Cision AB (publ) - Interim report January-June 2013
Good operating cash flow as transformation continues in North America
April-June
- Total revenue SEK 234 million (255) includes SEK 30 million insurance settlement
- Revenue SEK 203 million (254)
- Negative currency effects SEK 12 million on total revenue
- Operating profit SEK 43 million (-14)
- Operating margin* 8,8% (12,0%)
- Operating cash flow SEK 48 million (33)
- Earnings per share, basic and diluted, SEK 2,34 (-0,73)
- Ongoing Cision US balance sheet review
January-June
- Total revenue SEK 440 million (494) includes SEK 30 million insurance settlement
- Revenue SEK 407 million (493)
- Negative currency effects SEK 21 million on total revenue
- Organic growth -5% (+3%)
- Operating profit SEK 56 million (15)
- Operating margin* 9,3% (12,0%)
- Operating cash flow SEK 68 million (57)
- Earnings per share, basic and diluted, SEK 2,71 (0,72)
*) Excluding non-recurring items and other one-time revenue items.
Comment by Cision CEO Peter Granat:
“As expected, the impact of the US print monitor divestment continued to have a short term negative impact on our second quarter results. I remain confident in the longer term growth of our core subscription platform business and the significant market opportunity globally for Cision.
In the second quarter, we continued to focus on additional cost reductions through outsourcing, automation and renegotiating contracts to reduce fixed costs. Sustainable growth requires a solid base from which to build on and I am committed to ensuring we have that solid base both in the CisionPoint platform and business processes across all regions.
We have identified shortcomings with the handling of deferred revenue related to prior years in the US business. We are currently conducting a more in-depth review along with our new auditors of the reconciliation processes involved with the US balance sheet and when this is complete we will immediately report on the potential adjustments. There is no suggestion at this time that cash flow or liquidity have been impacted nor is there any current indication that 2013 trading is affected; however, there may be an impact to retained earnings and working capital accounts from any potential prior year adjustments.
Looking forward, we are excited about Cision’s positioning in a dynamic and evolving market space that is increasingly focused on earned media. In addition to our existing portfolio of award-winning software and tools, the recent launch of our Content Marketing Suite ensures we will continue to provide solutions that empower marketers to create, curate and promote their content across multiple channels. We are currently working on our strategic plans which we intend to announce following the outcome of our Cision US review.”
For further information, please contact:
Peter Granat, President and CEO, phone 46 (0)8 507 410 11
e-mail: investorrelations@cision.com
Tosh Bruce-Morgan, CFO, telephone 46 (0)8 507 410 11
e-mail: investorrelations@cision.com
Cision AB (publ)
P.O. Box 24194
SE-104 51 Stockholm, Sweden
Corp Identity No. SE556027951401
Telephone: 46 (0)8 507 410 00
http://corporate.cision.com
Cision AB is required to disclose the information in this interim report under Sweden’s Securities Market Act and/or the Financial Instruments Trading Act. It was released for publication at 8:30 a.m. CEST on July 18, 2013.
Cision is a leading provider of cloud-based PR software, services and tools for the marketing and public relations industry. Marketing and PR professionals use our products to help manage all aspects of their brands – from identifying key media and influencers to connecting with audiences; monitoring traditional and social media; and analyzing outcomes. Journalists, bloggers, and other influencers use Cision’s tools to research story ideas, track trends, and maintain their public profiles. Cision is present in Europe, North America and Asia, is quoted on the Nordic Exchange with revenue of approx. SEK 1.0 billion in 2012. For more information, visit www.cision.com.
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