INTERIM REPORT FOR THE PERIOD JANUARY-MARCH 2005 HiQ INTERNATIONAL AB
HiQ – 48% growth and operating profit trebled • Net sales increase to SEK 167.3 (113.3) million, an increase of 48 percent. • Operating profit (EBIT) increases to SEK 31.0 (11.5) million, equivalent to an operating margin of 18.5 (10.2) percent. • Pre-tax profit increases to SEK 31.4 (12.3) million. • Profit after tax increases to SEK 22.7 (8.7) million. • Earnings per share increases to SEK 0.46 (0.19). • HiQ has started cooperation with GTECH Corporation on the development of a new gaming platform for the Finnish State lottery Veikkaus in an order worth around SEK 160 million over 3 years. • HiQ has received a new order from the Swedish Defence Materiel Administration (FMV) for the development of simulators for training fighter pilots for the JAS 39A Gripen. The order amounts to SEK 21.1 million. • The Board has proposed a dividend of SEK 1.30 per share to the AGM, totalling approx. SEK 64 million. • HiQ’s nominating committee has proposed to the AGM that all the Board members be re-elected.
2005 in brief HiQ has had a very strong first quarter and is reporting growth of 48 percent combined with a trebling of operating profit. The first quarter has been characterised by very good demand for HiQ’s services and HiQ has continued to win market share in a highly competitive market. The company’s strong growth in 2004 has inspired and energised the entire organisation, creating a positive environment and driving force. HiQ is continuing to grow and to focus on providing the client with a specialised offering and high quality. In the first quarter 59 new employees were recruited. HiQ has enjoyed good growth in sectors such as telecoms, gaming & entertainment, the automotive industry and the financial sector. The telecoms sector is continuing to drive forward technological development and both operators and manufacturers are investing in new development. HiQ’s position within the gaming and entertainment industry is unique. We possess cutting edge expertise and many years of experience in developing advanced interactive gaming platforms for lotteries in several countries. The cooperation agreement with the American company GTECH that was announced in the first quarter means that HiQ will help to develop the market for interactive gaming for a number of years to come. The agreement strengthens HiQ’s offering further within gaming & entertainment and creates new opportunities in a growing and exciting sector. HiQ’s operations have enjoyed strong development and good growth in all regions. At the end of last year HiQ established a new subsidiary in Karlskrona. The new subsidiary operated at a profit in its first quarter. The subsidiary HiQ Cats is now fully integrated in the group and contributes to strengthening HiQ both geographically and by business sectors. For further information, please contact: Lars Stugemo, President and CEO, tel. +46 (0)8-588 90 000 Annika Larsson, Head of Corporate Communications , tel. +46 (0)8-588 90 015, +46 (0)704 -200 103