The Board of Directors of Dominion Hosting Holding S.p.A. has examined and approved the consolidated financial statements and the draft financial statements of the parent company as at 31 December 2016

The Board of Directors of Dominion Hosting Holding S.p.A. has examined and approved the consolidated financial statements and the draft financial statements of the parent company as at 31 December 2016

IN THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 THE GROUP ACHIEVED TOTAL CONSOLIDATED REVENUES EQUAL TO EUR 4 MILLION
THE CONSOLIDATED GROSS OPERATING MARGIN AMOUNTS TO EUR 1,5 MILLION
THE CONSOLIDATED EBITDA AMOUNTS TO EUR 355 THOUSAND
THE CONSOLIDATED EBIT AMOUNTS TO EUR 234 THOUSAND
THE NET PROFIT FOR THE GROUP IS EQUAL TO EUR 155 THOUSAND

AS OF 31 DECEMBER 2016 THE NET FINANCIAL POSITION WAS POSITIVE (CASH) AND EQUAL TO EUR 3,2 MILLION

Milan, 27 March 2017. The Board of Directors of Dominion Hosting Holding 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 2016, which will be resolved by the shareholders’ meeting of April 26 2017.

Since the above are the first consolidated results of the company – which has only been created in July 2015 -, it was not possible to compare group profit and loss and balance sheet 2016 to group profit and loss and balance sheet 2015.

The comparison has been made with pro-forma results 2015.

Main results 2016 vs main results 2015

Consolidated pro-forma p&l 2016 Consolidated p&l 2016 Consolidated pro-forma p&l 2015
Net Sales 4,2M (+19%) 4M 3,5M
Gross Operating Margin 1,9M (+47%) 1,5M 1,3M
EBITDA 733k (+40%) 355k 522k
Net Profit 519k (+121%) 155k 235k

 

The consolidated pro-forma p&l 2016 is unaudited (see the Annexes).

It includes the full results of the acquisitions made in 2016 (InfoNet and HostingIT), while the consolidated p&l 2016 includes only the pro-quota results of the first quarter after the date of acquisition (Sept. 23, 2016).

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 2016, together with all direct and indirect costs related to M&A and extraordinary activities (e.g. merge of the 3 controlled Slovenian companies in one single entity).

The consolidated pro-forma p&l 2016 has been prepared:

  1. to have a comparable representation to the consolidated pro-forma p&l 2015, which didn’t include the above mentioned costs. DHH was not yet listed and active with acquisitions – the company has been founded in July 2015 and made its first acquisitions in 2016;
  2. to have a representation useful to compare DHH to its private peers (ref. official financial statements).

Main consolidated results as at 31 December 2016:

  • During the financial year ended 31 December 2016 the total consolidated revenues of the Group are equal to EUR 4M.

The Group is focused on web hosting services as a core business line and its revenues are approx. EUR 1.2M in Italy (Tophost), EUR 1.3M in Slovenia (Domenca and Domovanje), EUR 1.3M in Croatia (Plus, InfoNet and HostingIT) and EUR 100k in Serbia (Plus).

In the consolidated p&l 2016 results related to InfoNet and HostingIT accounts only pro-quota starting from the first quarter after the date of acquisition (Sept. 23, 2016).

In 2016 net sales grew from EUR 3.5M (net sales as in the consolidated pro-forma financial statements 2015) to EUR 4M (net sales as in the consolidated financial statements 2016, +14%).

Comparing net sales 2015 to pro-forma consolidated net sales 2016, which include the full-year – and not pro-quota – results of the companies acquired in 2016, growth was +19% (EUR 3.5M vs EUR 4.2M).

  • The consolidated GROSS OPERATING MARGIN amounts to EUR 1,5M.

Comparing consolidated gross operating margin 2016 vs pro-forma consolidated gross operating margin 2015 we have a positive difference of 155k (12%), in line with the growth of the net income (11%).

  • The consolidated EBITDA amounts to EUR 355k.

Comparing consolidated EBITDA 2016 to pro-forma consolidated EBITDA 2015, there is a negative difference of 167k, due to the fact that in 2015 the company didn’t have the direct and indirect costs related to Stock Exchange, M&A and not ordinary activities.

