STOCKHOLM, Sweden, Aug. 05, 2004 (PRIMEZONE) -- Observer AB (publ): Strong development in North America and continued tough market conditions in the Nordic region
- The group's operating revenue amounted to SEK 811.4 million (781.6). Exchange rate effects from the translation to Swedish kronor affected revenue negatively by SEK 22.4 million compared with the corresponding period of 2003. Organic growth in local currency was --1 percent. For the corresponding period 2003 the organic growth amounted to -5 percent.
- Operating profit before goodwill amortization and items affecting comparability, EBITA, amounted to SEK 100.3 million (112.1). Exchange rate effects affected profit negatively by SEK 4.5 million compared with the year-on-year period. The operating margin was 12.4 percent (14.3).
- Profit per share after dilution, excluding goodwill amortization and items affecting comparability, amounted to SEK 0.85 (1.08). The loss after financial items amounted to SEK --3.6 million (--10.6), and the net loss for the period was SEK --21.9 million (--25.5).
- Operating cash flow amounted to SEK 115.5 million (137.3).
- In April Observer acquired a radio and television monitoring company in California. In the process Observer continued its expansion in the US, where it now monitors all the largest broadcast media markets, the three most significant of which are New York, Chicago and Los Angeles.
Comment by Observer CEO Robert Lundberg: ``The second quarter is normally our weakest. As expected, the Nordic market remained tough, while growth and operating margins in North America still are strong.
In Rest of Europe, growth was positive, although margins were weighed down by higher costs during the changeover to new digital technology in the UK. This technology has now been implemented and will make it possible to introduce a number of new services during the second half of the year. However, the technological shift is likely to cause expenses in our British operations to remain higher than normal during the third quarter.
Despite some positive signals in the Nordic market, we expect that it could take a while longer before we see a significant improvement. The new management in the Nordic region and Sweden is focused on increased sales activities and new client offerings."
For further information, please contact: Anders Lundmark, Chief Financial Officer, telephone: +46 70 333 29 77, +46 8 507 417 23, e- mail: anders.lundmark@observergroup.com
Per Blixt, Senior VP Corporate Communications/Investor Relations, telephone: +46 70 549 28 08, +46 8 507 410 12, e- mail: per.blixt@observergroup.com
Robert Lundberg, President and CEO, telephone: +46 8 507 410 10, e-mail: robert.lundberg@observergroup.com
Observer AB is quoted on the Attract 40 section of Stockholmsborsen's O-list and has approximately 25,000 shareholders. Observer is active in Business and Communication Intelligence and offers media monitoring and communication evaluation services. Customers, who are primarily in IR and PR, are also offered tools and channels for distribution and publication of business information.
Observer has around 2,400 employees and a turnover of SEK 1,5 billion in 2003. The company operates in the US, UK, Sweden, Canada, Germany, Norway, Finland, Denmark, Portugal, Ireland, Estonia, Latvia and Lithuania.
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