Preliminary Information on Asiakastieto Group's Result for Q2 and Half Year Period of 2018

08/08/2018

ASIAKASTIETO GROUP PLC, STOCK EXCHANGE RELEASE 8 AUGUST 2018 AT 9.00 A.M. EEST

Preliminary Information on Asiakastieto Group's Result for Q2 and Half Year Period of 2018

With this Stock Exchange release, Asiakastieto Group Plc publishes preliminary information on the financial development in the second quarter and the half year period of 2018. In accordance with its previous notification, Asiakastieto will publish the Half Year Financial Report 1 January - 30 June 2018 on 31 August 2018. The figures in this release are unaudited.

PRELIMINARY INFORMATION ON THE FINANCIAL DEVELOPMENT

Asiakastieto Group continued on a growth track during the second quarter of 2018 with net sales growing 8,9% in comparison to the corresponding period of previous financial year. In addition to new services, net sales growth mostly concentrated on consumer information services as well as on the impact of the acquisition of Emaileri Oy. Adjusted EBITDA of the Group grew 0,6% during the second quarter of 2018 in comparison to the corresponding period of previous financial year. The more modest adjusted EBITDA growth was mainly due to net sales concentrating more on services with a variable data acquisition cost attached than during the corresponding period of previous financial year, as well as the Group's investments in IT systems and the marketing of new services. Operating profit (EBIT) of the Group during the second quarter of 2018 was EUR 1,0 million (EUR 5,8 million during the corresponding period of 2017) and included items affecting comparability of EUR 4,6 million (EUR 0,1 million during the corresponding period of 2017) mainly resulting from M&A and integration expenses relating to the acquisition of UC. The acquisition of UC completed at the end of the second quarter did not have an impact on the result for the period in question.

April - June 2018 in short

  • Net sales amounted to EUR 15,7 million (EUR 14,4 million), an increase of 8,9 %.
  • Adjusted EBITDA was EUR 6,6 million (EUR 6,6 million), an increase of 0,6 %.
  • Adjusted EBIT was EUR 5,6 million (EUR 5,9 million), a decrease of 3,9 %.
  • Operating profit (EBIT) was EUR 1,0 million (EUR 5,8 million). Operating profit included items affecting comparability of EUR 4,6 million (EUR 0,1 million) mainly resulting from M&A and integration expenses relating to the acquisition of UC. 
  • The share of new products and services of net sales was 10,5 % (15,6 %).
  • The share of value-added services of net sales was 71,5 % (70,6 %).1

January - June 2018 in short

  • Net sales amounted to EUR 30,8 million (EUR 28,3 million), an increase of 8,9 %.
  • Adjusted EBITDA was EUR 13,0 million (EUR 12,8 million), an increase of 2,0 %.
  • Adjusted EBIT was EUR 11,1 million (EUR 11,4 million), a decrease of 2,1 %.
  • Operating profit (EBIT) was EUR 5,2 million (EUR 11,2 million). Operating profit included items affecting comparability of EUR 5,9 million (EUR 0,1 million) mainly resulting from M&A and integration expenses relating to the acquisition of UC.
  • The share of new products and services of net sales was 10,1 % (15,3 %).
  • The share of value-added services of net sales was 71,0 % (70,0 %).1

1 The services of Emaileri Oy have been retroactively added to reported first quarter value added services.   

KEY FIGURES

  1.4. - 1.4. - 1.1. - 1.1. -
EUR million 30.6.2018 30.6.2017 30.6.2018 30.6.2017
Net sales 15,7 14,4 30,8 28,3
Net sales growth, % 8,9 12,2 8,9 13,8
Operating profit (EBIT) 1,0 5,8 5,2 11,2
EBIT margin, % 6,3 40,0 16,8 39,7
Adjusted EBITDA2 6,6 6,6 13,0 12,8
Adjusted EBITDA margin, %2 42,0 45,5 42,3 45,2
Adjusted operating profit (EBIT)2 5,6 5,9 11,1 11,4
Adjusted EBIT margin, %2 35,8 40,6 36,1 40,2
New products and services share of net sales, %3 10,5 15,6 10,1 15,3
         
         

2 The adjusted key figures have been calculated by adjusting the key figures with the following items: M&A and integration related expenses relating to corporate transactions, redundancy payments and compensations paid. The above listed adjusted items in the second quarter 1 April - 30 June 2018 were EUR 4,6 million, in the comparison period 1 April - 30 June 2017 EUR 0,1 million and in the half year period 1 January - 30 June 2018 EUR 5,9 million and in the comparison period 1 January - 30 June 2017 EUR 0,1 million.

