Aspiro AB (publ): Interim Report January - September 2012
The Quarter in Brief
Third Quarter 2012
• Net sales for continuing operations for the third quarter were SEK 69.5 m (SEK 62.8 m), which corresponds to growth of 11%.
• EBITDA for continuing operations for the third quarter was SEK -13.8 m (SEK -2.1 m).
• Goodwill impairment for Mobile Search of SEK 8.7 m. Going forward, this goodwill item will be evaluated quarterly.
• Net profit/loss for continuing operations for the third quarter was SEK -29.0 m (SEK -5.3 m).
• Sales in the Music business segment increased by 45%. The operator Ziggo launched Aspiro’s music service under the Ziggo Muziek brand in the Netherlands, and a new version of WiMP was released for iPhone and iPad users.
• Sales in the TV business segment decreased by 23% as a result of lower start-up revenues and renegotiated agreements with existing customers. The cost savings program initiated in the second quarter to save some SEK 10 m annualized took effect. EBITDA was SEK 0.7 m (SEK 0.0 m).
• The new issue approved by the Extraordinary General Meeting (EGM) of 13 August was successfully executed, raising the company some SEK 100 m after issue expenses.
• Link Mobility Group made its second part-payment of NOK 8.4 m for the purchase price of the Mobile Solutions business segment. As a result of the agreement the capital gain is NOK 2 m lower than previously reported.
Post Period End Highlights
• New distribution agreement signed for the WiMP music service with Swedish newspaper Aftonbladet and Denmark’s biggest morning daily, Politiken.
• Peter Tonstad, currently CFO, was appointed as Aspiro’s CEO, effective 1 December 2012. Simultaneously, the company’s Head of Accounting Jörgen Carlsson was appointed Acting CFO.
• Espen Erikstad, a co-founder of Rubberduck Media Lab, was appointed the new Head of subsidiary Aspiro TV.
Outlook and Goals 2012
• Aspiro’s goal was to achieve minimum growth of 80% in the Music business segment in 2012 compared to 2011. Aspiro expects to deliver somewhat below this target for 2012.
• Aspiro is planning to launch its WiMP music service in Poland in 2012. Aspiro will continue its expansion in Music and expects negative EBITDA in 2012.
• The cost-savings program in TV initiated in the second quarter was executed. The focus going forward will be on improving profitability further and creating growth. The goal is to maximize profitability in Mobile Search through effective operations. Aspiro is currently evaluating a sale of this business.
“Our new issue of some SEK 103 m was completed successfully, which demonstrates that we have our owners’ confidence to continue our initiatives. Peter Tonstad was also appointed as Aspiro’s new CEO. He has the competence, and will contribute to continuity,” 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 6 November 2012.
For more information, please contact: Gunnar Sellæg, CEO of Aspiro, +47 901 81 528, email@example.com.
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.