Eniro. Q2 report Johan Lindgren, CEO Cecilia Lannebo, Head of IR July 16 th, 2014

Transcription

1 Eniro Q2 report Johan Lindgren, CEO Cecilia Lannebo, Head of IR July 16 th, 2014

2 1. Johan Lindgren CEO

3 Disappointing development in Sweden during Q2 Multiscreen revenues All markets except for Sweden report multiscreen growth in Q2 Management Poor management and sales execution in eniro.se results in negative deviation, primarily for Desktop Phasing of contracts Phasing of sales from Q1 to Q2 proves to be a mistake Management and organization changes Eniro.se under the management of Stefan Kercza, CEO of Eniro Denmark All other operations in Sweden under the management of Mattias Wedar Sales organization New sales planning from start of August Increased focus on new customers and offer to existing customers Price/packaging structure More segmented packages to target customers better Improved pricing structure to increase ARPA Consequence: As a consequence, the group reports decline in multiscreen revenues and changes full year guidance 3

4 CEO summary Q2 Multiscreen revenues decreased 5% organically Swedish performance not according to plan what results in weak Desktop development Continued strong mobile growth Mobile first Total as well as organic revenues increased 58% and 27% of total UB (unique browsers) on mobile Total revenues down 11% (-11%) Organic decline 10% (-4%) Currency positive SEK 7 M Cost savings Cost reductions SEK 72 M in Q2 EBITDA was SEK 194 M (234 ) Incl. SEK 6 M in capital gain, SEK 4 M in reversed costs for synthetic share program and SEK 1 M in restructuring reserve EBITDA margin of 24.5% (26.2%) Adjusted EBITDA was SEK 187 M (247) Adj. EBITDA margin 23.6% (27.7%) Operating cash-flow was SEK 174 M (103) an increase with SEK 71 M Amortization of loan facility of SEK 186 M on June 30th 4

5 Financial development Q Incl. capital gain of SEK 6 M % Incl. positive reverse effect of synthetic share program of some SEK 4 M Q Q % -24% % +69% Revenue EBITDA Adj. EBITDA Net Income Cash Flow Net debt %

6 Revenue bridge Q Reported Organic % % Reported revenues Q Currency effects Divestments Moved publications Organic baseline Q Desktop Mobile Campaign Print Other Voice -18% 58% 28% -24% -11% -17% Reported Q Currency, divestments and moved publications had a negative effect on revenues of SEK 17 M in Q2 6

7 Cost savings Q rd party cost Cost ex 3rd party YTD 2013 Divested Currency effect Organic baseline YTD 13 Net Savings Q1 Total cost savings in second quarter of SEK 72 M Total cost savings for 6 M amounted to SEK 148 M Net Savings Q2 Adj Operating cost 2014 YTD Savings in Q2 include reductions in staff of SEK 37 M and cost of marketing SEK 9 M 7

8 Mobile first: rapid growth in revenues and traffic Mobile revenues increased 58% to SEK 104 M (66) in Q2 compared with last year Mobile search 13% of total revenues in Q2 27% of all searches are done on mobile devices Eniro market share in Sweden and Norway ~20% Mobile growth strengthens financial position % Share of search (UB-unique browsers) via mobile devices 2013 Q Revenues SEK 287 M SEK 104 M Growth % 95% 58% Q Q Q Q Q Q Q Q Q

9 Activities in Q2 and following close of period Divesture of Krak Markedsdata (KMD) in Denmark In line with strategy to concentrate on digital local search Revenues from KMD in 2013 amounted to approx. SEK 14 M EBITDA 2013 approx. SEK 2 M Capital gain in Q2 approx. SEK 6 M Consideration approx. SEK 7 M in Q Management/ and organization changes in Eniro Sweden Stefan Kercza CEO Eniro Denmark appointed acting manager of eniro.se Mattias Wedar appointed acting manager of remaining Swedish operation Acquisition of Idium in Norway Strengthening of Campaign Products Revenue contribution 2014E some SEK 35 M EBITDA contribution 2014E some SEK 2 M Cash consideration SEK 35 M, split between SEK 22 M upfront and SEK 13 M divided over three years 9

10 Development net debt/ebitda rolling 12 months , , , , , Q Q EBITDA Net Debt Net debt/ebitda 10

11 Change in net debt Analysis of interest-bearing net debt Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK M / Opening balance Operating cash flow Acquisitions and divestments Share issue Translation difference and other changes Closing balance Net debt /adjusted EBITDA, times 2,5 2,5 2,5 2,5 2,5 2,4 Operating cash flow in Q2 increased to SEK 174 M (103) Amortization on loan facility of SEK 186 M on June 30th Net debt/ adjusted EBITDA 2.5 (2.5) 11

