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The forecast for adjusted EBITDA 2014 is unchanged

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The forecast for adjusted EBITDA 2014 is unchanged. In compliance with the conditions in the loan agreement. Impairment losses have been recognized as regards intangible assets, mainly in Local search in Norway and Voice. Improved transparency through restatement of financial statements.

Third quarter: July–September 2014

  • Total operating revenue amounted to SEK 744 M (857), a decrease of 13%. Revenue decreased organically by 14% (-8%).
  • Total multiscreen revenue (Desktop search, Mobile search and Campaign products) decreased organically by 10% (-3%). Revenue was negatively impacted by lower sales in Sweden and Norway.
  • Revenue for Mobile search grew organically by 39% (82%). During Q3, 30% of total searches were performed via  mobile channel.
  • EBITDA amounted to SEK 125 M (225) and was negatively affected primarily by lower sales in Sweden and Norway. The EBITDA margin was 16.8% (26.2%). Adjusted EBITDA amounted to SEK 208 M (242). The adjusted EBITDA margin was 28.0% (28.2%).
  • Impairment testing of the company’s intangible assets resulted in non-cash impairment losses totaling SEK 1,799 M. SEK 1,237 M of this was attributable to Local search, primarily concerning the acquisition of the Norwegian Findexa in 2005, and SEK 562 M are related to Voice.
  • Net income for the period amounted to SEK -1,820 M (90), owing mainly to recognition of impairment losses for intangible assets. Earnings per common share for the period was SEK -18.29 (0.76).
  • Operating cash flow totaled SEK -104 M (-69).

Nine-month period: January–September 2014

  • Total operating revenue amounted to SEK 2,280 M (2,636), a decrease of 14%.
  • Total multiscreen revenues decreased organically by 7% (2%).
  • EBITDA amounted to SEK 497 M (629) and was negatively affected by weak sales in Sweden and Norway, while capital gains during the first and second quarters had a positive impact. The EBITDA margin was 21.8% (23.9%). Adjusted EBITDA amounted to SEK 515 M (672). The adjusted EBITDA margin was 22.6% (25.5%).
  • The income for the period amounted to SEK -1,714 M (259), owing mainly to recognition of impairment losses for intangible assets. Earnings per common share for the period were SEK -17.49 (2.17).
  • Operating cash flow totaled SEK 17 M (122).

Events during the third quarter

  • On September 5, 2014, Eniro issued a revised full-year forecast for adjusted EBITDA of SEK 700 M for 2014. 
  • This forecast remains unchanged.
  • Johan Lindgren stepped down as President and CEO of Eniro on August 18, and the Board of Directors appointed Stefan Kercza as Acting President and CEO. Stefan Kercza is since previously CEO of Eniro Denmark and Acting Head of eniro.se.
  • An investigation commissioned by the Board aimed at validating the Group’s accounts identified accounting errors during the fourth quarter of 2013 and first half of 2014. Primarily, it was found that revenues had been allocated incorrectly to time periods, resulting in revenues being recognized too early. Eniro has retrospectively restated the financial statements, which constitute comparative information in this interim report. The effects of the retrospective restatements for the fourth quarter of 2013 and the first and second quarters of 2014 are published in this interim report.
  • Eniro filed a police complaint against former CEO Johan Lindgren regarding the accounting inaccuracies.
  • Eniro’s Group CFO, Mattias Lundqvist, left Eniro, and Roland M. Andersen was appointed as the company’s new Group CFO, effective July 29.

For more information, please contact:

Cecilia Ketels, Acting Head of Investor Relations, 46 721 572 907, email: cecilia.ketels@eniro.com

This 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 8:00 on October 24, 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.

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