Aspiro AB (publ): Interim Report January - June 2012

Continued Investment in Music—Ongoing Issue to Fund the Company’s Expansion

Second Quarter 2012

• Net sales for continuing operations for the second quarter were SEK 68.4 m (SEK 53.6 m), which corresponds to growth of 28%.
• EBITDA for continuing operations for the second quarter was SEK -28.8 m (SEK -10.3 m). Non-recurring expenses for restructuring were SEK 8.5 m in the quarter.
• Net profit/loss for continuing operations for the second quarter was SEK -30.0 m (SEK -11.9 m).
• The Music business segment increased sales by 88%. Aspiro launched WiMP in Germany and prepared for further launches.
• Sales in the TV business segment decreased by 29%. The sales decrease in TV is attributable to lower start-up revenues and renegotiated agreements with existing customers. Aspiro decided to execute a cost savings program to save some SEK 10 m yearly.
• Aspiro’s recently elected Board of Directors decided to sharpen the focus on the company’s Music business segment through the WiMP brand, and accordingly, will be separating the TV and Music segments from each other operationally. This restructuring will mean the responsibilities of the group’s CEO and CFO reducing, and accordingly, the Board has agreed to terminate the employment contracts of Aspiro’s CEO Gunnar Sellæg and CFO Peter Tonstad at the end of the year.
• The Board decided to implement a new share issue of some SEK 100 m with preferential rights for current shareholders, assuming the approval of an Extraordinary General Meeting (EGM) on 13 August 2012. The purpose of this issue is to fund the company’s expansion, and its largest shareholder, Streaming Media AS, has undertaken to subscribe for its pro rata interest of some 74%.

Post Period End Highlights

• LINK Mobility Group AS, which acquired Aspiro Mobile Solutions last year, has not made its second part-payment of NOK 7.5 m and a supplement to the purchase price due to contracted adjustments of balance sheet items. LINK has informed Aspiro that it considers that the guarantees in its agreement had been breached and there is a difference of opinion over the interpretation of the agreement. Aspiro judges that no circumstances have arisen that could confer entitlement to a reduction of the purchase price or entitlement to demand alterations.
• The operator Ziggo launched Aspiro’s music service in the Netherlands.

Outlook and Goals 2012

• Aspiro’s goal is to achieve minimum growth of 80% in the Music business segment in 2012 compared to 2011. Aspiro achieved its goal of launching new music services in Germany and the Netherlands. An additional one to two launches in new countries are expected in 2012, instead of as previously communicated, another two countries in Europe, and at least one country outside Europe. Aspiro prepares to launch in Poland first, during the second half year. Aspiro will continue its initiatives in Music and expects negative EBITDA in 2012.
• Aspiro no longer expects growth in TV in 2012 on 2011 and has initiated cost-saving measures to ensure future profitability. Aspiro’s previously communicated goal was 20% growth and profitability in the second half-year.
• Aspiro’s goal is to maximize profitability in Mobile Search through effective operations.
  

CEO's comment:

“Aspiro is continuing to work for growth and to launch new services, primarily WiMP in more countries. With our owner also entrusting us through the ongoing rights issue, we see good prospects of realizing the company’s potential,” commented Gunnar Sellæg, Aspiro’s CEO.

This information is mandatory for Aspiro AB (publ) to publish pursuant to the Swedish Securities Exchange and Clearing Operations Act and/or the Swedish Financial Instruments Trading Act. This information was submitted for publication at 8:30 a.m. on 9 August 2012.

For more information, please contact: Kristin Castillo Eldnes, Head of Corporate communication and IR of Aspiro, +47 908 07 389, kristin.eldnes@aspiro.com or Gunnar Sellæg, CEO of Aspiro, +47 901 81 528, gunnar.selleg@aspiro.com.

About Aspiro
Aspiro is a leading streaming company with its primary focus on the WiMP music service and video services delivered to partners. WiMP is delivered direct to consumers and through partners such as operators and TV distributors. With WiMP, Aspiro is thinking globally but working locally, with editorial services and in-house teams tailoring the service for each country. Aspiro has 14 years’ experience of digital services and is a growth company with high ambitions. Aspiro is listed on Nasdaq OMX Nordic Exchange Stockholm.

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