Aspiro AB (publ): Interim report January - March 2011

High Growth in Music—Improved Profitability in TV and Solutions

First quarter 2011

• Net sales for continuing operations for the first quarter were SEK 64.5 m (SEK 51.0 m), equivalent to growth of some 26%..
• EBITDA for continuing operations for the first quarter was SEK -10.1 m (SEK -11.5 m).
• The profit/loss after tax for continuing operations for the first quarter was SEK -13.5 m (SEK -11.4 m).
• The Music business segment increased sales by over 150%, in line with the company’s objective, and the number of paying users passed 150,000. Aspiro signed an agreement with Canal Digital, meaning 700,000 Norwegian households get offered Aspiro’s WiMP music service bundled into their TV subscriptions. For Aspiro, this agreement has a value of some SEK 50 m over 18 months. The agreement starts to take effect in the second quarter. Aspiro launched WiMP in Sweden, and signed a collaboration agreement with Telenor in Sweden.
• The TV business segment increased sales and EBITDA improved on the corresponding quarter of 2010.
• The Mobile Solutions business segment improved earnings net of direct expenses and delivered a positive EBITDA in the quarter.
• Aspiro signed an agreement with EveryMatrix Ltd. to transfer the subsidiary Miles Ahead from 1 April 2011. The net sales of Miles Ahead were SEK 2.5 m in 2010 and EBITDA was SEK -9.1 m, which means that the transfer will have a positive effect on Aspiro’s profitability going forward.

Outlook

• Aspiro is maintaining its focus on growth, primarily in the Music and TV business segments. Aspiro will achieve improved profitability through growth.
•  Aspiro’s goal is to achieve minimum 150% growth in the Music business segment in 2011 compared to 2010.
• Aspiro’s goal is to achieve minimum 25% growth in the TV business segment in 2011 compared to 2010.
• Aspiro’s goal is for the Mobile Solutions business segment to improve its earnings net of direct expenses by at least 15% in 2011 compared to 2010.

Events after the End of the Period

• Subscriber growth in Aspiro’s Music segment increased further and passed 200,000.
• Aspiro TV expand its deliveries to Telenor in connection with the telco’s increased initiatives for TV and video services in the Nordic countries.

”Aspiro is a very strong growth company. The Music business segment has the highest growth, and we now have 200,000 paying users on four markets. The TV segment is improving earnings, while Mobile Solutions is profitable for the first time in a long period,” 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 12 May 2011.

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

Aspiro in Brief
Aspiro has unique positioning as the world’s only provider of complete TV and music streaming services for partners  that want to put their own branding on the service. Aspiro also delivers its WiMP music service direct to consumers on selected markets. Aspiro has over ten years’ experience in mobile technology and retail in northern Europe, and delivers services to partners worldwide like Deutsche Telekom, Telefónica O2, Telenor, 3, TeliaSonera, the BBC, Aftonbladet, mBlox, TVNorge, Entel and VG. Aspiro is listed on Nasdaq OMX Nordic Exchange Stockholm. Sales for continuing operations in 2010 were SEK 262 m and the company has some 114 employees.

Tags: