Teleste´s Financial Statements 2017: Net sales and result decreased in 2017, record-level order backlog
TELESTE CORPORATION FINANCIAL STATEMENTS 8.2.2018 AT 08:30 (a.m. EET)
FINANCIAL STATEMENTS OF TELESTE CORPORATION 1 JANUARY TO 31 DECEMBER 2017
NET SALES AND RESULT DECREASED IN 2017, RECORD-LEVEL ORDER BACKLOG
Fourth quarter of 2017
– Net sales amounted to EUR 58.7 (68.6) million, a decrease of 14.4%
– Operating result stood at EUR 0.3 (4.3) million, a decrease of 94.1%. The operating result includes a personnel reduction-related restructuring provision of EUR 0.8 million.
– Undiluted earnings per share were EUR -0.01 (0.21), a decrease of 104.6
– Orders received totalled EUR 66.7 (64.6) million, an increase of 3.2%
– Cash flow from operations was EUR 6.4 (0.5) million, an increase of 1,309%
January–December 2017
– Net sales amounted to EUR 234.6 (259.5) million, a decrease of 9.6%
– Operating result stood at EUR -7.5 (15.6) million, a decrease of 148.3%. The operating result includes restructuring provisions and the goodwill impairment for the services business in Germany in total of EUR 10.1 million.
– Undiluted earnings per share were EUR -0.50 (0.65), a decrease of 177.0%.
– Orders received totalled EUR 262.9 (244.3) million, an increase of 7.6%.
– Cash flow from operations was EUR 19.3 (8.8) million, an increase of 119.7%
The Board of Directors proposes a dividend of EUR 0.10 (0.25) per outstanding share.
Outlook for 2018
Teleste expects the company’s net sales to increase in 2018 compared with 2017 (EUR 234.6 million). Operating result is expected to be clearly positive. However, due to the ongoing investments, it will not yet reach the record level of 2016 (EUR 15.6 million).
Comments by CEO Jukka Rinnevaara:
‘Orders received increased in the fourth quarter year-on-year. Order backlog increased, reaching the highest level in Teleste’s history. Net sales were down year-on-year in both business areas. Operating result remained below the reference period level. This was mainly because of lower net sales in Video and Broadband Solutions and restructuring provisions related to reduction of personnel.
Orders received by Video and Broadband Solutions increased year-on-year for video security and information solutions, with France, Spain and Poland as the growth markets. Order backlog increased and reached the highest level in Teleste’s history. However, one third of the deliveries will take place after 2018. Net sales decreased in access network products and, in particular, in video security and information solutions. However, new orders for video security and information solutions started to increase strongly during the year. In addition, we enhanced our offering by acquiring iqu Systems GmbH, the German company specialising in intelligent passenger information systems. Operating result decreased year-on-year, mainly because of lower net sales and the restructuring provision for decreasing labour costs. Teleste carried out co-determination negotiations in order to reduce costs and secure profitable growth. As a result of the negotiations, it was decided to reduce the number of employees in Finland by 24 persons. Despite the lower net sales, we continued our product development investments, as well as marketing investments in the US cable operator market.
Net sales of Network Services decreased in Germany and England as a result of changes in customer projects. The business area improved its operating result year-on-year, but it remained negative. The restructuring programme in Germany continued, progressing in stages. It will also continue in the first half of 2018. Negotiations with a customer to renew an important frame agreement progressed. We aim to complete the negotiations during the first quarter of 2018. The outcome of the negotiations will have a significant effect on the profitability of our services business.
The year 2017 was exceptionally difficult for Teleste. Our main challenges were related to the low net sales in video security and information solutions and the low profitability of the services business in Germany. We were forced to reduce personnel in order to cut costs and improve the efficiency of our business. Business area trends and the market outlook are still favourable, which is why we will continue investing in new advanced video security and information solutions, product development in distributed access architecture and winning new clients in the US cable operator market. The objective of the restructuring of our services business in Germany is to achieve a positive operating result in 2018 and renew the most important frame agreements. We start the year 2018 with a considerably higher order backlog than a year ago, which provides a good foundation for achieving our annual targets.
The company has the following three main objectives for the next few years: Achieving positive performance in the services business in Germany, successful launch of sales in the US cable operator market and significant growth and improved performance in video security and information solutions. We expect these three areas to have a significant effect on the company’s future development.’
Group Operations in October–December 2017
| Key figures (M€) | 10–12/2017 | 10–12/2016 | Change |
| Orders received | 66.7 | 64.6 | +3.2% |
| Net sales | 58.7 | 68.6 | -14.4% |
| EBIT | 0.3 | 4.3 | -94.1% |
| EBIT, % | 0.4% | 6.3% | |
| Result for the period | -0.2 | 3.7 | -105.7% |
| Other important key figures | |||
| Earnings per share, EUR | -0.01 | 0.21 | -104.6% |
| Cash flow from operations, M€ | 6.4 | 0.5 | +1,309% |
Orders received by the Group in the fourth quarter increased by 3.2% to EUR 66.7 (64.6) million. Order backlog increased during the quarter by 21.5% to EUR 57.4 (26.9) million, which is the highest order backlog in Teleste’s history. Net sales decreased by 14.4% to EUR 58.7 (68.6) million.
Expenses for material and production services decreased by 16.8% to EUR 30.6 (36.8) million. Personnel expenses decreased by 7.1% and were EUR 17.8 (19.1) million. The 4.0 per cent reduction in personnel, the amount of performance-based bonuses paid out and the restructuring provision contributed to the change in personnel expenses. The cost effect of the restructuring provision was EUR 0.8 million. Depreciation, amortisation and other operating expenses increased by 3.0% to EUR 10.5 (10.2) million. Operating result decreased by 94.1% to EUR 0.3 (4.3) million, representing 0.4% (6.3%) of net sales. The result of the reference period was improved by a reversed provision of EUR 1.3 million for earn-out related to a prior acquisition, recognised in other income. Net financial expenses amounted to EUR 0.2 (0.0) million. Taxes were EUR 0.3 (0.6) million. Undiluted earnings per share were EUR -0.01 (0.21). Cash flow from operations was EUR 6.4 (0.5) million, an increase of 1,309% resulting from changes in net working capital.
Group Operations in January–December 2017
| Key figures (M€) | 1–12/2017 | 1–12/2016 | Change |
| Orders received | 262.9 | 244.3 | +7.6% |
| Net sales | 234.6 | 259.5 | -9.6% |
| EBIT | -7.5 | 15.6 | -148.3% |
| EBIT, % | -3.2% | 6.0% | |
| Result for the period | -9.1 | 11.8 | -177.4% |
| Other important key figures | |||
| Earnings per share, EUR | -0.50 | 0.65 | -177.0% |
| Cash flow from operations, M€ | 19.3 | 8.8 | +119.7% |
| Net gearing, % | 16.8% | 25.0% | |
| Equity ratio, % | 48.3% | 52.5% | |
| Personnel at period-end | 1,446 | 1,511 | -4.3% |
Orders received by the Group increased by 7.6% to EUR 262.9 (244.3) million, the highest level in Teleste’s history. Net sales decreased by 9.6%, amounting to EUR 234.6 (259.5) million.
Operating result was in the red by EUR 7.5 million. Operating result in the reference period was EUR 15.6 million. Operating result represented -3.2% (6.0%) of net sales. A significant proportion of the decrease in result was generated by the goodwill impairment of EUR 7.7 million related to the services business in Germany and the restructuring provisions of EUR 2.4 million in Germany and Finland. The operating result was also decreased by the lower net sales in Video and Broadband Solutions. Expenses for material and production services decreased by 6.9% to EUR 127.7 (137.1) million. Personnel expenses decreased by 4.4% and were EUR 69.4 (72.6) million. The 1.4 per cent reduction in personnel, the amount of performance-based bonuses paid out and the restructuring expenses contributed to the reduction in personnel expenses. Depreciation, amortisation and other operating expenses increased by 3.4% to EUR 38.9 (37.6) million. Taxes for the Group amounted to EUR 0.7 (3.0) million. Undiluted earnings per share were EUR -0.50 (0.65). Cash flow from operations was EUR 19.3 (8.8) million. Cash flow was improved by changes in the working capital and, particularly, by new, shorter payment terms for clients, obtained through a supplier financing programme.
Video and Broadband Solutions in October–December 2017
| EUR 1,000 | 10–12/2017 | 10–12/2016 | Change |
| Orders received | 43,424 | 39,548 | +9.8% |
| Net sales | 35,429 | 43,496 | -18.5% |
| EBIT | 480 | 5,309 | -91.0% |
| Operating result, % | 1.4% | 12.2% |
Orders received increased by 9.8% year-on-year to EUR 43.4 (39.5) million. Orders received increased the most in video security and information solutions. Order backlog increased during the quarter by 21.5% and was EUR 57.4 (26.9) million at quarter-end. Net sales decreased by 18.5% to EUR 35.4 (43.5) million. Operating result decreased by 91.0% and was EUR 0.5 (5.3) million, representing 1.4% (12.2%) of net sales. The operating result was decreased by the lower net sales in video security and information solutions and the EUR 0.8 million restructuring provision related to the reduction of personnel. The operating result for the reference period included EUR 1.3 million of other income resulting from reversed provision for earn-out related to a prior acquisition.
R&D expenses amounted to EUR 3.2 (3.0) million, representing 9.0% (7.0%) of net sales in the business area. Product development projects focused on network products designed for the US market, distributed access architecture, video security and information solutions, and customer-specific projects. Capitalised R&D expenses amounted to EUR 0.8 (0.9) million, and depreciation on capitalised R&D expenses to EUR 0.5 (0.3) million.
Video and Broadband Solutions in January–December 2017
| EUR 1,000 | 1–12/2017 | 1–12/2016 | Change |
| Orders received | 170,359 | 149,011 | +14.3% |
| Net sales | 142,082 | 164,231 | -13.5% |
| EBIT | 4,888 | 16,482 | -70.3% |
| EBIT, % | 3.4% | 10.0% |
Orders received increased by 14.3% year-on-year to EUR 170.4 (149.0) million. The increase in orders received was seen in video security and information solutions. Net sales decreased by 13.5% to EUR 142.1 (164.2) million. Net sales decreased the most in video security and information solutions. Operating result decreased by 70.3% and was EUR 4.9 (16.5) million, representing 3.4% (10.0%) of net sales. The operating result was decreased by the lower net sales and the EUR 0.8 million restructuring provision related to the reduction of personnel. The operating result for the reference period included EUR 2.3 million of other income resulting from reversed provision for earn-out related to a prior acquisition.
R&D expenses amounted to EUR 12.1 (11.1) million, representing 8.5% (6.8%) of net sales. Product development projects focused on distributed access architecture, network products complying with the DOCSIS 3.1 standard (including solutions designed for the US market), video security and information solutions, and customer-specific projects. Capitalised R&D expenses amounted to EUR 3.5 (2.5) million and depreciation on capitalised R&D expenses to EUR 1.5 (1.2) million.
Network Services in October–December 2017
| EUR 1,000 | 10–12/2017 | 10–12/2016 | Change |
| Orders received | 23,273 | 25,066 | -7.2% |
| Net sales | 23,273 | 25,066 | -7.2% |
| EBIT | -226 | -975 | |
| EBIT, % | -1.0% | -3.9% |
Orders received and net sales decreased by 7.2% year-on-year, amounting to EUR 23.3 (25.1) million. Net sales decreased the most in Germany and England. Operating result improved by EUR 0.7 million year-on-year but remained negative at EUR -0.2 million. Operating result represented -1.0% (-3.9%) of net sales. In Germany, the measures to improve profitability and the restructuring programme continued. They will continue to progress in stages also in the first half of 2018. Negotiations with a customer to renew an important frame agreement progressed. Deliveries for projects with new customers started.
Network Services in January–December 2017
| EUR 1,000 | 1–12/2017 | 1–12/2016 | Change |
| Orders received | 92,507 | 95,297 | -2.9% |
| Net sales | 92,507 | 95,297 | -2.9% |
| EBIT | -12.437 | -847 | |
| EBIT, % | -13.4% | -0.9% |
Orders received and net sales decreased by 2.9% to EUR 92.5 (95.3) million. Net sales decreased in Germany and England. Operating result was negative by EUR 12.4 million, while operating result in the reference period was negative by EUR 0.8 million. The principal reasons for the negative operating result were operational problems in Germany, the goodwill impairment of EUR 7.7 million related to the services business in Germany and the provision of EUR 1.6 million for a restructuring programme that is progressing in stages and which will continue in the first half of 2018.
Personnel and organisation in January–December 2017
In the period under review, the average number of people employed by the Group was 1,492 (1,514/2016, 1,485/2015); of these, 763 (747) were employed by Video and Broadband Solutions and 729 (767) by Network Services. At the end of the review period, the Group employed 1,446 people (1,511/2016, 1,506/2015), of whom 65% (66%/2016, 68%/2015) were stationed abroad. Approximately 2% of the Group’s employees were working outside Europe.
Personnel expenses decreased by 4.4% year-on-year and were EUR 69.4 (72.6/2016, 70.5/2015) million. The decrease in personnel expenses was due to a lower number of personnel and lower amount of performance-based bonuses paid out. The average number of personnel decreased by 1.4%. The number of personnel decreased in the Network Services business area.
Investments in January–December 2017
Investments by the Group totalled EUR 7.5 (5.5) million, equal to 3.2% (2.1%) of net sales. Of the investments, EUR 3.5 (2.5) million were made in product development and EUR 2.1 (0.0) million in an acquisition. Other investments involved information systems, machinery and equipment. Of the investments, EUR 0.4 (0.6) million were carried out under financial lease arrangements.
Product development projects focused on distributed access architecture, network products complying with the DOCSIS 3.1 standard (including solutions designed for the US market), video security and information solutions, and customer-specific projects.
Financing and Capital Structure in January–December 2017
Cash flow from operations was EUR 19.3 (8.8) million. Cash flow was improved by decreased working capital and, particularly, by new, shorter payment terms for clients through a supplier financing programme.
In August, Teleste Corporation signed new credit and loan facilities with a total value of EUR 50.0 million. The new financing agreements replaced the previous ones. The financing agreements include a five-year loan of EUR 30.0 million and a three-year credit facility of EUR 20.0 million. The credit facility involves a 1+1-year extension option. At the end of the period under review, the amount of unused binding credit facilities was EUR 20.0 (19.0) million. On 31 December 2017, the Group’s interest-bearing debt stood at EUR 33.2 (30.6) million.
The Group's equity ratio was 48.3% (52.5%) and net gearing 16.8% (25.0%).
Key Risks Faced by the Business Areas
Founded in 1954, Teleste is a technology and services company consisting of two business areas: Video and Broadband Solutions and Network Services. With Europe as the main market and business area, the company is also expanding its business outside Europe. Teleste’s customers include cable operators, public transport operators, train manufacturers and specified organisations in the public sector.
In Video and Broadband Solutions, customer-specific and integrated deliveries of solutions create favourable conditions for growth. On the other hand, the allocation of resources to the deliveries and the technical implementation are demanding tasks, which is why there are also risks involved. Our operator customers' network investments vary according to the development of technology, customers’ need to upgrade and their financial structure. End-to-end deliveries of video security and information solution systems may be large in size, setting high demands for the project quotation calculation and management and, consequently, involving risks. Increased competition created by the new service providers may undermine the cable operators’ ability to invest. Correct technological choices, product development and their timing are vital to our success. Various technologies are used in our products and solutions, and the intellectual property rights associated with the application of these technologies can be interpreted in different ways by different parties. Such difficulties of interpretation may lead to costly investigations or court proceedings. Customers have very demanding requirements for the performance of products, their durability in challenging conditions and their compatibility with other components of integrated systems. Regardless of careful planning and quality assurance, complex products may fail in the customer’s network and lead to expensive repair obligations. The consequences of natural phenomena or accidents, such as fire, may reduce the availability of components in the order-delivery chain of the electronics industry or suspend our own manufacturing operations. Many competitors in the business area come from the USA, which is why the exchange rate of the euro against the US dollar has an effect on our competitiveness. The development of the exchange rates of the US dollar and the Chinese renminbi against the euro influences our product costs. The company hedges against short-term currency exposure by means of forward exchange contracts.
Net sales of Network Services come mainly from a small number of large European customers. Therefore, a significant change in the demand for our services by any one of them is reflected in the actual deliveries and profitability. The improvement of customer satisfaction and productivity requires efficient service process management, as well as innovative process, product and logistics solutions to ensure the quality and cost-efficiency of services. The smooth functioning of cable networks requires efficient technical management of the networks and suitable equipment solutions in accordance with contractual obligations. This, in turn, requires continuous and goal-directed development of the skills and knowledge of our personnel and subcontractors. In addition, the sufficiency and usage rates of our personnel and subcontractor network influence the company’s delivery capacity and profitability. Subcontractors’ costs may increase faster than it is possible for Teleste to increase the prices of its services to its own customers. In larger projects with overall responsibility, tender calculation and project management are complex tasks that involve risks. Severe weather conditions may affect our ability to deliver services.
Teleste’s strategy involves risks and uncertainties: new business opportunities may fail to be identified or successfully exploited. The business areas must take into account market movements, such as consolidations among our customers and competitors. Periods of technological transition, such as operators migrating to distributed access architecture, may significantly change the competitive positions of the current suppliers and attract new competitors to the market. Intensified competition may decrease the prices of products and solutions faster than we are able to reduce our products’ manufacturing and delivery costs.
Various information systems are critical to the development, manufacture and supply of products to our customers. The maintenance of information systems and deployment of new systems involve risks that may affect our ability to deliver products and services. Information systems may also be exposed to external threats and we need to protect them. Recruiting and maintaining skilled personnel requires encouragement, development and recruitment efforts, which can fail.
The Board of Directors annually reviews essential business risks and their management. Risk management constitutes an integral part of the strategic and operational activities of the business areas. Risks are reported to the Board on a regular basis.
On 23 December 2016, a competitor of Teleste filed two complaints against Teleste Limited, demanding damages from the company for the infringement of two patents. Teleste has denied the patent infringements. The litigation is still pending. According to the assessment by Teleste’s management, the results of these litigations are not expected to have material effect on Teleste’s financial position.
Group Structure
The parent company has branch offices in Australia and the Netherlands and subsidiaries in 14 countries outside Finland.
On 30 October 2017, Teleste acquired iqu Systems GmbH, the German company specialising in intelligent passenger information systems and software. Through the acquisition, Teleste will complement its offering of passenger information solutions for public transport, one of the company’s key areas. Iqu Systems employs approximately 20 people. It has been included as part of Teleste’s Video Security and Information business unit. Net sales of the acquired company from 30 October to 31 December 2017 amounted to EUR 0.7 million, and its balance sheet total was EUR 1.0 million. Teleste Group recognised a goodwill of EUR 1.5 million on the balance sheet.
Shares and Changes in Share Capital
On 31 December 2017, Tianta Oy was the largest single shareholder with a holding of 23.2%.
