Clarification of reporting structure and key figures
Reporting structure
As a feature of efforts to clarify Eniro’s operational structure and the company’s primary revenue streams, the company has decided to recognize revenues divided in accordance with two principal types of revenue: Directories and Voice. In Directories, revenues will be divided among Online/mobile, Print and Media Products. The change in relation to the former reporting structure is that revenues in Poland are allocated in accordance with a structure that corresponds to that used in other countries in the Group. In addition to revenue streams, revenues per country will also be reported. Earnings at EBITDA level will be reported in the same manner as before, meaning divided among Directories and Voice. As of now, the earnings trend in Poland will be described in running text in financial reports. In the enclosed pdf, pro forma figures per quarter are presented for 2011.
New accounting policy for pension obligations and definition of net debt
As of the first quarter of 2012, Eniro will according to current IAS19 cease to apply the corridor method and will instead recognize all actuarial gains and losses in other comprehensive income as they arise. Actuarial losses amounted to SEK 226 M at the beginning of 2011. Due to the transition to the new accounting policy, pension obligations in the balance sheet will rise, while shareholders’ equity will decline. Accrual accounting of actuarial losses in operating profit will no longer be applied. In 2011, operating profit was charged with SEK 40 M for this. The new accounting policy will not impact earlier communicated financial guidance. As of 2013, a revised IAS19 will not permit the corridor method.
At the same time, Eniro has decided that as of 2012 pension obligations will be excluded from the definition of recognized net debt. Net debt excluding pension obligations matches how net debt is defined in the current bank agreement in respect of the calculation of covenants and the establishment of interest-rate margin. According to the new definition, recognized net debt will be slightly lower and will provide a more accurate impression of how net debt is developing in line with the definitions in the bank agreement.
Development of working capital during 2012
The company’s assessment that growth in working capital for full-year 2012 will be around zero stands firm. However, the trend in working capital will vary from quarter to quarter during the year.
Shifts in publication dates
Revenues from sales of printed directories are recognized when the various directories are printed. Accordingly, changes in publication dates could have an impact on comparisons between quarters. The enclosed table of the changes in publication dates for 2012 illustrates the projected breakdown per quarter based on revenue for printed directories for 2011. The enclosed table provides a specification of the moved directories’ revenues during 2011. Due to the structural decline in the market for printed products, it is estimated that recognized revenue for these directories will decline during 2012.
For further information, please contact:
Mattias Lundqvist, CFO, Ph: +46 8 553 310 04
Cecilia Lannebo, Head of Investor Relations, Ph: +46 722 208 277, e-mail: cecilia.lannebo@eniro.com
The above information is such that Eniro AB (publ) is obligated to disclose in accordance with the Securities Market Act and/or the Financial Instruments Trading Act.
Eniro is the Nordic region’s largest search company. Both consumers and companies can use Eniro’s services to easily locate where to buy services and products – regardless of whether the channel is internet, catalog or mobile. Advertisers can actively market themselves to interested consumers, find new customers and increase sales. Better search means better business.
Eniro has 3,600 employees in the Nordic region and Poland and has been listed on Nasdaq OMX Stockholm since 2000. During 2011, Eniro’s revenues amounted to SEK 4,323 M and EBITDA was
SEK 991 M. Headquarters are located in Stockholm, Sweden. More on Eniro at www.eniro.com