ASIAKASTIETO GROUP PLC, STOCK EXCHANGE RELEASE 18 AUGUST 2015, 01.00 P.M. EEST
Asiakastieto Group's Interim Report 1.1. - 30.6.2015: Strong second quarter
supports the growth of Asiakastieto Group
SUMMARY
The figures presented in this interim report are unaudited.
April - June 2015 in short:
* Net sales amounted to EUR 11,3 million (EUR 10,3 million), an increase of
9,7 %.
* Adjusted EBIT excluding non-recurring items was EUR 4,7 million (EUR 4,4
million).
* Operating profit (EBIT) was EUR 4,4 million (EUR 4,3 million). Operating
profit included non-recurring expenses of EUR 0,3 million (EUR 0,1
million).
* The share of new products and services of net sales was 8,2 % (5,2 %).
* The share of value-added services of net sales was 61,3 % (56,5 %).
* Free cash flow amounted to EUR 1,9 million (EUR 2,9 million). The impact of
non-recurring items on free cash flow was EUR -1,4 million (EUR -0,0
million).
* Earnings per share were EUR 0,21 (EUR -0,17).
Interim period January - June 2015 in short:
* Net sales amounted to EUR 21,9 million (EUR 20,7 million), an increase of
5,6 %.
* Adjusted EBIT excluding non-recurring items was EUR 9,0 million (EUR 9,1
million).
* Operating profit (EBIT) was EUR 6,5 million (EUR 9,0 million). Operating
profit included non-recurring expenses of EUR 2,5 million (EUR 0,2
million), mostly relating to the Company's listing.
* The share of new products and services of net sales was 6,6 % (5,3 %).
* The share of value-added services of net sales was 59,7 % (56,2 %).
* Free cash flow amounted to EUR 5,3 million (EUR 8,4 million). The impact of
non-recurring items on free cash flow was EUR -2,8 million (EUR -0,1
million).
* Earnings per share were EUR 0,30 (EUR -0,30).
Future outlook
Future outlook remains unchanged. Asiakastieto Group expects its full-year net
sales in 2015 to grow compared to 2014.
JUKKA RUUSKA, CEO"The development of the sales of Asiakastieto Group in the second quarter of the
year was strong. Volumes turned into slight growth, even though there were not
yet significant changes to be seen in the number of transactions occurring
between companies. The net sales of Asiakastieto Group increased in all product
areas and amounted to EUR 11,3 million (EUR 10,3 million) in total. The growth
of 9,7 per cent compared to the previous year was mainly due to a good demand
of new services.
Asiakastieto Group builds also tailored services for its customers. These
services are delivered as projects and they are recognised as revenue based on
the stage of completion. Due to the characteristics of this business, the number
and size of project deliveries may vary significantly from one period of time to
another. Revenue from long-term service development projects recognised as well
as additional deliveries relating to prior service development projects grew
compared to the corresponding period of the previous year. This revenue is
generated as ordinary course of business, but it is not expected to recur during
the rest of the year, at least not in the same amount. Net sales also included
sales that happened timewise to be recognised on the second quarter in a larger
extent than in the previous year.
The adjusted EBIT excluding non-recurring items was EUR 4,7 million (EUR 4,4
million). The increase in adjusted operating profit was particularly supported
by the fact that our most successful new services were highly processed and
based on our own database. On the other hand, the growth in revenue from real
estate information services has led to an increase in information gathering
expenses.
We expect that our new services to be launched during the latter half of the
year, relating to decision making and acquisition of new customers, will respond
to our client companies' need to digitalise their own businesses. We see, also
in the future, a significant demand potential for SaaS-type (Software as a
Service) services, which is an important part of our offering and which we are
developing further. For example, by using the automatised 3D Decision Service
intended for the stabilisation of credit risks and revenue, companies can
rapidly and cost-effectively boost their processes for risk management, finance
and administration and sales."
