Interim Financial Report - Cinnober Financial Technology AB (Publ)

January 1, 2018 – September 30, 2018

Third quarter highlights

  • Net revenue amounted to SEK 89.8 million in Q3/18, a year-on-year increase of 4.9% and a quarter-on-quarter increase of 2.5%. A majority of the revenue growth in the quarter is explained by a positive foreign exchange impact. The underlying cost base amounted to SEK 101.8 million, a 10.0% reduction year-on-year and a 20.6% reduction quarter-on-quarter.
  • Adjusted (underlying) EBITDA amounted to SEK -8.2 million, an improvement from the SEK -18.6 million reported in Q3/17 and the SEK -31.4 million reported in Q2/18. The Group’s Core division had adjusted EBITDA of SEK 15.9 million in Q3/18 (representing a record quarter so far this decade), after reporting SEK 1.9 million and SEK 3.4 million in adjusted EBITDA in Q1/18 and Q2/18, respectively.
  • Inflection towards profitability accelerated materially in Q3/18, and intense focus on cost control and self-funding remains. At 30 September 2018, Cinnober had SEK 92.4 million in cash compared to SEK 99.0 million at 30 June 2018.
  • Increased confidence in achieving guidance: Cinnober targets a positive underlying EBITDA contribution in 2019 and aims to achieve a 20% underlying EBITDA margin in 2020.
  • On 14 September, Nasdaq made a public cash offer to Cinnober’s shareholders and warrant holders to acquire all outstanding shares and warrants for a consideration of SEK 75 per share and SEK 85 per warrant. The acceptance period of the offer commenced on 29 October 2018 and expires on 14 December 2018, subject to any extensions. Completion of the offer is subject to customary conditions.
  • Cinnober appointed Peter K. Lenardos as Group Chief Executive Officer on 13 August and Fredrik Nihlén as Group Chief Financial Officer on 4 September.
  • After the end of the quarter, Cinnober announced on 5 November that Bitstamp, a leading cryptocurrency exchange, had selected Cinnober to deliver a trading system for cryptocurrencies. This is categorized as a medium-sized deal.*
    * See commercial definitions on page 20 in the full Interim Report.

“The third quarter for Cinnober has been full of activity, which has resulted in a 52% increase in our share price during the period. For my second quarterly reporting as Cinnober’s Group Chief Executive Officer, I am pleased to report that our efforts to refocus and streamline the Group are largely complete, resulting in a material inflection towards profitability. Nonetheless, our focus on cost control and self-funding remains constant. Our cash balance, together with continued active management of working capital and an anticipated decline in operating losses, means that we have no need for any external funding. Further, given Cinnober’s financial performance in the third quarter together with our progress so far in the fourth quarter, we reiterate our guidance to achieve a positive underlying EBITDA contribution in 2019, and a 20% underlying EBITDA margin in 2020. Our confidence in achieving these targets has increased,” comments Peter K. Lenardos, Group CEO, Cinnober Financial Technology AB.

Interim report conference call
A conference call with web presentation will be held:

  • Time: Thursday November 8, 2018 at 10.00 CET
  • To view the webcast, click here.
  • Teleconference dial-in numbers:
    • UK: +44 203 008 9802
    • Sweden: +46 8 566 426 64
    • USA: +1 855 753 2236
  • For further information, click here.

Attachment: Interim Report 1 January, 2018 – 30 September, 2018

This information is such that Cinnober Financial Technology AB (publ) is obliged to publish under the EU Market Abuse Regulation and the Securities Market Act. This financial report was published on November 8, 2018 at 08.00 a.m. CET.

Cinnober’s interim reports are published in English. The annual report is published in both English and Swedish.

The Cinnober share is listed on NASDAQ First North (CINN, ISIN code: SE0010023556, LEI code: 529900596KTN6Q8T7576). FNCA is the Certified Adviser.

For further information
Peter K. Lenardos, Group CEO, phone +46 8 503 047 00, peter.lenardos@cinnober.com

About Us

Cinnober Financial Technology, now part of Nasdaq, is a world-leading supplier of financial technology. Founded in Sweden in 1998, the company has offices in Stockholm, Umeå and London. Cinnober provides solutions and services to leading trading and clearing venues, including exchanges, clearinghouses, banks and brokers. Cinnober’s solutions are largely based on the TRADExpress™ Platform, incorporating everything needed for mission-critical solutions in terms of performance, robustness and flexibility. The portfolio of offerings includes price discovery and matching, real-time risk management, clearing and settlement, index calculation, data distribution and market surveillance. Cinnober’s customers include the Asia Pacific Exchange, Australian Securities Exchange, B3, Bitstamp, Dubai Gold & Commodities Exchange, Euronext, Japan Exchange Group, Johannesburg Stock Exchange, the London Metal Exchange, LME Clear, NYSE, OCC and the Stock Exchange of Thailand. Cinnober’s shares are traded on the Nasdaq First North exchange and the company’s Certified Advisor is FNCA Sweden AB. For additional information, please visit group.cinnober.com.

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