Improved profitability – continued measures to reverse trend in digital revenue
I am happy to report that our efficiency improvement measures are having an effect. The EBITDA margin is now 27% (14.7%). We work hard to carry out a number of measures to reverse the trend in our digital revenue. During the past quarter we launched our advertising subscription service and renewed our reseller agreement with Google in Sweden. We have also intensified our measures to strengthen the customer base. We have continued high traffic to our search sites, with more than 8.1 million visitors every week.
Working with revenue-enhancing as well as efficiency-improvement measures is the key to capitalizing on the favorable position we have in the growing market for local digital search.
Adjusted EBITDA up 14%
We see that our efficiency improvement measures are having an effect. Adjusted EBITDA improved by 14% during the quarter, to SEK 119 M. The adjusted EBITDA margin was 23.6%. EBITDA also improved, by 46%, to SEK 136 M.
Sales during the first quarter decreased by 20% to SEK 504 M. Revenue still needs to be improved, but we are seeing a slight recovery in order bookings. Compared with the fourth quarter of 2015, sales decreased by 13%. Revenue from Desktop/Mobile search amounted to SEK 356 M. Compared with the fourth quarter of 2015, this represents an increase of just under 3%.
Since we are striving to offer customers attractive, comprehensive digital market solutions, it is gratifying to note that average revenue per customer has increased somewhat. In our Swedish core business, eniro.se, average revenue per customer grew 3%. We are seeing the same tendency for the first contracts signed in our pilot launch of subscription advertising.
Stefan Kercza, President and CEO
First quarter January - March 2016
- Total operating revenue amounted to SEK 504 M (632), a decrease of 20%.
- Revenue from Desktop/Mobile search amounted to SEK 356 M (430), a decrease of 17%.
- Prepaid revenue amounted to SEK 502 M (577) as per March 31, 2016, a decrease of 13% compared with the level at March 31, 2015.
- Adjusted EBITDA rose 14% to SEK 119 M (104). The adjusted EBITDA margin was 23.6% (16.5%).
- EBITDA grew 46% to SEK 136 M (93). The EBITDA margin was 27.0% (14.7%).
- Net income for the period was SEK -2 M (-27), an improvement of SEK 25 M.
- Earnings per common share for the period were SEK -0.03 (-0.39) before dilution and SEK -0.02 (-) after dilution.
- Cash flow from operating activities increased to SEK 65 M (60).
|Cash flow from operating activities||65||60||8||183||178|
|Interest-bearing net debt||-1,211||-2,188||-45||-1,211||-1,241|
Conference call / Webcast
A web-cast telephone conference will be held at 10:00 CET today, where CEO and President Stefan Kercza and CFO Fredrik Sandelin will present the results for the first quarter 2016. A possibility will be given to ask questions via the webcast and follow the presentation material live. The webcast, which afterwards also will be available on demand, will be accessible at http://financialhearings.nu/?160427/eniro.
To participate in the conference call, and thereby be able to ask questions, please call one of the following numbers:
SE: +46 (0) 8 566 426 66 or
UK: +44 (0) 20 300 898 15
The presentation material will be published before the conference starts on Eniro’s website, www.enirogroup.com under Investor Relations. The webcast, and later the recorded version of the webcast and the conference call, will also be accessible via Eniro’s website.
Eniro AB (publ) is required to make this information public in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was released for publication on April 27 2016 at 08.00AM (CET).
For more information, please contact:
Stefan Kercza, President and CEO, tel: +46 (0) 8 553 310 00
Fredrik Sandelin, CFO, tel: +46 (0) 8 553 310 00
Eniro is a leading search company for individuals and businesses in the Nordic region. With quality-assured content and an unrivalled user experience Eniro inspires local discoveries and makes local communities thrive. Eniro's content is available through internet and mobile services, printed directories, directory assistance and SMS services. Each week Eniro Group’s digital services have 8.1 million unique visitors who perform 14.5 million searches. Eniro Group has about 2,000 employees and operations in Sweden, Norway, Denmark, Finland and Poland. The company is listed on Nasdaq OMX Stockholm [ENRO] and headquartered in Stockholm. In 2015, revenues amounted to SEK 2,438 M, with a profit before depreciation (EBITDA) of SEK 383 M. More on Eniro at www.enirogroup.com