Press releases

The Board of Directors of DHH S.p.A. has examined and approved the consolidated financial statements report for the first half of 2018

Double-digit growth on all the main financial KPIs (net sales, EBITDA, net profit)
Cashflow before NWC changes up 31%
Continuing growth in sales across all subsidiaries
Improved EBITDA margin, as operating expenses scale with revenue
Strong net cash position and almost zero debt
Robust cash conversion - OCF/EBITDA = 100%

FINANCIAL HIGHLIGHTS:

■ NET SALES EQUAL TO EUR 2,9 MILLION VERSUS EUR 2,3 MILLION AS OF 30 JUNE 2017 (+24%)
■ EBITDA EQUAL TO EUR 277 THOUSAND VERSUS EUR 215 THOUSAND AS OF 30 JUNE 2017 (+29%)
■ NET RESULT EQUAL TO EUR 103 THOUSAND VERSUS EUR 85 THOUSAND AS OF 30 JUNE 2017 (+21%)
■ NET FINANCIAL POSITION EQUAL TO EUR 2,68 MILLION, OF WHICH: EUR 2,73 MILLION (CASH AND CASH EQUIVALENT); EUR 39 THOUSAND (CURRENT FINANCIAL DEBT) AND EUR 8 THOUSAND (NON-CURRENT FINANCIAL DEBT)

Giandomenico Sica, Chairman of the Board of Directors of DHH, commented: "We are pleased with the strong and continuous growth across all our subsidiaries, highlighted by a year-over-year increase in EBITDA amounting to 29% at the group level. While organic growth continued in the first semester, efforts were also made to strengthen the ground for further external expansion. In a joint venture with Seeweb, co-founder and technological partner of DHH, we launched CloudSeed, a program to invest in the most promising start-ups in our region. We also launched an internal start-up project named Sysbee, a spin-off from DHH d.o.o. with a focus on managed infrastructure. While the first semester was quiet in regards to new acquisitions, we managed to finalize the merger and consolidate all our companies in Croatia into one subsidiary. As the year started with a change of the official domain name, thus inaugurating a process with the aim to improve the DHH brand, we continued our planning activities which we expect to result in further improvement in communication with the market towards the end of this year."

Milan, 26 September 2018. The Board of Directors of DHH (“DHH”) (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”, met today to examine and approved the consolidated financial statements for the first half of 2018.

PERFORMANCE OF THE GROUP

MAIN RESULTS H1-2018
(ALL AMOUNTS ARE IN EURO)

30.06.2018

30.06.2017

DELTA

NET SALES

2.960.453

2.388.868

+24%

EBITDA

277.531

215.887

+29%

NET RESULT

102.806

84.964

+21%

In first half 2018 net sales related to the core - web hosting and domain registration - services were equal to 2.960.453 EUR, with an increase of 571.586 EUR if compared to first half of 2017.

Business performance by country

MAIN RESULTS FIRST HALF 2018
(ALL AMOUNTS ARE IN EURO)

30.06.2018

30.06.2017

DELTA

ITALY

1.015.086

721.538

+41%

SLOVENIA

723.924

671.391

+8%

CROATIA

1.038.219

881.975

+18%

SERBIA

67.642

46.900

+44%

SWITZERLAND

115.582

67.064

+72%

The consolidated net financial position was equal to EUR 2.684.347, of which: EUR 2.731.875 (cash and cash equivalent); EUR 39.376 (current financial debt) and EUR 8.150 (non-current financial debt).

The net equity was EUR 7.440.195.

THE GROUP CONSOLIDATED PRO-FORMA* RESULTS FIRST HALF 2018

MAIN RESULTS 2018
(ALL AMOUNTS ARE IN EURO)

PRO-FORMA*

CONSOLIDATED

DELTA

NET SALES

2.960.453

2.960.453

-%

EBITDA

505.193

277.531

+82%%

NET RESULT

295.767

102.806

+188%

* The consolidated pro forma is not audited by the audit firm but it has been checked only the mathematics 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 30.06.2018, 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.
 

