STOCKHOLM, Sweden, Oct. 29, 2004 (PRIMEZONE) -- Observer AB (publ) Interim report January-September 2004:
Continued strong growth in North America and indications of improved market conditions in Sweden
- The group's operating revenue amounted to SEK 1,197.2 million (1,144.2). Exchange rate effects from the translation to Swedish kronor affected revenue negatively by SEK 26.3 million compared with the corresponding period of 2003. Organic growth in local currency was -1 percent (-4). The third quarter this year showed a flat organic growth.
- Operating profit before goodwill amortization and items affecting comparability, EBITA, amounted to SEK 151.0 million (166.6). Exchange rate effects impacted profit negatively by SEK 5.6 million compared with the year-on-year period. The operating margin was 12.6 percent (14.6).
- The loss per share was SEK --0.48 (-0.46). Profit per share after dilution, excluding goodwill amortization and items affecting comparability, amounted to SEK 1.27 (1.53). The loss after financial items amounted to SEK -5.8 million (-3.1) and the net loss was SEK --33.8 million (--31.2).
- Operating cash flow amounted to SEK 165.7 million (176.5).
- During the year Observer continued to acquire US radio and television monitoring companies, thanks to which it now monitors all the country's major broadcast media markets, including New York, Chicago and Los Angeles. An acquisition in Canada further strengthened the group's position in French-speaking Quebec.
Comment by Observer CEO Robert Lundberg ``After a long period of weak demand in the Nordic countries we now see indications of improved market conditions in Sweden. The level of activity among our clients is increasing and new important clients have signed contracts for the coming year.
Our offering in North America is still being received positively, and we reach our targets in terms of growth and operating margin. The introduction of new digital services in the UK is proceeding according to plan, and growth improved during the quarter. Portugal and Ireland are reporting good growth, while Germany temporarily had a weak quarter.
We are cutting costs in the Nordic region, while in the UK we still have a higher cost level due to the transition to digital media monitoring. In North America, cost controls have contributed to a significant margin improvement."
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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