STOCKHOLM, Sweden--(BUSINESS WIRE)--Regulatory News:
Eniro’s new Board has during the last couple of months worked on an analysis of the company’s businesses and capital structure. The work that was seen as necessary to complete prior to the publication of the second quarter’s report has now been finalised. After Eniro’s board meeting today, the Board has decided to pre-pone the publication of the quarterly report to today, August 12, 2016 at 17.30 (CEST). The previously communicated date for the publication of the report for the second quarter was August 24, 2016.
EBITDA Continues to Improve
Eniro continues to focus on increased efficiency. Total operating costs were SEK 374 M lower in the first half of 2016 compared with the same period last year. EBITDA improved for the second consecutive quarter and amounted to SEK 116 M (49), corresponding to a margin of 23.4% (7.7%). Adjusted EBITDA for the first half of 2016 amounted to SEK 237 M (200), corresponding to an increase of 19% and an adjusted EBITDA margin of 23.7% (15.8%). Revenue decreased by 22% during the quarter compared with the same period last year, however, compared with the first quarter, revenue development was more stable, with a decline of 2%.
Eniro’s new board of directors has initiated an in-depth analysis of the company’s businesses and strategy. As part of this work, a decision was taken during the quarter to perform new impairment testing of the company’s intangible assets. The testing resulted in a need to recognise impairment losses of SEK -873 M.
The Board of Directors has appointed Örjan Frid as new President and CEO of Eniro AB. It is the Board’s assessment that new leadership is required in order to successfully manage the necessary corporate change program that the new Board envisages. The Board would like to thank Stefan Kercza for his valuable contributions to the company in the role as CEO since 2014 and as a member of Group Management since 2011.
Björn Björnsson, Chairman of the Board
SECOND QUARTER: APRIL–JUNE 2016
- Total operating revenue amounted to SEK 496 M (634), a decrease of 22%.
- Revenue from Desktop/Mobile search amounted to SEK 339 M (405), a decrease of 16%.
- Prepaid revenue amounted to SEK 468 M (564) as per June 30, 2016, a decrease of 17%.
- EBITDA grew 137% to SEK 116 M (49). The EBITDA margin was 23.4% (7.7%).
- Adjusted EBITDA grew 23% to SEK 118 M (96).
- Net income for the period was SEK -852 M (-1,185), an improvement of 28%.
- Earnings per common share for the period were SEK -1.80 (-4.55) before dilution and SEK -1.28 (-2.39) after dilution.
- Cash flow from operating activities increased to SEK 59 M (-56).
- The 2016 Annual General Meeting elected a new Board of Directors, consisting of Björn Björnsson (Chairman), Joachim Berner, Örjan Frid and Ola Salmén. The AGM also resolved in favor of a warrant program for the members of the Board of Directors and senior executives.
- Eniro’s new Board of Directors has initiated an in-depth analysis of the company’s businesses and strategy. As part of this work, new impairment testing was performed by the Board of the company’s intangible assets. A downward adjustment of the anticipated revenue and earnings performance used in pervious impairment tests and an elevated risk assessment, resulted in a need to recognize impairment losses related to goodwill of SEK -873 M (1,111), impacting earnings for the second quarter.
- The new assumptions used in the asset valuation underline the importance of the comprehensive review initiated by the Board and Group Management of e.g., the business model, corporate structure and capital structure.
- Furthermore, the above-mentioned assumptions entail that further measures are required in order for Eniro to live up to its loan covenants in the first quarter of 2017.
HALF YEAR: JANUARY–JUNE 2016
- Total operating revenue amounted to SEK 1,000 M (1,266), a decrease of 21%.
- Revenue for Desktop/Mobile search amounted to SEK 695 M (835), a decrease of 17%.
- EBITDA grew 77% to SEK 252 M (142). The EBITDA margin was 25.2% (11.2%).
- Adjusted EBITDA grew 19% to SEK 237 M (200). The adjusted EBITDA margin was 23.7% (15.8%).
- Net income for the period was SEK -854 M (-1,212), an improvement of 30%.
- Earnings per common share for the period were SEK -1.84 (-6.81) before dilution and SEK -1.30 (-2.94) after dilution.
- Cash flow from operating activities increased to SEK 124 M (4).
- Earnings include non-cash impairment losses of SEK -873 M (-1,111) for goodwill.
- Events after the end of the reporting period
- The Board of Directors has appointed Örjan Frid as new President and CEO of Eniro AB. It is the Board’s assessment that new leadership is required in order to successfully manage the necessary corporate change program that the new Board envisages. Mr. Frid will assume his position with immediate effect.
- The Board of Directors has decided to terminate the employment contract of Mr. Stefan Kercza. In accordance with Mr. Kercza’s employment contract he is entitled to 6 months’ termination notice, if terminated by himself and 12 months’ termination notice when terminated by the Company. In addition, upon contract termination, he is entitled to a severance payment amounting to 6 months’ salary, with deduction of salary from any other source.
Conference call / webcast A web-cast telephone conference will be held at Monday 15 August, 11:00 CET. CEO and President Örjan Frid and CFO Fredrik Sandelin will present the results for the second quarter 2016. A possibility will be given to ask questions via the webcast and follow the presentation material live. The webcast, which afterwards also will be available on demand, will be accessible at https://wonderland.videosync.fi/press-conference.
To participate in the conference call, and thereby be able to ask questions, please call one of the following numbers:
SE: +46 (0) 8 5664 2690
UK: +44 (0) 20 3008 9804
The presentation material will be published before the conference starts on Eniro’s website, www.enirogroup.com under Investor Relations. The webcast, and later the recorded version of the webcast and the conference call, will also be accessible via Eniro’s website.
Eniro AB (publ) is required to make this information public in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was released for publication on August 13, 2016, at 10.00AM (CET).
Eniro is a leading search company for individuals and businesses in the Nordic region. With quality-assured content and an unrivalled user experience Eniro inspires local discoveries and makes local communities thrive. Eniro's content is available through internet and mobile services, printed directories, directory assistance and SMS services. Each week Eniro Group’s digital services have 8.1 million unique visitors who perform 14.5 million searches. Eniro Group has approximately 1,700 employees and operations in Sweden, Norway, Denmark, Finland and Poland. The company is listed on Nasdaq OMX Stockholm [ENRO] and headquartered in Stockholm. In 2015, revenues amounted to SEK 2,438 M, with a profit before depreciation (EBITDA) of SEK 383 M. More on Eniro at www.enirogroup.com
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