Observer AB: Interim Report January-March 2003

STOCKHOLM, Sweden, May 6, 2003 (PRIMEZONE) -- Observer AB (publ) (OtherOTC:OBSEF): Cash flows and financial position remain strong. Slower growth due to war in Iraq.

- The group's operating revenue amounted to SEK 403.8 million (450.1). Exchange rate effects affected revenue negatively by SEK 29 million compared with the corresponding quarter a year earlier. Organic growth in local currency was -5 percent.

- Operating profit before goodwill amortization and items affecting comparability amounted to SEK 67.0 million (97.1), Exchange rate effects affected profit negatively by SEK 7 million compared with the corresponding quarter a year earlier. The operating margin was 16.6percent (21.6).

- As previously announced, first-quarter profit was charged with nonrecurring expenses affecting comparability of SEK 27 million to convert to new technology to digitalize print media and for the cost reduction program initiated in January.

- Profit per share after dilution, excluding goodwill amortization and items affecting comparability, amounted to SEK 0.71 (1.04).

- Cash flow remains strong. Operating cash flow amounted to SEK 73.4 million (83.6).

Comment by Observer CEO Robert Lundberg, "Although the first quarter was dominated by the events in Iraq, we have seen stable demand for our database services, particularly in the U.K. and U.S. Our communication analysis services are also continuing to grow.

"Economic conditions are still difficult to predict, however. Our strong position makes it possible to take advantage of a slow economy to further develop our services and markets. Observer will continue to focus on increased efficiency in its sales work, while maintaining a good margin and strong cash flows."

Observer AB: Interim Report January-March 2003

Tags