Target is to increase mobile revenues to SEK 900 M by 2015
Eniro aggregates local search information in the digital value chain. Mobile search is a critical factor for Eniro’s long-term growth. The goal is to increase mobile search revenues to SEK 900 M by 2015. To increase transparency and better reflect the fact that digital advertising revenue represents 80% of business today, starting with the third quarter Eniro will be reporting its mobile revenue performance separately.
Eniro believes that mobile search revenues will continue to rise sharply, and it is estimated that within a few years this revenue category will account for a large share of the company’s total revenue. The goal is to increase mobile revenues to approximately SEK 900 M by 2015. Mobile revenues in 2012 amounted to SEK 147 M. The forecast for mobile revenues in 2013 is unchanged, i.e., a doubling of revenues to approximately SEK 300 M. To facilitate a financial analysis and understanding of Eniro’s future drivers of growth, starting with the third quarter results, which will be communicated on October 23, Eniro will report mobile revenues as a separate revenue category. A pro forma revenue breakdown is provided below.
“Eniro is showing through continued strong mobile revenue growth that the company can capitalize on the important mobile search channel,” comments Johan Lindgren, President and CEO of Eniro. “I am convinced that mobile revenues will make up a substantial share of Eniro’s total revenue in the near future. Eniro’s development strategy is clear, and mobile is front and center.”
In addition to a split of the former Online/Mobile revenue category, a number of terminology changes are being adopted:
| Earlier reporting structure | New reporting structure | ||
| Q2 2013 | Q2 2013 | ||
| Online/mobile | 549 | Desktop search | 483 |
| Mobile search | 66 | ||
| Media products | 59 | Campaign products | 59 |
| Digital revenues | 608 | Multiscreen revenues | 608 |
| 80 | 80 | ||
| Other products | 21 | Other products | 21 |
| Directories | 709 | Local search | 709 |
| Voice | 184 | Voice | 184 |
| Total revenues | 893 | Total revenues | 893 |
Pro forma categories 2012 and first half of 2013:
| Revenues by category | |||||||
| 2012 | 2012 | 2013 | |||||
| SEK M | Jan-Mar | Apr-Jun | Jul-Sep | Oct-Dec | Full year | Jan-Mar | Apr-Jun |
| Desktop search | 487 | 514 | 490 | 486 | 1 977 | 473 | 483 |
| Mobile search | 26 | 33 | 38 | 50 | 147 | 51 | 66 |
| Campaign products | 54 | 60 | 52 | 68 | 234 | 57 | 59 |
| Multiscreen revenues | 567 | 607 | 580 | 604 | 2 358 | 581 | 608 |
| 172 | 159 | 142 | 267 | 740 | 98 | 80 | |
| Other products | 37 | 37 | 39 | 19 | 132 | 26 | 21 |
| Local search | 776 | 803 | 761 | 890 | 3 230 | 705 | 709 |
| Voice | 183 | 198 | 187 | 201 | 769 | 181 | 184 |
| Total revenues | 959 | 1 001 | 948 | 1 091 | 3 999 | 886 | 893 |
| Revenue by category, organic % | |||||||
| 2012 | 2012 | 2013 | |||||
| SEK M | Jan-Mar | Apr-Jun | Jul-Sep | Oct-Dec | Full year | Jan-Mar | Apr-Jun |
| Desktop search | -1 | -2 | -4 | -4 | -3 | -1 | -4 |
| Mobile search | 113 | 102 | 171 | 95 | 116 | 100 | 101 |
| Campaign products | 14 | 36 | 18 | 34 | 26 | 8 | 1 |
| Multiscreen revenues | 3 | 4 | 2 | 5 | 3 | 4 | 2 |
| -30 | -31 | -30 | -36 | -33 | -43 | -26 | |
| Other products | -1 | -15 | 16 | -53 | -14 | -3 | -11 |
| Local search | -7 | -7 | -6 | -14 | -9 | -7 | -2 |
| Voice | -11 | -18 | -17 | -8 | -13 | -6 | -11 |
| Total organic development | -8 | -9 | -8 | -13 | -10 | -7 | -4 |
| EBITDA by revenue area | |||||||
| 2012* | 2012* | 2013 | |||||
| SEK M | Jan-Mar | Apr-Jun | Jul-Sep | Oct-Dec | Full year | Jan-Mar | Apr-Jun |
| Total EBITDA | 156 | 251 | 261 | 308 | 976 | 170 | 234 |
| Local search | 126 | 218 | 187 | 246 | 777 | 126 | 181 |
| Voice | 57 | 66 | 73 | 83 | 279 | 57 | 73 |
| Other | -27 | -33 | 1 | -21 | -80 | -13 | -20 |
| Items affecting comparability | |||||||
| Restructuring costs | 4 | 13 | 12 | 19 | 48 | 13 | 13 |
| Other items affecting comparability | - | -4 | 0 | -44 | -48 | - | - |
| Total adjusted EBITDA | 160 | 260 | 273 | 283 | 976 | 183 | 247 |
| * Restated comparison year in accordance with new accounting principle regarding pensions | |||||||
For further information, please contact:
Johan Lindgren, CEO, Tel: +46 8 553 311 14
Mattias Lundqvist, CFO, Tel: +46 8 553 310 04
Cecilia Lannebo, Head of Investor Relations, Tel: +46 722 208 277, e-mail: cecilia.lannebo@eniro.com
The 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 08.00 CET on September 17, 2013.
Eniro is the local search engine. A clever shortcut to what you need, at home or away. Both consumers and companies can use Eniro’s services to easily locate where to buy services and products – regardless of whether the channel is the Internet, catalog or mobile. Advertisers can actively market themselves to interested consumers, find new customers and increase sales. Eniro is one of the largest search companies in the Nordic region and Poland. The company has approximately 3,200 employees and has been listed on Nasdaq OMX Stockholm since 2000. During 2012, Eniro’s revenues amounted to SEK 3,999 M and EBITDA was SEK 976 M. Headquarters are located in Stockholm, Sweden. More on Eniro at www.enirogroup.com
Eniro – Discover local. Search local.