(Alliance News) - DHH Spa reported Thursday that first quarter revenues rose 42 percent year-on-year to EUR8.4 million from EUR5.9 million in the same period a year earlier.

As the company explained, organic growth was 13%, driven mainly by an increase in the IaaS business, the group's main revenue segment, which grew organically by 23% during the period. Recurring revenues accounted for about 95% of total revenues. The Balkan countries were the best performers on the organic growth front, with increases of 15 percent in Slovenia, 13 percent in Croatia, 16 percent in Serbia, and 18 percent in Bulgaria.

Adjusted Ebitad, on the other hand, increased to EUR2.7 million or 39 percent from EUR1.9 million in the first quarter of 2022, with the adjusted figure not considering the impact of nonrecurring revenues and costs. Organic growth in adjusted Ebitda was 14 percent while the rest is a consequence of M&A activities. The company also points out that in the first quarter of 2022 the energy crisis was not yet evident, which makes the organic growth even more significant.

Adjusted operating profit-which does not consider the impact of nonrecurring revenues and expenses and nonoperating items such as depreciation of assets accounted for only in accordance with civil and tax principles-shows a 25 percent increase to EUR1.3 million from EUR1 million in the first quarter of the previous year.

Operating cash flow rose to EUR3.2 million or 67% from EUR1.9 million, of which EUR607,000 is due to organic growth.

Net financial position rose slightly, to EUR6.3 million from EUR6 million a year earlier, despite the cash-out for the Misterdomain acquisition.

"In terms of business outlook, the group is working to increase the organic performance of its portfolio companies on all key financial indicators, with a focus on cash generation and cash conversion, and, in the meantime, is actively seeking new M&A opportunities in the market," the company explained.

DHH's stock is unchanged at EUR15.30 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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