In the period under review, the lowest company share price was EUR 6.51 (7.29) and the highest was EUR 9.62 (10.24). Closing price on 31 December 2017 stood at EUR 6.68 (8.86). According to Euroclear Finland Ltd, the number of shareholders at the end of the period under review was 5,618 (5,923). Foreign and nominee-registered holdings accounted for 6.6% (5.2%) of the holdings. The value of Teleste’s shares traded on the Nasdaq Helsinki from 1 January to 31 December 2017 was EUR 16.8 (30.6) million. In the period under review, 2.0 (3.5) million Teleste shares were traded on the stock exchange. Teleste’s share is quoted on Nasdaq Helsinki, the Mid-Cap segment.
On 31 December 2017, the Group held 863,953 of its own shares, all held by the parent company Teleste Corporation. At the end of the period, the Group's holding of the total number of shares amounted to 4.6% (4.6%).
On 31 December 2017, the company’s registered share capital stood at EUR 6,966,932.80, divided into 18,985,588 shares.
Valid authorisations at the end of the review period:
- The Board of Directors may acquire 1,200,000 own shares of the company otherwise than in proportion to the holdings of the shareholders with unrestricted equity through trading on the regulated market organised by Nasdaq Helsinki at the market price of the time of the purchase.
- The Board of Directors may decide on issuing new shares and/or transferring the company’s own shares held by the company, so that the maximum total number of shares issued and/or transferred is 2,000,000.
- The total number of new shares to subscribe for under the special rights granted by the Company and own shares held by the Company to be transferred may not exceed 1,000,000 shares, which number is included in the above maximum number concerning new shares and the Group's own shares held by the Company.
- These authorisations are valid until 6 October 2018.
Decisions by the Annual General Meeting
The Annual General Meeting (AGM) of Teleste Corporation held on 6 April 2017 adopted the financial statements for 2016 and discharged the Board of Directors and the CEO from liability for the financial period 2016. The AGM confirmed the dividend of EUR 0.25 per share as proposed by the Board. The dividend was paid on 19 April 2017 on shares other than own shares held by the Company.
The AGM decided that the Board of Directors shall consist of five members. Pertti Ervi, Jannica Fagerholm, Timo Miettinen, Timo Luukkainen and Kai Telanne were re-elected as members of Teleste Corporation’s Board of Directors. Timo Miettinen was elected Chair of the Board in the organising meeting held on 6 April 2017 after the AGM. In its meeting held on 4 October 2017, Teleste’s Board of Directors elected Pertti Ervi as the new Chair of the Board. Timo Miettinen continued as a member of the company’s Board of Directors.
The AGM decided to choose one auditor for Teleste Corporation. Authorised public accountant firm KPMG Oy Ab was chosen as the company’s auditor. The auditor has appointed Petri Kettunen, APA, as the auditor in charge.
The Annual General Meeting decided to authorise the Board to decide on the purchase of the company’s own shares. According to the authorisation, the Board of Directors may acquire 1,200,000 own shares of the company otherwise than in proportion to the holdings of the shareholders with unrestricted equity through trading on the regulated market organised by Nasdaq Helsinki Ltd at the market price of the time of the purchase. This authorisation is valid for 18 months from the date of the AGM’s decision. The authorisation overrides any previous authorisations to purchase the company’s own shares.
The Annual General Meeting decided to authorise the Board of Directors to decide on issuing new shares and/or transferring the Company’s own shares held by the Company and/or granting special rights referred to in Chapter 10, section 1 of the Limited Liability Companies Act in accordance with the Board’s proposal. Under the authorisation, the Board of Directors has the right to decide on issuing new shares and/or transferring the Company’s own shares held by the Company, so that the maximum total number of shares issued and/or transferred is 2,000,000. The total number of new shares to subscribe for under the special rights granted by the Company and own shares held by the Company to be transferred may not exceed 1,000,000 shares, which number is included in the above maximum number concerning new shares and the Group's own shares held by the Company.
The authorisations are valid for 18 months from the date of the AGM’s decision.
Outlook for 2018
The business objective of Video and Broadband Solutions is to maintain its strong market position in Europe and to strengthen this market position in selected new markets outside Europe. In particular, investments in the North American market will continue in 2018.
Network capacity will continue to grow, with operators responding to consumers’ new and expanding broadband and video service needs. Teleste’s entire access network product portfolio has been renewed in accordance with the DOCSIS 3.1 standard, and our offering allows cable operators to increase their network capacity competitively. In 2018, two network upgrade projects will be completed that are significant on the European scale. Operators will launch new upgrade projects. However, there is uncertainty associated with the timing of these projects, as operators are already considering next-generation distributed access architecture solutions. We expect that new investment projects that are based on distributed access architecture will be launched in Europe and, in particular, in North America in 2018. The change in access network technology also has an effect on suppliers’ competitive position. Teleste continues investing in distributed access architecture technology and access network products that are suitable for new markets. In addition, the target of the subsidiary established in the US is to promote the sales of broadband network products to the cable network operators in North America. The objective of these investments is the long-term increase in sales. We estimate that net sales from access network products in 2018 will reach the level of 2017.
The improvement of safety in city environments, the increase of public transport services, and the increasing popularity of smart systems for a smoother life provide a foundation for new business opportunities. Demand for video security solutions for public spaces continues worldwide, but competition in the industry has increased considerably and price erosion in the traditional video security equipment market continues. Video security solutions are becoming increasingly smart, including pattern recognition and artificial intelligence. Furthermore, a need is arising in the market for more comprehensive situation awareness systems that include management of other censor-level data flows in addition to video image. New innovations and solutions are also changing the public transport passenger information solution business. Supply of real-time information for passengers is essential for safe and flexible public transport. It is necessary to improve the productivity and cost-efficiency of traditional business. The improvement of competitiveness requires R&D investments in new intelligent solutions. Although the orders received in 2017 for video security and information solutions increased, a significant portion of the deliveries is scheduled for the coming years. We estimate that net sales for 2018 will increase clearly from the previous year.
As to Network Services, our business objective is to further develop operational efficiency and increase the share of those services that provide our customers with higher added value. The programme to improve profitability of the services business in Germany will be continued in 2018, and we expect the measures taken to show results during the first half of 2018. In addition, we are engaging in negotiations to renew an important frame agreement with a customer. We estimate that net sales for 2018 will increase from the previous year.
