Cision AB (publ) - Interim report January–March 2010, April 28, 2010

Cision Europe returns to profitability January–March • The Group’s operating revenue amounted to SEK 314 million (460). Organic growth was negative at 8 percent, compared to negative 16 percent for October–December 2009 and negative 8 percent for January–March 2009. Exchange rate effects decreased revenue by SEK 34 million compared to the same period last year. • Operating profit excluding restructuring costs amounted to SEK 33 million (18) and the operating margin was 10.4 percent (3.9). Exchange rate effects had a negative impact on operating profit of SEK 5 million compared to the same period last year. • Operating profit amounted to SEK 31 million (9) and profit before tax was SEK 19 million (–19). Earnings per share were SEK 0.12 (–0.29). • Operating cash flow amounted to SEK 11 million (27) and free cash flow amounted to SEK –17 million (–8). • Cision’s European division returned to profitability in the first quarter, mainly due to the divestment of loss-making units during 2009. • On March 31, 2010, Cision completed the divestment of its loss-making German legal entities. Prior to the divestment, Cision separated and retained its German CisionPoint customers and a sales force to continue to sell this solution in the German market. • The rights issue of SEK 253 million as announced on February 15, 2010 was fully subscribed. Comment by Cision CEO Hans Gieskes: “The first quarter of 2010 marked the return to profitability for Cision Europe, after significant restructuring efforts during 2009. Following the divestment of the loss-making German operations, effective as of March 31, 2010, we believe that Cision Europe is well positioned for continued improvements in profitability. Cision North America also delivered another strong quarter with operating margins of 21%, mainly due to improved cost efficiency. For the Cision Group, operating margins exceeded 10%, the highest level since 2007. Market conditions remain challenging, although we are starting to see signs of revenue levels stabilizing in some markets. Following six divestments of unprofitable businesses in 2009 and 2010, as well as efficiency improvements in the remaining operations, we are now a much stronger company than a year ago. The share issue and our new loan facility have also significantly strengthened our financial position. We can therefore increasingly shift our focus and grow the current business based on the four-point strategy we announced on February 15, 2010, thus capitalizing on the many opportunities we believe our market and industry holds.“

Tags: