DMAIL GROUP S.P.A. 
By PRESS RELEASE
The Board Of Directors Of Dmail Group S.p.A.
- Approved the Half Year Report for the Six Months Ended 30 June 2011
Key consolidated figures for the first half of 2011:
Net revenues: 37.9 million euro, against 38.6 million euro at 30 June 2010;
Gross Operating Income: 2 million euro, against 1.6 million euro at 30 June
2010;
Operating Profit: 0.6 million euro, against 0.4 million euro at 30 June 2010;
Net loss from continuing activities: 0.6 million euro against losses of 0.5 million euro at 30 June 2010;
Net financial indebtedness from continuing activities: 27.4 million euro,
essentially in line with the figure of 27 million euro at 31 December 2010;
- Confirmation of Cristian Biasoni as General Manager
Milan, 29 August 2011 - The Board of Directors of Dmail Group S.p.A., a company listed on the STAR segment of Borsa Italiana, met earlier today and approved the Half Year Report for the six months ending 30 June 2011.
INTRODUCTION
At 30 June 2011, the subsidiaries Buy On Web S.p.A. and Promotion Digitale S.r.l. have been classified under discontinued / held-for-sale operations. Such accounting treatment reflects the application of IFRS 5, insofar as Buy On Web S.p.A. is no longer operative and has been put into liquidation on 5 April 2011, whereas Promotion Digitale S.r.l. was sold on 11 July 2011. Dmail Group’s separate consolidated profit and loss account at 30 June 2011 therefore only includes activities which are intended to continue within the Group. The economic results and cash flows of discontinued operations have been shown separately. In compliance with such international accounting standard, the comparative profit and loss account and cash flow figures for the first half of 2010 have been disclosed again separately.
KEY CONSOLIDATED FIGURES AT 30 JUNE 2011
At 30 June 2011, the Dmail Group totalled net Revenues from Continuing Activities amounting to 37.9 million euro, down 2% on the 38.6 million euro reported in the first half of 2010. In particular, the Local Media segment reported net Revenues of 14.6 million euro (up 1% on 30 June 2010) and the Media Commerce segment reported net Revenues of 23.2 million euro (down 4% on 30 June 2010). The Parent Company accounted for the residual balances. The drop in revenues for the Media Commerce segment is mainly due to the difficulty in procuring goods from the Far-East during the first quarter of the financial year, which cleared up in the last part of the semester.
The Gross Operating Income of the Group's Continuing Activities (GOI) at 30 June 2011 amounts to 2 million euro, improving 25% on the 1.6 million euro at 30 June 2010. In particular, the Local Media segment reported a GOI of 1.2 million euro (up 7% on the figure at 30 June 2010) and the Media Commerce segment reported a GOI of 1.5 million euro (up 47% on 30 June 2010). The parent Company contributed the residual part. The significant growth of GOI in the Media Commerce segment is mainly due to the reduction of service costs as a result of the optimization of the marketing activities and the actions undertaken to improve the efficiency of supply logistics. The Group's Operating Result for the Group's Continuing Activities in the first half of 2011 amounted to 0.6 million euro, up 30% compared to 0.4 million Euro at 30 June 2010. In particular, the Local Media segment's operating result of 0.5 million euro (up 11% at 30 June 2010) and the Media Commerce segment's operating result was 0.9 million euro (up 42% on 30 June 2010). The Parent Company accounted for the residual part. The Group's Operating Result for the Group's continuing activities in the first half of 2011 shows a loss of 0.6 million euro, against the losses of 0.5 million euro reported at 30 June 2010. In particular, the Local Media segment's net profits were 0.2 million euro improving 33% on the 0.1 million euro at 30 June 2010. The Media Commerce segment's net profits were 0.2 million euro, an improvement (up +307%) on 0,1 million euro reported at 30 June 2010. The Parent Company accounted for the residual part. At 30 June 2011, the Net Results of Discontinued Operations representing the net results of the companies Buy On Web S.p.A. and Promotion Digitale S.r.l. is negative by 0.1 million euro, compared to a negative result of 0.6 million euro at 30 June 2010. Therefore, the Group’s Consolidated Net Results at 30 June 2011 – including therefore both the net results of continuing activities and the Net Results of discontinued operations – show a loss of 0.7 million euro, against the negative value of 1.4 million euro reported in the first half of 2010. The Net Financial Indebtedness of Continuing Activities amounts to 27.4 million euro, essentially in line with the figure of 27 million euro at 31 December 2010. The variation is mainly due to an increase of bank current borrowings for 3.3 million euro attributable to the Media Commerce area as a consequence of the business seasonal trends, partially compensated by the increase in residual cash and cash equivalents after the subscription (as integration) of a loan between Dmail Group S.p.A. and Buy On Web S.p.A. for an amount of 2.9 million euro. The Net Financial Position from discontinued operations, which refers to the subsidiary Buy On Web S.p.A. and Promotion Digitale S.r.l., is instead positive by 0.1 million Euro compared to 4.1 million Euro at 31 December 2010, as a result of the aforementioned loan and of the financial resources absorbed by the net current assets of the subsidiary Buy On Web S.p.A., in the first half of 2011. The Group’s overall Net Financial indebtedness at 30 June 2011, inclusive of both the Net Financial Indebtedness of continuing activities and the Net Financial Position of discontinued operations, was 27.2 million euro, compared to 31 December 2010 when it was 22.9 million euro.2
RESULTS OF DMAIL GROUP S.P.A. AT 30 JUNE 2011
At 30 June 2011 the parent company Dmail Group S.p.A. continued to provide communication, administration and cash pooling services to its subsidiaries, with revenues of 0.5 million euro, essentially in line with the result achieved in the first half of 2010.
