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Buongiorno raises its year-end targets and long-term objectives
revenues 2006 expected at Euro 195-205 million, further sharp revenue growth for 2007, and revenues 2010 expected to exceed Euro 500 million.
For 2006, the Group expects to achieve revenues between Euro 195 million and Euro 205 million (previous target Euro 170-180 million), with Industrial Added Value (IAV) between Euro 73 million and Euro 75 million (previous target Euro 70-72 million). EBITDA is expected between Euro 22 million and Euro 24 million and EpS Euro 0.14-0.15 (previous target Euro 0.13-0.14).
For 2007, the Group forecasts revenues between Euro 230 million and Euro 250 million, IAV between Euro 94 million and Euro 100 million, EBITDA between Euro 30 million and Euro 34 million, and EpS between Euro 0.25 and Euro 0.28.
Based on the recently revised Industrial Plan, which has been approved by the Board of Directors, long-term objectives have also been raised: specifically, for 2010 the Group's target is to achieve revenues of over Euro 500 million, with IAV exceeding Euro 150 million and EpS at Euro 0.6.
The operating and financial results achieved through implementation of the medium/long-term Industrial Plan have allowed Buongiorno to confirm the strategic guidelines set last year. The Group will focus on the Mobile Value Added Services market, expanding the range, including services capable of facilitating interaction and community creation among end users. As in the past, Buongiorno is adopting a strategy that will be balanced and flexible along several lines: product/service portfolio, distribution channels (direct with the own Blinko brand and/or through agreements with media and/or telephone companies), and geographical areas. Moreover, as the management of company processes becomes increasingly efficient and with the implementation of standardized reporting and audit procedures, it will be possible to reduce the ratio of fixed to total costs. Organic growth will be accompanied by mergers and acquisitions aimed at increasing Group value.
Based on the multi-year plan presented, Buongiorno aims at increasing its market share in terms of added value from 1.9% in 2005 to 4% in 2010 (vs. 3.5% projected last year) and reducing the fixed costs/IAV ratio from 78% in 2005 to 56% in 2010 (as previously announced, and taking into account that in 2006 this ratio will be around 72% vs. 73% previously projected).
In addition, to improve its competitive position and seize new opportunities offered by the market, Buongiorno will focus on further enhancing some of its present strengths: an advanced technological platform, complete and flexible for the operation of digital content in several formats and distributed through various channels; high brand recognition at the global level through Blinko, which is expected to become one of the world's top three digital entertainment shops; the capacity to manage mobile communities and to stimulate the exchange of user-generated content; and, last but not least, consolidated experience in the use of digital mobile communication as one of the tools in its market mix.
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