PERFORMANCE 2013
The Eniro Group’s total operating revenue for 2013 amounted to SEK 3,588 M (3,999), a decrease by 10 per cent (-7). Revenue decreased organically by 9 per cent (-10).
Operating revenue from Eniro’s multiscreen channels (Desktop Search, Mobile Search and Campaign products) decreased by 3 per cent to SEK 2,29510 M (2,358). Organic growth displayed a decrease of 1 per cent (3). Operating revenue from Desktop Search decreased by 10 per cent and amounted to SEK 1,77410 M (1,977); the revenue decreased organically by 910 per cent (-3). Revenue from Mobile Search increased by 87 per cent to SEK 275 M (147); revenue increased organically by 90 per cent (116). Campaign products increased by 5 per cent to SEK 246 M (234); revenue increased organically by 7 per cent (26). Other products increased by 27 per cent to SEK 97 M (132); revenue increased organically by 1 per cent (-14).
Operating revenue from Print amounted to SEK 50710 M (740), a decrease of 31 per cent. Print decreased organically by 29 per cent (-33). Operating revenue for Voice decreased by 10 per cent to SEK 689 M (769). Organic revenue decreased by 15 per cent (-13).
EBITDA amounted to SEK 777 M (976) which corresponds to a margin of 21.7 per cent (24.4), distributed over SEK 598 M (777) in EBITDA for Local Search, SEK 251 M (279) for Voice and SEK -72 M (-80) for other Group functions.
Adjusted EBITDA, excluding restructuring costs and other items affecting comparability, amounted to SEK 884 M (976), which corresponds to a margin of 24.6 per cent (24.4). Other items affecting comparability had a positive net effect on adjusted EBITDA. The positive effect is primarily attributable to restructuring costs.
Operating income amounted to SEK 462 M compared with SEK 481 M the year before. As the market trend for Voice is assessed to continue to decline, an impairment loss has been charged to Voice in Norway (1880/1888) in an amount of SEK 91 M (-). An impairment loss of approximately SEK 8 M (-) has been applied regarding goodwill to the company Leta and SEK 5 M (-) charged to goodwill for Local Search. The impairment loss of SEK 12 M in 2012 was attributable to an impairment of IT-projects.
Net financial items amounted to SEK -142 M (-140 including SEK 154 M in capital gain) and was positively affected by lower interest rate levels and a lower leverage. Exchange rate differences impacted net financial items positively by SEK 39 M (-7).
Income before tax for the year was SEK 320 M (341).
The reported tax cost for the year was SEK -141 M (-100). The effective tax rate for the year was 44 per cent (29).
Net income for the year was SEK 179 M (241) of which SEK 177 M (241) is attributable to shareholders of the Parent Company.
10
In the comparison of operating revenue between 2013 and 2012, operating revenues for 2013 is not updated to reflect the distribution of Other products made in conjunction with the annual financial statements 2014. This means that operating revenues for Desktop Search, Print and Other Products differ for 2013 in the comparison between 2014-2013 and 2013-2012.
FINANCIAL POSITION
In 2013, total assets decreased by approximately 9 per cent to SEK 8,174 M (8,944).
The Group’s intangible assets amounted to SEK 6,948 M (7,330), of which goodwill accounted for SEK 5,763 M (6,124) after the goodwill impairment for the year of SEK 103 M (0). Brands with an indefinite useful life amounted to SEK 112 M (923). During the fourth quarter, a reclassification was made of the Gule Sider and Ditt Distrikt brands from indefinite useful life to a finite useful life of 5-10 years, which explains the change from the preceding year. The reclassification contributed to an increase in other brands to SEK 804 M (22). Changes during the year in property, plant and equipment and intangible non-current assets are explained by negative currency effects of SEK -326 M, customary depreciation/amortization of SEK 211 M (483), and an impairment loss of SEK 104 M (12).
Investments, primarily in product development, amounted to SEK 157 M (122) during the year. The change in other assets is due to an increase in bank balances pledged as collateral for credit insurance with PRI
Pensionsgaranti in an amount of SEK 50 M (61). Total pledged funds including return amounted to approximately SEK 111 M (61) at year-end.
Trade receivables amounted to SEK 430 M (560); the reduction is attributable to lower sales.
Shareholders’ equity increased by SEK 123 M to SEK 3,666 M (3,543) at year-end. No dividend was paid to holders of ordinary shares during the year. The established dividend to preference shareholders according to the 2013 Annual General Meeting of SEK 48 M reduced shareholders’ equity. At December 31, shareholders’ equity per share amounted to SEK 35.56 (35.02) and the equity/assets ratio was 45 per cent (40).
Group interest-bearing net debt amounted to SEK 2,340 M (2,704). Borrowing decreased by SEK 399 M after the year’s planned repayments, reductions upon a change in loan agreements and currency effects. Interest-bearing net debt relative to adjusted EBITDA, excluding items affecting comparability, was 2.6 (2.8). At year-end, outstanding debt under existing credit facilities amounted to NOK 452 M (1,114), DKK 90 M (57) and SEK 1,943 M (1,599). In December 2013, Eniro had a utilized credit facility of SEK 133 M (165). Cash and cash equivalents and unutilized credit facilities amounted to SEK 246 M (363).
Prepaid revenue amounted to SEK 620 M (852), a decrease of 27 per cent. CASH FLOW
Operating cash flow increased to SEK 329 M (299). The trend in working capital was negative, by SEK 91 M (- 66). Working capital was affected by lower sales, which meant lower trade receivables and advance payments. Cash flow from investing activities was SEK -119 M (-51) and included the receipt of deferred consideration from 2010 for a divested operation in Finland and investments in operations for a net total of SEK -152 M (-121). Cash flow from financing activities was SEK -440 M (-730) and is attributable to a net decrease in loan debt of SEK 342 M (-1,021) and paid dividends on preference shares of SEK -48 M (-24). Long-term investments increased by an additional SEK -50 M (-61) and pertain to pledged bank funds for continued credit insurance with PRI Pensionsgaranti. Cash flow for the period was SEK -78 M (-361).