Aspiro sells Mobile Solutions - frees up resources for the fast growing music service WiMP and TV-streaming
Aspiro has signed an agreement with LINK Mobility AS on the sale of the business area Mobile Solutions in the Nordic and Baltic countries. The purchase price amounts to NOK 20 m and Aspiro estimates to comple the deal in mid-October. Aspiro thus frees up additional resources for TV and music service WiMP, which before the summer passed 300,000 paying users, three times the amount in the beginning of the year.
The divestment of Mobile Solutions is the final step in a long term process to reposition Aspiro. In order to streamline the company in the direction of music and TV streaming, Aspiro in the last year also sold its former business area Mobile Entertainment and other small businesses. Music streaming service WiMP is the flagship of the new Aspiro, which now consists of business areas Music, TV and Mobile Search.
"Aspiro has a very aggressive growth strategy in the music and TV areas. Meanwhile, mobile business services also has great potential and we are sure that LINK Mobility is better positioned to lead the development of that market, where there are several mid-sized players and need for consolidation. This deal will free up more resources for our focus areas of music and TV, where we have high aspirations", says Gunnar Sellæg, CEO of Aspiro.
In line with the target for the year, Aspiro's Music business area increased its revenues by over 175 percent in the first half of 2011. The company's music streaming service passed over 300,000 paying users in June. This represented a threefold increase compared to January. Aspiro's music service is available in four countries; Norway, Sweden, Denmark and Portugal and a letter of intent is in place for launch in Ireland. Aspiro TV's goal is to reach at least 10 percent growth in 2011 compared to 2010. Aspiro is negotiating with new partners in both the Music and TV business areas and is planning further new launches in 2011.
Sales in the Mobile Solutions business area in 2010 was SEK 131.2 m. Earnings after direct expenses amounted to SEK 28.6 m and EBITDA amounted to SEK -15.9 m. During the first half of 2011, Mobile Solutions sales were SEK 50.3 m, earnings after direct expenses amounted to SEK 17.1 m and EBITDA was SEK -0.4 m.
The purchase price will be paid by NOK 7.5 m at closing, NOK 7.5 m, adjusted for any guarantees after nine months, and the remaining NOK 5 m paid off quarterly as a percentage of the buyer's operating results. Aspiro expects the divestment process to close in mid-October, when the integration between the two organizations also begins. The transaction is subject to regulatory approvals.
This is information that Aspiro AB (publ) is required to disclose under the Securities Exchange and Clearing Operations Act and or the Act on trading in financial instruments. It was released for publication September 22, 2011 at 07:30 am.
For more information, please contact: Kristin Castillo Eldnes, and IR, +47 908 07 389, kristin.eldnes @ aspiro.com, or Gunnar Sellæg, CEO, +47901 81 528, gunnar.selleg @ aspiro.com.
Aspiro in Brief
Aspiro has unique positioning as the world's only provider of both streaming music and TV services delivered as a complete hosted white label service to partners. Aspiro also delivers music streaming service WiMP directely to consumers in Scandinavia. Aspiro utilize over ten years mobile technology and retail experience, delivering its premium services to companies worldwide including Deutsche Telekom, Telefónica O2, Telenor, 3, TeliaSonera, BBC, Aftonbladet, mBlox, TVNorge, Entel and VG. Aspiro is listed on the Nasdaq OMX Stock Exchange in Stockholm. 2010 sales for continuing operations were SEK 262 m and the company has some 120 employees.