MAIN EVENTS OCCURRED DURING THE FIRST HALF OF 2018 AND SUBSEQUENTLY OCCURRED

The following events took place on the dates indicated below:

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.internationalwww.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 FEBRUARY 2018 - Dominion Hosting Holding S.p.A. announces that the merger of Hosting IT j.d.o.o./Infonet d.o.o. (two subsidiaries of DHH) was completed.

20TH MARCH 2018 - Dominion Hosting Holding S.p.A. announces that it has entered a Joint Venture Agreement along with Seeweb, a company that is providing cloud computing and datacenter services globally. The companies have entered the agreement with the joint aim of collaboration on the project entitled “CloudSeed – Startup Turnaround.” The project looks into supporting and investing in the start-up businesses that position themselves in the web hosting, SaaS and cloud computing industry.

17TH APRIL 2018 - Dominion Hosting Holding S.p.A. announces that the merger of Infonet d.o.o./DHH d.o.o. was completed.

16TH MAY 2018 - Dominion Hosting Holding S.p.A. announces that the spin.off of DHH d.o.o. to establish a new company System bee d.o.o. was completed.

5TH JULY 2018 - Dominion Hosting Holding S.p.A. announces that that Zvonimir Gembec, current CEO of System Bee D.o.o. (“Sysbee”) became a shareholder of Sysbee, which was previously 100% owned by DHH S.p.A. Zvonimir Gembec entered into the ownership structure of Sysbee, subscribing (cash contribution) a dedicated capital increase of approx. 116.000 EUR, thus gaining 20% of the ownership of the company.

CONSOLIDATED INCOME STATEMENT
(ALL AMOUNTS ARE IN EURO)

CONSOLIDATED
30.06.2018

CONSOLIDATED
30.06.2017

DELTA

Net Sales

2.960.453

2.388.868

24%

Other Revenues

14.396

41.112

(65)%

Internal project

-

124.354

(100)%

OPERATING REVENUES

2.974.849

2.554.333

16%

Material costs

(17.454)

(15.034)

16%

Services costs and use of third party assets

(1.723.863)

(1.476.224)

17%

GROSS MARGIN

1.233.532

1.063.075

16%

Personnel costs

(857.912)

(758.352)

13%

Other expenses

(98.089)

(88.836)

10%

EBITDA

277.531

215.887

29%

Amortization and impairment

(126.650)

(62.914)

101%

EBIT

150.882

152.973

(1)%

Financial income (expenses)

(10.468)

(33.494)

(69)%

Other non-operating income/expense

(9)

(1.346)

(99)%

EARNINGS BEFORE TAXES

140.405

118.133

19%

Income taxes

(37.599)

(33.169)

13%

NET RESULT

102.806

84.964

21%

relating to the shareholders of the Group

106.783

98.429

8%

referring to the third party shareholders

(3.978)

(13.465)

(70%)

CONSOLIDATED PRO-FORMA  INCOME STATEMENT

PRO-FORMA *

CONSOLIDATED

DELTA 

30.06.2018

30.06.2018

(ALL AMOUNTS ARE IN EURO)   
Net Sales

2.960.453

2.960.453

0%

Other Revenues

14.393

14.396

0%

Internal project

-

-

-

OPERATING REVENUES

2.974.846

2.974.849

0%

Material costs

(17.454)

(17.454)

0%

Service costs and use of third party assets

(1.498.673)

(1.723.863)

(13)%

Personnel costs

(857.912)

(857.912)

(0)%

Other expenses

(95.614)

(98.089)

(3)%

TOTAL OPERATING COSTS

(2.469.653)

(2.697.318)

(8)%

OPERATING INCOME  - EBITDA

505.193

277.531

82%

Amortization and impairment

(122.636)

(126.650)

