Aspiro AB (publ): Interim Report January - September 2010

Very Strong Growth in Music Streaming

The Quarter in Brief

  • Net sales for continuing operations (after the sale of Mobile Entertainment) for the third quarter were SEK 77.4 m (SEK 61.4 m), equivalent to growth of 26%.
  • EBITDA for continuing operations for the third quarter was SEK -9.9 m (SEK -3.9 m).
  • The profit/loss after tax for continuing operations for the third quarter was SEK -14.4 m (SEK -4.7 m).
  • Sales growth of over 100% year on year and over 65% on the previous quarter in the Music business segment. Very good future prospects. Ongoing negotiations with new potential partners.
  • Stable sales growth in Mobile TV. The company is executing changes in its sales organization to achieve higher growth, targeting European operators.
  • A rationalization program to achieve profitability in Mobile Solutions caused non-recurring expenses of some SEK 3.5 m. The sales organization was reorganized, and going forward, will concentrate on the core products of gateways and the Merlin media platform.
  • Aspiro introduced new accounting principles in relation to operators and partners in Mobile Solutions and Mobile Search in the third quarter. This change does not affect profit/loss, but reduced net sales for continuing operations by some SEK 10 m.

 Future Prospects

  • Aspiro is maintaining its focus on profitable growth in its core segments of Music and Mobile TV.

CEO's Statement

“Now that we have divested former business segment Mobile Entertainment, it’s clear that Aspiro is a growth company. Music sales have doubled and we’re noting continued very brisk progress, especially in streaming services,” commented Gunnar Sellæg, CEO.

Key figures 

JUL-SEP 2010 (2009) JAN-SEP 2010 (2009)
Net sales, SEK m 77.4 (117.7) 283.1 (362.0)
EBITDA, SEK m –9.9 (7.0) –4.7 (8.5)
Earnings after tax, SEK m –16.0 (2.2) –21.5 (–0.2)
Basic earnings per share, SEK –0.08 (0.01) –0.10 (0.00)
Diluted earnings per share, SEK –0.08 (0.01) –0.10 (0.00)
Equity/assets ratio, % 67 (77) 67 (77)
Return on equity, % –5.48 (0.89) –7.04 (0.22)
Return on capital employed, % –5.03 (0.66) –7.31 (–1.35)
Operating margin, % –18.3 (1.7) –7.5 (–1.7)
Cash flow from operating activities per share, SEK 0.03 (–0.01) 0.06 (–0.06)

Continuing Operations
JUL-SEP 2010 (2009) JAN-SEP 2010 (2009)
Net sales, SEK m 77.4 (61.4) 197.1 (190.4)
EBITDA, SEK m –9.9 (–3.9) –34.5 (–19.2)
Earnings after tax, SEK m –14.4 (–4.7) –39.5 (–16.7)
Basic earnings per share, SEK –0.07 (–0.02) –0.20 (–0.09)
Diluted earnings per share, SEK –0.07 (–0.02) –0.20 (–0.09)
Operating margin, % –18.3 (–11.5) –24.2 (–15.2)

This information is mandatory for Aspiro AB (publ) to publish pursuant to the Swedish Securities Exchange and Clearing Operations Act and/or the Swedish Financial Instruments Trading Act. This information was submitted for publication at 8:30 a.m. on 11 November 2010.

For more information or questions, please contact:

Kristin Breivik Eldnes
Head of Corporate communication and IR
Tel: +
47 908 07 389
e-mail:
kristin.eldnes@aspiro.com

Gunnar Sellæg
CEO
Tel: +
47 901 81 528
e-mail: gunnar.selleg@aspiro.com

About Aspiro
Aspiro has unique positioning as the world’s only provider of complete TV and music streaming services for partners that want to put their own branding on the service. Aspiro has over ten years’ experience in mobile technology and retail in northern Europe, and delivers services to partners worldwide like T-Mobile, Telefónica O2, Telenor, 3, TeliaSonera, Tele2, the BBC, Aftonbladet, mBlox, TVNorge, Entel and VG. Aspiro is listed on Nasdaq OMX Nordic Exchange Stockholm. Sales in 2009 for continuing operations were SEK 249 m and the company has some 115 employees.

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About Us

Aspiro is a media technology company on the forefront in the ongoing redefinition of music consumption. Through its subscription services WiMP and TIDAL, the company offers a complete music experience with HiFi quality audio and integrated editorial, magazine and video. In parallel, Aspiro is a content provider to the online media industry through RADR, helping its partners to attract and retain visitors on their web sites. See more on www.aspiro.com

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