Observer AB (publ) Interim report January-June 2005

Gradual Improvement in Sales in Europe Generated Two Percent Growth in Second Quarter

STOCKHOLM, Sweden, Aug. 05, 2005 (PRIMEZONE) -- Observer AB:

 -- The Group's operating revenue rose to SEK 856.0 million (811.4). 
    Exchange rate effects from the translation to Swedish kronor 
    affected revenue negatively by SEK 12 million compared with the 
    corresponding period of the previous year. Organic growth in local 
    currency was 1 percent (-1). In the second quarter, organic growth 
    reached 2 percent.

 -- Operating profit, EBIT, amounted to SEK 86.2 million (99.5). 
    Exchange rate effects impacted profit negatively by SEK 3.4 
    million compared with the year-on-year period. The operating 
    margin was 10.1 percent (12.3).

 -- Earnings per share amounted to SEK 0.70 (0.84). Profit after 
    financial items amounted to SEK 59.3 million (77.0) and net profit 
    was SEK 49.1 million (58.7).

 -- Operating cash flow amounted to SEK 76.4 million (115.5).

Comment by Observer CEO Robert Lundberg:

"We are achieving greater success with our integrated services, and the positive growth in the second quarter is gratifying. We are not pleased with the profit trend, of course, and will maintain cost controls. In order to attain significant margin improvements, however, we have to benefit from our intensive service development and thereby increase revenues. The U.K. and Germany returned to positive growth in the second quarter. In the Nordic region we are close to reaching positive growth. U.S. operations continue to show a positive development and we are reaching our financial objectives in spite of temporarily higher costs in the second quarter. In the Nordic region the margin is hampered by weak top-line development, coupled with tough competition and a high development rate."

Financial report schedule:

November 1, 2005 Interim report January-September 2005

Further comments on the report will be provided at a telephone conference with Observer AB's management at 15 pm (CEsT) on August 5. To participate, please dial one of the following numbers:

U.K. dial in number: +44 (0)207 162 0179

U.S. dial in number: (334) 323-6203

Swedish dial in number: +46 8 505 201 14

(Please note that even when calling from Stockholm you have to dial the area code "08")

State password: "Observer"

 Observer AB			SE-114 88 Stockholm
 Corp. Identity No: SE556027951401	Telephone: +46 8 507 410 00

Observer is the world's leading company in media monitoring and communication evaluation. Observer's services enable the clients to identify relevant target groups, distribute information, monitor their coverage and evaluate their communication.

Observer AB is quoted on the Attract 40 section of Stockholmsborsen's O-list and has approximately 24,000 shareholders. The company has around 2,600 employees and a turnover of slightly over SEK 1.6 billion in 2004. Observer operates in the US, UK, Sweden, Canada, Germany, Norway, Finland, Denmark, Portugal, Ireland, Estonia, Latvia and Lithuania.

This information was brought to you by Waymaker

The Full Q2 Report is available for download: Full Q2 report


Contact Data