2007-03-12 23:36:54 -
MILAN, Italy, March 12 /PRNewswire/ --
- Consolidated Revenues for 2006 Reached Euro 191.8 Million (Up
41% vs 2005)
- Ebitda for 2006 was Euro 23.7 million (Up 93% vs 2005)
- Net Profit for 2006 Amounted to Euro 12.3 Million (Up 138% vs
2005).
- Net Financial Position was Positive at Euro 7 Million
and Operating Cash Flow for the Year was Euro 21.4 Million.
- Value of Production was Euro 193.4
Million and Core Business
Revenues Were Euro 191.8 Million, Up 41% Compared to 2005.
- Consumer Services Amounted to Euro 176.8 million, Accounting
for 92% of Total Revenues.
- About 1.4 billion Digital Objects Were Sold in 2006 (623
Million in 2005) to Over 60 Million Paying Customers.
- Gross Operating Margin (EBITDA) Amounted to Euro 23.7 Million,
up 93%, Industrial Added Value (IAV) (1)was Euro 79.1 million and Operating
Result (EBIT) was Euro 18.8 million.
- Pre-tax profit was Euro 15 million and Net Profit for 2006
Amounted to Euro 12.3 Million (Euro 5.2 million in 2005), After Euro 1.7
Million in Non-Monetary Costs for Stock Options. EpS was Euro 0.1424.
- Net Financial Position was Positive at Euro 7 Million,Owing to Euro
21.4 Million in Operating Cash Flow in 2006.
The Board of Directors of Buongiorno S.p.A. (MTAX
STAR, Borsa Italiana: BNG), a leading multinational in digital entertainment,
approved today the draft financial statements for 2006, prepared in
accordance with the IAS/IFRS.
Value of Production for 2006 grew by 40% compared to 2005,
thus increasing from Euro 138 million to Euro 193.4 million. Core-business
revenues went from Euro 135.8 million to Euro 191.8 million (up 41%). This
increase in revenues was mainly attributable to the "organic" growth of
business and, to a lesser extent, to the effect of the acquisition completed
at the end of August 2006 (Rocket Mobile Inc.).
Group revenue distribution is well balanced among geographical
areas. Revenue growth was driven by the United States, where revenues more
than doubled from Euro 17.9 million in 2005 to Euro 59.1 million in 2006. The
Iberian Peninsula and South America also contributed with 13% growth.
Revenues in central Europe also increased about 22% year-on-year, boosted by
acquisitions made in the second half of 2005; in northern Europe, while
Consumer Services grew significantly, Marketing Services were downsized,
especially the CD Premium segment, in accordance with the Industrial Plan,
leading to about 7% contraction overall in revenues in the region.
Among the business areas, Consumer Services made the biggest
contribution to core business revenues, amounting to Euro 176.8 million,
accounting for 92% of total revenues, up 51% compared to 2005. Within
Consumer Services, more than 1,395 million digital objects were delivered
compared to over 623 million in 2005. About 60 million end users (mobile
phone unique numbers) were reached in 2006. B! multimedia content is
distributed through a balanced multi-channel strategy: direct distribution,
under the global consumer brand Blinko (43%), through partnerships with the
major telephone companies (35%), and with top media groups (22%).
Also in 2006, Buongiorno continued to enhance and diversify
its range in terms of content and quality offering and the company focused on
content produced within the mobile communities. Buongiorno is at the cutting
edge not only in the quality of digital entertainment, but also in the
development of interactive video formats for mobile phone, such as "Soccer
Addicts", the first interactive talk show and video community about soccer
that Buongiorno designed and developed for the mobile phone screen, winner of
the MIPCOMM Mobile TV Screenings & Awards in the "Orange Grand Prize for
Innovation" for 2006.(2) In addition, during the 3GSM Forum in Barcelona
(February 12-15, 2007), Buongiorno presented some novelties for 2007 in a
global market increasingly rich and varied in mobile digital entertainment,
including: Music Channel for Videofonia 3, the first music TV channel for
mobiles; Video Chat, the first videochat on the new IVVR standard, making
finding new friends and interacting with video telephony even easier and more
fun; V-mark, a new solution for the sharing of user-generated content (UGC)
with UGC authors' tracing and payment, a real revolution in P2P message
exchange and a new way of marketing, designed to sharply accelerate P2P MMS
traffic and advertising messages; On Device Portal, a software for
user-friendly management of VAS content installed in mobile phones
Marketing Services revenues reached Euro 14.9 million in 2006,
a 20% decrease compared to 2005, reflecting the company's strategic decision
to focus only on several specific operations, in particular digital marketing
and mobile advertising. The recent presentation of the new Group structure
introduced to strengthen its competitive position in the Marketing Services
sector and the acquisition, in February 2007, of HotSMS - a company
specializing in mobile advertising and marketing in Netherlands - are part of
this strategy.
The cost of services and use of third-party assets rose 35% in
2006 from Euro 99 million in 2005 to Euro 133.5 million, a less than
proportional increase compared to the revenue increase in 2006. The strategic
decision to invest in the direct distribution channel for mobile telephony
using the company-owned Blinko trademark, mainly in Spain and in
extra-European countries, required a significant increase in marketing
expenses, the bulk of which allocated to gaining new subscribers to wireless
services. Marketing expenses increased from over Euro 25 million in 2005 to
Euro 43 million in 2006.
