Observer AB (publ) Interim report January - March 2004

Observer AB (publ) Interim report January - March 2004 Strong growth in North America and positive signals in Europe, but the turnaround in the Nordic region will be delayed -The group's operating revenue amounted to SEK 410.5 million (403.8). Exchange rate effects from the translation to Swedish kronor affected revenue negatively by SEK 20.8 million compared with the corresponding period of 2003. Organic growth in local currency was 0 percent. -Operating profit before goodwill amortization and items affecting comparability amounted to SEK 60.1 million (67.0). Exchange rate effects affected profit negatively by SEK 4.4 million compared with the year-on-year period. The operating margin was 14.6 percent (16.6). -Profit per share after dilution, excluding goodwill amortization and items affecting comparability, amounted to SEK 0.53 (0.71). The profit before tax amounted to SEK 8.8 million (-8.9). The net loss for the period amounted to SEK -2.9 million (-15.8). -Operating cash flow amounted to SEK 47.2 million (73.4). -In April Observer acquired the operations of a broadcast monitoring company in California. In the process Observer continued its expansion in the US, where it now monitors the three largest broadcast media markets: New York, Chicago and Los Angeles. Comment by Observer CEO Robert Lundberg "The Nordic market is still difficult and the spending restraint among clients is strong. The Nordic region continues to report negative growth, and we do not expect to see clear signs of an improvement in the near term. While new management has been appointed in the Nordic region and Sweden, focus is increased on sales activities and new client offerings. We will also further reduce costs in the region. Organic growth in the US is now 14 percent and the success of our integrated services continues. We are also seeing improvements in the Rest of Europe, where organic growth for the quarter was two percent. Demand is mainly increasing from large German and British clients." For further information, please contact: Anders Lundmark, Chief Financial Officer, telephone: +46 70 333 29 77, +46 8 507 417 23, e- mail: anders.lundmark@observergroup.com Per Blixt, Senior VP Corporate Communications/Investor Relations, telephone: +46 70 549 28 08, +46 8 507 410 12, e- mail: per.blixt@observergroup.com Robert Lundberg, President and CEO, telephone: +46 8 507 410 10, e-mail: robert.lundberg@observergroup.com Observer AB is quoted on the Attract 40 section of Stockholmsbörsen's O-list and has approximately 25,000 shareholders. Observer is active in Business and Communication Intelligence and offers media monitoring and communication evaluation services. Customers, who are primarily in IR and PR, are also offered tools and channels for distribution and publication of business information. Observer has around 2,400 employees and a turnover of SEK 1,5 billion in 2003. The company operates in the US, UK, Sweden, Canada, Germany, Norway, Finland, Denmark, Portugal, Ireland, Estonia, Latvia and Lithuania. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/05/04/20040504BIT20090/wkr0006.pdf The full report http://www.waymaker.net/bitonline/2004/05/04/20040504BIT20090/wkr0008.doc The full report