ASIAKASTIETO GROUP PLC, INSIDE INFORMATION 27 MARCH 2020 at 1.00 P.M. EET
Asiakastieto Group cancels its guidance for 2020 due to potential COVID-19 impacts and economic uncertainty
Due to the COVID-19 pandemic, severe and extensive restrictions have been placed on state level in the Nordic countries. In this situation, it is impossible to reliably predict the potential impact on Asiakastieto Group’s revenue and adjusted EBITDA. The situation is also likely to affect the levels of capitalised expenditure. Once visibility on the development of economic activity in the main markets of Asiakastieto Group improves and the significant uncertainties have cleared, Asiakastieto Group will update the outlook and issue a new guidance.
The year 2020 has started strongly, and our business objectives have been met as anticipated. However, the general economic situation and decreased customer activity are expected to decrease the demand and have an effect also on the demand of Asiakastieto’s services. As the anticipated likelihood and duration of the current situation are unknown, exact effects are impossible to evaluate.
Approximately 25 % of Asiakastieto Group’s planned adjusted EBITDA impacting cost base is variable in nature and driven by the business volume and performance, while the remaining 75 % is fixed in nature. Due to the uncertain outlook, we will adjust our planned fixed cost base by 5 million euros during the rest of the year to secure short-term profitability and cash flow. We continue to invest in product and software development, while however preparing to reprioritise the development portfolio to secure short-term cash generation if the economic environment so requires. Asiakastieto Group’s executive management team follows and evaluates the situation constantly and takes further actions if required.
Previously published 2020 outlook
Net sales: Asiakastieto Group expects its net sales growth in 2020 to be close to the upper limit of its long-term target range (5-10 %), weighted to the first half of the year.
EBITDA: Asiakastieto Group expects its adjusted EBITDA margin to grow somewhat in 2020 in comparison to previous year.
Capital expenditure: Asiakastieto Group expects its capitalised product development and software expenses in 2020 to exceed the previous year’s level.
The outlook is based on the assumption that exchange rates prevail at the current level.
ASIAKASTIETO GROUP PLC
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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 Finland under the brand Suomen Asiakastieto and in Sweden under the brand UC. Our annual net sales for 2019 was EUR 146 million and the number of employees was approximately 420. 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 trading code ATG1V. More information about Asiakastieto Group is available at www.asiakastieto.fi and www.uc.se.