Comparing pro-forma consolidate EBITDA 2016, which is depurated by these costs, to pro-forma consolidate EBITDA 2015, which didn’t have these costs because the company was not yet listed on the Stock Exchange and active on M&A, we have a positive difference of 211k (+40%).

  • In the 2016 EBIT amounts to EUR 234k.
  • The Net Profit for the Group is equal to EUR 155k.

 

As at 31 December 2016 the Net Financial Position was positive and equal to EUR 3,2M of which:

  • cash equivalents of EUR 3,9M. Cash equivalents include the proceeds of the IPO, but also the cash generated by the company. Almost all DHH net sales are recurring revenues (subscriptions) and the company confirms its being strongly cash flow positive (the ratio EBITDA/operating cashflow is “1”, which means that approx. all the EBITDA is converted into operating cashflow);
  • current financial receivables of EUR 8k;
  • short-term financial debts of EUR 87k;
  • medium/long-term financial debts of EUR 549k. These debts are related to loans to support M&A activities (in particular, the acquisition of Plus in Croatia and Serbia);
  • others non-current debts of EUR 104k, of which EUR 87k related to M&A activities.

 

Material events occurred during the financial year ended 31 December 2016 and subsequently occurred

During the financial year 2016 DHH focused on the admission of the Company on the Italian Stock Exchange AIM/MAC market; for this purpose:

  • on 15th April 2016 the DHH shareholder’s meeting unanimously resolved upon, among others, a capital increase and the change of the legal form of the Company;
  • on 9th June 2016 the DHH ordinary and extraordinary shareholder’s meeting, with series of linked and related resolutions, unanimously resolved upon the admission of the Company on the Italian Stock Exchange AIM/MAC market;
  • on 19th July 2016 the DHH Board of Directors favourably resolved upon the admission of the Company on Italian Stock Exchange AIM/MAC market;

After the end of the first-half year of 2016, DHH concluded its process of admission on the Italian Stock Exchange AIM/MAC market:

  • on 25th July 2016 DHH has admitted on the Italian Stock Exchange AIM/MAC market; during this admission the Company raised 4.2 million Euros capitalizing 14.2 million on the Italian Stock Exchange;
  • on 23rd September 2016 DHH – through its Croatian subsidiary Plus Hosting d.o.o. – purchased 100% of the corporate capital of InfoNET d.o.o., one of the main players in the Croatian web hosting market, thus strengthening its leading position in said market;
  • on 10th February 2017 DHH entered into a framework agreement with Mr. Sergio Ravera. By means of said agreement DHH intends to acquire from Mr. Ravera the entire share capital of Bee Bee Web SA, a Swiss company engaged in the business of web hosting. According to the same agreement, DHH will buy also the Italian reseller of Bee Bee Web, in order to make the group presence on the Italian market even stronger;
  • on 20th March 2017 DHH – through its Croatian subsidiary DHH d.o.o. (Plus Hosting d.o.o. has been renamed into DHH d.o.o. in February 2017)  – purchased from Studio4Web a branch of the business dedicated to web hosting, further increasing its role in said area of Croatian market.

DHH S.p.A. profit/loss allocation

Despite the group reported a consolidated net profit of EUR 155.463, DHH S.p.A. as a single entity – not taking into account the consolidated results – reported a loss of EUR 521.812,73, mainly because of the IPO costs. The Board of Directors proposes to fully cover the loss through the share premium reserves, which would be then reduced from EUR 7.230.437,86 to EUR 6.708.625,13.

Giandomenico Sica, Chairman of the Board of Directors of DHH commented: “2016 has been an amazing year for us. At the beginning of 2015 DHH was an idea without a company. In less than 2 years we built a solid and publicly listed international group, which is now one of the main players in the Alps-Adriatic region in the web hosting industry. Despite the listing on the Stock Exchange in 2016 we kept the focus on organic – and double digit – growth. In this first period after the IPO we already completed 2 acquisitions (InfoNet and web hosting assets of Studio4Web) and entered in a framework agreement to acquire Bee Bee Web in Switzerland together with its Italian reseller. With these deals and taking into account the results 2016 of these companies, we already have an aggregate turnover on our core business – web hosting – of more than EUR 5M”.

***

Notice of Shareholders’ Meeting

The Board of Directors delegated the President to convene an Ordinary Shareholders’ Meeting on 26th April 2017.

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.dominion.it.

Shareholders may view these documents and request copies of them.

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