(3)%

EBIT

382.557

150.882

154%

Financial income (expenses)

(11.191)

(10.468)

7%

Other non-operating income/expense

-

(9)

(100)%

EARNINGS BEFORE TAXES

371.366

140.405

164%

Total current and deferred income taxes

(75.600)

(37.599)

101%

NET INCOME (LOSS) FOR THE YEAR

295.767

102.806

188%

relating to the shareholders of the Group

292.825

106.783

174%

referring to the third party shareholders

2.941

(3.978)

(174%)

    
* The consolidated pro forma is not audited by the audit firm but it has been checked only the mathematics accuracy.
CONSOLIDATED NET FINANCIAL POSITION
(ALL AMOUNTS ARE IN EURO)

CONSOLIDATED 30.06.2018

CONSOLIDATED 31.12.2017

DELTA

A. Cash

(196)

(1.319)

(85)%

B.Cash equivalents

(2.731.679)

(2.613.192)

5%

C. Securities held for trading

-

-

-

D. LIQUIDITY (A)+(B)+ (C )

(2.731.875)

(2.614.511)

4%

E. Current financial Receivables

-

-

-

F. Short-term bank liabilities

39.376

124.234

(68)%

G. Current part of non-current borrowing

-

-

-

H. Other current financial liabilities

-

-

-

I. CURRENT FINANCIAL DEBT  (F)+(G)+(H)

39.376

124.234

(68)%

J. NET CURRENT FINANCIAL DEBT (I)-(E)-(D)

(2.692.498)

(2.490.277)

(8)%

K. Non-current bank liabilities

8.151

8.930

(9)%

L. Bonds issued

-

-

-

M. Other non-current liabilities

-

-

-

N. NON-CURRENT FINANCIAL DEBT  (K)+(L)+(M)

8.151

8.930

(9)%

O. NET FINANCIAL DEBT  (J)+(N)

(2.684.347)

(2.481.347)

8%

ASSETS
(ALL AMOUNTS ARE IN EURO)

CONSOLIDATED 30.06.2018

CONSOLIDATED 31.12.2017

DELTA

Goodwill

5.436.376

5.462.952

0%

Tangible fixed assets

336.819

350.722

(4)%

Intangible assets

411.022

436.128

(6)%

Non-current financial assets

6.261

6.166

2%

Other non-current assets

-

2.457

(100)%

Prepaid Tax assets

13.474

8.161

65%

NON CURRENT ASSETS

6.203.951

6.266.586

(1)%

Trade receivables

357.515

440.747

(19)%

Current financial assets

-

-

-

Other current assets

45.397

72.079

(37)%

Tax receivables

157.080

173.075

(-9)%

Cash and cash equivalents

2.731.875

2.614.511

4%

Prepaid expenses and accrued income

498.607

424.515

17%

CURRENT ASSETS

3.790.474

3.724.927

2%

TOTAL ASSETS

9.994.425

9.991.513

0%

    
LIABILITIES
(ALL AMOUNTS ARE IN EURO)

CONSOLIDATED 30.06.2018

CONSOLIDATED 31.12.2017

DELTA

Share Capital

142.000

142.000

0%

Reserves

6.694.476

6.687.687

0%

Retained Profit (Loss)

493.430

249.696

98%

Year’s profit (loss)  relating to the shareholders of the Group

106.783

245.472

(56)%

NET EQUITY PARENT COMPANY

7.436.690

7.324.855

2%

Capital and Reserves relating to the third party shareholders

7.483

14.981

(50)%

Year’s  Profit/loss relating to the third party shareholders

(3.978)

(6.514)

