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Cision AB (publ) - Interim report January-September 2011, October 25, 2011

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Cision returns to organic growth

July–September

  • Operating revenue amounted to SEK 227 million (265). Organic growth was 2%, compared with –3% for the previous quarter and –4% for the same period last year. Exchange rate effects decreased revenue by SEK 22 million and the effect of divestments decreased revenue by SEK 19 million.
  • Operating profit amounted to SEK 29 million (36), including non-recurring items of SEK –2 million (–2), and the operating margin was 12.7% (13.5%). Exchange rate effects had a negative impact on operating profit of SEK 4 million.
  • Group organic growth of 2% for the third quarter was driven by continued and accelerated growth at Cision US, with organic growth now reported for four consecutive quarters.
  • Profitability in Cision Europe continued to strengthen in the third quarter, with an operating margin of 17%, compared with 13% for the previous quarter and 11% for the same period last year.

January–September

  • Operating revenue amounted to SEK 717 million (864). Organic growth was –1% (–6%). Exchange rate effects decreased revenue by SEK 82 million and the net effect of divestments and acquisitions decreased revenues with SEK 58 million.
  • Operating profit amounted to SEK 91 million (98), including non-recurring items of SEK –2 million (–8). Operating margin was 12.7% (11.3%). Exchange rate effects have had a negative impact on operating profit of SEK 14 million compared with the same period last year.
  • Profit before tax was SEK 70 million (64) an increase of 9%. Earnings per share were SEK 4.02 (3.27).
  • Operating cash flow amounted to SEK 61 million (53) and free cash flow amounted to SEK 26 million (–32).

Comment by Cision CEO Hans Gieskes:
“In line with our earlier outlook for Cision returning to organic growth in the second half of 2011, we are delighted to report 2% organic growth in the third quarter, driven by continued and increasing growth at our US company, while still being held back by negative growth in Canada, our last traditional monitoring business. It is encouraging to see good operating margins both in the US and in Europe, which achieved a respectable 17% operating margin, compared to 11% in the third quarter of 2010. Just like we have consistently done during the last few years of aggressive portfolio transformation, in the third quarter we increased investments in product and sales, and continued to focus on providing our customers with best-in-class software tools to integrate social media in their marketing mix.
Our recently announced partnership and minority investment in the US company PitchEngine will further enhance our market position, and is a good example of our focus on innovation and growth.
During the quarter we divested our traditional media monitoring business in Finland, and a significant transformation process is being put in place in Cision Canada. Both these actions will improve Cision’s focus on its core PR software business and the attractive growth opportunities which we have.”

For further information, please contact:

Hans Gieskes, 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 91, +44 (0) 7710 385 006
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 October 25, 2011.

Cision is the leading provider of software, services, and tools to the public relations and marketing 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, with partners in over 125 countries and is quoted on the Nordic Exchange with revenue of SEK 1.1 billion in 2010. This press release is also available at http://corporate.cision.com.

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Cision Interim report Hans Gieskes Cision AB quarterly report Tosh Bruce-Morgan

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