Eniro: Strengthened Leadership, Stronger Finances and Decisions on Further Efficiency Improvement

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Eniro (STO:ENRO)

First quarter: January–March 2015

· Total operating revenue amounted to SEK 632 M (769), a decrease of 18%. Revenue decreased organically by 13% (-10%).

· Revenue from Desktop and Mobile search amounted to SEK 430 M (500), a decrease of 14%. Revenue from Desktop and Mobile search decreased organically by 12% (-7%). Mobile search revenue decreased organically by 6% (87%). During the first quarter 28% of total searches were performed via the mobile channel. 

· Total revenue from Digital search (Desktop search, Mobile search and Campaign products – previously called Multiscreen) decreased organically by 12% (-3%). Revenue was affected by weak sales in eniro.se during the first quarter and by lower sales at the end of 2014.

· EBITDA amounted to SEK 93 M (204) and was negatively affected primarily by lower sales and the first quarter of 2014 included capital gains of SEK 62 M. The EBITDA margin was 14.7% (26.5%).

· Net income for the period was SEK -27 M (53), and earnings per common share for the period were SEK -0.39 (0.41). 

· Operating cash flow amounted to SEK 38 M (-53).

· Prepaid revenues amounted to SEK 577 M as per March 31, 2015, down 5% compared with March 31, 2014.

· EBITDA for 2015 is expected to be in line with 2014, as communicated in the 2014 year-end report.

Events during the first quarter

· The Extraordinary General Meeting approved among others the Board’s decision to carry out a fully underwritten rights issue of common shares with preferential rights and the placed directed issue of convertible bonds. 

· In connection with the aforementioned issues, Eniro’s loan agreement with the bank consortium was renegotiated. Under the terms of the new agreement, the term has been extended through 2018, amortization has been reduced from approximately SEK 375 M annually to approximately SEK 150 M for 2015 and approximately SEK 175 M annually for the years 2016–2018. 

· New CEOs appointed for Eniro Sweden and Eniro Denmark. In Denmark, Allan Jakobsen assumed his duties as CEO in March. He has experience from executive positions in the telephony, software and finance sectors. In Sweden, Nils Carlsson was appointed as CEO of Eniro Sweden and will assume his position in May. He is currently CEO of Electrolux Hemprodukter and has a broad base of experience from a range of international assignments in mobile telephony and digital media.

· Etisalat, which has developed a fully digital search service based on Eniro’s search engine, launched the service in the first of several planned markets in the United Arab Emirates in March.

  · The Annual General Meeting resolved to not grant discharge of liability to former President and CEO Johan Lindgren for the 2014 financial year.

Events after the end of the reporting period

· Continued adaptation of the organization to the digital operations. Efficiency improvement measures are expected to have a positive net effect on EBITDA of approximately SEK 25 M in 2015 and a 12-month effect of SEK 120 M. The changes will entail a reduction in personnel by 260 persons. 

· The rights issue was oversubscribed, of which 97% was subscribed via subscription rights. The issued common shares were registered on April 17. 

· The convertible bonds were taken up for trading on Nasdaq Stockholm on April 23.

· The renegotiated loan agreement takes effect on April 24.

This 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 April 24, 2015.

Eniro is a search company that aggregates, filters and organizes local information. Our growth is driven by users’ increasing mobility and multiscreen behavior, where we are at the forefront with modern technical solutions. For more than 100 years Eniro has helped people find local information and companies find customers. Today it is a multiscreen solution – our users search for information using their smart phones, tablets and desktops. This creates great business opportunities for us as the local search company. Mobile advertising is today the fastest growing part of Eniro’s business. Eniro is the local search engine. A smart shortcut to what you need, no matter where you are or where you are going.

Eniro is one of the largest search companies in the Nordic region and Poland. The company has approximately 2,300 employees and has been listed on NASDAQ Stockholm since 2000. During 2014, Eniro’s revenues amounted to SEK 3,002 M and EBITDA was SEK 631 M. More than 88 percent of Eniro’s advertising revenues come from multiscreen channels. The company’s headquarters are located in Stockholm, Sweden. More on Eniro at www.enirogroup.com.

Eniro – Discover local. Search local.

This information was brought to you by Cision http://news.cision.com


Cecilia Ketels
Acting Head of Investor Relations
46 721 572 907
email: cecilia.ketels@eniro.com


Cecilia Ketels
Acting Head of Investor Relations
46 721 572 907
email: cecilia.ketels@eniro.com