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Cint Group

Quarterly Report Feb 22, 2023

2902_10-k_2023-02-22_509b6125-3c66-47df-b388-a4d24c29bc18.pdf

Quarterly Report

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Group Year-end report

Challenging quarter impacted by weak demand and reversals

Highlights for the fourth quarter

  • Net sales increased by 79.5 percent to EUR 80.3m (44.8). On a pro forma basis(1) net sales increased by 6.6 percent (0.1 percent on constant currency basis).
  • Gross profit amounted to EUR 48.7m (22.7) with a gross margin of 60.6 percent (50.8). Gross profit pro forma 2021 amounted to EUR 46.7m corresponding to a margin of 62.0 percent.
  • Adjusted EBITDA amounted to EUR 13.5m (8.5) with an adjusted EBITDA margin of 16.8 percent (19.0) Adjusted EBITDA pro forma 2021 amounted to EUR 11.5m corresponding to a margin of 15.2 percent.
  • EPS, before dilution amounted to EUR -1.60 (-0.07).
  • Adjusted EPS, before dilution amounted to EUR 0.05 (0.02).

Highlights for the period January – December

  • Net sales increased by 112.5 percent to EUR 295.2m (138.9). On a pro forma basis net sales increased by 21.2 percent (12.9 percent on constant currency basis).
  • Gross profit amounted to EUR 183.3m (71.2) with a gross margin of 62.1 percent (51.2). Gross profit pro forma 2021 amounted to EUR 150.4m corresponding to a margin of 62.8 percent.
  • Adjusted EBITDA amounted to EUR 48.8m (25.8) with an adjusted EBITDA margin of 16.5 percent (18.6). Adjusted EBITDA pro forma 2021 amounted to EUR 36.1m corresponding to a margin of 15.1 percent.
  • EPS, before dilution amounted to EUR –1.66 (-0.04).
  • Adjusted EPS, before dilution amounted to EUR 0.14 (0.12).
  • The board of directors will propose to the AGM 2023 that no dividend shall be paid to shareholders.

Significant events during and after the end of the fourth quarter

  • In November 2022, Olivier Lefranc assumed the position as CFO, to replace Britta Mittler who was interim CFO.
  • In January 2023, Cint announced an upcoming change of CEO. Tom Buehlmann will leave his position and the board of directors have appointed Giles Palmer as new CEO as of 1 April 2023.
  • In January 2023, at an EGM, Cint's shareholders decided to approve a proposal regarding a new LTIP-program for management and key employees.
  • In February 2023, Cint issued a trading update regarding net sales and results for the fourth quarter 2022.
  • Impairment test of goodwill for the fourth quarter resulted in a non-cash impairment amounting to EUR 341m. For more information, please refer to note 7.
Pro forma(1)
KEUR 2022
Oct-Dec
2021
Oct-Dec
2022
Jan-Dec
2021
Jan-Dec
2021
Oct-Dec
Net sales 80,341 44,755 295,188 138,925 75,364
Net sales growth 79.5% 41.6% 112.5% 41.4% -
Gross profit 48,724 22,741 183,307 71,155 46,745
Gross margin 60.6% 50.8% 62.1% 51.2% 62.0%
EBITDA 8,192 -9,348 27,534 6,060 -
EBITDA margin 10.2% -20.9% 9.3% 4.4% -
Adjusted EBITDA 13,532 8,484 48,778 25,821 11,472
Adjusted EBITDA margin 16.8% 19.0% 16.5% 18.6% 15.2%
FX gain/loss on operating items -688 589 -426 1,193 588
EPS, before dilution -1.60 -0.07 -1.66 -0.04 -
Adjusted EPS, before dilution 0.05 0.02 0.14 0.12 -
Net debt 56,397 36,498 56,397 36,498 -

(1) Pro forma figures include Cint organic and Lucid

Comments by the CEO

We closed 2022 with an uncharacteristically weak quarter. Pro forma, net sales increased with 6.6 percent compared to last year (0.1 percent in constant currency). This was not in line with our expectations and reflects a rapid drop in activity during the latter half of the quarter—this very much driven by the overall macro situation. Going forward, rebuilding revenue momentum is clearly our top priority. Further to this, the quarter was impacted by a spike of reversals. Taking each factor in turn:

  • The macro-economic context led many clients to lower their market research spend well beyond our expectations. This trend was noticeable in all regions and customer segments. We expect the overall macro environment to remain challenging.
  • The second factor affecting our sales was higher reversal rates than in previous quarters. Fraudulent behavior increased substantially during the last quarter of the year. This has been an industry issue for some time but has worsened recently. Like with all fraud, the perpetrators evolve their methodologies continuously, making previous technical stopgaps less effective. As an industry leader, Cint is at the forefront of quality in our industry. To that end, we are bringing together relevant parties in the industry to address this issue. We are also actively enhancing our technical and partner solutions to better identify and prevent fraud, which will get us back to normalized levels of reversals.

