January – March 2016
· Net sales increased 8 % to SEK 61.1 million (56.7)
· Operating loss for the period SEK -24.1 million (-31.7), an improvement of
24 percent
· Loss after financial items SEK -24.8 million (-31.7)
· Loss after tax for the period SEK -25.6 million (-31.8)
· Earnings per share SEK -0.55 (-0.76)
· Cash flow before changes in working capital improved with 4.4 MSEK to -21,8
(-26,2), an improvement of 17 percent
Jan-Mar Jan-Mar Full-Year
SEK thousand 2016 2015 2015
Net sales 61 063 56 679 279 997
Operating result -24 136 -31 651 -116 637
Financial net and taxes -1 431 -144 -2 671
Loss for the period -25 567 -31 795 -119 308
Balance sheet total 200 092 205 263 205 332
Earnings per share, basic and diluted* -0,55 -0,76 -2,84
Operating margin neg neg neg
Equity ratio 50% 77% 50%
Capitalized development costs 6 537 2 761 18 244
Depreciation -3 920 -5 999 -20 780
SIGNIFICANT EVENTS DURING THE PERIOD JANUARY – MARCH 2016
· 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.
· Seamless signs agreement with supermarket operator Lambrecht and strengthens
position on Belgian market.
· In February Seamless Distribution AB (publ) (”Seamless”) conducted a direct
issue of shares of 24.6 MSEK.
SIGNIFICANT EVENTS AFTER THE CLOSE OF THE REPORTING PERIOD
No significant events have occurred during the first quarter.
CEO´s COMMENT
Dear shareholders:
The first quarter of 2016 has been very positive for Seamless, with increased
sales and improved earnings over the first quarter of 2015. Earnings improved by
20 percent and net revenues increased by 8 percent.
All three business divisions are showing increased activity, and we expect a
further acceleration over the remainder of the year.
The order intake in the SDS subsidiary was very pleasing, not the least due to
an additional substantial new order. This particular time, from one of the
larger countries in West Africa. The order value of this individual order was
USD 2.3 million. Revenues in the subsidiary showed an increase of 20 percent, to
SEK 18.8 million, and the net profit ended up at SEK 6.3 million.
The Seamless eProducts Sweden subsidiary (with the subsidiaries Seamless
eProducts Latvia and Seamless eProducts Denmark) i.e. our business segment
eProducts/Distribution, has increased its revenues by 3 percent and earnings by
34 percent, to SEK -1.4 million. We expect a significantly higher growth rate
over the remainder of the year.
The SEQR subsidiary has yet to show any significant increase in revenue, but the
transactions continue to increase significantly. Compared with the first quarter
of 2015, the growth in this quarter was approx. 70 percent. In SEQR, earnings
sharply improved by 32 percent, to an EBIT of SEK -19.5 million. We expect that
revenues for the year will improve significantly compared to 2015, and that we
will see an increase in revenues in each of the remaining quarters.
It is worth noting that Contactless/NFC technology was launched during the
quarter and was released for testing by a limited group of consumers. This
technology means that SEQR will be accepted, at the time of writing, at
approximately 35 million outlets around the world. The technology solves the
larges bottleneck that SEQR has had to face so far, namely that the number of
sales points that accept SEQR has been somewhat limited. Sweden has been very
slow to embrace this technology, but the banks and retail trade have jointly
decided to introduce it during 2016. What this means in practical terms is that
SEQR users, right from the day we put the technology into production, can pay
with it in Sweden, for instance at ICA. In most other countries, including the
UK as an example, almost every large chain accepts contactless/NFC payments.
Many years of work have started to bear fruit, beginning with last year, and we
look forward with great expectations to the company’s growth going forward.
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 April
22, 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 Interim Report 2016 for the period January– March 2016 has been
approved for publication by the Board of Directors, by its decision on April 22,
2016. This financial report has not subjected to a review by the Company’s
auditors.
