Cision AB (publ) - Interim report January-September 2009, October 22 2009

Cision AB (publ) - Interim report January-September 2009, October 22 2009

Continued good profitability in North America and the Nordics
Impairment of goodwill in the UK and Germany

July-September

• The Group's operating revenue amounted to SEK 324 million (418). Organic
growth was negative at 13 percent (-5), compared to negative 12 percent in the
second quarter of 2009. Exchange rate effects increased revenue by SEK 30
million compared to the same period last year.
• Operating profit excluding goodwill impairment, restructuring costs and other
one-off costs amounted to
SEK 25 million (21) and the operating margin was 7.8 percent (5.0). Exchange
rate effects had a positive impact on operating profit of SEK 5 million compared
to the same period last year but a negative impact on operating profit of SEK 4
million compared to the second quarter of 2009.
• A goodwill impairment of SEK 268 million was carried out, related to a more
conservative view of the UK and German operations. One-off costs of SEK 40
million were incurred for the divestment of the UK Print Monitor operations as
well as impairment of intangible assets mainly related to the divestments of
European subsidiaries in 2009. Restructuring costs were SEK 7 million.
• Following the divestment of loss-making units in the first quarter, Cision's
Nordic region continued to report good profitability in the third quarter, with
an operating margin of 14.3 percent. North America also maintained good
operating margins of 20.0 percent despite significant recessionary impact.
• The divested part of Cision's UK operations continued to have a significant
negative impact on the operating results. Cision UK's operating loss excluding
goodwill impairment, restructuring costs and other one-off costs in the third
quarter was SEK 12 million. The divestment of the loss-making UK Print Monitor
division was completed on September 30, 2009, following which Cision will
finalize the transition of the relevant services and customers to the buyer
during the fourth quarter.

January-September

• The Group's operating revenue amounted to SEK 1,161 million (1,296). Organic
growth was negative at 11 percent (-3). Exchange rate effects increased revenue
by SEK 153 million.
• Operating profit excluding goodwill impairment, restructuring costs and other
one-off costs amounted to SEK 73 million (90) and the operating margin was 6.3
percent (6.9). Exchange rate effects had a positive impact on operating profit
of SEK 20 million.
• Operating profit amounted to SEK -256 million (-187) and the loss before tax
was SEK 327 million (-225). Earnings per share were SEK -4.54 (-3.43).
• For the period January-September, operating cash flow amounted to SEK 43
million (83) and free cash flow amounted to SEK -65 million (-3).

Comment by Cision CEO Hans Gieskes:

“In the third quarter, we were pleased to see continued good profitability in
the Nordic region as a result of the first quarter divestments. As expected,
Cision UK had a weak quarter due to a poor development for the divested print
monitor operations, where the transition of the loss-making unit to the buyer
will be finalized during the fourth quarter of 2009. The losses of Cision
Germany increased in the third quarter compared to the second quarter. This
development is not acceptable and we are therefore taking actions to
structurally improve our business in this strategically important market.
Following disciplined cost management, Cision's North America margins remained
at 20% during the third quarter, despite a very challenging market situation.

Including the sale of Cision's operations in Lithuania, announced on October 1,
over the past nine months Cision completed divestments of five separate business
units in the monitor service area, with revenues of about SEK 400 million last
year, 600 employees and significant operating losses. We are pleased to have
accomplished these transactions in a relatively short period of time and during
difficult market circumstances. Although 2009 will continue to be a challenging
year, I believe the structural activity to date means that Cision's business
prospects for the future are greatly improved.“

For further information, please contact:

Hans Gieskes, President and CEO, phone +46 (0)8 507 410 11
e-mail: hans.gieskes@cision.com

Erik Forsberg, CFO, telephone +46 (0)8 507 410 91
e-mail: erik.forsberg@cision.com

Cision AB (publ)
SE-114 88 Stockholm, Sweden
Corp Identity No. SE556027951401
Telephone: +46 (0)8 507 410 00
www.cision.com