The Gross Operating Income of Dmail Group S.p.A. at 30 June 2011 is negative by 0.7 million euro, improving on the figure at 30 June 2010, which showed a loss of 0.8 million euro. The variation is mainly due to lower cost of services and staff in the first half of 2011. The Operating Results of the Parent Company at 30 June 2011 show a loss of 0.8 million euro, in line with the figure for the first half of 2010. The net loss of Dmail Group S.p.A. at 30 June 2011 amounted to euro 0.7 million, against euro 0.2 million profits for the first half of 2010. The variation is mainly due to lower dividends received by the Parent Company from the subsidiaries compared to the corresponding period of the previous year.OTHER RESOLUTIONS
The Board of Directors of Dmail Group S.p.A. also proceeded to confirm Cristian Biasoni as General Manager of the Company up to 31 December 2011, appointment already assigned by the Board of Directors as approved on 16
May 2011.§
SIGNIFICANT EVENTS AT 30 JUNE 2011
Appointment of the Chairman of the Board of Directors
On 14th February 2011, the Board of Directors of Dmail Group S.p.A. acknowledged the resignation of dottor Adrio Maria de Carolis from his office as Chairman of Dmail Group S.p.A. and therewith proceeded to appoint as chairman dott. Andrea Zanone Poma. Liquidation of Buy On Web S.p.A. The the Board of Directors of the Dmail Group S.p.A. resolved on 14 February 2011 to put the subsidiary Buy On Web S.p.A. into liquidation, because it is, effectively, no longer operational after the transfer of the business branch to Terashop S.p.A. The subsidiary was put into liquidation on 5 April 2011. Appointment of the Board of Directors The following Board of Directors is currently in office and was appointed on 9 May 2011 for financial years 2011 – 2013. The Board of Directors held on 16 May 2011 has accordingly appointed Chairman Dott. Andrea Zanone Poma and Ing. Cristian Biasoni General Manager of the Parent Company, for the term of a quarter from the appointment date. Cristian Biasoni has been confirmed by the current Board of Directors of Dmail Group S.p.A. as the General Manager of the Company up to 31 December 2011.EVENTS OCCURRED AFTER 30 JUNE 2011
On 11 July 2011 the subsidiaries Dmail Group S.p.A. and Editrice Lecchese S.r.l. sold their respective shareholdings, totalling 80% of the share capital of Promotion Digitale S.r.l. for an overall price of Euro 0.2 million.
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BUSINESS OUTLOOK
The strategic priority of our Group in the second half of 2011 will be the reorganization of the existing structure with a view to ensuring a better management of its core business and improve the profitability of both the Media Commerce and the Local Media segments.§
DECLARATION OF THE COMPLIANCE OFFICER
For the purposes of Article 154 of the Italian Consolidated Finance Law, Dr. Mauro Albani, the compliance officer in charge of drawing up the company's accounting documents, declares that the accounting information disclosed in this press release matches the results of the accounting books and records of the company.§
The Half-year Management Report of Dmail Group S.p.A. at 30 June 2011 is available for public consultation at the offices of the Company and of Borsa Italiana S.p.A., as well as on the company’s website: by 29 August 2011 (section Company’s data Registration of meetings documents).
§
Attachments:
1. Balance Sheet
2. Separate consolidated profit and loss account
3. Separate profit and loss account of Dmail Group S.p.A.
4. Profit and loss account by segments
5. Consolidated net financial position
6. Consolidated cash flow statement
Dmail Group S.p.A. Image Building S.r.l.