Teleste expects the company’s net sales to increase in 2018 compared with 2017 (EUR 234.6 million). Operating result is expected to be clearly positive. However, due to the ongoing investments, it will not yet reach the record level of 2016 (EUR 15.6 million).
7 February 2018
Teleste Corporation Jukka Rinnevaara
Board of Directors President and CEO
Teleste's Annual Report for 2017, which includes the audited financial statements, will be published no later than week 11 2018. The Company will issue a statement of its corporate governance as a separate report, which will be published together with the Annual Report, and will be simultaneously available on the Company's web site.
This interim report has been compiled in compliance with IAS 34, as it is accepted within EU, using the recognition and valuation principles with those used in the Annual Report. The data stated in this report is audited.
| STATEMENT OF COMPREHENSIVE INCOME, 1000 euros | |||
| 10-12/2017 | 10-12/2016 | Change % | |
| Net sales | 58,702 | 68,562 | -14.4 % |
| Other operating income | 474 | 1,914 | -75.3 % |
| Raw material and consumables used | -30,626 | -36,789 | -16.8 % |
| Employee benefits expense | -17,772 | -19,138 | -7.1 % |
| Depreciations | -1,313 | -1,294 | 1.5 % |
| Other operating expenses | -9,210 | -8,921 | 3.2 % |
| Operating profit | 254 | 4,334 | -94.1 % |
| Financial income | 123 | 835 | n/a |
| Financial expenses | -331 | -841 | -60.7 % |
| Profit before taxes | 46 | 4,328 | -98.9 % |
| Taxes | -259 | -598 | -56.8 % |
| Profit for the period | -213 | 3,729 | -105.7 % |
| Profit attributable to: | |||
| Owners of the parent company | -173 | 3,729 | -104.6 % |
| Non-controlling interests | -40 | 0 | 0 |
| -213 | 3,729 | -105.7 % | |
| Earnings per share for profit of the year attributable to the equity holders of the parent | |||
| Basic (expressed in euro per share) | -0.01 | 0.21 | -104.6 % |
| Diluted (expressed in euro per share) | -0.01 | 0.20 | -104.6 % |
| Total comprehensive income for the period, 1000 euros | |||
| Net profit | -213 | 3,729 | -105.7 % |
| Items that may be reclassified to profit or loss: | |||
| Translation differences | -56 | 5 | -1216.3 % |
| Fair value reserve | 58 | 71 | -18.8 % |
| Total comprehensive income for the period | -211 | 3,805 | -105.5 % |
| Total comprehensive income attributable to: | |||
| Owners of the parent company | -133 | 3,805 | -103.5 % |
| Non-controlling interests | -78 | 0 | |
| -211 | 3,805 | -105.5 % | |
| STATEMENT OF COMPREHENSIVE INCOME, 1000 euros | 1-12/2017 | 1-12/2016 | Change % |
| Net sales | 234,589 | 259,528 | -9.6 % |
| Other operating income | 1,531 | 3,372 | -54.6 % |
| Raw material and consumables used | -127,673 | -137,078 | -6.9 % |
| Employee benefits expense | -69,406 | -72,566 | -4.4 % |
| Depreciation | -5,263 | -4,934 | 6.7 % |
| Impairment on goodwill | -7,705 | 0 | n/a |
| Other operating expenses | -33,623 | -32,687 | 2.9 % |
| Operating profit | -7,549 | 15,635 | -148.3 % |
| Financial income | 537 | 1,224 | -56.1 % |
| Financial expenses | -1,458 | -2,038 | -28.4 % |
| Profit before taxes | -8,470 | 14,821 | -157.1 % |
| Taxes | -675 | -3,001 | -77.5 % |
| Profit for the period | -9,145 | 11,820 | -177.4 % |
| Profit attributable to: | |||
| Owners of the parent company | -9,106 | 11,820 | -177.0 % |
| Non-controlling interests | -40 | 0 | 0.0 % |
| -9,145 | 11,820 | -177.4 % | |
| Earnings per share for profit of the year attributable to the equity holders of the parent | |||
| Basic (expressed in euro per share) | -0.50 | 0.65 | -177.0 % |
| Diluted (expressed in euro per share) | -0.50 | 0.65 | -176.9 % |
| Total comprehensive income for the period (tEUR) | |||
| Net profit | -9,145 | 11,820 | -177.4 % |
| Items that may be reclassified to profit or loss: | |||
| Translation differences | -423 | -879 | n/a |
| Fair value reserve | 58 | -135 | n/a |
| Total comprehensive income for the period | -9,511 | 10,806 | -188.0 % |
| Total comprehensive income attributable to: | |||
| Owners of the parent company | -9,432 | 10,806 | -187.3 % |
| Non-controlling interests | -78 | 0 | |
| -9,511 | 10,806 | -188.0 % | |
| STATEMENT OF FINANCIAL POSITION, 1000 euros | |||
| 31.12.2017 | 31.12.2016 | Change % | |
| Non-current assets | |||
| Property, plant and equipment | 9,637 | 11,325 | -14.9 % |
| Goodwill | 30,814 | 37,374 | -17.6 % |
| Other intangible assets | 9,469 | 7,171 | 32.0 % |
| Available-for-sale investments | 693 | 693 | 0.0 % |
| Deferred tax assets | 2,061 | 1,833 | 12.5 % |
| Total | 52,674 | 58,396 | -9.8 % |
| Current assets | |||
| Inventories | 33,689 | 33,544 | 0.4 % |
| Trade and other receivables | 45,520 | 60,269 | -24.5 % |
| Income tax receivables | 362 | 407 | -11.1 % |
| Cash | 21,230 | 9,496 | 123.6 % |
| Total | 100,801 | 103,716 | -2.8 % |
| Total assets | 153,475 | 162,112 | -5.3 % |
| Equity and liabilities | |||
| Equity attributable to equity holders of the parent | |||
