HIGHLIGHTS
REVENUE EQUAL TO EURO 34,6M VS EURO 29,6M +17%
RECURRING REVENUE EQUAL TO 94% OF THE TOTAL REVENUE
EBITDA* EQUAL TO EURO 10,4M VS EURO 7,4M +41%
EBIT EQUAL TO EURO 4,9M VS EURO 2,8M +77%
NET PROFIT EQUAL TO EURO 2,2M VS EURO 0,9M +157%
OPERATING CASH FLOW EQUAL TO EURO 9M VS EBITDA EQUAL TO EURO 10,4M – CASH CONVERSION EQUAL TO 87%
NET FINANCIAL POSITION EQUAL TO EURO 6,5M (DEBT), WITH EURO 10,4M IN CASH AVAILABILITIES
Giandomenico Sica, President of DHH’s Board of Directors, comments: “In 2023, the group reported positive growth, with a revenue increase to Euro 34,6M, of which 94% is recurring. Notably, IaaS (Infrastructure as a Service) organically grew by 10%, PaaS (Platform as a Service) by 10%, SaaS (Software as a Service) by 35%, and internet access by 58%, also thanks to the consolidation of Connesi. Growth was particularly strong in Italy (24%), contributing 67% of total sales, followed by Slovenia (15%), Serbia (9%) and Croatia (8%). Acquisitions, such as Misterdomain and Hosterdam, and the full integration of Connesi S.p.A., have been key growth drivers. The consolidated EBITDA rose by Euro 3M, primarily due to a focus on operational efficiency and the scalability of our operations. The Group is dedicated to cultivating a trajectory of growth in the current fiscal year, bolstered by organic development and prospective acquisitions.”
* In 2023, the operating expenses included a non-cash charge of Euro 1,1M related to the IFRS 2 accounting for the 2022-2025 Stock Option Plan, which did not impact the Company’s cash availability. This represented a decrease from the Euro 1,7M non-cash charge in 2022. Going forward into 2024, the company will not incur any further expenses related to this cost.
Milan, 21 March 2024. DHH S.p.A. (“DHH” or the “Company”) (DHH.MI | WDHH21.MI) (ISIN shares IT0005203622) announces that today the Board of Directors examined and approved the draft statutory financial statements of the Company as well as the consolidated financial statements relating to the group headed by DHH at 31 December 2023. The above-mentioned documents shall be submitted, for the relevant approval and acknowledgement respectively, to the Extraordinary and Ordinary Shareholders’ Meeting of DHH which will be convened for 29 April 2024 on first call, and, if necessary, on second call on 30 April 2024.
The relevant notice of call will be available – together with all supporting documentation – within the term provided for by the law and DHH’s by-laws at the Company’s registered office, at the website www.dhh.international, section “For Investors” and on the website of Borsa Italiana.
DHH’s shareholders may view such documentation and request copy thereof. The financial reports will be made available to the public as per EGM regulations as well as on the Company’s website at www.dhh.international.
Comment to the results
The Group’s performance in 2022 continued its positive trajectory into 2023, with its significance further highlighted when considering adjusted figures. These adjustments have been made to ensure a more representative comparison of results. For the financial year ending on December 31, 2023, the Group’s total consolidated revenue amounted to Euro 34,6M (net sales amounted to Euro 33,7M, +18% vs 2022), marking an increase of Euro 5M.
The recurring revenue amounts to 94% of the total.
The Profit and Loss Statement for December 31, 2023, showcases the comprehensive impact of the consolidation of Connesi S.p.A., following the acquisition of control on July 1, 2022. The Group experienced a notable revenue increase, attributed to organic growth of Euro 2M (8%) and mergers and acquisitions activities contributing an additional Euro 3M. It is noteworthy that revenue from “Infrastructure as a Service” (IaaS) has grown by 10% to Euro 12,9M, revenue from “Platform as a Service” (PaaS) has increased by 10% to Euro 7,9M, revenue from “Software as a Service” (SaaS) has risen by 35% to Euro 0,6M and revenue from internet access has grown by 58% to Euro 7,3M. Other – non core – revenue decreased by 8% to Euro 1M, thus impacting the organic trend.
From a geographical perspective, the greatest revenue growth was recorded in Italy (+24%), followed by Slovenia (+15%), Serbia (+9%), and Croatia (+8%). Sales revenues are distributed across the geographic regions in the following manner: Italy accounts for 67%, Croatia for 9%, Slovenia also for 9%, Serbia for 2%, Switzerland for 3%, and Bulgaria for 10%. In particular, revenue distribution includes approximately Euro 23,7M in Italy (encompassing Seeweb, Connesi, Tophost and the Misterdomain brand), Euro 2,9M in Slovenia (Webtasy, along with brands such as Domenca, Domovanje, Si.Shell, Hosterdam), Euro 3,1M in Croatia (Plus Hosting Grupa, with brands Studio4web, Plus Hosting, Infonet, Optima Hosting, and System Bee), Euro 0,8M in Serbia (mCloud, featuring brands mcloud, Plus hosting), Euro 0,9M in Switzerland (with the brand Artera), and Euro 3,2M in Bulgaria (Evolink).