Gianluigi Viganò Simona Raffaelli, Alfredo Mele, Valentina Bergamelli
Investor Relator Media Relations Tel. 02 5522941 Tel. 02 89011300 investor.relations@dmailgroup.it dmail@imagebuilding.it
Dmail Group S.p.A., listed on the Star segment of the Italian Stock Exchange, operates in the Media Commerce and
Local Media areas.
In the Media Commerce area, the Group is leader in the direct, multi-channel sales, particularly online, in Italy and abroad, of
innovative and good value products branded "Dmail - Idee utili e introvabili - www.dmail.it", "Dcomfort - Idee per vivere meglio
- www.dcomfort.it", "DGarden - Idee per vivere il tuo spazio verde - www.dgarden.it", “DPets – Idee per chi ama gli animali” - www.dpets.it".
The publishing activities are managed through Dmedia Group, which controls Netweek, the first local media network in Northern Italy. Dmedia also publishes the Netweek.it, the local news portal. Information on the company can be found at the address: www.dmediagroup.it
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CONSOLIDATED BALANCE SHEETASSETS - BALANCE SHEET (amounts in thousands of Euro) | 30/06/2011 | 31/12/2010 |
Non current assets | ||
Intangible assets | ||
Goodwill and other intangible assets with indefinite useful life | 16,339 | 16,339 |
Intangible assets with finite useful life | 6,301 | 6,234 |
Tangible assets | ||
Property, plant and equipment | 10,888 | 11,649 |
Other non current assets | ||
Shareholdings | 526 | 526 |
Securities and loans receivable | 363 | 374 |
Miscellaneous amounts receivable and other non current assets | 514 | 17 |
Deferred tax assets | 2,517 | 2,534 |
TOTAL NON CURRENT ASSETS (A) | 37,448 | 37,674 |
Current assets | ||
Stocks | 11,605 | 9,880 |
Tax credit | 289 | 272 |
Trade receivables and other current assets | 20,746 | 19,453 |
Cash and cash equivalents | 4,247 | 2,423 |
TOTAL CURRENT ASSETS (B) | 36,887 | 32,027 |
TOTAL DISCONTINUED OPERATIONS/ASSETS HELD FOR SALE(C) | 2,546 | 6,987 |
TOTAL ASSETS (A + B + C) | 76,881 | 76,688 |
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LIABILITIES - BALANCE SHEET (amounts in thousands of Euro) | 30/06/2011 | 31/12/2010 |
Shareholders' equity | ||
Attributable to the Parent Company | 12,091 | 12,821 |
Attributable to Minority Interests | 1,156 | 1,271 |
TOTAL SHAREHOLDERS' EQUITY (D) | 13,247 | 14,092 |
Non-current liabilities | ||
Non-current financial liabilities | 885 | 624 |
Post employment benefit (TFR) and other staff-related reserves | 1,908 | 1,937 |
Reserve for deferred tax liabilities | 1,920 | 1,954 |
Provisions for risks and charges | 785 | 705 |
Finance lease liabilities | 1,137 | 1,224 |
Miscellaneous payables and other non current liabilities | ||
TOTAL NON-CURRENT LIABILITIES (E) | 6,635 | 6,444 |
Current liabilities | ||
Current financial liabilities | 29,473 | 27,472 |
Finance lease liabilities | 150 | 158 |
Tax debit | 851 | 1,229 |
Trade and other current payables | 18,099 | 17,499 |
TOTAL CURRENT LIABILITIES (F) | 48,573 | 46,358 |
TOTAL LIABILITIES (H= E + F) | 55,208 | 52,802 |
TOTAL DISCONTINUED OPERATIONS/LIABILITIES HELD FOR SALE(G) | 8,426 | 9,794 |
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES (D+H+G) | 76,881 | 76,688 |
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SEPARATE CONSOLIDATED PROFIT AND LOSS ACCOUNTSeparate Consolidated Profit And Loss Account (amounts in thousands of Euro) | 30/06/2011 | Marg. % | 30/06/2010 | Marg. % | Change | Change % |
Revenues Other revenues | 36,233 1,665 | 96% 4% | 36,998 1,578 | 96% 4% | (765) 87 | -2% 5% |
Total revenues and other operating income | 37,898 | 100% | 38,576 | 100% | (678) | -2% |
Cost of goods | (11,384) | -30% | (11,521) | -30% | 137 | -1% |
Gross contribution margin | 26,514 | 70% | 27,055 | 70% | (541) | -2% |