| Share capital | 6,967 | 6,967 | 0.0 % |
| Share premium | 1,504 | 1,504 | 0.0 % |
| Translation differences | -1,404 | -978 | 43.6 % |
| Invested non restricted equity | 3,062 | 3,004 | 1.9 % |
| Retained profits | 60,593 | 73,924 | -18.0 % |
| Non-controlling interests | 630 | 0 | n/a |
| Total | 71,352 | 84,422 | -15.5 % |
| Non-current liabilities | |||
| Interest-bearing liabilities | 28,394 | 28,036 | 1.3 % |
| Other liabilities | 1,159 | 135 | 755.6 % |
| Deferred tax liabilities | 1,429 | 1,630 | -12.3 % |
| Provisions | 619 | 1,081 | -42.8 % |
| Total | 31,601 | 30,882 | 2.3 % |
| Current liabilities | |||
| Trade and other liabilities | 43,763 | 41,900 | 4.4 % |
| Current tax payable | 719 | 1,477 | -51.3 % |
| Provisions | 1,186 | 858 | 38.3 % |
| Interest-bearing liabilities | 4,853 | 2,573 | 88.6 % |
| Total | 50,522 | 46,808 | 7.9 % |
| Total liabilities | 82,123 | 77,691 | 5.7 % |
| Equity and liabilities total | 153,475 | 162,112 | -5.3 % |
| CONSOLIDATED CASH FLOW STATEMENT, 1000 euros | |||
| 1.1.-31.12. | 1.1.-31.12. | Change % | |
| 2017 | 2016 | ||
| Cash flows from operating activities | |||
| Profit for the period | -9,145 | 11,820 | -177.4 % |
| Adjustments for: | |||
| Non-cash transactions | 13,233 | 2,924 | 352.6 % |
| Interest and other financial expenses | 1,458 | 2,038 | -28.4 % |
| Interest income and other financial income | 727 | -1,224 | -159.4 % |
| Dividends | -6 | -2 | 200.0 % |
| Taxes | 675 | 3,001 | -77.5 % |
| Change in working capital | |||
| Increase/decrease in trade and other receivables | 14,749 | -110 | -13509.2 % |
| Increase/decrease in inventories | -145 | -884 | -83.6 % |
| Increase/decrease in trade and other payables | 260 | -4,810 | n/a |
| Increase/decrease in provisions | 134 | -24 | n/a |
| Paid interests and other financial expenses | -1,458 | -2,038 | -28.4 % |
| Received interests and dividends | 537 | 1,224 | -56.1 % |
| Paid taxes | -1,765 | -3,151 | -44.0 % |
| Cash flow from operating activities | 19,254 | 8,765 | 119.7 % |
| Cash flow from investing activities | |||
| A conditional supplementary contract price for prior subsidiary acquisition | 0 | -485 | -100.0 % |
| Purchases of property, plant and equipment (PPE) | -1,975 | -1,410 | 40.1 % |
| Proceeds from sales of PPE | 210 | 43 | 388.4 % |
| Purchases of intangible assets | -3,123 | -2,507 | 24.6 % |
| Acquisition of subsidiary, net of cash acquired | -996 | 0 | n/a |
| Net cash used in investing activities | -5,884 | -4,359 | 35.0 % |
| Cash flow from financing activities | |||
| Proceeds from borrowings | 4,000 | 4,170 | -4.1 % |
| Payments of borrowings | -1,138 | -6,099 | -81.3 % |
| Payment of finance lease liabilities | -638 | -611 | 4.4 % |
| Dividends paid | -4,530 | -4,168 | 8.7 % |
| Capital investment by non-controlling interests | 708 | 0 | n/a |
| Net cash used in financing activities | -1,598 | -6,708 | n/a |
| Change in cash | |||
| Cash and cash equivalents 1.1. | 9,496 | 12,677 | -25.1 % |
| Effect of currency changes | -38 | -879 | n/a |
| Cash and cash equivalents 31.12. | 21,230 | 9,496 | 123.6 % |
| Consolidated statement of changes in equity,1000 euros | |||||||||||
| Attributable to equity holders of the parent (tEUR) | |||||||||||
| A | Share capital | ||||||||||
| B | Share premium | ||||||||||
| C | Translation differences | ||||||||||
| D | Retained earnings | ||||||||||
| E | Invested free capital | ||||||||||
| F | Other funds | ||||||||||
| G | Total | ||||||||||
| H | Share of non-controlling interest | ||||||||||
| I | Total equity | ||||||||||
| A | B | C | D | E | F | G | H | I | |||
| Equity 31.12.2016 | 6,967 | 1,504 | -978 | 73,922 | 3,140 | -135 | 84,420 | 0 | 84,422 | ||
| Total comprehensive income for the period | 0 | 0 | -427 | -9,065 | 0 | 58 | -9,435 | -77 | -9,511 | ||
| Dividends | 0 | 0 | 0 | -4,530 | 0 | 0 | -4,530 | 0 | -4,530 | ||
| Equity-settled share-based payments | 265 | 265 | 0 | 265 | |||||||
| Changes in ownership interests in subsidiaries | |||||||||||
| Changes of non-controlling interests without change in control | 0 | 0 | 0 | 0 | 0 | 707 | 707 | ||||
| Equity 31.12.2017 | 6,967 | 1,504 | -1,404 | 60,592 | 3,140 | -77 | 70,722 | 630 | 71,352 | ||
| Business segments 2017, 1000 euros | Video and Broadband Solutios | Network Services | Group |
| External sales | |||
| Services | 7,567 | 92,507 | 100,074 |
| Goods | 134,515 | 0 | 134,515 |
| External sales total | 142,082 | 92,507 | 234,589 |
| Operating profit of segments | 4,888 | -12,437 | -7,549 |
| Financial items | -921 | ||
| Profit before taxes | -8,470 | ||
| Business segments 2016, 1000 euros | Video and Broadband Solutions | Network Services | Group |
| External sales | |||
| Services | 6,813 | 95,297 | 102,110 |
| Goods | 157,418 | 0 | 157,418 |
| External sales total | 164,231 | 95,297 | 259,528 |
| Operating profits of the segments | 16,482 | -847 | 15,635 |
| Financial items | -814 | ||
| Profit before taxes | 14,821 |
