Observer: Observer AB (publ) Year-end report January-Dece...

Observer AB (publ) Year-end report January-December 2006 Strengthened revenue growth. Further savings measures. - Operating profit amounted to SEK -612 million (175) and profit before tax was SEK -679 million (117). Profit after tax amounted to SEK -743 million (79), while earnings per share amounted to SEK -9.99 (1.12). - Operating profit includes goodwill write-downs of SEK 759 million, of which SEK 290 million during the fourth quarter, as well as restructuring expenses of SEK 57 million, of which SEK 23 million during the fourth quarter. - Excluding goodwill write-downs and restructuring expenses, operating profit rose by 16 percent to SEK 204 million (175) and the operating margin to 11 percent (10). In the fourth quarter underlying operating profit amounted to SEK 32 million (44), including non-recurring expenses of SEK 21 million in the UK, and the operating margin was 7 percent (9). - The Group's operating revenue increased by 8 percent to SEK 1,915 million (1,776). Organic growth in local currency was 4 percent (2). In the fourth quarter organic growth reached 4 percent (2). - Cash flow from operating activities amounted to SEK 171 million (164). Cash flow after investments excluding acquisitions amounted to SEK 79 million (72). For further information, please contact: Niklas Flyborg, President and CEO, telephone: +46 8 507 410 10 e-mail: niklas.flyborg@observergroup.com Gunilla Rudebjer, CFO, telephone: +46 709 843 836, +46 8 507 417 23 e-mail: gunilla.rudebjer@observergroup.com Observer AB Observer improves clients' performance through integrated services and software solutions for reputation and campaign management, media monitoring and research of media contacts. Observer AB is quoted on the Nordic Exchange. The company has around 2,700 employees and a turnover of SEK 1.9 billion in 2006. Observer operates in the US, UK, Sweden, Canada, Germany, Norway, Finland, Denmark, Portugal, and Lithuania. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://wpy.waymaker.net/client/waymaker1/f.aspx?id=375494&fn=wkr0010.pdf Year-end report January-December 2006