Cision AB (publ) - Interim report January-June 2011, July 21, 2011
Improved profitability in Cision Europe
Continued organic growth in the US
- The Group’s operating revenue amounted to SEK 242 million (285). Organic growth was -3 percent, compared with -2 percent for January-March 2011 and -5 percent for April-June 2010. Exchange rate effects decreased revenue by SEK 38 million compared with the same period last year.
- Operating profit excluding non-recurring items amounted to SEK 30 million (35) and the operating margin excluding non-recurring items was 12.4 percent (12.2). Non-recurring items amounted to SEK 0 million (-3) and therefore operating profit amounted to SEK 30 million (32). Exchange rate effects had a negative impact on operating profit of SEK 7 million compared with the same period last year.
- Profitability in Cision Europe strengthened in the second quarter, with an operating margin of 12.8 percent, compared with 9.1 percent for the previous quarter and 7.1 percent for the same period last year. The July 1 divestment of the labor-intensive Monitor and Analyze business in Finland will further strengthen the long-term outlook for Cision’s European operations.
- Cision’s largest and most important market, Cision US, reported organic growth of 2% for the second quarter.
- Cash flow for the Group continued to improve on a year-on-year basis, with free cash flow of SEK 5 million in the second quarter, compared with SEK -55 million for the same period last year. On a 12 month rolling basis per June 30, 2011, free cash flow was SEK 102 million.
- The Group’s operating revenue amounted to SEK 491 million (599). Organic growth was -3 percent (-7). Exchange rate effects decreased revenue by SEK 61 million.
- Operating profit excluding non-recurring items amounted to SEK 62 million (68) and the operating margin excluding non-recurring items was 12.7 percent (11.3). Non-recurring items amounted to SEK 0 million (-5) and therefore operating profit amounted to SEK 62 million (62). Exchange rate effects had a negative impact on operating profit of SEK 11 million compared with the same period last year.
- Profit before tax was SEK 50 million (39). Earnings per share were SEK 2.65 (2.00).
- Operating cash flow amounted to SEK 48 million (-3) and free cash flow amounted to SEK 26 million (-71).
Comment by Cision CEO Hans Gieskes:
“In the second quarter, efficiency continued to improve in our European operations, which delivered an operating margin of 13 percent – the highest level in many years. The divestment of the Finnish labor-intensive and transaction- based Monitor and Analyze business as announced on July 1 will further strengthen the long-term European margin and growth outlook. In North America, Cision US had another quarter with strong profitability and its third consecutive quarter with organic growth. We continue to invest in growth initiatives through product development and sales and marketing activities to strengthen the current positive trend in the US. Canada had a poor first half of 2011, due to its dependence on traditional media monitoring. Measures will be implemented to strengthen and reposition our Canadian business.”
Cision is the leading provider of software, services, and tools to the public relations and marketing industry. Marketing and PR professionals use our products to help manage all aspects of their brands – from identifying key media and influencers to connecting with audiences; monitoring traditional and social media; and analyzing outcomes. Journalists, bloggers, and other influencers use Cision’s tools to research story ideas, track trends, and maintain their public profiles. Cision is present in Europe, North America and Asia, with partners in over 125 countries and is quoted on the Nordic Exchange with revenue of SEK 1.1 billion in 2010. This press release is also available at http://corporate.cision.com .
For further information, please contact:
Hans Gieskes, President and CEO, phone 46 (0)8 507 410 11
Erik Forsberg, CFO, telephone 46 (0)8 507 410 91
Cision AB (publ)
P.O. Box 24194
SE-104 51 Stockholm, Sweden
Corp Identity No. SE556027951401
Telephone: 46 (0)8 507 410 00