Asiakastieto Group's Interim Report 1.1. - 30.6.2015: Strong second quarter supports the growth of Asiakastieto Group

18/08/2015

Asiakastieto Group_Interim Report_Q2_2015

ASIAKASTIETO GROUP PLC, STOCK EXCHANGE RELEASE 18 AUGUST 2015, 01.00 P.M. EEST

Asiakastieto Group's Interim Report 1.1. - 30.6.2015: Strong second quarter supports the growth of Asiakastieto Group

SUMMARY

The figures presented in this interim report are unaudited.

April - June 2015 in short:

  • Net sales amounted to EUR 11,3 million (EUR 10,3 million), an increase of 9,7 %.
  • Adjusted EBIT excluding non-recurring items was EUR 4,7 million (EUR 4,4 million).
  • Operating profit (EBIT) was EUR 4,4 million (EUR 4,3 million). Operating profit included    non-recurring expenses of EUR 0,3 million (EUR 0,1 million).
  • The share of new products and services of net sales was 8,2 % (5,2 %).
  • The share of value-added services of net sales was 61,3 % (56,5 %).
  • Free cash flow amounted to EUR 1,9 million (EUR 2,9 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 0,21 (EUR -0,17).

Interim period January - June 2015 in short:

  • Net sales amounted to EUR 21,9 million (EUR 20,7 million), an increase of 5,6 %.
  • Adjusted EBIT excluding non-recurring items was EUR 9,0 million (EUR 9,1 million).
  • Operating profit (EBIT) was EUR 6,5 million (EUR 9,0 million). Operating profit included    non-recurring expenses of EUR 2,5 million (EUR 0,2 million), mostly relating to the Company's listing.
  • The share of new products and services of net sales was 6,6 % (5,3 %).
  • The share of value-added services of net sales was 59,7 % (56,2 %).
  • Free cash flow amounted to EUR 5,3 million (EUR 8,4 million). The impact of non-recurring items on free cash flow was EUR -2,8 million (EUR -0,1 million).
  • Earnings per share were EUR 0,30 (EUR -0,30).

Future outlook

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

JUKKA RUUSKA, CEO

"The development of the sales of Asiakastieto Group in the second quarter of the year was strong.  Volumes turned into slight growth, even though there were not yet significant changes to be seen in the number of transactions occurring between companies. The net sales of Asiakastieto Group increased in all product areas and amounted to EUR 11,3 million (EUR 10,3 million) in total. The growth of  9,7 per cent compared to the previous year was mainly due to a good demand of new services.

Asiakastieto Group builds also tailored services for its customers. These services are delivered as projects and they are recognised as revenue based on the stage of completion. Due to the characteristics of this business, the number and size of project deliveries may vary significantly from one period of time to another. Revenue from long-term service development projects recognised as well as additional deliveries relating to prior service development projects grew compared to the corresponding period of the previous year. This revenue is generated as ordinary course of business, but it is not expected to recur during the rest of the year, at least not in the same amount. Net sales also included sales that happened timewise to be recognised on the second quarter in a larger extent than in the previous year. 

The adjusted EBIT excluding non-recurring items was EUR 4,7 million (EUR 4,4 million). The increase in adjusted operating profit was particularly supported by the fact that our most successful new services were highly processed and based on our own database. On the other hand, the growth in revenue from real estate information services has led to an increase in information gathering expenses.

We expect that our new services to be launched during the latter half of the year, relating to decision making and acquisition of new customers, will respond to our client companies' need to digitalise their own businesses. We see, also in the future, a significant demand potential for SaaS-type (Software as a Service) services, which is an important part of our offering and which we are developing further. For example, by using the automatised 3D Decision Service intended for the stabilisation of credit risks and revenue, companies can rapidly and cost-effectively boost their processes for risk management, finance and administration and sales." 

KEY FIGURES

Key income statement and cash flow figures and ratios
EUR million
1.4. -  30.6.2015 1.4. -  30.6.2014 1.1. -  30.6.2015 1.1. -  30.6.2014 1.1. -  31.12.2014
           
Net sales 11,3 10,3 21,9 20,7 41,4
Growth of net sales, %1 9,7 -2,1 5,6 -2,5 0,1
           
EBITDA 4,9 4,8 7,6 10,0 19,7
Operating profit (EBIT) 4,4 4,3 6,5 9,0 17,6
           
Adjusted EBITDA2 5,3 4,9 10,1 10,1 20,6
Adjusted EBITDA margin, %2 46,4 47,4 46,3 48,9 49,8
             
Adjusted EBIT2 4,7 4,4 9,0 9,1 18,6
Adjusted EBIT margin, %2 41,5 42,4 41,1 44,1 45,0
           
Net sales from new products and services 0,9 0,5 1,4 1,1 2,8
New products and services share of net sales, % 8,2 5,2 6,6 5,3 6,7
           
Net sales from value-added services 7,0 5,8 13,1 11,6 23,2
Value-added services share of net sales, % 61,3 56,5 59,7 56,2 56,1
           
Free cash flow3 1,9 2,9 5,3 8,4 16,8
Cash conversion, %3 39,3 61,2 69,0 84,7 85,3
           
           
Key balance sheet ratios
EUR million
1.4. - 30.6.2015 1.4. - 30.6.2014 1.1. - 30.6.2015 1.1. - 30.6.2014 1.1. - 31.12.2014
           
Net debt to adjusted EBITDA, x4 2,7 9,8 2,8 9,5 3,0
Gearing, %4 79,2 neg. 79,2 neg. 95,8
Equity ratio, %4 48,8 -53,4 48,8 -53,4 46,7
           

____________________________________________________________________
1 The growth of net sales for periods from 1 April to 30 June 2014 and 1 January to 30 June 2014 has been calculated by comparing the net sales of the period to the net sales in the comparative period 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 -0,3 million for the second quarter 1 April - 30 June 2015, EUR -0,1 million for the comparative period 1 April - 30 June 2014, EUR -2,5 million for the interim period 1 January - 30 June 2015, EUR -0,2 million for the comparative period 1 January - 30 June 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 second quarter 1 April - 30 June 2015, EUR -0,0 million for the comparative period 1 April - 30 June 2014, EUR -2,8 million for the interim period 1 January - 30 June 2015, EUR -0,1 million for the comparative period 1 January - 30 June 2014 and EUR -0,3 million for the annual financial period 1 January - 31 December 2014.

4 Key figures for the second quarter 1 April - 30 June 2015 and for the interim period 1 January - 30 June 2015 are not comparable to figures presented for the periods 1 April - 30 June 2014 and 1 January - 30 June 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 gathered from several public data sources as well as through the Group's own data acquisition channels. The database provides a base for the Group's 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 competitive tenders and 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 18 August 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