Italian D2C giant posts mixed fiscal 1Q09 results; agrees 87 million refinancing agreement.
Buongiorno generated revenue of €67 million in its first quarter to March 31st, down 15.1 per cent year-on-year.
However, the company's EBITDA was up slightly at €8.4 million from €8.2 million 12 months earlier, while its net losses narrowed to €67.3 million from €75 million.
Buongiorno has also confirmed that it has secured a binding agreement with a pool of banks headed by Banca IMI (an Intesa Sanpaolo Group Bank) for total refinancing of €87 million.
In an earnings release the company said its core 'mobile content 1.0' business (i.e. ringtones, wallpaper, etc) has held up well so far during the recession, with subscribers totaling 7 million globally.
It is also ploughing ahead with mobile content 2.0 initiatives, led by Peoplesound (formerly Blinko) and its HelloText social networking service.
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Andrea Casalini, CEO at ofBuongiorno, said: “The results of this first quarter are in line with our plans and demonstrate once again the soundness of our traditional business, even in a difficult macro-economic environment.
"We will persist with our strategy of efficiently managing our traditional business, which will result in significant cash flow maximisation in the next three years, and at the same time launching innovative products such as peoplesound to fully exploit Buongiorno’s position in the growing mobile internet market.”
