaries, Plus Hosting d.o.o. (the Serbian one) and DHH d.o.o. (the Croatian subsidiary).

30TH JUNE 2017 – As a consequence of the resolution upon the simplification of DHH’s group approved in May 2017, DHH S.p.A. acquired the full participation of DHH.si d.o.o. in Plus Hosting d.o.o. (Serbia). The company was renamed from Plus Hosting d.o.o. to DHH SRB d.o.o. following the group naming policy.

5TH JULY 2017 – As a consequence of the resolution upon the simplification of DHH’s group approved in May 2017, DHH S.p.A. acquired the full participation of DHH.si d.o.o. DHH d.o.o. (Croatia).

12TH DECEMBER 2017 – The Company resolved to set up a wholly owned new subsidiary in Croatia focused on managed hosting. Furthermore, DHH d.o.o. would demerge and transfer to such newly incorporated company a certain number of existing agreements with clients, the ones related to managed hosting.

2ST JANUARY 2018 – Dominion Hosting Holding S.p.A. announces the change of the official domain of its corporate website: from www.dominion.it to www.dhh.international.

www.dhh.international is the new reference point for all the official communications with the market. This change is one of the actions that DHH put in place to enhance its brand awareness in the market.

5ST MARCH 2018 – Dominion Hosting Holding S.p.A. announced that the merger of Hosting IT j.d.o.o./Infonet d.o.o. (two subsidiaries of DHH) was completed.

PMI Innovativa

During 2017 DHH S.p.A. has been confirmed “PMI Innovativa” in the related section of the company register in Milan. The company has incurred costs relating to research, development, and innovation, over than 3% of the higher value between total costs and value of manufacturing.

DHH S.p.A. profit/loss allocation

Despite the group reported a consolidated net profit of EUR 238.958, DHH S.p.A. as a single entity – not taking into account the consolidated results – reported a profit of EUR 1.738. The Board of Directors proposes to the shareholders to allocate the operating result to the legal reserve.

Notice of Shareholders’ Meeting

The Board of Directors delegated the President to convene an Ordinary Shareholders’ Meeting on 30 April 2018.

The Notice of Shareholders’ Meeting and the supporting documents concerning the items on the Agenda will be available within the statutory deadline at the Company’s registered office and on the DHH website: www.dhh.international.

Shareholders may view these documents and request copies of them.

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