Interim report January - June 2010
Stockholm, July 15, 2010
Developments in the second quarter - April – June, 2010
- Operating revenues amounted to SEK 1 442 M (1 673), down by 14 percent Y/Y, corresponding to an organic decline of 13 percent. The organic decline for the first 6 months was 10 percent.
- EBITDA amounted to SEK 397 M (561), down by 22% excluding other items affecting comparability*
- Eniro’s 50% holding in Suomi24 was divested during the period and resulted in a net gain of SEK 37 M and a positive effect on net debt of approximately SEK 50 M
- Earnings before tax amounted to 176 MSEK (303)
- Net income amounted to SEK -108 M (220), and included a provision of approximately SEK 280 M with regards to the reassessment notice Eniro received from the Norwegian Tax Authorities. Eniro will contest the potential claim following the reassessment.
- Operating cash flow for the first six months amounted to SEK 54 M (500)
*EBITDA in the second quarter 2009 included other items affecting comparability related to the settlement with DeTeMedien and the divestment of SprayPassagen of SEK 102 M, and EBITDA in the second quarter 2010 included a net gain of SEK 37 M from the divestment of the holding in Suomi24.
Jesper Kärrbrink, Eniro’s CEO, commented:
“Our main focus during the second quarter has been to continue the implementation of the new sales concept in Directories Scandinavia where we, in the end of the second quarter, have seen the first signs of improved efficiency in our sales force. Further, we are continuing to develop new functionalities and advertising formats within online aiming to improve value for customers and users in the long term to be launched later this year.“
“Reported revenues during the quarter reflect the structural print decline affecting our industry, as a result of the rapidly changing search behaviour, as well as a weak order intake in Q1. Consequently, we have increased the speed of our transformation process and temporarily increased the operative risk. Despite a successful implementation of the previously announced cost measures, a continued revenue decline combined with a potential payment related to the tax reassessment in Norway will further deteriorate the net debt/EBITDA-relation. This could lead to a breach of covenants in the latter part of the year. Hence, Eniro has initiated discussions with its lending banks to secure headroom to covenants.”
For further information, please contact:
Jesper Kärrbrink, President and CEO, Phone: +46 8-553 310 01
Jan Johansson, CFO, Phone: +46 8-553 310 15, +4670-575 89 72
Birgitta Henriksson (Brunswick Group), Acting Head of IR, Phone: +46 8-553 315 29, +4672-220 83 29
Eniro is the leading directory and search company in the Nordic media market. Eniro’s search database connects sellers to buyers and makes it easy to find people using Eniro´s distribution channels Online, Printed directories, Voice and mobile. Eniro has operations in Sweden, Norway, Finland, Denmark and Poland.