I am happy to report that our efficiency improvement measures are having
an
effect. The EBITDA margin is now 27% (14.7%). We work hard to carry out a
number
of measures to reverse the trend in our digital revenue. During the past
quarter
we launched our advertising subscription service and renewed our
reseller
agreement with Google in Sweden. We have also intensified our measures
to
strengthen the customer base. We have continued high traffic to our
search
sites, with more than 8.1 million visitors every week.
Working with
revenue-enhancing as well as efficiency-improvement measures is the
key to
capitalizing on the favorable position we have in the growing market for
local
digital search.
Adjusted EBITDA up 14%
We see that our efficiency improvement
measures are having an effect. Adjusted
EBITDA improved by 14% during the
quarter, to SEK 119 M. The adjusted EBITDA
margin was 23.6%. EBITDA also
improved, by 46%, to SEK 136 M.
Sales during the first quarter decreased by
20% to SEK 504 M. Revenue still
needs to be improved, but we are seeing a
slight recovery in order bookings.
Compared with the fourth quarter of 2015,
sales decreased by 13%. Revenue from
Desktop/Mobile search amounted to SEK 356
M. Compared with the fourth quarter of
2015, this represents an increase of
just under 3%.
Since we are striving to offer customers attractive,
comprehensive digital
market solutions, it is gratifying to note that average
revenue per customer has
increased somewhat. In our Swedish core business,
eniro.se, average revenue per
customer grew 3%. We are seeing the same tendency
for the first contracts signed
in our pilot launch of subscription
advertising.
Stefan Kercza, President and CEO
First quarter January - March
2016
· Total operating revenue amounted to SEK 504 M (632), a
decrease of
20%.
· Revenue from Desktop/Mobile search amounted to SEK
356 M (430), a
decrease of 17%.
· Prepaid revenue amounted to SEK 502
M (577) as per March 31, 2016, a
decrease of 13% compared with the level at
March 31, 2015.
· Adjusted EBITDA rose 14% to SEK 119 M (104). The
adjusted EBITDA
margin was 23.6% (16.5%).
· EBITDA grew 46% to SEK
136 M (93). The EBITDA margin was 27.0%
(14.7%).
· Net income for the
period was SEK -2 M (-27), an improvement of SEK
25 M.
· Earnings per
common share for the period were SEK -0.03 (-0.39)
before dilution and SEK
-0.02 (-) after dilution.
· Cash flow from operating activities
increased to SEK 65 M (60).
Jan-Mar
Jan-Mar Apr-Mar Jan-Dec
SEK M 2016
2015 % 2015/16 2015
Operating revenue 504 632
-20 2,310 2,438
EBITDA 136 93
46 426 383
Adjusted EBITDA 119 104 14
469 454
Net income -2 -27 93 -1,100
-1,125
Cash flow from operating activities 65 60 8 183
178
Operating cost -371 -544 -32 -1,884
-2,057
Interest-bearing net debt -1,211 -2,188 -45 -1,211
-1,241
Conference call / Webcast
A web-cast telephone conference will be held
at 10:00 CET today, where CEO and
President Stefan Kercza and CFO Fredrik
Sandelin will present the results for
the first 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
http://financialhearings.nu/?160427/eniro.
To
participate in the conference call, and thereby be able to ask
questions,
please call one of the following numbers:
SE: +46 (0) 8 566 426 66
or
UK: +44 (0) 20 300 898 15
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 April 27 2016 at 08.00AM (CET).
For
more information, please contact:
Stefan Kercza, President and CEO, tel: +46
(0) 8 553 310 00
Fredrik Sandelin, CFO, tel: +46 (0) 8 553 310 00
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
about 2,000 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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