Cost of services Staff costs Other operating expenses | (18,826) (4,360) (1,282) | -50% -12% -3% | (19,858) (4,346) (1,215) | -51% -11% -3% | 1,033 (15) (68) | -5% 0% 6% |
Gross operating income | 2,046 | 5% | 1,637 | 4% | 409 | 25% |
Amortisation, depreciation, provisions and write-downs | (1,469) | -4% | (1,193) | -3% | (276) | 23% |
Operating profit | 577 | 2% | 444 | 1% | 133 | 30% |
Net financial income (expense) | (992) | -3% | (782) | -2% | (210) | 27% |
Profit (loss) before tax | (415) | -1% | (338) | -1% | (77) | 23% |
Tax | (228) | -1% | (197) | -1% | (30) | 15% |
Net result from continuing activities | (643) | -2% | (535) | -1% | (108) | 20% |
Net result from continuing activities | (101) | 0% | (610) | -2% | 508 | -83% |
Consolidated net profit (loss) for the period | (744) | -2% | (1,145) | -3% | 401 | -35% |
- Group profit (loss) | (691) | -2% | (973) | -3% | 273 | -28% |
- Minorities | (53) | 0% | (172) | 0% | 119 | -69% |
Dmail Group S.p.A. (amounts in thousands of Euro) | 30/06/2011 | 30/06/2010 | Change | Change % |
Revenues Other revenues | 213 245 | 299 206 | (86) 39 | -29% 19% |
Total revenues and other operating income | 458 | 505 | (47) | -9% |
Cost of goods Cost of services Staff costs Other operating expenses | (8) (737) (303) (101) | (8) (923) (349) (51) | 0 186 46 (50) | -4% -20% -13% 98% |
Gross operating income | (691) | (825) | 134 | -16% |
Amortisation, depreciation, provisions and write-downs | (124) | (21) | (103) | 493% |
Operating profit | (815) | (846) | 31 | -4% |
Net financial income (expense) | (261) | 706 | (967) | -137% |
Profit (loss) before tax | (1.076) | (140) | (936) | 669% |
Tax | 332 | 325 | 7 | 2% |
Net result | (744) | 185 | (929) | -502% |
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PROFIT AND LOSS ACCOUNT BY SEGMENTSLOCAL MEDIALOCAL MEDIA (amounts in thousands of Euro) | 30/06/2011 | Marg. % | 30/06/2010 | Marg. % | Change | Change % |
Revenues Other revenues | 14,443 192 | 99% 1% | 14,165 282 | 98% 2% | 278 (90) | 2% -32% |
Total revenues and other operating income | 14,634 | 100% | 14,447 | 100% | 187 | 1% |
Cost of goods Cost of services Staff costs Other operating expenses | (1,102) (9,996) (1,927) (404) | -8% -68% -13% -3% | (1,178) (10,064) (1,745) (330) | -8% -70% -12% -2% | 77 69 (182) (74) | -7% -1% 10% 22% |
Gross operating income | 1,206 | 8% | 1,130 | 8% | 77 | 7% |
Amortisation, depreciation, provisions and write-downs | (698) | -5% | (671) | -5% | (28) | 4% |
Operating profit | 508 | 3% | 459 | 3% | 49 | 11% |
Net financial income (expense) | (110) | -1% | (100) | -1% | (9) | 9% |
Profit (loss) before tax | 398 | 3% | 359 | 2% | 40 | 11% |
Tax | (231) | -2% | (233) | -2% | 2 | -1% |
Net result | 168 | 1% | 126 | 1% | 42 | 33% |
MEDIA COMMERCE (amounts in thousands of Euro) | 30/06/2011 | Marg. % | 30/06/2010 | Marg. % | Change | Change % |
Revenues Other revenues | 21,751 1,418 | 94% 6% | 22,744 1,283 | 95% 5% | (993) 135 | -4% 10% |
Total revenues and other operating income | 23,168 | 100% | 24,027 | 100% | (858) | -4% |
Cost of goods | (10,301) | -44% | (10,315) | -43% | 14 | 0% |
Gross contribution margin | 12,867 | 56% | 13,712 | 57% | (844) | -6% |
Cost of services Staff costs Other operating expenses | (8,239) (2,130) (976) | -36% -9% -4% | (9,400) (2,252) (1,028) | -39% -9% -4% | 1,161 122 51 | -12% -5% -5% |
Gross operating income | 1,522 | 7% | 1,032 | 4% | 490 | 47% |
Amortisation, depreciation, provisions and write-downs | (660) | -3% | (425) | -2% | (235) | 55% |
Operating profit | 862 | 4% | 608 | 3% | 254 | 42% |
Net financial income (expense) | (287) | -1% | (242) | -1% | (45) | 18% |
Profit (loss) before tax | 576 | 2% | 366 | 2% | 210 | 57% |
Tax | (349) | -2% | (310) | -1% | (39) | 13% |
Net result | 226 | 1% | 56 | 0% | 171 | 307% |
