YEAR-END REPORT 2015 SEAMLESS DISTRIBUTION AB (publ)
January – December
Fourth quarter
· Net sales increased 83 % to SEK 78.9 million (43.2)
· Operating loss for the period SEK -32.8 million (-51.3), a decrease of 36
percent
· Loss after financial items SEK -33.3 million (-50.6)
· Loss after tax for the period SEK -33.6 million (-50.8)
· Earnings per share SEK -0.80 (-1.21)
Full year 2015 - Highlights
· Net sales increased 63 % to SEK 280.0 million (170.8)
· Operating loss for the period amounted to -116.6 (-165), a decrease of 29
percent
· The Transaction switch increased sales by 136% and received its largest
order ever
· Cash flow from operating activities improved with 48 MSEK to -97.9 (-147.3)
SIGNIFICANT EVENTS DURING THE PERIOD OCTOBER – DECEMBER 2015
· In December Seamless Distribution AB (publ) (”Seamless”) conducted a
directed issue of shares of 31.8 MSEK. The number of shares and voting rights
amount to 45 559 455.
· As SEQR should fund for long term growth, Seamless intends to bring in a
strategic equity partner as co-investor in the subsidiary SEQR through a
directed equity placement. Awaiting the completion of such transaction, in order
to cover negative cash flow Seamless intends to, by means of the existing
authorization from the general meeting, raise capital through a private
placement of shares or convertibles in Seamless of approximately 25 MSEK.
· Seamless has secured a new order in Africa for its proprietary wireless POS
terminal. The order is worth USD 2.4 million and is the latest in a series of
orders that the Transaction Switch division has received during the third
quarter in the rapidly growing African market. In total, Seamless has now
received orders valued at USD 5.3 million in Africa.
SIGNIFICANT EVENTS AFTER THE CLOSE OF THE REPORTING PERIOD
· Seamless partners with Express Money and enters the international money
transfer market. Through Seamless´mobile payment platform SEQR, Xpress Money and
Seamless can offer its customers a convenient, safer and affordable way of
sending money from one country to another, digitally.
· Seamless has received a new order from a leading African mobile operator in
the Ivory Coast for the installation of its transaction switch. The order is
initially valued at approximately USD 2 million.
CEO´s COMMENT
The development of the fourth quarter was very satisfactory – both in terms of
sales and earnings. All three business segments are showing strong growth. Two
segments worth highlighting are Distribution and the Transaction Switch that
often end up being overshadowed in relation to the attention we receive for our
mobile payment solution SEQR.
The business segment Transaction Switch provides international telecom companies
with a wide range of mobile products as well as complete IT- and logistical
solutions for the full supply chain for mobile payments. This business segment
showed a record fast and profitable growth during the quarter.
Sales increased a full 136 percent compared with the fourth quarter of the
previous year. It is worth noting that 40 percent of the sales came from
products launched in 2015. This is something that shows the business segment’s
ability to renew itself and adapt to the demands of the market since the
Transaction Switch was introduced 15 years ago. This is today perhaps the
market’s strongest solution for managing the adding of funds to mobile prepaid
accounts, and last year handled 3.7 billion transactions in 18 national markets
to a total value of approximately 51 billion Swedish kronor (approx.USD 6
billion).
We also see a very high growth rate for the business segment e
-Products/Distribution, which handles the physical and electronic refill of
credits to mobile prepaid accounts in Sweden, Latvia – and as of 2015, also in
Denmark. In the much important Swedish market, transaction volumes increased by
about 50 percent in the fourth quarter compared with the same quarter of 2014.
For the business segment SEQR, the growth rate was substantial during the
quarter, with a twofold increase of the number of registered users and a 50
percent increase in the transaction volume. The net revenue is not increasing at
the same pace as the transaction volume due to a number of business related
causes. We do see a constant increase in usage and the ascendant trend in the
increase of the number of transactions will have a strong impact on the revenue
during 2016.
The quarter was also characterized by a continued high level of activity in both
affiliated retailers and product development, as well as the launches of new
solutions. It is worth highlighting, that at the beginning of this year, SEQR
-users will be able to pay through contactless technology at retailers who have
terminals that support this technology – regardless if the retailer has signed
up with SEQR or not. Globally, there are already about 24 million POS terminals
with this solution, and the number is increasing rapidly since the same
technology is used for contactless cards.
In summary, overall all three of our three business segments showed strong
growth during 2015, with an increase of 63% on the revenue, and a 30%
improvement on the result compared with 2014. Something that causes us to look
forward to 2016 with great confidence – a year that has the right preconditions
for continued strong growth.
Peter Fredell, CEO Seamless
This is the type of information that Seamless Distribution AB (publ) is required
to disclose pursuant to the Securities Market Act and/or the Financial
Instruments Trading Act. The information was submitted for publication on
February 17, 2016 at 08:50 a.m. (CET).
CONTACT DETAILS
For further information, please contact:
Peter Fredell, CEO
Peter.fredell@seamless.se +46 8 564 878 00
ABOUT SEAMLESS
Seamless is one of the world’s largest suppliers of payment systems for mobile
phones. Founded in 2001 and active in 35 countries, Seamless handles more than
3.7 billion transactions annually through 575 000 active sales outlets. Seamless
has three main business areas including the transaction switch, the technology
provider for the distribution of e-products and the mobile payment platform
SEQR. Seamless shares are traded on NASDAQ OMX Stockholm. www.seamless.se
The Seamless Year-end-report 2015 for the period October– December 2015 has been
approved for publication by the Board of Directors, by its decision on February
17, 2016. This financial report has not subjected to a review by the Company’s
auditors.
