Interim report January - June 2010

Interim report January - June 2010

 

Stockholm, July 15, 2010 

Developments in the second quarter - April - June, 2010

  · Operating revenues amounted to SEK 1 442 M (1 673), down by 14
percent Y/Y, corresponding to an organic decline of 13 percent. The
organic decline for the first 6 months was 10 percent.
  · EBITDA amounted to SEK 397 M (561), down by 22% excluding other
items affecting comparability*
  · Eniro's 50% holding in Suomi24 was divested during the period and
resulted in a net gain of  SEK 37 M and a positive effect on net debt of
approximately SEK 50 M
  · Earnings before tax amounted to 176 MSEK (303)
  · Net income amounted to SEK -108 M (220), and included a provision of
approximately SEK 280 M with regards to the reassessment notice Eniro
received from the Norwegian Tax Authorities. Eniro will contest the
potential claim following the reassessment.
  · Operating cash flow for the first six months amounted to SEK 54 M
(500)
 

*EBITDA in the second quarter 2009 included other items affecting
comparability related to the settlement with DeTeMedien and the
divestment of SprayPassagen of SEK 102 M, and EBITDA in the second
quarter 2010 included a net gain of SEK 37 M from the divestment of the
holding in Suomi24.

 

Jesper Kärrbrink, Eniro's CEO, commented:
“Our main focus during the second quarter has been to continue the
implementation of the new sales concept in Directories Scandinavia where
we, in the end of the second quarter, have seen the first signs of
improved efficiency in our sales force. Further, we are continuing to
develop new functionalities and advertising formats within online aiming
to improve value for customers and users in the long term to be launched
later this year.“
“Reported revenues during the quarter reflect the structural print
decline affecting our industry, as a result of the rapidly changing
search behaviour, as well as a weak order intake in Q1. Consequently, we
have increased the speed of our transformation process and temporarily
increased the operative risk. Despite a successful implementation of the
previously announced cost measures, a continued revenue decline combined
with a potential payment related to the tax reassessment in Norway will
further deteriorate the net debt/EBITDA-relation. This could lead to a
breach of covenants in the latter part of the year. Hence, Eniro has
initiated discussions with its lending banks to secure headroom to
covenants.”

For further information, please contact:
Jesper Kärrbrink, President and CEO, Phone: +46 8-553 310 01
Jan Johansson, CFO, Phone: +46 8-553 310 15, +4670-575 89 72
Birgitta Henriksson (Brunswick Group), Acting Head of IR, Phone: +46
8-553 315 29, +4672-220 83 29

 

www.eniro.com (http://www.eniro.com/)