Cision AB (publ) - Interim report January–September 2010, October 26, 2010

Significantly improved operating margin

July-September

• The Group’s operating revenue amounted to SEK 265 million (324). Organic growth was negative at 4 percent, compared with negative 5 percent for April–June 2010 and negative 13 percent for July–September 2009. Exchange rate effects decreased revenue by SEK 2 million and the net effect of divestments and acquisitions decreased revenue by SEK 46 million compared with the same period last year.

• Operating profit excluding restructuring costs, goodwill impairment and other one-off costs amounted to SEK 38 million (25) and the operating margin was 14.3 percent (7.8). Exchange rate effects did not have an effect on operating profit compared with the same period last year.

• Improved cost efficiency and stabilizing revenue levels resulted in continued improved profitability compared to the first half of 2010. The group’s EBITDA margin excluding restructuring costs reached 20% in the third quarter, up from 15% in the first quarter and 17% in the second quarter.

January–September

• The Group’s operating revenue amounted to SEK 864 million (1,161). Organic growth was negative at 6 percent (–11). Exchange rate effects decreased revenue by SEK 47 million and the net effect of divestments and acquisitions decreased revenue by SEK 194 million compared with the same period last year.

• Operating profit excluding restructuring costs, goodwill impairment and other one-off costs amounted to SEK 106 million (73) and the operating margin was 12.2 percent (6.3). Exchange rate effects had a negative impact on operating profi t of SEK 6 million compared with the same period last year.

• Operating profit amounted to SEK 98 million (–256) and profit before tax was SEK 64 million (–327). The comparatives for last year include the impact of goodwill impairment (SEK 268 million in 2009) and other one-off costs (SEK 40 million in 2009). Earnings per share were SEK 0.34 (–3.18).

• For the period January–September, operating cash flow amounted to SEK 53 million (43) and free cash flow amounted to SEK –32 million (–65).

 
Comment by Cision CEO Hans Gieskes:
“During the third quarter, Cision continued to improve profitability, where our EBITDA margin improved further toward our fi nancial target of 20%. In North America, margins remain at a very solid level and in Cision Europe, the turn-around is progressing according to plan following the divestments of loss-making Monitor units and improvements in underlying operations. While still negative, year-on-year organic growth has gradually improved during 2010, with stable quarterly revenue levels on a sequential basis. Our main focus now is to return to organic growth for the group by leveraging our unique CisionPoint software platform, with increased investments in sales and marketing expenditures, as well as the launch of innovative new services.”

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/en/

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 has offices in Europe, North America and Asia, and has partners in 125 countries. Cision AB is quoted on the Nordic Exchange with a turnover of SEK 1.5 billion in 2009.

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