3 The method used for calculating the share of new products and services, comparison data from the period 1 April - 30 June 2017 and the half year period 1 January - 30 June 2017 have been changed starting from 1 January 2018 so that the share includes the total sales of products launched during the past 24 months. Earlier, the share was calculated as the net sales of products and services launched during the past 12 months and added by the change in net sales of products and services launched during the preceding 12 months. The figures in accordance with the old calculation method in the second quarter 1 April - 30 June 2018 are 1,6 %, in the comparison period 1 April - 30 June 2017 10,4 %, and in the half year period 1 January - 30 June 2018 2,6 % and in the comparison period 1 January - 30 June 2017 9,2 %.   

UC ACQUISITION

On 24 April 2018, the Board of Directors of Asiakastieto Group Plc and the then owners of UC AB announced their agreement on the combination of the companies. The transaction was completed pursuant to the combination agreement on 29 June 2018 for a total consideration valued at EUR 338,9 million. The consideration consisted of EUR 98,8 million in cash and 8,828,343 newly issued shares in Asiakastieto. The consideration paid in shares has been determined based on the closing share price of EUR 27,20 on 29 June 2018 on Nasdaq Helsinki.  UC's balance sheet is combined with Asiakastieto's balance sheet from 30 June 2018, and the income statement figures from 1 July 2018 so that the impact of the acquisition on the result will be shown in full in the Group result to be reported of the third quarter of the year. More information about the impact of the UC acquisition on Asiakastieto's balance sheet will be given in Half Year Financial Report 1 January - 30 June 2018.

FUTURE OUTLOOK 2018

According to the outlook published by Asiakastieto Group on 29 June 2018, Asiakastieto Group expects its operating environment to remain stable in 2018 in its key markets in Finland and Sweden, and that it is able to initiate actions in the second half of the financial year to start to realise synergy benefits from the combination with UC AB.

PUBLICATION OF HALF YEAR FINANCIAL REPORT

Asiakastieto Group will publish its Half Year Financial Report on Friday 31 August 2018 at around 11.00 a.m. EEST and observes a silent period until that time. Asiakastieto will hold a news conference for analysts, investors and media in English on the same day at 2.00 p.m. EEST at the meeting room Tutka & Plotteri of Rantatie Business Park, address Verkkosaarenkatu 5, 00580 Helsinki.

You can follow the English webcast and conference call at:
http://qsb.webcast.fi/a/asiakastieto/asiakastieto_2018_0831_q2/

To participate in the conference call, please dial in using one of the numbers below and ID code:
Finland: +358 (0)9 7479 0360
Sweden: +46 (0)8 5033 6573
United Kingdom: +44 (0)330 336 9104
ID code: 301252

The presentation material will be available on the company's investor website investors.asiakastieto.fi/ at 1.45 p.m. and a recording of the webcast later during the day. To attend the news conference please contact Investor Relations Manager Pia Katila either via e-mail at pia.katila@asiakastieto.fi or by phone at +358 10 270 7506.

ASIAKASTIETO GROUP PLC

Additional information:
Jukka Ruuska
CEO
tel. +358 10 270 7111

Distribution:
Nasdaq Helsinki Ltd
major media
investors.asiakastieto.fi

Asiakastieto Group is one of the leading providers of digital business and consumer information services in the Nordic countries. The Group's products and services are primarily used for risk management, finance and administration, decision-making and sales and marketing purposes. We are operating in Sweden under the brand UC and in Finland under the brand Suomen Asiakastieto. The Group serves several industries, the largest ones including finance and banking as well as wholesale and retail sectors and expert service companies. Asiakastieto Group is listed on Nasdaq Helsinki with the ticker ATG1V. More information about Asiakastieto Group is available at www.asiakastieto.fi and UC.se.