Street Calls of the Week
Introduction & Market Context
Dominion Hosting Holding SpA (DHH.MI), an internet infrastructure provider focused on the Mediterranean region, presented its latest corporate overview and H1 2025 results in September 2025. The company, which has evolved from a startup to a publicly listed multinational, reported solid growth across its diversified business segments while maintaining strong profitability metrics.
DHH operates in several high-growth markets, including cloud computing (projected to reach $1.25 trillion by 2028), cloud hosting ($169 billion by 2025), business connectivity ($115 billion by 2027), datacenter & networking ($288 billion by 2027), managed services ($731 billion by 2030), and the emerging AI infrastructure segment ($85 billion by 2026).
Executive Summary
DHH reported H1 2025 revenue of €19.6 million, representing a 9% year-over-year increase, while EBITDA grew by 11% to €6.7 million, resulting in an impressive 34% EBITDA margin. The company’s subscription-based business model continues to generate strong cash flow, with a cash conversion rate of approximately 100%.
As shown in the following comprehensive overview of DHH’s business segments, the company maintains a well-diversified portfolio of internet infrastructure services:
For the full year 2024, DHH generated €37.1 million in revenue (a 23% increase), €12 million in EBITDA (a 20% increase), and €5.8 million in EBT (a 19% increase). The company has maintained a conservative financial structure with a Net Debt/EBITDA ratio below 1x despite ongoing M&A activities.
Detailed Financial Analysis
DHH has demonstrated consistent growth since its founding, expanding from €4 million in turnover for FY2016 to approximately €37 million in FY2024. This growth trajectory is clearly illustrated in the following chart:
In H1 2025, DHH’s revenue growth was driven by multiple segments:
- Cloud Computing: €14 million (36% of total turnover), +2% YoY
- Cloud Hosting: €4.6 million (23% of total turnover), +7% YoY
- Business Connectivity: €4.5 million (23% of total turnover), +16% YoY
- Datacenter and Networking: €1.8 million (9% of total turnover), +9% YoY
- Managed Services: €0.7 million (3% of total turnover), +74% YoY
The company’s financial efficiency metrics remain strong, with consolidated EBT increasing from €3 million to €3.4 million and net profit rising from €2 million to €2.2 million in H1 2025. Operating cash flow continues to be robust, supporting the company’s investment projects, primarily M&A. As of the end of H1 2025, DHH reported net debt of €4.6 million with €16.5 million in cash availability.
The following slide illustrates the company’s H1 2025 financial performance:
Strategic Initiatives & Business Model
DHH’s business model is built around recurring revenue (over 90%) and high operating cash flow (above 80%), serving a distributed customer base of tens of thousands of clients. The company focuses on proprietary technology and R&D-driven product development, primarily targeting professional and business customers.
The company’s detailed business model across segments is outlined below:
A key differentiator for DHH is its decentralized organizational structure, which consists of independent entities coordinated by a holding company. This approach promotes local entrepreneurship while allowing each business to operate independently, providing benefits such as agility, empowerment of local leaders, knowledge sharing, and accelerated innovation.
DHH’s corporate structure spans multiple countries in the Mediterranean region:
M&A Strategy and Recent Acquisitions
DHH pursues a dual M&A strategy, focusing on both expansion (entering new geographies or contiguous market segments) and consolidation (increasing market share in current markets). The company’s approach to M&A is clearly defined:
In April 2025, DHH completed the acquisition of 60% of Teknonet, a Managed Service Provider (MSP) founded in 2005 and based in Monteprandone, Italy. This strategic acquisition, which marks DHH’s entry into the managed services market, brought in a company that generated €4.2 million in revenue, €922,783 in EBITDA, and €643,046 in net profit in 2024.
The details of the Teknonet acquisition are shown below:
Forward-Looking Statements
DHH continues to focus on both organic growth and acquisitions. For organic growth, the company aims to increase Average Revenue Per User through premium products, launch proprietary solutions for innovation, and enhance its go-to-market strategy with value partnerships.
The company’s strong cash position (€16.5 million in cash availability) and controlled debt levels (Net Debt/EBITDA < 1x) provide a solid foundation for future M&A activities. With its diversified business model and presence in high-growth market segments, particularly the emerging AI infrastructure space, DHH appears well-positioned to continue its growth trajectory.
As of the latest trading data, DHH shares are priced at €24.5, up 2.51% recently, with a 52-week range of €19.2 to €27.0, reflecting investor confidence in the company’s business model and growth strategy.
Full presentation:
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