April – June 2016

  • Net sales increased 1 % to SEK 71.1 million (70.4)
  • Operating loss for the period SEK -17.2 million (-24.4), an improvement of 30 percent
  • Loss after tax for the period SEK -17.3 million (-24.5)
  • Earnings per share SEK -0.36 (-0.58) 
  • Cash flow before changes in working capital improved with 4.8 MSEK to -14.1 (-18.9), an improvement of 25 percent
Overview Apr-Jun Apr-Jun Jan-Jun Jan-Jun Full-Year
SEK thousand 2016 2015 2016 2015 2015
Net sales 71 145 70 411 132 208 127 090 279 997
Operating result -17 202 -24 422 -41 337 -56 073 -116 637
Financial net and taxes -107 -79 -1 538 -223 -2 671
Loss for the period -17 309 -24 501 -42 875 -56 296 -119 308
Balance sheet total 212 144 198 590 212 144 198 590 205 332
Earnings per share, basic and diluted* -0.36 -0.58 -0.91 -1.34 -2.84
Operating margin neg neg neg neg neg
Equity ratio 39% 67% 39% 67% 50%
Capitalized development costs 6 537 5 126 13 073 7 887 18 244
Depreciation -4 205 -6 086 -8 125 -12 085 -20 780

Significant events during the period April – June 2016

  • Seamless has signed an agreement with Wayne’s Coffee via its SEQR subsidiary. The agreement marks an initial step by Wayne's Coffee in offering its customers in Sweden the possibility of paying in store with the SEQR Seamless mobile payment solution.

  • Seamless has signed an agreement with the fast growing UK based payments network GoCardless, that offers direct debit services in the United Kingdom. The GoCardless cooperation will enable all SEQR customers to link their bank account to the Seamless mobile payment solution, SEQR, regardless of who they bank with.

  • An agreement has been signed with Raiffeisen Bank via the company’s SEQR subsidiary. The agreement marks an initial step by the bank in offering its customers in Romania the possibility of connecting the SEQR Seamless mobile payment solution to their bank accounts.

  • Seamless has been granted authorization by Sweden’s financial supervisory authority, Finansinspektionen, to issue electronic money. This means that SEQR users can send and receive money, worldwide, in real time. Under the terms of the authorization, SEQR can also be used by minors. Money received can be accessed instantly to make payments anywhere in the world where NFC (contactless) payments are accepted. This service will be available to all SEQR users after the launch.

Significant events after the close of the reporting period

  • Seamless Distribution AB (publ) (”Seamless”) acquires the Norwegian technology company MeaWallet AS (“MeaWallet”). Through the acquisition Seamless controls important technology in the rapidly growing field of contactless payments. At the same time the company has carried out a direct issue of new shares in a private placement of approximately SEK 50 million to private and institutional investors.

  • SEQR is launching contactless payments in Sweden using NFC technology (Near Field Communication). Contactless makes it possible to pay with SEQR at point of sale (POS) terminals that support NFC which is featured on almost all modern terminals, Consequently it is now possible to pay with SEQR in any store that supports the functionality in Sweden or abroad,  even if a retailer has no private agreement with SEQR.

  • Seamless’s mobile SEQR payment solution launches its recently announced international remittance service. SEQR users can now make international money transfers – or “remittances” – to non-SEQR users. Transfers from Sweden directly to India and Thailand will be the first deployment of the service.

  • SEQR launches in Austria, Ireland, Malta and Luxembourg. The company’s rapid expansion means that consumers from 16 countries now can use SEQR globally.


Improvement in financial results
After closing the books for the second quarter, it is apparent that both our business and our finances are moving in a positive direction. Revenues in the second quarter were 71 MSEK which is unchanged compared to last year. Our net result, however, shows a strong improvement. We show a loss of 17 MSEK which is 30% better compared to the second quarter 2015 and moves us closer towards break- even. Our cashflow situation is also showing a strong improvement which lowers our need for external financing.

Breaking down our numbers further, an interesting picture emerges. SEQR, our mobile payments division shows a nice revenue increase of 36% compared to the second quarter 2015. We believe that this business division will continue to develop in a favorable direction, especially because of the introduction of contactless payments in the beginning of July, which I will discuss more below

The Seamless Distribution Systems (SDS) business division shows a strong second quarter with revenue growth of 10 percent to 25,6 MSEK. This revenue comes with a nice profit margin as the net result was 9,8 MSEK.

The Eproducts/Distribution division showed a revenue of 43,1 MSEK and a small profit. We expect this business to continue to grow with positive cashflow and net results.

Contactless and remittances introduced this quarter
Seamless is continuing to invest in its technological advantage and leadership. Our ambition is to defend and strengthen our position as the standard for mobile payments. During the second quarter we launched some very important functions which create a solid base for continued and rapid growth.

The most important development during the quarter was our launch of contactless payments. This makes it possible for SEQR users to use their phone to pay at all modern card terminals that accept payments via NFC (Near Field Communication). This means that SEQR users can pay at stores without SEQR having to have a bilateral agreement with the merchant. Our acceptance network (stores where SEQR users can pay) has become global and has now reached about 35 million stores overnight. With this development we have removed SEQR’s biggest bottleneck which has been the time it takes to negotiate individual agreements with merchants, resulting in a limited number of merchants that accept SEQR payments.

Swedish merchants have been slow to accept contactless payments, but this is about to change because the large merchants and banks have already decided to introduce contactless technology during 2016. ICA, the largest Swedish merchant is already accepting contactless payments which means that SEQR users already today can pay at ICA. Internationally, contactless technology has become standard and all new terminals installed include NFC technology.

Another important area for SEQR is money transfers. Transfers can be done in two ways within the SEQR infrastructure. SEQR users have long since been able to transfer money nationally and internationally between each other, so called peer-to-peer transfers. During the quarter we also introduced remittance services where a SEQR user can transfer money internationally to a non-SEQR user. This business, called remittance, is very large; the market size is about 600 billion USD. The average fee outtake from this market is around 7,5 % which makes it very profitable to the market participants. We feel that we have a very good position in this market where we can compete on price due to our infrastructure efficiency. The individuals that traditionally use remittance services are very price sensitive but have up to now, largely, been forced to use the traditional expensive methods of remittance.

So as I look forward to the rest of the year, I expect it to be as interesting as the first half. Seamless/SEQR is very well positioned in the fintech industry and is poised to capitalize on our technological advantages.

Have a very pleasant summer!

Peter Fredell


This is the type of information that Seamless Distribution AB (publ) is required to disclose pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on July 15, 2016 at 08:50 a.m. (CET).


For further information, please contact:
Peter Fredell, CEO
+46 8 564 878 00


Seamless is one of the world’s largest suppliers of payment systems for mobile phones. Founded in 2001 and active in 35 countries, Seamless handles more than 3.9 billion transactions annually through 585 000 active sales outlets. Seamless has three main business areas including the transaction switch, the technology provider for the distribution of e-products and the mobile payment platform SEQR. Seamless shares are traded on NASDAQ OMX Stockholm.

The Seamless Interim Report 2016 for the period April– June 2016 has been approved for publication by the Board of Directors, by its decision on July 14, 2016. This financial report has not subjected to a review by the Company’s auditors.


About Us

Founded in 2001 (and previously named Seamless Distribution), Invuo Technologies is a mobile payments technology company, which provides innovative B2B mobile payment services and electronic top-up systems for the financial industry, mobile operators and retailers. Our goal is to maximise value for shareholders while making positive contributions to the technology sphere.