Interim report January-March 2011

Interim report January-March 2011

 


  · Operating revenues amounted to SEK 966 M (1,267), an organic decline
of 13 percent 
  · EBITDA amounted to SEK 120 M (170)
  · Net income amounted to SEK -53 M (6)
  · Net income per share amounted to SEK -0.53 (0.37)
  · Operating cash flow amounted to SEK -78 M (-61)
  · Unchanged forecast for 2011 and 2012

Table included in attached PDF file

Johan Lindgren, Eniro's President and CEO, commented:
“Our plan for turning around the revenue development proceeds according
to schedule. Revenues for the first quarter were down 13 percent
organically due to weak demand for printed directories, and weak order
intake last year. The revenue development is an improvement from the
previous reporting period. Our goal to turn around the negative revenue
development by increasing the attractiveness of our core services,
implementing a broader offer and improving sales efficiency, while
having a more efficient cost structure, remains. There is however a
significant time lag from sales contact to revenue recognition, which
implies that of the revenues for 2011 around 40 percent were sold during
the preceding year.
A number of activities have been initiated to increase sales efficiency.
At the same time, the number of employees is aligned to the size of the
operations, and the pace of activities within product development has
been reduced to a sustainable level. We have an attractive product
portfolio and there is positive sentiment in the sales force. Mobile
services is presently our individually most successful offering in
Sweden and Norway, showing a strong growth of order intake, however from
low levels.
We are continuously improving our online offering. New versions of
eniro.se and gulesider.no with product search started to be sold in the
first quarter 2011 and in the second quarter this functionality will be
launched also in Denmark. We have also a new sponsored link platform,
Scandinavia Ad Network, and are starting to promote the new
business-to-business service Proff in all of Scandinavia.
Based on our order intake to date, our outlook remains firm. For 2011, a
single-digit organic revenue decline is expected. We estimate a
sequential improvement quarter by quarter with an exception of the
fourth quarter, which has more scheduled print publications. A turn
around to organic revenue growth is expected in 2012. Total cost
reductions are expected to be SEK 200 M in 2011. In 2012, the cost base
is estimated to be reduced by an additional SEK 200 M.”

For further information, please contact:  
Johan Lindgren, President and CEO
Tel: +46 8-553 310 01
Mattias Lundqvist, CFO
Tel: +46 70-555 14 90 
Lena Schattauer, Acting Head of IR
Tel: +46 70-595 51 00