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NET FINANCIAL POSITIONNET FINANCIAL POSITION | 30/06/2011 | 31/12/2010 | ||
(amounts in thousands of Euro) | 30/06/2011 | 31/12/2010 | ||
A | Cash | 92 | 53 | |
B | Cash equivalents | 4,155 | 2,370 | |
C | Held-for-trading securities | 0 | ||
D | Cash and marketable securities | A+B+C | 4,247 | 2,423 |
E | Current financial receivables | 0 | 0 | |
F | Current bank loans | (22,982) | (19,578) | |
G | Current portion of medium/long-term loans | (6,260) | (7,836) | |
H | Other current financial liabilities | (381) | (216) | |
I | Current financial liabilities | F+G+H | (29,622) | (27,630) |
J | Net current financial liabilities | D+E+I | (25,375) | (25,207) |
K | Non current bank loans | (847) | (577) | |
L | Issued bonds | 0 | 0 | |
M | Other non-current liabilities | (1,174) | (1,255) | |
N | Non current financial liabilities | K+L+M | (2,022) | (1,832) |
O | Net financial indebtedness from continuing activities CONSOB DEM/6064293/2006 | J+N | (27,397) | (27,039) |
Net financial position of discontinued operations | ||||
A | Cash | 2 | 2 | |
B | Cash equivalents | 231 | 4,141 | |
C | Held-for-trading securities | 0 | - | |
D | Cash and marketable securities | A+B+C | 233 | 4,143 |
E | Current financial receivables | - | ||
F | Current bank loans | (33) | - | |
G | Current portion of medium/long-term loans | (21) | - | |
H | Other current financial liabilities | (8) | - | |
I | Current financial liabilities | F+G+H | (62) | - |
J | Net current financial liabilities | D+E+I | 171 | 4,143 |
K | Non current bank loans | (13) | - | |
L | Issued bonds | 0 | 0 | |
M | Other non-current liabilities | (9) | 0 | |
N | Non current financial liabilities | K+L+M | (22) | 0 |
O | Net financial indebtedness from discontinued operation | J+N | 149 | 4,143 |
O | Total net financial indebtedness | (27,248) | (22,896) |
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CASH FLOW STATEMENTCONSOLIDATED CASH FLOW STATEMENT (amounts in thousands of Euro) | NOTES | 01/01/2011 – 30/06/2011 | 01/01/2010 – 30/06/2010 |
Result for the period | (643) | (535) | |
amortisation of intangible assets | 449 | 355 | |
depreciation of tangible assets | 504 | 498 | |
provisions and write-downs | 722 | 576 | |
Income from financial activities | 992 | 782 | |
Gains (losses) on disposal | 0 | 0 | |
Cash flow from operating activities | A | 2,024 | 1,675 |
Changes in current amounts receivable and other receivables | (2,654) | 1,688 | |
Changes in stocks | (1,538) | (1,107) | |
Changes in payables to suppliers, other payables | 993 | (466) | |
Changes in Post-employment Benefit (TFR) and other employee reserves | (575) | (531) | |
Changes in assets and liabilities for the period | B | (3,774) | (417) |
Cash flow from operating activities for the period | C=A+B | (1,751) | 1,258 |
Investments in tangible and intangible assets | (762) | (771) | |
Purchase (sale) of financial and other fixed assets | 0 | 0 | |
Purchase of subsidiaries net of acquired debt | 0 | 0 | |
Proceeds from sale of tangible assets | 180 | (0) | |
Cash flow utilised for investment activities | D | (582) | (771) |
New financing from medium/long-term borrowings | 1,000 | 4,500 | |
Repayment of medium/long-term borrowings | (2,319) | (1,803) | |
Interest paid | (836) | (667) | |
Instalments on finance leases | (78) | (47) | |
Purchase of own shares | 0 | 0 | |
Dividends paid | (62) | (65) | |
Cash flow from financing activities | E | (2,294) | 1,919 |
Changes in short-term net financial resources | F=C+D+E | (4,627) | 2,405 |
Net cash flow from the discontinued operation | G | (895) | (628) |
Net financial resources at beginning of period | H | (13,013) | (14,711) |
Net financial resources at end of period | I=F+G+H | (18,534) | (12,934) |
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