Industrial Added Value (IAV), the true indicator of the
Group's growth performance, was Euro 79.1 million, up 44% compared to last
year, thus exceeding Group forecasts for 2006 of Euro 73-75 million, which
had already been increased in September 2006 from Euro 70-72 million at year
start 2006.
The ratio of personnel costs to revenues went from 19.7% to 18.9%, with a
35.7% increase in these costs, from Euro 26.7 million to Euro 36.2 million in
2006. About Euro 1,700 thousand were non monetary costs relating to stock
option plans currently in force. The average number of employees increased
from 466 in 2005 to 659 in 2006 (684 employees at 31 December 2006). The rise
in personnel costs and the number of employees was attributable to a large
extent to the acquisitions made in the second half of 2005 (around 150 staff
members) and August 2006 (about 40 staff members). The decrease in the ratio
of labor costs was possible thanks to the fact that the Group has reached a
size that allows it to achieve significant economies of scale in many of its
operations. The centralisation of corporate functions and "product factories"
(technology, media unit, product acquisition/licensing), as well as the
standardisation of processes and operations, contributed to the increase in
productivity (5 percentage points in the reference period).
Consolidated Gross Operating Margin (EBITDA) 2006 amounted to
around Euro 23.7 million, a 93% increase from Euro 12.3 million in 2005, and
the GOM/revenues ratio improved from 9% in 2005 to 12.3% in 2006.
Operating profit (EBIT) for 2006 amounted to Euro 18.8
million, with a 142% increase over the previous year. Depreciation,
amortization and write-downs of assets are the main item with about Euro 3.9
million, including amortization of intangible assets of the US company Rocket
Mobile Inc., acquired in September 2006, and the write-off of the equity
investment in Peoplesound.com Ltd., due to the progressive reduction of
activities in the CD Premium segment.
Pre-tax profit for 2006 amounted to about Euro 15 million, up
over 130% compared to 2005 (Euro 6.4 million). Taxes for the period were
about Euro 2.4 million, mainly including IRAP amounting to Euro 0.9 million,
for Italian Group companies and income taxes of American companies amounting
to Euro 1.3 million. There were no other direct taxes, as the Buongiorno
Group is using prior year losses.
At consolidated level, Net Profit before minority interests
amounted to Euro 12.6 million, compared to Euro 5.2 million in 2005. Minority
interests in the reference period were Euro 311 thousand, therefore the Net
consolidated profit attributable to the Group amounted to Euro 12.3 million
(Euro 5.16 million in 2005). Basic EpS at year-end 2006 was Euro 0.1424.
At December 31, 2006, the Buongiorno Group's Net Invested
Capital amounted to Euro 68.1 million, including: Net Fixed Assets of Euro
77.7 million; a negative Net Working Capital of Euro 5.4 million; and Funds
for Risks and Charges and Severance Indemnity Funds (TFR) totalling
approximately about Euro 4.2 million. Net Invested Capital was covered by
Consolidated Shareholders' Equity, which increased from Euro 51.4 million at
year-end 2005 to Euro 75.1 million at year-end 2006, and the positive Net
Financial Position amounting to Euro 7 million at year-end 2006, from a
negative 6.5 million at year-end 2005 to Euro. This result was achieved owing
to Euro 21.4 million in cash flow from core business operations, and a Euro
5.4 million reduction in working capital.
The annexes provide more details on Parent Company data. The Profit and
Loss Account, Balance Sheet, and Cash Flow Statements of the Group and the
reclassified statements of Buongiorno S.p.A are reported below.
Financial year 2006 closed with a net profit of Euro 13,818,800. With
prior Shareholders' approval, Euro 690,940 will be allocated to Legal Reserve
and Euro 13,127,860 will be allocated to Other Reserves.
The Company confirms its guidance for 2007(3). Revenues are
expected at Euro 230-250 million, with Industrial Added Value (IAV) at Euro
94-100 million, EBITDA between Euro 30 and 34 million and EpS at Euro
0.25-0.28.
About Buongiorno Group
Buongiorno (Italy, MTAX STAR: BNG) is a multinational leader
in digital entertainment. One of the first groups worldwide in the mobile
value added services area, Buongiorno is market leader in Europe and the
United States and has recently opened operations in emerging markets such as
Latin America, Middle East and Africa. Buongiorno operates in Russia and
Pacific Asia through the Joint Venture with the Japanese group Mitsui & Co.,
Ltd.. Buongiorno operates with two business lines: value-added services for
wireless and wired consumers (Consumer Services) - distributed through the
brand BLINKO as well as through partnerships with leading telecom companies
and the most important media groups -, and digital marketing services
(Marketing Services).
Additional information about Buongiorno S.p.A. is available on
the website www.buongiorno.com
References:
(1) Industrial Added Value is the best indicator of the capacity
to generate value for Service providers such as Buongiorno. IAV is calculated
as revenues minus variable costs and marketing expenses.
(2) The MIPCOM Mobile TV Screenings & Awards recognizes
outstanding achievement in mobile film and content and honors innovation in
new Mobile TV formats. A total of 290 companies competed in the event -- a
30% increase over last year.
(3) The forecasts shown in this document are based on the data
currently available to B!
Source: Buongiorno Vitaminic SPA
