Second quarter: April–June 2014
Weak sales performance in Sweden had a negative impact on revenue and earnings for the quarter. Organizational changes and actions have been carried out. Changed full-year guidance.
- Revenue for Mobile search grew organically by 58% (101%).
- Total multiscreen revenue (Desktop search, Mobile search and Campaign products) decreased organically
by 5% (2%). Revenue was negatively affected by weak sales in Sweden.
- 27% of total searches performed via mobile channel in Q2.
- Organic revenues decreased by 10% (-4%). Total operating revenue amounted to SEK 793 M (893).
- EBITDA amounted to SEK 194 M (234) and includes a capital gain of approximately SEK 6 M from the sale of Krak Markedsdata and revaluation of provisions for synthetic shares totaling approximately SEK 4 M. Adjusted EBITDA amounted to SEK 187 M (247). The adjusted EBITDA margin was 23.6% (27.7%).
- Income for the period amounted to SEK 73 M (80), and earnings per common share were SEK 0.59 (0.66).
- Operating cash flow improved by SEK 71 M to SEK 174 M (103). During the quarter, SEK 186 M in bank borrowings was repaid.
Six-month period: January–June 2014
- Multiscreen revenues decreased organically by 1% (3%). Total operating revenue amounted to SEK 1,585 M (1,779), a decrease of 11% (-9%).
- EBITDA amounted to SEK 421 M (404), corresponding to an EBITDA margin of 26.6% (22.7%). Adjusted EBITDA amounted to SEK 356 M (430).
- Income for the period was SEK 144 M (169), and earnings per common share were SEK 1.18 (1.41).
- Operating cash flow was SEK 121 M (191).
Events during the second quarter
- As a result of weak sales performance in Sweden, Eniro has carried out management changes. Stefan Kercza, President of Eniro Denmark, has been named as acting President of eniro.se.
- Eniro further concentrated its business on digital local search with the divestment of Krak Markedsdata in Denmark. The capital gain amounted to approximately SEK 6 M.
Events after the end of the reporting period
- Eniro has signed an agreement to acquire Idium, one of the leading media agencies in Norway. The acquisition complements and strengthens Eniro’s offering in the Campaign products revenue area.
- As a result of weak earnings performance during the second quarter, the full-year forecast has been revised. The new forecast for the full-year 2014 is for adjusted EBITDA of SEK 850 M.
For more information, please contact:
Johan Lindgren, President and CEO, Tel +46 8 553 310 01
Cecilia Lannebo, Head of Investor Relations, Tel: +46 722 208 277, email: email@example.com
The information is such that Eniro AB (publ) is required to disclose in accordance with the Swedish Financial Instruments Trading Act and/or the Swedish Securities Market Act. The information was submitted for publication at 08.00 CET on July 16, 2014.
Eniro is a search company that aggregates, filters and organizes local information. Our growth is driven by users’ increasing mobility and multiscreen behavior, where we are at the forefront with modern technical solutions. For more than 100 years Eniro has helped people find local information and companies find customers. Today it is a multiscreen solution – our users search for information using their smart phones, tablets and desktops. This creates great business opportunities for us as the local search company. Mobile advertising is today the fastest growing part of Eniro’s business. Eniro is the local search engine. A smart shortcut to what you need, no matter where you are or where you are going.
Eniro is one of the largest search companies in the Nordic region and Poland. The company has approximately 2,800 employees and has been listed on NASDAQ OMX Stockholm since 2000. During 2013, Eniro’s revenues amounted to SEK 3,660 M and EBITDA was SEK 849 M. More than 80 percent of Eniro’s advertising revenues come from multiscreen channels. The company’s headquarters are located in Stockholm, Sweden. More on Eniro at www.enirogroup.com.
Eniro – Discover local. Search local.