STOCKHOLM, Sweden, Oct. 30, 2003 (PRIMEZONE) -- Observer AB:
Positive growth in North America during the third quarter. Organic growth improved slightly in the Nordic region and Germany.
-The group's operating revenue amounted to SEK 1,144.2 million (1,272.3). Exchange rate effects from the translation to Swedish kronor negatively affected revenue by SEK 83.3 million compared with the corresponding period of 2002. Organic growth in local currency was --4 percent. Organic growth has gradually improved and during the third quarter was --3 percent.
-Operating profit before goodwill amortization and items affecting comparability amounted to SEK 166.6 million (234.3). Exchange rate effects negatively affected profit by SEK 16.1 million compared with the corresponding period of 2002. The operating margin was 14.6 percent (18.4). The operating margin during the third quarter was 15 percent.
-The loss after tax for the period amounted to SEK --31.2 million (19.4). Profit per share after dilution, excluding goodwill amortization and items affecting comparability, was SEK 1.53 (2.21).
-Cash flow remains strong. Operating cash flow amounted to SEK 176.5 million (234.8).
-North America operations reported positive growth during the third quarter. Growth in the Nordic region improved slightly but remains negative. Growth improved in Germany as well, while the changeover to digital media monitoring has temporarily disrupted production in the UK.
Comment by Observer CEO Robert Lundberg: "I am pleased with our continued positive development in the US market and feel that the opportunities to strengthen our position there are good. We are also seeing positive signs in the British market, but the changeover to digital media monitoring will disrupt production for a while. Despite improvement in the Nordic region, that market has yet to bounce back. In Germany I see us gaining market share in what remains a tough market.
We are focusing on utilizing the opportunities that exist in our markets and completing the cost reduction work we decided on at the beginning of the year."
Observer AB (publ) Stockholm, October 30, 2003
Robert Lundberg President and CEO
Observer AB is quoted on the Attract 40 section of Stockholmsborsen's O-list and has approximately 26,000 shareholders. Observer is active in Business and Communication Intelligence and offers market monitoring and communication evaluation services. Customers, who are primarily in IR and PR, are also offered tools and channels for distribution and publication of business information.
Observer has around 2,400 employees and a turnover of SEK 1.7 billion in 2002. The company operates in the US, UK, Sweden, Canada, Germany, Norway, Finland, Denmark, Portugal, Ireland, Estonia, Latvia and Lithuania.
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