Eniro Q2 2016: EBITDA continues to improve


Eniro’s new Board has during the last couple of months worked on an analysis of
the company’s businesses and capital structure. The work that was seen as
necessary to complete prior to the publication of the second quarter’s report
has now been finalised. After Eniro’s board meeting today, the Board has decided
to pre-pone the publication of the quarterly report to today, August 12, 2016 at
17.30 (CEST). The previously communicated date for the publication of the report
for the second quarter was August 24, 2016.
EBITDA continues to improve

Eniro continues to focus on increased efficiency. Total operating costs were SEK
374 M lower in the first half of 2016 compared with the same period last year.
EBITDA improved for the second consecutive quarter and amounted to SEK 116 M
(49), corresponding to a margin of 23.4% (7.7%). Adjusted EBITDA for the first
half of 2016 amounted to SEK 237 M (200), corresponding to an increase of 19%
and an adjusted EBITDA margin of 23.7% (15.8%). Revenue decreased by 22% during
the quarter compared with the same period last year, however, compared with the
first quarter, revenue development was more stable, with a decline of 2%.

Eniro’s new board of directors has initiated an in-depth analysis of the
company’s businesses and strategy. As part of this work, a decision was taken
during the quarter to perform new impairment testing of the company’s intangible
assets. The testing resulted in a need to recognise impairment losses of SEK
-873 M.

The Board of Directors has appointed Örjan Frid as new President and CEO of
Eniro AB. It is the Board’s assessment that new leadership is required in order
to successfully manage the necessary corporate change program that the new Board
envisages. The Board would like to thank Stefan Kercza for his valuable
contributions to the company in the role as CEO since 2014 and as a member of
Group Management since 2011.

Björn Björnsson, Chairman of the Board

SECOND QUARTER: APRIL–JUNE 2016

  · Total operating revenue amounted to SEK 496 M (634), a decrease of 22%.
  · Revenue from Desktop/Mobile search amounted to SEK 339 M (405), a decrease
of 16%.
  · Prepaid revenue amounted to SEK 468 M (564) as per June 30, 2016, a decrease
of 17%.
  · EBITDA grew 137% to SEK 116 M (49). The EBITDA margin was 23.4% (7.7%).
  · Adjusted EBITDA grew 23% to SEK 118 M (96).
  · Net income for the period was SEK -852 M (-1,185), an improvement of 28%.
  · Earnings per common share for the period were SEK -1.80 (-4.55) before
dilution and SEK -1.28 (-2.39) after dilution.
  · Cash flow from operating activities increased to SEK 59 M (-56).
  · The 2016 Annual General Meeting elected a new Board of Directors, consisting
of Björn Björnsson (Chairman), Joachim Berner, Örjan Frid and Ola Salmén. The
AGM also resolved in favor of a warrant program for the members of the Board of
Directors and senior executives.
  · Eniro’s new Board of Directors has initiated an in-depth analysis of the
company’s businesses and strategy. As part of this work, new impairment testing
was performed by the Board of the company’s intangible assets. A downward
adjustment of the anticipated revenue and earnings performance used in pervious
impairment tests and an elevated risk assessment, resulted in a need to
recognize impairment losses related to goodwill of SEK -873 M (1,111), impacting
earnings for the second quarter.
  · The new assumptions used in the asset valuation underline the importance of
the comprehensive review initiated by the Board and Group Management of e.g.,
the business model, corporate structure and capital structure.
  · Furthermore, the above-mentioned assumptions entail that further measures
are required in order for Eniro to live up to its loan covenants in the first
quarter of 2017.

HALF YEAR: jANUARY–JUNE 2016

  · Total operating revenue amounted to SEK 1,000 M (1,266), a decrease of 21%.
  · Revenue for Desktop/Mobile search amounted to SEK 695 M (835), a decrease of
17%.
  · EBITDA grew 77% to SEK 252 M (142). The EBITDA margin was 25.2% (11.2%).
  · Adjusted EBITDA grew 19% to SEK 237 M (200). The adjusted EBITDA margin was
23.7% (15.8%).
  · Net income for the period was SEK -854 M (-1,212), an improvement of 30%.
  · Earnings per common share for the period were SEK -1.84 (-6.81) before
dilution and SEK -1.30 (-2.94) after dilution.
  · Cash flow from operating activities increased to SEK 124 M (4).
  · Earnings include non-cash impairment losses of SEK -873 M (-1,111) for
goodwill.
  · Events after the end of the reporting period
  · The Board of Directors has appointed Örjan Frid as new President and CEO of
Eniro AB. It is the Board’s assessment that new leadership is required in order
to successfully manage the necessary corporate change program that the new Board
envisages. Mr. Frid will assume his position with immediate effect.
  · The Board of Directors has decided to terminate the employment contract of
Mr. Stefan Kercza. In accordance with Mr. Kercza’s employment contract he is
entitled to 6 months’ termination notice, if terminated by himself and 12
months’ termination notice when terminated by the Company. In addition, upon
contract termination, he is entitled to a severance payment amounting to 6
months’ salary, with deduction of salary from any other source.

Conference call / webcast
A web-cast telephone conference will be held at Monday 15 August, 11:00 CET. CEO
and President Örjan Frid and CFO Fredrik Sandelin will present the results for
the second quarter 2016. A possibility will be given to ask questions via the
webcast and follow the presentation material live. The webcast, which afterwards
also will be available on demand, will be accessible at
https://wonderland.videosync.fi/press-conference.

To participate in the conference call, and thereby be able to ask questions,
please call one of the following numbers:

SE: +46 (0) 8 5664 2690
or
UK: +44 (0) 20 3008 9804

The presentation material will be published before the conference starts on
Eniro’s website, www.enirogroup.com under Investor Relations. The webcast, and
later the recorded version of the webcast and the conference call, will also be
accessible via Eniro’s website.

For further information, please contact:
Björn Björnsson, Chairman of the Board, Tel.: +46-703 998 016
Fredrik Sandelin, CFO, tel: +46 (0) 8 553 310 00

Eniro AB (publ) is required to make this information public in accordance with
the Swedish Securities Market Act and/or the Financial Instruments Trading Act.
The information was released for publication on August 13, 2016, at 10.00AM
(CET).

Eniro is a leading search company for individuals and businesses in the Nordic
region. With quality-assured content and an unrivalled user experience Eniro
inspires local discoveries and makes local communities thrive. Eniro's content
is available through internet and mobile services, printed directories,
directory assistance and SMS services. Each week Eniro Group’s digital services
have 8.1 million unique visitors who perform 14.5 million searches. Eniro Group
has approximately 1,700 employees and operations in Sweden, Norway, Denmark,
Finland and Poland. The company is listed on Nasdaq OMX Stockholm [ENRO] and
headquartered in Stockholm. In 2015, revenues amounted to SEK 2,438 M, with a
profit before depreciation (EBITDA) of SEK 383 M. More on Eniro at
www.enirogroup.com

Attachments

08139416.pdf