| Geographical segments 2017, 1000 euros | Nordic countries | Other Europe | Finland | Others | Group |
| Sales by origin | 28,634 | 179,884 | 13,296 | 12,774 | 234,589 |
| Assets | 154 | 6,398 | 43,806 | 255 | 50,613 |
| Capital expenditure for the period | 80 | 3,101 | 4,168 | 134 | 7,482 |
| Geographical segments 2016, 1000 euros | Nordic countries | Other Europe | Finland | Others | Group |
| Sales by origin | 22,483 | 202,063 | 17,398 | 17,584 | 259,528 |
| Assets | 97 | 13,679 | 42,570 | 217 | 56,563 |
| Capital expenditure for the period | 37 | 1,312 | 4,122 | 17 | 5,488 |
| Information per quarter, 1000 euros | 10-12/ 2017 | 7-9/ 2017 | 4-6/ 2017 | 1-3/ 2017 | 10-12/ 2016 | 1-12/ 2017 | 1-12/ 2016 |
| Video and Broadband Solutions | |||||||
| Order intake | 43,424 | 36,264 | 42,555 | 48,116 | 39,548 | 170,359 | 149,011 |
| Net sales | 35,429 | 34,469 | 36,782 | 35,403 | 43,496 | 142,082 | 164,231 |
| EBIT | 480 | 1,534 | 2,057 | 817 | 5,309 | 4,888 | 16,482 |
| EBIT % | 1.4 % | 4.5 % | 5.6 % | 2.3 % | 12.2 % | 3.4 % | 10.0 % |
| Network Services | |||||||
| Order intake | 23,273 | 21,779 | 21,924 | 25,531 | 25,066 | 92,507 | 95,297 |
| Net sales | 23,273 | 21,779 | 21,924 | 25,531 | 25,066 | 92,507 | 95,297 |
| EBIT | -226 | -288 | -11,316 | -606 | -975 | -12,437 | -847 |
| EBIT % | -1.0 % | -1.3 % | -51.6 % | -2.4 % | -3.9 % | -13.4 % | -0.9 % |
| Total | |||||||
| Order intake | 66,697 | 58,044 | 64,478 | 73,647 | 64,614 | 262,866 | 244,308 |
| Net sales | 58,702 | 56,248 | 58,706 | 60,934 | 68,562 | 234,589 | 259,528 |
| EBIT | 254 | 1,246 | -9,259 | 211 | 4,334 | -7,549 | 15,635 |
| EBIT % | 0.4 % | 2.2 % | -15.8 % | 0.3 % | 6.3 % | -3.2 % | 6.0 % |
| Commitments and contingencies, 1000 euros | 2017 | 2016 | Change % |
| Rental liabilities | 3,699 | 3,971 | -6.9 % |
| Lease liabilities | 4,656 | 5,173 | -10.0 % |
| Value of underlying forward contracts | 23,169 | 22,550 | 2.7 % |
| Market value of forward contracts | -204 | 334 | n/a |
| Interest rate swap | 10,000 | 10,000 | 0.0 % |
| Market value of interest swap | -78 | -135 | n/a |
| Guarantees | 4,479 | 5,275 | -15.1 % |
| The number of employees broken down by following categories 31.12. | 2017 | 2016 | Change % |
| Research and development | 150 | 149 | 0.7 % |
| Production and material management | 1,026 | 1,090 | -5.9 % |
| Sales and marketing | 194 | 198 | -2.0 % |
| Administration | 76 | 74 | 2.7 % |
| Total | 1,446 | 1,511 | -4.3 % |
| IFRS | IFRS | IFRS | IFRS | IFRS | |
| Key figures | 2017 | 2016 | 2015 | 2014 | 2013 |
| Profit and loss account, balance sheet | |||||
| Net sales, Meur | 234.6 | 259.5 | 247.8 | 197.2 | 192.8 |
| Change % | -9.6 % | 4.8 % | 25.7 % | 2.3 % | -0.6 % |
| Sales outside Finland, % | 94.3 % | 93.3 % | 95.1 % | 92.5 % | 93.2 % |
| Operating profit, Meur | -7.5 | 15.6 | 14.3 | 11.1 | 11.0 |
| % of net sales | -3.2 % | 6.0 % | 5.8 % | 5.6 % | 5.7 % |
| Profit after financial items, Meur | -8.5 | 14.8 | 13.9 | 10.8 | 10.7 |
| % of net sales | -3.6 % | 5.7 % | 5.6 % | 5.5 % | 5.5 % |
| Profit before taxes, Meur | -8.5 | 14.8 | 13.9 | 10.8 | 10.7 |
| % of net sales | -3.6 % | 5.7 % | 5.6 % | 5.5 % | 5.5 % |
| Profit for the financial period, Meur | -9.1 | 11.8 | 11.0 | 8.5 | 8.1 |
| % of net sales | -3.9 % | 4.6 % | 4.4 % | 4.3 % | 4.2 % |
| R&D expenditure, Meur | 12.1 | 11.1 | 11.0 | 10.3 | 10.0 |
| % of net sales | 5.1 % | 4.3 % | 4.4 % | 5.2 % | 5.2 % |
| Gross investments, Meur | 7.5 | 5.5 | 16.9 | 3.7 | 6.3 |
| % of net sales | 3.2 % | 2.1 % | 6.8 % | 1.9 % | 3.3 % |
| Interest bearing liabilities, Meur | 33.2 | 30.6 | 33.0 | 24.4 | 24.3 |
| Shareholder's equity, Meur | 71.4 | 84.4 | 77.5 | 70.7 | 65.6 |
| Total assets, Meur | 153.5 | 162.1 | 164.5 | 132.5 | 124.3 |
| Personnel and orders | |||||
| Average personnel | 1,492 | 1,514 | 1,485 | 1,302 | 1,306 |
| Order backlog at year end, Meur | 57.4 | 26.9 | 42.2 | 15.2 | 13.1 |
| Orders received, Meur | 262.9 | 244.3 | 251.3 | 199.3 | 188.9 |
| Key metrics | |||||
| Return on equity, % | -11.7 % | 14.6 % | 14.9 % | 12.5 % | 12.9 % |
| Return on capital employed, % | -6.6 % | 14.8 % | 14.2 % | 12.2 % | 13.0 % |
| Equity ratio, % | 48.3 % | 52.5 % | 48.3 % | 53.4 % | 52.7 % |
| Net gearing, % | 16.8 % | 25.0 % | 26.3 % | 9.5 % | 13.8 % |
| Earnings per share, euro | -0.50 | 0.65 | 0.61 | 0.48 | 0.47 |
| Earnings per share fully diluted, euro | -0.50 | 0.65 | 0.61 | 0.48 | 0.46 |
| Shareholders equity per share, euro | 3.94 | 4.66 | 4.28 | 3.94 | 3.73 |
| Teleste share | |||||
| Highest price, euro | 9.62 | 10.24 | 9.88 | 5.29 | 4.47 |
| Lowest price, euro | 6.51 | 7.29 | 5.32 | 4.25 | 3.78 |
| Closing price, euro | 6.68 | 8.86 | 9.80 | 5.27 | 4.25 |
| Average price, euro | 8.19 | 8.69 | 7.42 | 4.67 | 4.17 |
| Price per earnings | -13.3 | 13.6 | 16.1 | 11.0 | 9.1 |
| Market capitalization, Meur | 126.8 | 160.6 | 177.6 | 98.7 | 79.6 |
| Stock turnover, Meur | 16.8 | 30.6 | 24.6 | 10.9 | 9.2 |