KEY FIGURES
Key income
statement and
cash flow
figures and
ratios 1.4. - 1.4. - 1.1. - 1.1. - 1.1. -
EUR million 30.6.2015 30.6.2014 30.6.2015 30.6.2014 31.12.2014
-------------------------------------------------------------------------------
Net sales 11,3 10,3 21,9 20,7 41,4
Growth of net
sales, %(1) 9,7 -2,1 5,6 -2,5 0,1
EBITDA 4,9 4,8 7,6 10,0 19,7
Operating
profit (EBIT) 4,4 4,3 6,5 9,0 17,6
Adjusted
EBITDA(2) 5,3 4,9 10,1 10,1 20,6
Adjusted
EBITDA margin,
%(2) 46,4 47,4 46,3 48,9 49,8
Adjusted
EBIT(2) 4,7 4,4 9,0 9,1 18,6
Adjusted EBIT
margin, %(2) 41,5 42,4 41,1 44,1 45,0
Net sales from
new products
and services 0,9 0,5 1,4 1,1 2,8
New products
and services
share of net
sales, % 8,2 5,2 6,6 5,3 6,7
Net sales from
value-added
services 7,0 5,8 13,1 11,6 23,2
Value-added
services share
of net sales,
% 61,3 56,5 59,7 56,2 56,1
Free cash
flow(3) 1,9 2,9 5,3 8,4 16,8
Cash
conversion,
%(3) 39,3 61,2 69,0 84,7 85,3
Key balance
sheet ratios 1.4. - 1.4. - 1.1. - 1.1. - 1.1. -
EUR million 30.6.2015 30.6.2014 30.6.2015 30.6.2014 31.12.2014
-------------------------------------------------------------------------------
Net debt to
adjusted
EBITDA, x(4) 2,7 9,8 2,8 9,5 3,0
Gearing, %(4) 79,2 neg. 79,2 neg. 95,8
Equity ratio,
%(4) 48,8 -53,4 48,8 -53,4 46,7
(____________________________________________________________________)
(1 )The growth of net sales for periods from 1 April to 30 June 2014 and 1
January to 30 June 2014 has been calculated by comparing the net sales of the
period to the net sales in the comparative period in 2013.
(2 )Adjusted key figures are adjusted by non-recurring items. Non-recurring
items include management fees which the Company has paid to Investcorp, the
former owner of the Company, until the listing of the Company for certain
ongoing advisory services, costs relating to the listing, an expense relating to
the discount given to the personnel in the personnel offering, fees for legal
and other advisory services, redundancy payments and compensations paid. Non-
recurring items were EUR -0,3 million for the second quarter 1 April - 30 June
2015, EUR -0,1 million for the comparative period 1 April - 30 June 2014, EUR
-2,5 million for the interim period 1 January - 30 June 2015, EUR -0,2 million
for the comparative period 1 January - 30 June 2014 and EUR -1,0 million for the
annual financial period 1 January - 31 December 2014.
(3 )The impact of non-recurring items on free cash flow was EUR -1,4 million for
the second quarter 1 April - 30 June 2015, EUR -0,0 million for the comparative
period 1 April - 30 June 2014, EUR -2,8 million for the interim period 1 January
- 30 June 2015, EUR -0,1 million for the comparative period 1 January - 30 June
2014 and EUR -0,3 million for the annual financial period 1 January - 31
December 2014.
(4) Key figures for the second quarter 1 April - 30 June 2015 and for the
interim period 1 January - 30 June 2015 are not comparable to figures presented
for the periods 1 April - 30 June 2014 and 1 January - 30 June 2014 due to the
change in the capital structure and the refinancing of indebtedness carried out
by the Company at the end of 2014.
BUSINESS OVERVIEW
Asiakastieto Group Plc (the "Company") is a Finnish public limited liability
company and the parent company for Asiakastieto Group ("Asiakastieto Group" or
the "Group"). Suomen Asiakastieto Oy is the operating company in the group.
Asiakastieto Group is one of the leading Finnish providers of business and
consumer information services. The Group's products and services are primarily
used for risk management, finance and administration, decision-making and sales
and marketing purposes. The Group serves several industries, the largest of
which include finance and banking, insurance, telecommunication and wholesale
and retail sectors.
The services provided by the Group are based on a comprehensive database which
combines data gathered from several public data sources as well as through the
Group's own data acquisition channels. The database provides a base for the
Group's services ranging from individual reports to advanced risk management
solutions.
The Group's products and services are divided into four product areas:
1. Business Information: Risk management and general business information
services which are mainly used by businesses serving corporate customers.
2. Consumer Information: Risk management information and services on private
individuals and real estates. The products and services of Consumer
Information are mainly used by businesses serving consumer customers.
3. Customer Management: Services for the prospecting of potential customers as
well as for sales and marketing purposes. The products and services of
Customer Management are mainly used by businesses serving corporate
customers.
4. Certificates and Analyses: Credit rating certificates, company and industry
analyses, and printed products concerning risk management information.
FUTURE OUTLOOK
Asiakastieto Group expects its full-year net sales in 2015 to grow compared to
2014.
The outlook is subject to risks related to, among other factors, the development
of the Finnish economy and the business operations of the Group. The most
significant risks related to business operations include, for example, risks
related to the success of product and service development activities, launches
of new products and services and risks related to competitive tenders and to
losing significant customer accounts.
Asiakastieto Group's business risks have been described in more detail on the
Company's investor pages at investors.asiakastieto.fi.
Helsinki, on 18 August 2015
ASIAKASTIETO GROUP PLC
Board of Directors
For further information:
Jukka Ruuska, CEO
Asiakastieto Group Plc
tel. +358 10 270 7111
Distribution:
NASDAQ OMX Helsinki Ltd
major media
investors.asiakastieto.fi
[HUG#1946007]