Billboard reported an increase of 4.4% YoY in its Q1 consolidated revenues, to BGN 5.9m, in what is traditionally one of the weak quarters for its business. Total operating expenses, however, increased rather more significantly, by 11.4% YoY (to BGN 4.3m) mainly on the back of a 48% higher cost of hired services (particularly in the lines rents and subcontractors). Compensations were also up, by 11% YoY, reaching BGN 1.1m. This signals to the fact that the group's margins on projects have been falling, as we have had previous comments from the management that it's not so much the volumes suffering, as the prices. As a result, the company’s EBITDA fell by 11% YoY, to BGN 1.6m, and EBITDA margin fell to 27%, from 31% a year ago. In Q1 2010 Billboard reported a one-off income from investments of BGN 0.6m, which allowed it to report a positive net profit figure of BGN 0.2m. Adjusting for this item, the group would have been at a loss, compared to roughly break-even in the same period of 2009. The management report states that the reported increase in the bottomline comes mainly from an improvement in the profits of the parent company (the wide format digital printing business) and Motion Arts (an advertising space management subsidiary). However, we note that the parent company was only able to report an improvement in its profit because it booked a one-off income from financial investment (accounting for BGN 0.35m of the reported net income of BGN 0.39m). Similarly to what we saw in the unconsolidated report, the management report points out that the main problem for the group remains the level of intercompany indebtedness in the country. The receivables increased by 13.5%, or another BGN 1m, in just the first 3 months of the year, to BGN 9m. Also, the net cash flow from operations has fallen by 85% YoY, to BGN 0.4m*. * The YoY comparison is, however, affected by a significant one-off inflow of VAT refunds in the beginning of 2009. If we disregard VAT flows, the decrease would have been significantly less, -18% YoY.