English

Changes creating conditions for greater stability

Report this content

Second quarter: April - June 2015

  • Total operating revenue amounted to SEK 634 M (767), a decrease of 17%. Revenue decreased organically by 17% (-12%).
  • Revenue from Desktop and Mobile search amounted to SEK 405 M (489), a decrease of 17%. Revenue from Desktop and Mobile search decreased organically by 17% (-12%). 
  • Prepaid revenue as per June 30, 2015, amounted to SEK 564 M (633), a decrease of 11% compared with June 30, 2014.
  • EBITDA amounted to SEK 49 M (168). Earnings were charged with SEK 47 M (-7) in nonrecurring costs, consisting of SEK 12 M (0) in severance pay and SEK 35 M (-1) in restructuring costs. Earning for the comparison period included capital gain of SEK 6 M. The EBITDA margin was 7.7% (21.9%).
  • Net income for the quarter was SEK -1,185 M (53), mainly affected by impairment of intangible assets.
  • Earnings per common share for the quarter were SEK -4.55 (0.39) before dilution and SEK -2.40 (–) after dilution.
  • Operating cash flow amounted to SEK -81 M (174). 
  • A non-cash impairment loss of SEK 1,111 M was recognized. Of this total, SEK 646 M pertained to Local search, stemming mainly from the acquisition of the Norwegian company Findexa in 2005, and SEK 465 M pertained to Voice.
  • A lump-sum amortization of debt of SEK 670 M was made in April. In June the first scheduled amortization of SEK 75 M towards the renegotiated bank loan was made.
  • Half year: January - June 2015
  • Total operating revenue amounted to SEK 1,266 M (1,536), a decrease of 18%. 
  • Revenue from Desktop and Mobile search decreased organically by 14% (-9%), while total revenue from Digital search decreased organically by 14% (-6%).
  • EBITDA amounted to SEK 142 M (372). Earnings were charged with SEK 58 M (-65) in nonrecurring costs, consisting of SEK 46 M (3) in restructuring costs and SEK 12 M (0) in cost for severance pay. Earning for the comparison period included capital gains of SEK 68 M. The EBITDA margin was 11.2% (24.2%). 
  • Net income for the period was SEK -1,212 M (106) and was negatively affected mainly by the impairment losses for intangible assets during the second quarter. 
  • Earnings per common share for the period were SEK -6.81 (0.80) before dilution and SEK -2.96 (–) after dilution.
  • Operating cash flow amounted to SEK -43 M (121).

Events during the second quarter

  • EBITDA for 2015 is expected to be lower than the previously issued forecast of EBITDA in line with 2014. No new forecast is being issued. 
  • CFO Roland M. Andersen left the company, and the former Head of Group Business Controlling, Maria Åkrans, was appointed as acting CFO.
  • The organization is being further adapted to the digital business. Personnel cuts by 260 positions are expected to generate cost savings of SEK 25 M in 2015, with a 12-month effect of SEK 120 M.
  • In April the newly issued common shares were registered. Following the issue, the number of common shares outstanding amounted to slightly more than 407.5 million, including treasury shares. 
  • Newly issued convertibles were taken up for trading on Nasdaq OMX Stockholm in April. During the second quarter, 39 convertibles were converted to common shares.
  • The renegotiated loan agreement took effect in April, with a conversion value of SEK 1,850 M broken down into three currencies with a tenor through 2018. Following the scheduled amortization in June, the bank loan amounted to SEK 1,621 M. 
  • Nasdaq OMX Stockholm’s Disciplinary Committee announced its finding that Eniro contravened certain items of the Exchange’s member rules and that the company shall therefore pay a fine to the Exchange equal to three annual fees. The items pertained to the accounting errors that led to the reporting of the company’s former CEO to the police authority and to Eniro’s adjustment of the full-year forecast for 2015. Eniro had come to the same conclusion as the Disciplinary Committee with respect to the incorrect accounting. With respect to the adjustment of the full-year forecast, the Disciplinary Committee noted that the company did not knowingly publish an incorrect forecast, and that the matter was more of a judgment issue.

Events after the end of the reporting period

  • Board member Staffan Persson is leaving the Board for personal reasons.

For further information, please contact:
Maria Åkrans, Acting Head of Investor Relations, telephone: +46 (0) 708 566 400, e-mail: ir@eniro.com

This information is such that Eniro AB (publ) is required to disclose in accordance with the Swedish Financial Instruments Trading Act and/or the Swedish Securities Market Act. The information was submitted for publication at 8:00 am CET on July 16, 2015.

Eniro is a search company that aggregates, filters and organizes local information. Our growth is driven by users’ increasing mobility and multiscreen behavior, where we are at the forefront with modern technical solutions. For more than 100 years Eniro has helped people find local information and companies find customers. Today it is a multiscreen solution – our users search for information using their smart phones, tablets and desktops. This creates great business opportunities for us as the local search company. Mobile advertising is today the fastest growing part of Eniro’s business.

Eniro is the local search engine. A smart shortcut to what you need, no matter where you are or where you are going.

Eniro is one of the largest search companies in the Nordic region and Poland. The company has approximately 2,300 employees and has been listed on NASDAQ Stockholm since 2000. During 2014, Eniro’s revenues amounted to SEK 3,002 M and EBITDA was SEK 631 M. More than 88 percent of Eniro’s advertising revenues come from multiscreen channels. The company’s headquarters are located in Stockholm, Sweden. More on Eniro at www.enirogroup.com.

Eniro – Discover local. Search local.

Tags:

Eniro AB Q2 2015 Eniro AB Q2 Q2 interim report half year period

Documents & Links