Cision AB (publ) - Interim report January-March 2011, April 27, 2011

Solid cash-flow generation

January–March

•  The Group’s operating revenue amounted to SEK 248 million (314). Organic growth was negative at 2 percent, compared to negative 1 percent for October–December 2010 and negative 8 percent for January–March 2010. Exchange rate effects decreased revenue by SEK 23 million compared to the same period last year.
• Operating profit excluding non-recurring items amounted to SEK 32 million (33) and the operating margin was 12.9 percent (10.4). Non-recurring items amounted to SEK 0 million (2) and therefore operating profit amounted to 32 million (31). Exchange rate effects had a negative impact on operating profit of SEK 4 million compared to the same period last year.
• Operating cash flow amounted to SEK 32 million (11) and free cash flow amounted to SEK 21 million (–17). Net debt amounted to SEK 411 million (746) at the end of the period and the ratio of interest-bearing net debt in relation to EBITDA excluding non-recurring items was 2.1 (4.0).
• Cision US, the group’s largest and most important market, recorded organic growth of 3 percent in the first quarter, up from 2 percent in the fourth quarter of 2010 and negative 4 percent in the first quarter of 2010.

Comment by Cision CEO Hans Gieskes:
“In the first quarter, we were pleased with the revenue trend in our important market, Cision US, where organic growth continues to develop in a positive direction. In most of Cision’s markets, we now have organic growth, but a few markets with traditional media monitoring as the main business reduce the Group’s overall growth. As with our activities in 2009–2010, we will continue to implement measures to transform or possibly divest our remaining traditional media monitoring operations, in order to complete our transformation into a true PR software and information services company.
Adverse currency developments contributed to a relatively flat operating profit compared to the first quarter of last year. Adjusted for the adverse currency impact of SEK 4 million, the underlying performance in the first quarter of 2011 implied an improvement compared to the same period last year. Our first quarter cash flow continued to improve compared to the same period last year, further strengthening Cision’s financial position.”

For further information, please contact:

Hans Gieskes, President and CEO, phone 46 (0)8 507 410 11
e-mail: hans.gieskes@cision.com

Erik Forsberg, CFO, telephone 46 (0)8 507 410 91
e-mail: erik.forsberg@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 empowers businesses to make better decisions and improve performance through its CisionPoint software solutions for corporate communication and PR professionals. Powered by local experts with global reach, Cision delivers relevant media information, targeted distribution, media monitoring, and precise media analysis. Cision is present in Europe, North America and Asia, and has partners in over 125 countries. Cision AB is quoted on the Nordic Exchange with a turnover of SEK 1.1 billion in 2010.

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