(39)%

NET EQUITY TO THE THIRD PARTY SHAREHOLDERS

3.505

8.467

(59)%

NET EQUITY

7.440.195

7.333.322

1%

Non-current financial payables

8.151

8.930

(9)%

Severance reserves

12.974

11.792

10%

Provisions for risks and future liabilities

-

10.255

(100)%

Other non-current liabilities

-

-

-

Liabilities for deferred taxes

21.307

24.013

(11)%

NON CURRENT LIABILITIES

42.432

54.990

(23)%

Trade payables

344.809

440.610

(22)%

Other current liabilities

264.298

319.444

(17)%

Current financial liabilities

39.376

124.234

(68)%

Tax payables

98.309

121.724

(19)%

Accrued liabilities and deferred income

1.765.006

1.597.189

11%

CURRENT LIABILITIES

2.511.798

2.603.201

(4)%

TOTAL LIABILITIES

2.554.230

2.658.191

(4)%

TOTAL LIABILITIES AND NET EQUITY

9.994.425

9.991.513

0%

CASH FLOW STATEMENT
(ALL AMOUNTS ARE IN EURO)

CONSOLIDATED 30.06.2018

CONSOLIDATED 30.06.2017

DELTA

A. CASH FLOW FROM OPERATING ACTIVITIES   
Profit for period

102.806

84.964

21%

Income taxes

37.599

33.492

12%

Interest payables/(receivables)

13.140

33.494

(61)%

(Capital losses)/gains from sales of assets   
1. EARNINGS BEFORE INCOME TAX, INTEREST, DIVIDENDS AND CAPITAL GAIN/LOSSES

153.544

151.950

1%

Adjustments for non-cash items that are   
not accounted for in net working capital change:

123.088

59.445

107%

- Allocation to reserves

1.182

1.130

5%

- Amortization and depreciation of assets

124.883

62.041

101%

- Permanent loss write-down

290

873

(67)%

- Other adjustments on non-monetary items

(3.267)

(4.599)

(29)%

2. CASH FLOW BEFORE NWC CHANGES

276.632

211.396

31%

Changes in NWC:

63.422

359.543

(82)%

- Decrease (increase) in inventories   
- Decrease (increase) in customer receivables

91.553

(16.825)

(644)%

- Increase (decrease) in supplier payables

(73.596)

186.120

(140)%

- Decrease (increase) in prepaid expenses and accrued income

92.893

(101.908)

(191)%

- Increase (decrease) in accrued expenses and deferred income

90.184

274.264

(67)%

- Other changes to the NWC

(137.612)

17.891

(869)%

3. CASH FLOW AFTER NWC CHANGES

340.055

570.938

(40)%

Other changes:

(66.746)

(57.789)

(15)%

- Interests collected/(paid)

(13.140)

(33.494)

(61)%

- (income taxes paid)

(43.351)

(24.295)

(78)%

- Dividends received   
- (Use of reserves)

(10.255)

-

(100%)

CASH FLOW FROM OPERATING ACTIVITIES  [A]

273.309

513.149

(46)%

    
B. CASH FLOW FROM INVESTING ACTIVITIES   
(Investments) disinvestment in tangible assets

(51.733)

(107.232)

(52)%

(Investments) disinvestment in intangible assets

(18.575)

(594.732)

(97)%

(Investments) disinvestment in financial assets

-

(549.147)

(100)%

(Investments) disinvestment in non-capitalized financial assets

-

14.425

(100)%

CASH FLOW FROM INVESTING ACTIVITIES  [B]

(70.308)

(1.236.686)

(94)%

    
C. CASH FLOW FROM FINANCING ACTIVITIES [C]

-

-

-

Increase (decrease) current payables to banks

(85.637)

(9.766)

(767)%

New loans (Loan repayments)

-

(117.335)

(100)%

Paid capital increase

-

-

-

Treasury share sale (purchase)

-

-

-

(Dividends paid)

-

-

-

CASH FLOW FROM FINANCING ACTIVITIES  [C]

(85.637)

(127.101)

(33)%

INCREASE (DECREASE) IN LIQUIDITY  [A]+[B]+[C]

117.364

(850.637)

(114)%

LIQUID FUNDS AT THE BEGINNING OF THE PERIOD

2.614.511

3.926.378

(33)%

LIQUID FUNDS AT THE END OF THE PERIOD

2.731.875

3.075.741

(11)%

INCOME STATEMENT
PARENT COMPANY DHH SPA
(ALL AMOUNTS ARE IN EURO)

30.06.2018

30.06.2017

DELTA

Net Sales

209.416

165.209

27%

Other Revenues

3

-

-

OPERATING REVENUES

209.419

165.209

27%

Material costs

-

-

-

Services costs and use of third party assets

(195.494)

(164.315)

19%

GROSS MARGIN

13.925

894

1458%

Personnel costs

-

-

-

Other expenses

(1.688)

(417)

305%

EBITDA

12.237

477

2465%

Amortization and impairment

(6.066)

(5.822)

4%

EBIT

6.171

(5.345)

(215%)

Financial income (expenses)

724

1.545

(53%)

Other non-operating income/expense

-

-

-

EARNINGS BEFORE TAXES

6.895

(3.800)

(281%)

Income taxes

(2.143)

600

(457%)

NET RESULT

4.752

(3.200)

(249%)

NET FINANCIAL POSITION
PARENT COMPANY DHH SPA
(ALL AMOUNTS ARE IN EURO)

30.06.2018

31.12.2017

DELTA

A. Cash

-

-

-

B. Cash equivalents

(1.096.002)

(1.439.021)

(24%)

C. Securities held for trading

-

-

-

D. LIQUIDITY (A)+(B)+ (C )

(1.096.002)

(1.439.021)

(24%)

E. Current financial Receivables

(4.203)

(11.721)

(64%)

F. Short-term bank liabilities

-

-

-

G. Current part of non-current borrowing

3.384

6.825

(50%)

H. Other current financial liabilities

 

 250.000

(100%)

I. CURRENT FINANCIAL DEBT  (F)+(G)+(H)

3.384

256.825

(990%)

J. NET CURRENT FINANCIAL DEBT (I)-(E)-(D)

(1.096.820)

(1.193.917)

(8%)

K. Non-current bank liabilities

-

-

-

L. Bonds issued

-

 -

-

M. Other non-current liabilities

505.114

505.114

0%

N. NON-CURRENT FINANCIAL DEBT  (K)+(L)+(M)

505.114

505.114

0%

O. NET FINANCIAL DEBT  (J)+(N)

(591.706)

(688.803)

(14%)

ASSETS PARENT COMPANY DHH SPA
(ALL AMOUNTS ARE IN EURO)

30.06.2018

31.12.2017

DELTA

Investments

5.318.750

5.313.720

0%

Tangible fixed assets

-

-

-

Intangible assets

27.854

33.794

(18%)

Non current financial assets

571.401

566.390

1%

Other non current assets

-

-

-

Prepaid Tax assets

-

-

-

NON CURRENT ASSETS

5.918.005

5.913.904

0%

Trade receivables

267.135

195.608

37%

Current financial assets

4.203

11.721

(64%)

Other current assets

174

-

100%

Tax receivables

144.310

134.650

7%

Cash and cash equivalents

1.096.002

1.439.021

(24%)

Prepaid expenses and accrued income

27.855

18.162

53%

CURRENT ASSETS

1.539.679

1.799.163

(14%)

TOTAL ASSETS

7.457.684

7.713.068

(3%)

    
LIABILITIES PARENT COMPANY DHH SPA
(ALL AMOUNTS ARE IN EURO)

30.06.2018

31.12.2017

DELTA

Share Capital

142.000

142.000

0%

Legal Reserves

1.738

-

100%

Reserves

6.717.025

6.717.025

0%

Retained Profit (Loss)

