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Interim financial report - Cinnober Financial Technology AB (Publ)

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January 1, 2018 – June 30, 2018

Second quarter highlights

  • Net sales amounted to SEK 87.6 (91.8) million; the proportion of recurring revenue amounted to 72.6% (70.0%) of net sales.
  • EBITDA as reported for the quarter amounted to SEK -38.2 (-28.2) million. Adjusting for one-off items affecting comparability of SEK 6.8 million in the second quarter, adjusted (underlying) EBITDA amounted to SEK -31.4 million. This represents an improvement from the Q1/18 adjusted EBITDA figure of SEK -34.9 million.
  • The loss for the quarter amounted to SEK -7.7 (-28.9) million, with the result from financial items being positively impacted by a SEK 32.8 million gain relating to the 60% divestiture of Irisium.
  • Earnings per share after dilution amounted to SEK -0.34 (-1.29), also positively impacted by the 60% divestiture of Irisium.
  • Cinnober targets a positive underlying EBITDA contribution in 2019, and aims to achieve a 20% underlying EBITDA margin in 2020. Further, a Capital Markets Day will be held on the day of the Q3/18 results (8 November).
  • Asia Pacific Exchange (APEX) launched its new marketplace, operating with Cinnober’s real-time clearing solution and the Irisium surveillance platform.
  • Divestment of 60% of Irisium to technology and software investment company KRM22, a strategic partner to accelerate Irisium’s growth and consolidate the surveillance market. The transaction resulted in a cash inflow, a financial gain and will result in a lower cost base going forward.
  • Guy Carpenter selected Simplitium’s ModEx to deliver a catastrophe risk modelling solution. This is categorized as a medium-sized deal. (1)
  • Minium signed Marex Spectron as its first client, a milestone achievement for Cinnober as it seeks to broaden its real-time clearing and risk management offering to banks and brokers. This is categorized as a small deal. (1)
  • On 13 August, Cinnober announced that Peter K. Lenardos was appointed as new Group Chief Executive Officer.

    (1) See financial definitions on p.21 in the full Interim Report

“Financial performance in the second quarter of 2018 was again disappointing from a revenue development and EBITDA perspective. However, we saw a positive and marked change in financial performance in June as new products started to contribute to revenue growth and efficiency measures lowered our cost base, and we have intensified our efforts to achieve profitability in 2019. We are encouraged by the impact our efficiency efforts are having on our financial performance and we are now targeting a 20% underlying EBITDA margin in 2020. Further, our cash balance increased quarter-on-quarter, and while we expect our cash balance to decline throughout the remainder of the year, we believe that continued active management of working capital will ensure sufficient funding. In addition, we expect our operating losses to significantly decline as we progress throughout the remainder of the year. My goal and obsession as Cinnober’s new CEO is the creation of shareholder value. The journey ahead will not always be a smooth one, but I look forward to our future with confidence,” comments Peter K. Lenardos, Group CEO, Cinnober Financial Technology AB.

Attachment: Interim Report January 1, 2018 – June 30, 2018

This information is such that Cinnober Financial Technology AB (publ) is obliged to publish under the EU Market Abuse Regulation and the Securities Market Act. This financial report was published on August 23, 2018 at 08.00 a.m. CEST.

Cinnober’s interim reports are published in English. The annual report is published in both English and Swedish.

The Cinnober share is listed on NASDAQ First North (CINN, ISIN code: SE0010023556, LEI code: 529900596KTN6Q8T7576). FNCA is the Certified Adviser.

For further information
Peter K. Lenardos, CEO and Acting CFO, phone +46 8 503 047 00, peter.lenardos@cinnober.com

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