Interim Report May - October 1999

Interim Report May-October 1999 Connecta AB (publ) Growth and profitability remain strong *Net sales rose 82% during the period May-October 1999 to SEK 162.7 M (corresponding period of the preceding year: SEK 89.6 M). 1 *Operating profit up 114% to SEK 18.2 M (8.5). *On a rolling 12-month basis, sales amounted to SEK 305.4 M and operating *profit (1 to SEK 43.6 M. The operating margin on a rolling 12-month basis was 14.3%. *The number of employees on October 31, 1999 was 416 (246). *Itvision, a company within the Internet Based Training sector, was acquired during the period. *Decision taken regarding action plan for international expansion. *Forecast for 1999/2000 fiscal year: Connecta anticipates net sales of at least SEK 400 M, which is expected to yield operating profit (1 exceeding SEK 55 M. 1 Before goodwill amortisation Sales, earnings and financial position Connecta reports net sales of SEK 162.7 M for the period May-October 1999 (corresponding period of the preceding year: SEK 89.6 M), up 82% compared with the year-earlier period. Operating profit before goodwill amortisation rose 114% to SEK 18.2 M (8.5). The operating margin, before goodwill amortisation, rose to 11.2% (9.4). Translated to 12-month figures - that is, the 12-month period ended October 31, 1999 - sales amounted to SEK 305.4 M and operating profit, before goodwill amortisation, to SEK 43.6 M, corresponding to an operating margin of 14.3%. Pre-tax profit amounted to SEK 15 M (4,4). After estimated taxes, consolidated net profit amounted to SEK 10.1 M (2.5). Issue costs of approximately SEK 16 M were not taken into account in calculating tax for the period. The Group's actual tax costs, after a deduction for issue costs, is estimated at SEK 0.4 M. To ensure that comparability between different periods of the year is not distorted, this item will be adjusted in the final accounts. Liquid funds amounted to SEK 119.3 M (24.8). In addition, approved overdraft facilities amount to SEK 10 M. The new issue of shares in connection with Connecta's listing on the OM Stockholm Stock Exchange provided a net contribution of SEK 106 M. Liquid assets have been charged with SEK 30 M pertaining to the sales consideration for Itvision and SEK 7.4 M pertaining to dividends for the 1998/99 fiscal year. Investments, including financial leasing contracts, amounted to SEK 4.3 M (0). Acquisitions As previously announced, Connecta has acquired the Internet consulting company Itvision, which together with its clients provides tailor-made interactive training programs for Intranet and Intranet distribution. This company broadens Connecta's range of Internet and broadband services and is in line with the Group's strategic focus on helping companies and organisations to enter the digital economy. 1 Before Goodwill Amortisation ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/11/09/19991109BIT00100/bit0001.doc The full Report http://www.bit.se/bitonline/1999/11/09/19991109BIT00100/bit0002.pdf The full Report