Aspiro AB (publ): Year-end Report 2006
Stable Current Business and Strong Growth in New Segments in the Coming Years
• Full-year EBITDA was SEK 63.5 m (SEK 35.6 m) in 2006. The objective for 2006 was a minimum EBITDA of SEK 65 m. The actual is consistent with the established objective despite increased competition in Finland in the second half-year 2006. Aspiro’s biggest markets—Sweden and Norway—performed strongly in the year. Fourth-quarter EBITDA was SEK 15.3 m (SEK 14.8 m).
• Earnings after tax were SEK 49.5 m (SEK 18.0 m) for the full year 2006 and SEK 12.6 m (SEK 8.6 m) for the fourth quarter. Earnings per share were SEK 0.26 (SEK 0.11) for 2006 and SEK 0.07 (SEK 0.05) for the fourth quarter. The competitive situation in Finland has resulted in a SEK 35 m goodwill write-down relating to the Finnish companies. Based on estimated taxable earnings, Aspiro is posting a deferred tax asset of SEK 35 m.
• Full-year 2006 net sales were SEK 447.8 m (SEK 407.9 m), with acquired enterprises Mobile Avenue and Rubberduck contributing SEK 31.3 m and discontinued operations in the UK and Spain reducing sales by SEK 19.2 m. Aspiro has consciously downscaled unprofitable non-strategic sales in favor of improved margins. Fourth-quarter net sales were SEK 106.5 m (SEK 124.7 m).
• Aspiro will be focusing on its growth segments of mobile TV, music downloads, mobile marketing, search services and communities. In the fourth quarter, Aspiro launched music download services on three Scandinavian operators’ mobile portals, piloted a personal search service in Norway and rolled out a mobile marketing campaign alongside brewer Spendrups.
• On 1 October, Aspiro acquired mobile TV company Rubberduck, which contributed net sales of SEK 1.7 m. This acquisition had a marginal impact on earnings in 2006. After the end of the period, Rubberduck signed a contract with operator 3 regarding the delivery of its technology solution for 3’s mobile TV initiative in Sweden and Denmark.
• The Board of Directors considers that the company will maintain its secure market positioning in its current business with retained high profitability.
• To enable strong future growth, in the year, the Board took the decision to concentrate on the mobile TV, music, mobile marketing, search services and community segments. In the next three years, Aspiro expects brisk growth in these segments. These initiatives are expected to reduce year-2007 EBITDA by SEK 15-25 m. The Board expects these initiatives to generate positive earnings in the financial year 2009.
KEY FIGURES, Jan-dec 2006 (2005)
Net sales, SEK m: 447.8 (407.9)
EBITDA, SEK m: 63.5 (35.6)
Earnings after tax, SEK m: 49.5 (18.0)
Earnings per share, SEK: 0.26 (0.11)
Liquid funds, closing balance, SEK m: 79.4 (89.4)
Cash flow from operating activities before changes in working capital, SEK m: 58.3 (26.3)
Figures in brackets are for the corresponding period of the previous year.