May 12, 2008 11:32 ET

Buongiorno Q1 2008 Results

MILAN, ITALY--(Marketwire - May 12, 2008) - Buongiorno S.p.A. (MTA, Borsa Italiana:BNG), a leading multinational in digital entertainment, has today announced quarterly results for the three months ended March 31st 2008.

Financial Highlights

- Revenues up 86.3% to Euro 79 million (Q1 2007: Euro 42.4 million)

- EBITDA up 77% to Euro 8.2 million (Q1 2007: Euro 4.7 million)

- Operating profit up 84.6% to Euro 6.5 million (Q1 2007: Euro 3.5 million)

- Pre-tax profit up 39% to Euro 3.8 million (Q1 2007: Euro 2.7 million). This includes restructuring and financial charges related to the acquisition and integration of iTouch

- Net financial debt of Euro 75.5 million at March 31, 2008

- EPS up 15% to Euro 0.030 (Q1 2007: Euro 0.026)

Operational Highlights

- Integration of iTouch Ventures progressing at a rapid pace

- Significant increase in business in various "new" geographies including Turkey, Brazil, Mexico, Argentina and South Africa

- New geographical sub-division for the 53 countries in which Buongiorno operates reflecting the fully implemented company reorganization

- Continued expansion of Buongiorno's Marketing Services division; most notably through the appointment by Vodafone Egypt to provide mobile phone advertising solutions

- 2008 guidance confirmed

Andrea Casalini, Chief Executive Officer of Buongiorno S.p.A commented,

"In the first quarter we have rapidly executed the operational integration of iTouch into the Company, which means Buongiorno is now in the best possible position to capitalize on opportunities offered by mobile entertainment market trends and absorb the irregular growth due to the period of transition. Companies that, like Buongiorno, have reached a significant size in Mobile Content 1.0 (MC 1.0) type services in Western Europe are facing the challenge of maintaining positive growth rates despite the erosion of revenues in certain services/segments that have traditionally supplied the greatest weight for their total business. We believe the opportunities to maintain an overall growth profile reside primarily in the launch/promotion of MC 1.0 services in more recently developed countries and the dissemination of next-generation services related to the development and diffusion of mobile Internet (known as MC 2.0 services) as rapidly as possible."


For the rest of 2008, Buongiorno intends to follow the guidelines set out in the strategic plan announced last autumn and to improve revenue growth rates from the first quarter, despite the pressure on the "traditional" business and the unfavorable overall macroeconomic context. In particular, the Company intends to continue to make strong efforts to acquire new subscribers to B2C services and increase its market share in the B2O and marketing services sectors. At the same time, the Company will remain focused on profitability, in part through its achievement of cost synergies arising from the integration of iTouch.

The Company confirms the guidance set in the 2008 plan on the basis of the results of the first quarter and business outlook.

For more information about Buongiorno, please visit their website, www.buongiorno.com.

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