DigitalGO: €44 million revenues in 2017, 58% generated abroad

PRESS RELEASE
DIGITALGO: positive results for the Italian digital company in 2017, approved by the Shareholders’ Meeting
Total revenues 44 million euros, 58% generated abroad
EBITDA 5.5 million (+ 141% compared to 2016)

DigitalGO Shareholders’ Meeting – an Italian digital company operating internationally, supporting companies in the digital transformation process and growth on mobile, born from the experience of Neomobile Group – approved the financial statements for 2017, which show a very positive performance of the main economic results.

DigitalGO – whose main shareholders are the British fund BlueGem Neo Holdings with 46% and Value Italy S.G.R. SpA in the name and on behalf of MPVenture 2, with a 40% stake – started the process of shifting the business model in 2017 and concluded in 2018, focusing in particular on consumer engagement and digital marketing.

In 2017, the group recorded consolidated net revenues of € 43.9 million, with new business (Digital Marketing and Digital Solutions) amounting to € 5.1 million (+ 21% compared to 3, 9 million in 2016).

As evidence of the growing internationalization, the 58% of DigitalGO revenues of were generated abroad (33% in Latin America, 23% in Europe and 2% in the rest of the world) and 42% in Italy. The Group has reached approximately 120 employees, with an average age of 30, 12 different nationalities and with 50% female workforce.

The consolidated Gross Margin amounted to € 16.1 million in 2017 and shows an increase of € 1.3 million compared to € 14.7 million recorded the previous year, thus bringing the Group’s overall margin rate to 36.6%, an increase of about 12%, compared to 24.7% generated in the previous year.

The increase in profitability is mainly due to the rationalization of investments promoted during the year, in which the Group focused mainly on markets with higher margins, carrying out marketing campaigns with ROI over 20%.

The consolidated gross operating profit (EBITDA) stood at 5.5 million euro in 2017, an increase of 141% compared to the 2.3 million euro generated in 2016. Consolidated operating profit (EBIT) is 2.4 million euro, 3.5 million euro higher than in 2016.

The adjusted net financial position of the group as of 31 December 2017 (from which the indebtedness of the Company to the shareholders, originated during extraordinary transactions on capital, is subtracted), is positive for 0.7 million euros compared to -0.6 millions of euros at the end of 2016, recording an improvement of over 1.3 million euro.

Operating cash flow totaled € 4.3 million, up € 2.5 million on the previous year.

As of December 31, 2017, the Group had a total of 115 employees; the average age 32 years old and a high level of education (more than 90% of university degrees) contribute to a young, dynamic environment, always open and receptive to new professional challenges, guaranteeing a strong capacity for innovation, flexibility, and an effective understanding of the consumption logic of the services offered by the company.