INTERIM REPORT, FIRST QUARTER OF 2016

January – March 2016

• Net sales increased 8 % to SEK 61.1 million (56.7)
• Operating loss for the period SEK -24.1 million (-31.7), an improvement of 24 percent
• Loss after financial items SEK -24.8 million (-31.7)
• Loss after tax for the period SEK -25.6 million (-31.8)
• Earnings per share SEK -0.55 (-0.76)
• Cash flow before changes in working capital improved with 4.4 MSEK to -21,8 (-26,2), an improvement of 17 percent
   
  

   
SIGNIFICANT EVENTS DURING THE PERIOD JANUARY – MARCH 2016

• Seamless partners with Express Money and enters the international money transfer market. Through Seamless´mobile payment platform SEQR, Xpress Money and Seamless can offer its customers a convenient, safer and affordable way of sending money from one country to another, digitally.
• Seamless has received a new order from a leading African mobile operator in the Ivory Coast for the installation of its transaction switch. The order is initially valued at approximately USD 2 million.
• Seamless signs agreement with supermarket operator Lambrecht and strengthens position on Belgian market.
• In February Seamless Distribution AB (publ) (”Seamless”) conducted a direct issue of shares of 24.6 MSEK.

SIGNIFICANT EVENTS AFTER THE CLOSE OF THE REPORTING PERIOD

No significant events have occurred during the first quarter.


CEO´s COMMENT

Dear shareholders:

The first quarter of 2016 has been very positive for Seamless, with increased sales and improved earnings over the first quarter of 2015. Earnings improved by 20 percent and net revenues increased by 8 percent.

All three business divisions are showing increased activity, and we expect a further acceleration over the remainder of the year.

The order intake in the SDS subsidiary was very pleasing, not the least due to an additional substantial new order. This particular time, from one of the larger countries in West Africa. The order value of this individual order was USD 2.3 million. Revenues in the subsidiary showed an increase of 20 percent, to SEK 18.8 million, and the net profit ended up at SEK 6.3 million.

The Seamless eProducts Sweden subsidiary (with the subsidiaries Seamless eProducts Latvia and Seamless eProducts Denmark) i.e. our business segment eProducts/Distribution, has increased its revenues by 3 percent and earnings by 34 percent, to SEK -1.4 million. We expect a significantly higher growth rate over the remainder of the year.

The SEQR subsidiary has yet to show any significant increase in revenue, but the transactions continue to increase significantly. Compared with the first quarter of 2015, the growth in this quarter was approx. 70 percent. In SEQR, earnings sharply improved by 32 percent, to an EBIT of SEK -19.5 million. We expect that revenues for the year will improve significantly compared to 2015, and that we will see an increase in revenues in each of the remaining quarters.

It is worth noting that Contactless/NFC technology was launched during the quarter and was released for testing by a limited group of consumers. This technology means that SEQR will be accepted, at the time of writing, at approximately 35 million outlets around the world. The technology solves the larges bottleneck that SEQR has had to face so far, namely that the number of sales points that accept SEQR has been somewhat limited. Sweden has been very slow to embrace this technology, but the banks and retail trade have jointly decided to introduce it during 2016. What this means in practical terms is that SEQR users, right from the day we put the technology into production, can pay with it in Sweden, for instance at ICA. In most other countries, including the UK as an example, almost every large chain accepts contactless/NFC payments.

Many years of work have started to bear fruit, beginning with last year, and we look forward with great expectations to the company’s growth going forward.
 
 
Peter Fredell, CEO Seamless


This is the type of information that Seamless Distribution AB (publ) is required to disclose pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on April 22, 2016 at 08:50 a.m. (CET).

     
CONTACT DETAILS

For further information, please contact:
Peter Fredell, CEO
Peter.fredell@seamless.se +46 8 564 878 00
     
ABOUT SEAMLESS
Seamless is one of the world’s largest suppliers of payment systems for mobile phones. Founded in 2001 and active in 35 countries, Seamless handles more than 3.7 billion transactions annually through 575 000 active sales outlets. Seamless has three main business areas including the transaction switch, the technology provider for the distribution of e-products and the mobile payment platform SEQR. Seamless shares are traded on NASDAQ OMX Stockholm. www.seamless.se

The Seamless Interim Report 2016 for the period January– March 2016 has been approved for publication by the Board of Directors, by its decision on April 22, 2016. This financial report has not subjected to a review by the Company’s auditors.

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