Operating costs, which include selling, general, and administrative expenses, remained steady during this period without an increase in energy expenses compared to the previous year. These costs also reflect a negative impact of Euro 1,1M due to the IFRS 2 effect of the Stock Option Plan 2022-2025, which doesn’t affect the cash availabilities.
The consolidated EBITDA stood at Euro 10,4M, with an increase of Euro 3M. This growth is attributed to both the full effects of Connesi’s consolidation in 2023 and the business expansion of other Group companies.
The Group’s Net Financial Debt stands at Euro 6,5M, marking an increase predominantly attributable to cash-out for the acquisition of the minorities of Connesi, the acquisition of Misterdomain and the development of Seeweb’s technology park aimed at creating next-generation infrastructure.
Furthermore, the Net Financial Debt encompasses lease liabilities of Euro 4M in accordance with IFRS 16, which totaled Euro 4,3M as of December 31, 2022, primarily as a result of the above-mentioned substantial investments in infrastructure.
Significant events
On January 26th, 2023, DHH S.p.A., through its wholly-owned subsidiary Tophost Srl, announced the acquisition of the entire business of Misterdomain, a veteran player in the Italian web hosting market founded in 2007. Misterdomain, with its 31.000 domains and a turnover of around Euro 500.000, was fully integrated into Tophost. The acquisition was valued at Euro 700.000 and was settled in cash upon closing.
A few months later, on March 15th, 2023, Webtasy d.o.o., another fully owned subsidiary of DHH, completed the acquisition of Hosterdam, a segment of Stork R d.o.o., a Slovenian provider of shared hosting and domain registration. Hosterdam’s portfolio includes approximately 450 active shared hosting packages and around 1.360 registered domains, purchased for Euro 25.000. This strategic move aims to fortify the Group’s foothold in the Slovenian market, indicating a steady march towards growth and market consolidation.
Progressing into the latter part of the year, on September 28th, 2023, DHH S.p.A. finalized the acquisition of the remaining minority stakes in Connesi SpA. The initial phase of this transaction began with the purchase of a 69,15% share capital in Connesi, previously disclosed in a press release on July 28th, 2022. The final segment, involving the acquisition of the last 18,35% of Connesi’s share capital from individual stakeholders Raffaele Casali, Inarco Ammenti, Manuela Salvi, and Fabbrica Multimediale Srl, concluded earlier than the anticipated 90 days from the approval of the financial statements for the year 2025. Connesi holds a 12,50% treasury share.
No significant events occurred between the close of the year and the publication of this report.
Business outlook
The strategic plan is oriented towards propelling the Group’s endeavors in two principal domains: advancing geographical expansion and consolidating market dominance, encompassing web hosting, cloud computing, data center services, and internet access sectors, while concurrently fostering digital innovation and entrepreneurial spirit within tech communities across our established markets.
The Group is dedicated to cultivating a trajectory of growth in the current fiscal year, bolstered by organic development and prospective mergers and acquisitions.
Regarding the Russian market, the Group maintains no direct customer or supplier relationships, with our involvement limited to general pricing adjustments and escalated energy expenditures.
Within the group, there are no particular situations of insolvency or concentration of revenue.
DHH holding profit allocation
The Board of Directors has decided to recommend to the Shareholders’ Meeting the allocation of the profit of the holding company (DHH SpA), totaling Euro 1.336.486,27, to the Extraordinary Reserve.
“PMI Innovativa” qualification
During 2023 DHH S.p.A. has been confirmed “PMI Innovativa” in the related section of the company register in Milan.
Earnings call
Giandomenico Sica, Executive President, and Antonio Baldassarra, CEO, will comment on FY 2023 results in a conference call to be held on 27 March 2024 at 3.30 pm CET.
The live broadcast will be accessible at the link: https://whereby.com/dhhspa
People interested in participating are invited to send any questions or topics of interest to the following email address: investor.relations@dhh.international
Independence of Directors
In compliance with the amendments made by Notice No. 43747 published on November 17, 2023 by Borsa Italiana S.p.A. to Article 6-bis of the Euronext Growth Milan Issuers’ Regulations, which came into force on December 4, 2023, the Company’s Board of Directors has taken steps to define the quantitative and qualitative criteria on the basis of which to assess the significance, including economic significance, of relationships potentially relevant to the assessment of the independence of Directors (the “Policy”). As a result of the above, the Board of Directors, in view of the elimination of the burden placed on Euronext Growth Advisor to assess the independence requirements of candidates for the office of independent director for companies already admitted to Euronext Growth Milan, noted the need to eliminate the “Procedure for obtaining the Euronext Growth Advisor’s prior opinion on the proposal for the appointment of an independent director” previously adopted by the Company.
The Policy is available at the Company’s website at www.dhh.international, section “For Investors”.
ESG report
DHH has published its new Sustainability Report (ESG) Report. This document details the Company’s approach to addressing the ESG issues deemed most critical by the Company and its stakeholders.
The report, non audited and covering the period from January 1, 2023, to December 31, 2023, has been compiled in accordance with the GRI Standards and aligns with the United Nations Sustainable Development Goals (UN SDGs) as outlined in the 2021 Global Reporting Initiative (GRI Standards).
The full document is accessible online at the Company’s website at www.dhh.international, section “For Investors”.
