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Aspiro AB (publ): Year-end Report 2010

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Aspiro’s Music Service Passed 100,000 Paying Customers

Fourth Quarter 2010

  • Net sales for continuing operations for the fourth quarter were SEK 78.4 m (SEK 54.3 m), equivalent to growth of some 44%.The Music business segment achieved sales growth of over 160%.
  • EBITDA for continuing operations for the fourth quarter was SEK -17.0 m (SEK -13.3 m). EBITDA was negatively affected by expenses related to the company’s restructuring and upscaled marketing initiatives in the Music segment.
  • The profit/loss after tax for continuing operations for the fourth quarter was SEK -110.3 m (SEK -15.9 m). Profit/loss was affected by impairment losses totaling some SEK 90 m, mainly related to old goodwill.
  • The Music business segment exceeded 100,000 paying customers. The service was launched in Portugal, and preparations for the launch in Sweden began. Aspiro is negotiating with further potential partners, primarily in Europe. 
  • The TV business segment increased sales by 12%, and EBITDA improved by some 60% on the corresponding quarter of 2009.
  • The Mobile Solutions business segment increased sales by 11%, and EBITDA increased by 20% on the corresponding quarter of 2009.

Full Year 2010

  • Net sales for continuing operations for the full year 2010 were SEK 265.9 m (SEK 228.8 m). Net sales in the Music business segment grew by nearly 80% on 2009, and net sales in the TV business segment rose by 35% on 2009.
  • EBITDA for continuing operations for the full year 2010 was SEK -51.4 m (SEK -33.4 m). Significant expenses for the growth initiatives in Music and restructuring the company negatively affected EBITDA.
  • The profit/loss after tax for continuing operations for the full year 2010 was SEK -149.5 m (SEK -33.4 m). Profit/loss was affected by impairment losses totaling some SEK 90 m, mainly related to old goodwill.
  • The Board of Directors has decided to propose to the AGM that no dividends are paid for the financial year 2010.

Events after the Period

  • Aspiro signed an agreement with Telenor in Sweden to launch its WiMP music streaming service.

Future Prospects and Goals 2011

  • Aspiro is maintaining its focus on growth in the Music and TV business segments.
  • Aspiro’s goal in the Music business segment is to maintain the sales growth of the fourth quarter in 2011, compared to 2010 (minimum 150% growth).
  • Aspiro’s goal is to achieve minimum 25% sales 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.
  • Aspiro will be continuing its work on further focusing its business, and is considering actions including structural changes for its subsidiary Miles Ahead.

CEO's Statement

”The new forward-looking Aspiro has very strong underlying growth, especially in the Music business segment. We’ve passed the 100,000 user mark, and are now launching our music service in Sweden. For 2011, our goal is to maintain our fast growth rate in Music. Going forward, we will improve profitability through our growth,” 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 18 February 2011.

For more information or questions, please contact:

Kristin Castillo Eldnes
Head of Corporate communication and IR
Tel: +47 908 07 389
e-mail: kristin.eldnes@aspiro.com

About Aspiro
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 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, Tele2, 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 266m and the company has some 117 employees.

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Aspiro Year-End Report

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