Asiakastieto Group Plc: ASIAKASTIETO GROUP'S INTERIM REPORT 1.1. - 31.3.2015

20/05/2015

Asiakastieto Group_Q1_2015_Interim report

Asiakastieto Group Plc, stock exchange release 20 May 2015, 10.00 a.m. EEST

ASIAKASTIETO GROUP'S INTERIM REPORT 1.1. - 31.3.2015

The clients' interest in new and value-added services which increase the efficiency of their business processes keeps Asiakastieto Group on growth path.

SUMMARY

The figures presented in this interim report are unaudited.

January-March 2015 in short

  • Net sales amounted to EUR 10,5 million (EUR 10,4 million), an increase of 1,6 %.
  • Adjusted EBIT excluding non-recurring items was EUR 4,3 million (EUR 4,8 million).
  • Operating profit (EBIT) was EUR 2,1 million (EUR 4,7 million). Operating profit included non-recurring expenses of EUR 2,2 million (EUR 0,1 million), mostly relating to the Company's listing.
  • The share of new products and services of net sales was 4,8 % (5,3 %).
  • The share of value-added services of net sales was 57,9 % (55,8 %).
  • Free cash flow amounted to EUR 3,3 million (EUR 5,5 million). The impact of non-recurring items on free cash flow was EUR -1,4 million (EUR -0,0 million).
  • Earnings per share were EUR 0,09 (EUR -0,13).

Future outlook

Asiakastieto Group expects its full-year net sales in 2015 to grow compared to 2014.

Jukka Ruuska, CEO

"In the first part of the year 2015, there were no signs of recovery in the Finnish economy. The number of consumers and companies having payment defaults is at a record high level, and the business activity by operating enterprises has not increased significantly. Despite this, the net sales of Asiakastieto Group have grown compared with the corresponding period of the previous year, and generally the first quarter met our expectations. Our client companies have a need to increase the efficiency of their risk management as well as their sales and business processes, and they have increasingly used our value-added services.

In the first quarter of the year, the net sales of Asiakastieto Group amounted to EUR 10,5 million (EUR 10,4 million), an increase of 1,6 % as compared to the previous year. Net sales in the Business Information, Consumer Information and Customer Management product areas increased, while there was a decline in the net sales of Certificates and Analyses.

The adjusted operating profit (EBIT) of Asiakastieto Group in the first quarter was EUR 4,3 million (EUR 4,8 million). Operating profit (EBIT) included non-recurring costs of EUR 2,2 million, mainly relating to the listing of Asiakastieto Group Plc. The profitability of the business was also affected by non-capitalised development work relating to IT infrastructure in the first quarter. Furthermore, the increase in net sales during the first quarter of the 2015 was mainly generated by services based on external databases, where each data search made by a customer increases data acquisition costs incurred by Asiakastieto Group. The increase in depreciation and amortisation reflects the Group's increasing capital expenditure generating growth by developing new services that improve the efficiency of the business processes of our customers. For the rest of the year, the development of new services will particularly focus on services utilising our own database.

We expect that the listing in the stock exchange completed at the end of March will bring Asiakastieto Group increased positive visibility, awareness and public reliability and create natural opportunities to expand the business also by acquisitions. We strongly believe that our customers will continue to increase the efficiency of their decision-making and marketing through the automation of their processes. According to our long-term strategic goals, Asiakastieto Group wants to be a pioneer in this digitalisation and by its own activities demonstrate the functionality of its services. During the first months of the year 2015, we have already seen that our efforts in the development of products and services have been successful."