| Turnover, number in millions | 2.0 | 3.5 | 3.3 | 2.3 | 2.2 |
| Turnover, % of share capital | 10.8 % | 18.5 % | 17.5 % | 12.5 % | 11.7 % |
| Average number of shares | 18985588 | 18985588 | 18985588 | 18918869 | 18743507 |
| Number of shares at the year-end | 18985588 | 18985588 | 18985588 | 18985588 | 18816691 |
| Average number of shares, diluted w/o own shares | 18202396 | 18169002 | 18036667 | 17729215 | 17513799 |
| Number of shares at the year-end, diluted w/o own shares | 18172350 | 18216369 | 18121635 | 17795934 | 17838599 |
| Paid dividend, Meur | 1.8 | 4.5 | 4.2 | 3.6 | 3.3 |
| Dividend per share, euro | 0.10* | 0.25 | 0.23 | 0.2 | 0.19 |
| Dividend per net result, % | neg. | 38.3 % | 37.7 % | 41.7 % | 40.8 % |
| Effective dividend yield, % | 1.5 % | 2.8 % | 2.3 % | 3.8 % | 4.5 % |
* The Board's proposal to the AGM
| Treasury shares | Number of shares | % of shares | % of votes |
| Teleste companies own shares 31.12.2017 | 863,953 | 4.55% | 4.55% |
CALCULATION OF KEY FIGURES
| Return on equity: | Profit/loss for the financial period ------------------------------ * 100 Shareholders’ equity (average) |
| Return on capital employed: | Profit/loss for the period after financial items + financing charges ------------------------------ * 100 Total assets - non-interest-bearing liabilities (average) |
| Equity ratio: | Shareholders' equity ----------------------------- * 100 Total assets - advances received |
| Gearing: | Interest bearing liabilities - cash in hand and in bank - interest bearing assets ----------------------------- * 100 Shareholders' equity |
| Earnings per share: | Profit for the period attributable to equity holder of the parent ---------------------------------------------- Weighted average number of ordinary shares outstanding during the period |
| Earnings per share, diluted: | Profit for the period attributable to equity holder of the parent (diluted) ----------------------------------------------- Average number of shares - own shares + number of options at the period-end |
| Major shareholders 31.12.2017 | Number of shares | % of share capital |
| Tianta Oy | 4,409,712 | 23.2 |
| Mandatum Life Insurance Company Limited | 1,679,200 | 8.8 |
| Ilmarinen Mutual Pension Insurance Company | 1,084,475 | 5.7 |
| Teleste Oyj | 863,953 | 4.6 |
| Kaleva Mutual Insurance Company | 824,641 | 4.3 |
| Varma Mutual Pension Insurance Company | 521,150 | 2.7 |
| The State Pension Fund | 500,000 | 2.6 |
| Sijoitusrahasto Taaleritehdas Mikro Markka | 238,109 | 1.3 |
| Ingman Finance Oy Ab | 235,000 | 1.2 |
| Mariatorp Oy | 225,000 | 1.2 |
| Shareholders by sector | Number of shareholders | % of Owners | Number of shares | % of shares |
| Households | 5,267 | 93.8 | 4,572,771 | 24.1 |
| Public sector institutions | 4 | 0.1 | 2,115,725 | 11.1 |
| Financial and insurance institutions | 20 | 0.4 | 4,551,632 | 24.0 |
| Corporations | 259 | 4.6 | 7,545,734 | 39.7 |
| Non-profit institutions | 26 | 0.5 | 82,385 | 0.4 |
| Foreign and nominee registered owners | 42 | 0.7 | 117,341 | 0.6 |
| Total | 5,618 | 100.0 | 18,985,588 | 100.0 |
| Of which nominee registered | 9 | 0.2 | 1,137,630 | 6.0 |
| Number of shares | Number of shareholders | % of share-holders | Number of shares | % of shares |
| 1 - 100 | 1,509 | 26.9 | 91,554 | 0.5 |
| 101 - 500 | 2,400 | 42.7 | 643,713 | 3.4 |
| 501 – 1,000 | 766 | 13.6 | 616,911 | 3.2 |
| 1,001 – 5,000 | 756 | 13.5 | 1,660,943 | 8.7 |
| 5,001 – 10,000 | 83 | 1.5 | 604,724 | 3.2 |
| 10,001 – 50,000 | 74 | 1.3 | 1,476,509 | 7.8 |
| 50,001 – 100,000 | 9 | 0.2 | 657,755 | 3.5 |
| 100,001 – 500,000 | 13 | 0.2 | 2,750,333 | 14.5 |
| 500,001 - | 8 | 0.1 | 10,483,146 | 55.2 |
| Total | 5,618 | 100.0 | 18,985,588 | 100.0 |
| of which nominee registered | 9 | 0.2 | 1,137,630 | 6.0 |
| The following assets are liabilities were preliminary recognised in the acquisition IQU Systems GmbH: | |
| 1 000 € | Recognised fair values on acquisition |
| Fair values used in consolidation | |
| Trade marks (inc. in intangible assets) | 82 |
| Customer relationship (inc. in intangible assets) | 146 |
| Technology (inc. in intangible assets) | 216 |
| Inventories | 267 |
| Trade receivables | 376 |
| Book values used in consolidation | |
| Tangible assets | 107 |
| Intangible assets | 5 |
| Other receivables | 8 |
| Cash and cash equivalents | 4 |
| Total assets | 1,211 |
| Book values used in consolidation | |
| Interest-bearing liabilities | 243 |
| Trade payables | 271 |
| Deferred tax liabilites | 89 |
| Other liabilities | 17 |
| Total liabilities | 620 |
| Net identifiable assets and liabilities | 591 |
| Total consideration | 2,050 |
| Goodwill on acquisition | 1,459 |
| Consideration paid in cash | -1,000 |
| Cash and cash equivalents in acquired subsidiary | 4 |
| Total net cash outflow on the acquisition | -996 |
ADDITIONAL INFORMATION:
CEO Jukka Rinnevaara, phone +358 2 2605 611 or +358 400 747 488
DISTRIBUTION:
Nasdaq Helsinki
Main Media
www.teleste.com