12 Eniro the local search company Multiscreen growth segments Desktop search Mobile search Listing, ranking and visibility in local search services on desktop and mobile Campaign products Keyword advertising, SEO, video, homepages and banners Mature segments Print Hyper local books in Sweden, Norway and Denmark Voice Directory assistance service via phone and sms in Sweden, Norway and Finland 12

13 Outlook 2014 EBITDA and balance sheet Adjusted EBITDA 2014 of some SEK 850 M Long-term net debt/ebitda not to exceed 2x Cash flow and investments Investments approx. SEK 150 M Working capital to be some SEK M negative Paid-tax some SEK 25 M Strong cash-flow generation 13

14 Eniro Q2 report Appendix

15 Financial commentary Amortizations The Norwegian brands Gule Sider and Ditt Distrikt annual amortization of some SEK 95 M. Q2 impact SEK 20 M Amortization of Norwegian Voice brand 1888 of SEK 8 M in Q2 PRI pensions guarantee in force throughout 2015 Total pledged funds amount to SEK 122 M Additional SEK 10 M due in March 2015 Print conversion Conversion of Gula Sidorna in Sweden into digital performing according to expectations Cash-flow and working capital Cash-flow increased with SEK 71 M to SEK 174 M compared Q2 last year Amortization of debt of SEK 186 M in Q2 Voice Negative market trend for Voice Further future impairment loss is to be expected 15

16 Refinancing terms & conditions Loan facility SEK 3bn, were of SEK 250 M in RCF Three years with an extension to four years, on the condition that Eniro replaces SEK 800 M of bank loan with a corporate bond Amortizations Scheduled amortizations for approx. SEK 375 M annually SEK 186 M amortized on loan facility in Q2 Interest rates Base rate Stibor plus 375pp (lowered to 300pp at Net debt/ebitda below 2x) 16

17 Revenues Revenue by category Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK M % % 2013/ Desktop search Mobile search Campaign products Multiscreen Print Other products Local search Voice Total revenue Revenue by country Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK M % % 2013/ Sweden Norway 1) Denmark Finland Poland Total revenue ) Of which SEK 22 M during the second quarter is attributable to divested businesses and 57 million during the full year

18 EBITDA EBITDA by revenue area Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK M % % 2013/ Local search Voice Other Total EBITDA Items affecting comparability Restructuring costs Other items affecting comparability Total adjusted EBITDA

19 Income statement Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK M / Gross operating revenue Advertising tax Operating revenue Production costs Sales costs Marketing costs Administration costs Product development costs Other income/costs Impairment of non-current assets Operating income** Financial items, net Income before tax Income tax Net income Of which, attributable to: Owners of the Parent Company Non-controlling interests Net Income

20 Balance sheet Consolidated balance sheet Jun. 30 Jun. 30 Dec. 31 SEK M Assets Non-current assets Tangible assets Intangible assets Deferred tax assets Financial assets Total non-current assets Current assets Trade receivables Current tax assets Other current receivables Other interest-bearing receivables Cash and cash equivalents Total current assets TOTAL ASSETS Equity and liabilities Equity Share capital Additional paid in capital Reserves Retained earnings Total equity share holders of the Parent company Non-controlling interests Total equity Non-current liabilities Borrowing Deferred tax liabilities Pension obligations Provisions Other non-current liabilities Total non-current liabilities Current liabilities Trade payables Current tax liabilities Other current liabilities Provisions Borrowing Total current liabilities TOTAL EQUITY AND LIABILITIES

21 Cash flow statement Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jul-Jun Jan-Dec SEK M / Operating income Depreciation, amortization and impairment Other non-cash items Financial items, net Income tax paid Cash flow from operating activities before changes in working capital Changes in working capital Cash flow from operating activities Acquisitions/divestments of group companies and other assets Investments in non-current assets, net Cash flow from investing activities Proceeds from borrowings Repayment of borrowings Long-term investments Dividend on preference shares Dividend minority owners Rights issue Cash flow from financing activities Cash flow Cash and cash equivalents at start of period Cash flow Exchange rate difference in cash and cash equivalents Cash and cash equivalents at end of period

22 Eniro share price and shareholder development Share price development year-to-date 2014 = -8% Share price development June 2014 = -16% 10 largest holders (grouped), June 30 0h 2014 Capital % B-shares Preference shares Changes since 30/ Swedbank Robur fonder 7,8% /-0,1% Danske Capital Sverige AB 7,7% ,7% June 30, 2014 Dec 30, 2013 Total shareholders Staffan Persson, company and family 6,9% % Fidelity Fund 6,2% % JPM Chase 5,3% ,8% Market Cap (MSEK) Odey Capital 5,4% % Unionen 3,8% /-0,0% MSIL client account 3,3% ,9% Skandinaviska Enskilda Banken 2,8% ,0% Shareholders March June 30, 31, 31, 2014 CBLDN 2,1% ,1% 22

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