Key figures

Key income statement and cash flow figures
EUR million
1.1.- 31.3.2015 1.1.- 31.3.2014 1.1.- 31.12.2014
       
Net sales 10,5 10,4 41,4
Growth of net sales, %1 1,6 -2,9 0,1
       
EBITDA 2,7 5,2 19,7
Operating profit (EBIT) 2,1 4,7 17,6
       
Adjusted EBITDA² 4,9 5,2 20,6
Adjusted EBITDA margin, %2 46,2 50,4 49,8
         
Adjusted EBIT2 4,3 4,8 18,6
Adjusted EBIT margin, %2 40,6 45,8 45,0
       
Net sales from new products and services 0,5 0,6 2,8
New products and services share of net sales, % 4,8 5,3 6,7
       
Net sales from value-added services 6,1 5,8 23,2
Value-added services share of net sales, % 57,9 55,8 56,1
       
Free cash flow3 3,3 5,5 16,8
Cash conversion, %3 123,2 106,6 85,3
       
       
Key balance sheet ratios
EUR million
1.1.- 31.3.2015 1.1.- 31.3.2014 1.1.- 31.12.2014
       
Net debt to adjusted EBITDA, x4 3,0 8,8 3,0
Gearing, %4 87,3 neg. 95,8
Equity ratio, %4 47,2 -52,2 46,7
       

1 The growth of net sales for the period from 1 January to 31 March 2014 has been calculated by comparing the net sales of the period to the net sales in the comparative quarter in 2013.

2 Adjusted key figures are adjusted by non-recurring items. Non-recurring items include management fees which the Company has paid to Investcorp, the former owner of the Company, until the listing of the Company for certain ongoing advisory services, costs relating to the listing, an expense relating to the discount given to the personnel in the personnel offering, fees for legal and other advisory services, redundancy payments and compensations paid. Non-recurring items were EUR -2,2 million for the interim period 1 January - 31 March 2015, EUR -0,1 million for the interim period 1 January - 31 March 2014 and EUR -1,0 million for the annual financial period 1 January - 31 December 2014.

3 The impact of non-recurring items on free cash flow was EUR -1,4 million for the interim period 1 January - 31 March 2015, EUR -0,0 million for the interim period 1 January- 31 March 2014 and EUR -0,3 million for the annual financial period 1 January - 31 December 2014.

4 Key figures for the interim period 1 January - 31 March 2015 are not comparable to figures presented for the period 1 January - 31 March 2014 due to the change in the capital structure and the refinancing of indebtedness carried out by the Company at the end of 2014.

BUSINESS OVERVIEW                                                                                                                   

Asiakastieto Group Plc (the "Company") is a Finnish public limited liability company and the parent company for Asiakastieto Group ("Asiakastieto Group" or the "Group"). Suomen Asiakastieto Oy is the operating company in the group.

Asiakastieto Group is one of the leading Finnish providers of business and consumer information services. The Group's products and services are primarily used for risk management, finance and administration, decision-making and sales and marketing purposes. The Group serves several industries, the largest of which include finance and banking, insurance, telecommunication and wholesale and retail sectors.

The services provided by the Group are based on a comprehensive database which combines data from several public data sources as well as through the Group's own data acquisition channels. The database provides a base for the Group services ranging from individual reports to advanced risk management solutions.

The Group's products and services are divided into four product areas:

  1. Business Information: Risk management and general business information services which are mainly used by businesses serving corporate customers.
     
  2. Consumer Information: Risk management information and services on private individuals and real estates. The products and services of Consumer Information are mainly used by businesses serving consumer customers.
     
  3. Customer Management: Services for the prospecting of potential customers as well as for sales and marketing purposes. The products and services of Customer Management are mainly used by businesses serving corporate customers.
     
  4. Certificates and Analyses: Credit rating certificates, company and industry analyses, and printed products concerning risk management information.

FUTURE OUTLOOK

Asiakastieto Group expects its full-year net sales in 2015 to grow compared to 2014.

The outlook is subject to risks related to, among other factors, the development of the Finnish economy and the business operations of the Group. The most significant risks related to business operations include for example risks related to the success of product and service development activities, launches of new products and services and risks related to losing significant customer accounts.

Asiakastieto Group's business risks have been described in more detail on the Company's investor pages at investors.asiakastieto.fi.

Helsinki, on 20 May 2015

ASIAKASTIETO GROUP PLC
Board of Directors

For further information
Jukka Ruuska, CEO, Asiakastieto Group Plc, tel. +358 10 270 7111

DISTRIBUTION
NASDAQ OMX Helsinki Ltd
major media
investors.asiakastieto.fi