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Aspiro AB (publ): Year-end Report 2011

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43% Growth in the Fourth Quarter

Fourth Quarter 2011

  • Net sales for continuing operations for the fourth quarter were SEK 71.7 m (SEK 50.1 m), which corresponds to growth of 43%.
  • EBITDA for continuing operations for the fourth quarter was SEK 3.8 m (SEK -10.4 m). Excluding gain on revaluation of existing interest in WiMP Music AS, EBITDA was SEK -11.5 m. Revaluation does not have cash effect.
  • The profit/loss after tax for continuing operations for the fourth quarter was SEK -9.6 m (SEK -98.6 m).
  • The Music business segment increased sales by over 130%. Aspiro acquired the remaining 50 % of WiMP Music AS an all revenues were consolidated from November 2011. Aspiro signed a letter of intent with an operator in Benelux and prepared for a beta launch of WiMP in Germany.
  • The TV business segment lifted sales by 17%, delivering its highest quarterly sales ever, and positive EBITDA.
  • Aspiro completed the sale of Mobile Solutions to LINK Mobility AS for a purchase price of NOK 22.9 m.
  • An Extraordinary General Meeting (EGM) of Aspiro on 10 October resolve to authorize the Board of Directors to decide on a new share issue and staff stock option plan in accordance with the Board’s proposal. The Board decided on a new issue of a total of 13,406,901 shares as payment for Platekompaniet’s shares of WiMP Music AS. Platekompaniet secured a participating interest of 6.5% in Aspiro after the new share issue.

The Full Year 2011 and Realizing Goals

  • Net sales for continuing operations for 2011 were SEK 230.6 m (SEK 184.9 m), corresponding to growth of some 25%.
  • EBITDA for continuing operations for 2011 was SEK -18.8 m (SEK -27.2 m). Excluding the revaluation of WiMP Music AS, EBITDA was SEK -34.1 m.
  • The profit/loss after tax for continuing operations for 2011 was SEK -40.4 m (SEK -119.5 m).
  • 147% growth in the Music business segment, consistent with the company’s goal of 150% growth. The number of paying users increased from 100,000 to some 350,000 in the
  • year.
  • 2% growth in the TV business segment is consistent with expectations but below the company’s original goal because sales processes have taken longer.
  • In accordance with the company’s goal of focusing its business on streaming services, Miles Ahead and Mobile Solutions were divested.
  • The Board has decided to propose to the AGM that no dividend is paid for the financial year 2010.

Post Period End Highlights

  • Aspiro’s Board unanimously recommends shareholders to accept Schibsted’s public buy-out offer.
  • Aspiro has signed an agreement with the operator Ziggo in the Netherlands for a version of the WiMP music service. This agreement is expected to generate sales corresponding to SEK 9 m over two years.
  • Aspiro has started a closed beta test of WiMP in Germany.

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 is planning alternative business models in Music, which implies a need for capital in 2012. Aspiro will launch new music services in Germany, the Netherlands, at least two more European countries and at least one country outside Europe in 2012. Aspiro will continue its focus on Music and expects a negative EBITDA in 2012.
  • Aspiro’s goal is to achieve minimum growth of 20% in the TV business segment in 2012 compared to 2011. TV is expected to achieve positive EBITDA in 2012.
  • Aspiro’s goal is to maximize profitability in Mobile Search through effective operations.

“We more than trebled the number of paying WiMP users in 2011—and this is almost exclusively on markets where we were already present. WiMP should keep growing in Scandinavia in 2012, but first and foremost, we want to get onto more markets. We’ve already started testing the service on the German market. Sales in the TV segment are increasing, and this business segment is profitable, which we expect to continue,” commented Gunnar Sellæg, Aspiro’s CEO.

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 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 provides the music streaming service WiMP directly 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, Telenor, 3, Entel and Canal Digital. Aspiro is listed on Nasdaq OMX Nordic Exchange Stockholm.

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