Aspiro Sells Entertainment—Focuses on TV and Music, Concentrates B2B Operation
Today, Aspiro reached an agreement with Lobus Mobil AB regarding the sale of its Mobile Entertainment business segment in Norway, Sweden and Denmark. The purchase price is SEK 42 m, with an additional earn-out model.
The divestment process of Mobile Entertainment, which has been ongoing since last winter and involved a series of bidders, concluded today. Lobus Mobil AB, headed up by Johan Lenander, is acquiring Aspiro’s Mobile Entertainment operation, which means the company taking on all operations of this business segment in the Scandinavian countries from 1 July 2010 onwards. Mobile Entertainment, which covers products like ringtones, games and graphics, will remain a customer of Aspiro Mobile Solutions going forward.
In recent years, the market trend for services in Mobile Entertainment has been downward, and there is also a significant risk that additional market regulation may adversely affect the prospects of running this business. Accordingly, in addition to the purchase price, Aspiro has chosen to apply and earn-out model, which potentially, may bring the company a higher purchase price if the current valuation proves overly low.
“This divestment of Mobile Entertainment is a natural result of our strategy of focusing our investments on the WiMP music service, TV streaming for mobiles and computers, and on business solutions. The fact that the sale of Mobile Entertainment is concluded is a clear marker of our transition from the old to the new Aspiro,” commented Gunnar Sellæg, Aspiro’s CEO.
The sale of Mobile Entertainment is a step in the process of repositioning Aspiro, with its focus on premium services addressing business partners. This repositioning has been successful, and in 2009, sales of Aspiro’s services in its Music and Mobile TV business segments rose by 74%. Aspiro’s premium services have also gained international recognition, including two nominations for the international Meffy award, for its WiMP music streaming service and the mobile TV services the company delivers to T-Mobile.
“Our future lies in the Music, Mobile TV and Business Solutions business segments, and we see high growth potential on the Nordic and global markets in these segments. We already supply major multinationals like T-Mobile, Telefónica O2 and Telenor, and expect to be able to post high growth in these segments going forward,” continued Gunnar Sellæg.
Excluding Mobile Entertainment in Norway, Sweden and Denmark Aspiro’s net sales were SEK 275.3 m in 2009, against SEK 245.3 m in 2008, or growth of 12%. EBITDA excluding Mobile Entertainment in 2009 was SEK -34.2 m, against SEK -2.2 m in 2008. Aspiro estimates that the sale will result in goodwill impairment and other costs attributable to the divestiture of some SEK 40 m. The sale of Mobile Entertainment will result in the buyer gaining lower working capital than tied up in this operation at present, implying that Aspiro will gain a positive cash flow effect when working capital is dissolved through 2010.
For more information, please contact:
Gunnar Sellæg
CEO
Tel: +47 90 18 15 28
gunnar.selleg@aspiro.com
About Aspiro
Aspiro has unique positioning as the world’s only vendor of complete TV and music streaming services to partners that want to put their own brands on these services. As the northern European market leader in mobile entertainment, Aspiro has over ten years’ experience of mobile technology and retailing, and delivers its services to partners worldwide including T-Mobile, Telefonica O2, Telenor, 3, TeliaSonera, Tele2, the BBC, Aftonbladet, mBlox, TVNorge, Entel and VG. Aspiro is quoted on Nasdaq OMX Nordic Exchange Stockholm, and has a local presence in all the Nordic and Baltic countries, and the US. Sales in 2009 were SEK 441 m, and the company has some 140 employees.