OSLO, Norway, Aug. 28, 2002 (PRIMEZONE) -- Findexa:
-- Pro forma consolidated operating revenue at NOK 1.033m for
the first half year, up 9% from 2001, second quarter up 12%
compared to prior year
-- Pro forma operating expenses down 3% from first half year
of 2001
-- Growth in pro forma EBITDA of 49% from first half year of
2001 to NOK 315m, second quarter up 161% compared to prior year
-- Operational improvements driving reductions in customer
credits and bad debt as compared to prior year
A conference call and webcast with investors and analysts will be held at 2 p.m. CET (Norwegian time) Thursday, August 29, 2002. The call is expected to last an hour including a Q&A session. To listen you may do the following: Webcast: Go to http://www.huginonline.no/FIND/ and click on the link to "Webcast" Conference Call: Call 47 23 00 04 00, or from Norway 800 80 119
Findexa II AS today announced its unaudited operating and financial results for the second quarter ended June 30, 2002.
The company continued in the second quarter to improve upon prior year both on revenue as well as operational expenses. The focus continues to be on bottom line growth, supported by productivity improvements and operational efficiencies.
The market has not shown any signs of improvement since first quarter. In general the advertising market has been declining or at best status quo in our core markets as compared to prior year. Deployment of best practices in sales management as well as brand and product development is our response to this challenge.
In spite of the challenging market situation revenue on key brands has improved over prior year. This is driven by improvements of customer retention rates, reduced customer credits, price increases as well as some volume growth.
Spending levels has been reduced from prior year, both in absolute and relative terms. Significant drivers are general overhead and bad debt charges.
Details on results and cash flow are discussed below.
Revenue
Pro forma consolidated operating revenue was up 9.3% to NOK 1.032.8m for the first half year. The second quarter showed a growth of 12.2% from same quarter prior year. Both Directories Norway and International Operations contributed positively to this.
Norway
Pro forma operating revenue was up 14.6% for the quarter and 8.0% to NOK 875.7m for the first half year.
Norwegian revenue was influenced by timing differences for directories distribution. In total NOK 15.7m of first half year net revenues in 2002 represents directories (Ditt Distrikt) that were published in second half of 2001. Revenue after adjustment is for the first half NOK 860.0m, up 6.1% from prior year. The revenue growth is driven by Yellow Pages (Gule Sider) and White / Pink Pages (Telefonkatalogen) and reduced customer credits, to some extent offset by reduction of additional volumes of directories sold to Telenor and others.
Adjusted for timing differences we had for the quarter a revenue increase of 10.8% compared to second quarter 2001. This is driven by strong development in core brands. Customer credits were at same level as Q2 2001 in absolute terms but decreased as a percentage of gross revenue from 4.6% to 4.0%.
International
Pro forma operating revenue was up 5.4% for the quarter and 16.7% to NOK 157.1 for the first half year.
Timing differences and portfolio changes: For International operations adjustments should be made for the acquisition of Annuaire Phone Edition Holding SA in France first half of 2001. This is partly offset by the closure of Spanish operations end of 2001 and timing differences (directories to be distributed second half of 2002 as compared to first half of 2001). In total the revenue impact of portfolio changes and timing differences is NOK 8m for International.
Adjusted for the above differences the International operations (excluding Spain) shows an organic growth of 13.3% for the quarter and 16.8% year to date. The growth is particularly strong in Finland and Russia.
Operating Expenses
Total pro forma operating expenses is down both for the quarter as well as year to date. Significant savings have been achieved on overhead as well as bad debt charges.
Norway shows an increase of NOK 4.1m for the quarter as compared to prior year. Adjusted for timing differences spending is in line with prior year. The increase in salaries and personnel costs is driven by salary increases and increased headcount with a corresponding reduction in consultants. The decrease in other operating expenses is mainly driven by reduced spending on consultants, reduced overhead spending as well as a significant reduction in bad debt charges (down NOK 9.4m or 53.1%). Year to date total operating expenses is down NOK 26.3m or 5.9%. This is driven by the same main factors as for the quarter.
International operations had a spending decrease for the quarter of NOK 10.8m or 9.1% as compared to prior year. Year to date spending is above prior year with NOK 5.4m or 3.0%. This increase is mainly driven by net impact of timing differences and portfolio changes.
EBITDA
Consolidated pro forma EBITDA was at NOK 106.8m for the quarter, which is NOK 65.9m or 161.1% above prior year. Year to date EBITDA was at NOK 315.2m, which is NOK 103.6m or 48.9% above prior year. Overall the trend from the first quarter continues with higher revenues combined with reduced costs as compared with prior year.
Norway had an increase in EBITDA of NOK 87.6m or 29.8% for the first half year as compared to the same period last year. Adjusted for timing differences the increase was 26.4%. Second quarter increase in EBITDA adjusted for timing differences was 51.9%.
International operations reduced the loss for the quarter with 50.1% to NOK 18.0m. Year to date the loss was NOK 66.0m, which is 19.4% below prior year. We continue to experience a positive trend on costs in our International operations with programs in place to consolidate country organizations and reduce overall spending levels.
Financial items
Net financial items for the first half year was a cost of NOK 195.8m. Included in this cost are noncash based interest expenses of NOK 106.6m and unrealized foreign currency gains on senior loans of NOK 96.2m.
Cash Flow
Year to date consolidated cash flow from operating activities before interest payments of NOK 122.2m was NOK 179.4m, up NOK 81.3m or 82.8% from prior year. The improvement is driven both by EBITDA and working capital improvements.
Net change in cash and cash equivalents was influenced by final payments to Telenor for the acquisition (working capital adjustment) and for other acquisition related costs. Total impact was NOK 81.4m for the quarter. This together with interest payments led to a negative cash flow for the quarter of NOK 132.7m.
Net change in cash and cash equivalents was year to date negative NOK 36.7m, leading to a cash position at the end of the quarter at NOK 299.8m. In addition to this the company has an unused revolving credit facility of NOK 400m.
Links:Please use the following link for the "Earnings Release Q2 2002", including financial tables: http://reports.huginonline.com/871808/107532.pdf
Please use the following link for the "Presentation Earnings Release Q2 2002": http://reports.huginonline.com/871814/107535.pdf
About Findexa
Findexa is a leading directory information and advertising services company. It is owned by Texas Pacific Group. Findexa operates in Norway and nine other European countries: France, Finland, Poland, Russia, Ukraine, Lithuania, Latvia, Estonia and the Czech Republic. In 2001, we published over 250 different directories, which were circulated in approximately 22 million copies
In Norway we are the Norwegian telecom company Telenor's official directory publisher. Our directories include wellknown brands such as Gule Sider (Yellow Pages), Telefonkatalogen (White/Pink Pages), Ditt Distrikt (local directories) and BizKit (businesstobusiness directories). These are all distributed as printed directories, as well as through various other media, including the Internet, operatorassisted Talking Yellow Pages, CDROM and mobile phonedelivered short messaging service, or SMS.
Internationally Findexa has expanded significantly since 1995, organically as well as through acquisitions and partnerships. In all of our international markets, we market and publish printed classified advertising directories and offer our products in Internet based distribution media.
The trademarks Telefonkatalogen(TM), Gule Sider(R), Ditt Distrikt(TM) and BizKit(R) belong to Findexa AS.
SEC Filing and further information
Findexa will at August 30 file its financial results together with an operating and financial review under Form 6K with the SEC. The Form 6K as well as this press release may be accessed at: www.huginonline.no/FIND.