-

-

-

Year’s profit (loss)  relating to the shareholders of the Group

4.752

1.738

173%

NET EQUITY

6.865.515

6.860.763

0%

Non-current financial payables

-

-

-

Severance reserves

-

-

-

Provisions for risks and future liabilities

-

-

-

Other non-current liabilities

505.114

505.114

0%

Liabilities for deferred taxes

-

-

-

NON CURRENT LIABILITIES

505.114

505.114

0%

Trade payables

57.357

66.662

(14%)

Other current liabilities

20.352

22.920

(11%)

Current financial liabilities

3.384

250.000

(99%)

Tax payables

5.842

7.543

(23%)

Accrued liabilities and deferred income

119

65

83%

CURRENT LIABILITIES

87.054

347.191

(75%)

TOTAL LIABILITIES

592.168

852.304

(31%)

TOTAL LIABILITIES AND NET EQUITY

7.457.684

7.713.068

(3%)

CASH FLOW STATEMENT
PARENT COMPANY DHH SPA
(ALL AMOUNTS ARE IN EURO)

30.06.2018

30.06.2017

DELTA

A. CASH FLOW FROM OPERATING ACTIVITIES   
Profit for period

4.752

(3.200)

(249%)

Income taxes

2.143

(600)

(457%)

Interest payables/(receivables)

(724)

(1.545)

(53%)

(Capital losses)/gains from sales of assets   
1. EARNINGS BEFORE INCOME TAX, INTEREST, DIVIDENDS AND CAPITAL GAIN/LOSSES

6.171

(5.345)

(215%)

Adjustments for non-cash items that are   
not accounted for in net working capital change:

6.066

5.822

4%

- Allocation to reserves   
- Amortization and depreciation of assets

6.066

5.822

4%

- Permanent loss write-down   
- Other adjustments on non-monetary items   
2. CASH FLOW BEFORE NWC CHANGES

12.237

477

2465%

Changes in NWC:

(97.748)

(56.139)

74%

- Decrease (increase) in inventories   
- Decrease (increase) in customer receivables

(71.527)

(88.526)

(19%)

- Increase (decrease) in supplier payables

(2.480)

31.881

(108%)

- Decrease (increase) in prepaid expenses and accrued income

(9.693)

14.272

(168%)

- Increase (decrease) in accrued expenses and deferred income

54

2.262

(98%)

- Other changes to the NWC

(14.102)

(16.028)

(12%)

3. CASH FLOW AFTER NWC CHANGES

(85.511)

(55.662)

54%

Other changes:

(1.419)

2.145

(166%)

- Interests collected/(paid)

724

1.545

(53%)

- (income taxes paid)

(2.143)

600

(457%)

- Dividends received   
- (Use of reserves)   
CASH FLOW FROM OPERATING ACTIVITIES  [A]

(86.930)

(53.517)

62%

    
B. CASH FLOW FROM INVESTING ACTIVITIES   
(Investments) disinvestment in tangible assets   
(Investments) disinvestment in intangible assets

(126)

(3.100)

(96%)

(Investments) disinvestment in financial assets

(10.041)

(860.404)

(99%)

(Investments) disinvestment in non-capitalized financial assets

7.518

(2.439)

(408%)

CASH FLOW FROM INVESTING ACTIVITIES  [B]

(2.649)

(865.943)

(100%)

    
C. CASH FLOW FROM FINANCING ACTIVITIES [C]   
Increase (decrease) current payables to banks

(253.440)

167

(-)%

New loans (Loan repayments)   
Paid capital increase   
Treasury share sale (purchase)   
(Dividends paid)   
CASH FLOW FROM FINANCING ACTIVITIES  [C]

(253.440)

167

(-)%

INCREASE (DECREASE) IN LIQUIDITY  [A]+[B]+[C]

(343.019)

(919.293)

(63%)

LIQUID FUNDS AT THE BEGINNING OF THE PERIOD

1.439.021

3.149.732

(54%)

LIQUID FUNDS AT THE END OF THE PERIOD

1.096.002

2.230.439

(51%)