Our gross margin amounted to 60.6 percent (62.0 on pro-forma basis), reflecting an underlying change in product mix as well as price pressure in some geographies. Despite gross margin and sales volumes being lower than expected, EBITDA adjusted for items affecting comparability, amounted to EUR 13.5m in the quarter. This corresponds to a margin of 16.8 percent compared to 15.2 percent on a pro forma basis for the same period last year. We are pleased that, even in challenging conditions, we continue delivering on our synergy and cost-control programs.

The quarter's net profit was impacted by a non-cash impairment of goodwill amounting to EUR -341m, reflecting increased interest rates, inflation and macroeconomic factors. This does not in any way reflect our belief in the underlying potential of the merger.

Cint launched several initiatives during the fall to increase our working capital efficiency, with a special focus on accounts receivable. This has contributed positively to our cash flow management.

The quarter also saw something of an increase in integration efforts which had a higher than expected impact on daily business. It has been challenging, but we remain on track with the integration workstreams and on delivering our OPEX synergies. In the fourth quarter, we continued work on a common platform for our people, processes and systems. In the quarter we also initiated the implementation of a new unified product road-map. This will consume substantial time and resources during 2023 and is a fundamental building-block to future success. As previously communicated, the non-recurring integration costs and run-rate synergy value from the integration are expected to amount to EUR 40m each.

The fundamentals of Cint are strong. We remain confident that our combined product offering will allow us to benefit markedly once marketing spend returns to more normal levels. As reflected in our medium term goals, sustainable high growth leads to sustainable, high profit. It is our belief Cint will navigate the present turbulent times and emerge positioned to deliver fully on the shareholder values identified as part of the Lucid/Cint merger.

This is my last report as CEO of the company. I believe strongly in Cint, our proposition and our teams. Equally, I am convinced that my successor Giles Palmer will lead Cint to great future success and long-term shareholder value.

Tom Buehlmann CEO, Cint

About Cint

Cint is a global software leader in technology-enabled insights. The Cint platform automates the insights gathering process so that companies can gain access to insights faster with unparalleled scale. Cint has one of the world's largest consumer networks for digital survey-based research, made up of more than 266 million engaged respondents across more than 130 countries. More than 4,900 insights-driven companies – including SurveyMonkey, Zappi, Kantar and GfK – use Cint to accelerate how they gather consumer insights and supercharge business growth.

In December 2021, Cint completed the acquisition of US-based Lucid – a programmatic research technology platform that provides access to first –party survey data in over 110 countries. Bringing together Cint's European heritage, broad audience reach, and enterprise transformation capabilities with Lucid's deep access to US consumers and Media Measurement solutions will make the combined organization a global leader in technology-enabled insights.

Financial targets

  • Cint aims to maintain an annual organic net sales growth of at least 25 percent in the medium term
  • Cint aims to achieve an EBITDA margin of at least 25 percent in the medium term.
  • Cint aims to reinvest cash flows into growth initiatives and as such will not pay annual dividends in the short term.

Net sales by region (Q4-2022)

Group Financial Overview

The acquisition of Lucid was closed on 29 December 2021 and Lucid Group has been fully consolidated from the start of the fiscal year 2022.

Net Sales

Net sales in the quarter increased by 79.5 percent to EUR 80.3m (44.8). Pro forma sales growth was 6.6 percent and 0.1 percent excluding currency effects. Sales from Lucid added EUR 36.1m to net sales in the quarter. Organic growth was 0.9 percent (31.9) and organic growth excluding currency effects was -3.2 percent (27.6). The quarter was impacted by weak demand, driven by a challenging macro-economic environment and a significant increase in reversals (delivered completes that are deemed fraudulent). The increase of reversals in Q4'22 versus Q4'21 negatively impacted revenue growth by approximately 5 percentage points. Net sales for the full year increased by 112.5 percent to EUR 295.2m (138.9). Pro forma sales growth for the full year was 21.2 percent and 12.9 percent excluding currency effects.

Gross Profit

Gross profit in the quarter was EUR 48.7m (22.7) and the gross margin was 60.6 percent (50.8). Gross profit for the full year was EUR 183.3m (71.2) and the gross margin was 62.1 percent (51.2). The higher gross margin in 2022 is primarily driven by the acquisition of Lucid.

EBITDA and Adjusted EBITDA

EBITDA in the quarter amounted to EUR 8.2m (-9.3) and the EBITDA margin was 10.2 percent (-20.9). Items affecting comparability for the quarter, totalled EUR 5.3m (17.8) and were mainly costs related to the integration of Lucid. Adjusting for these items, the EBITDA amounted to EUR 13.5m (8.5) and the adjusted EBITDA margin was 16.8 percent (19.0). Adjusted EBITDA, excluding the FX effect from the revaluation of operating balance sheet items, amounted to EUR 14.2m (7.9) corresponding to a margin of 17.7 percent (17.6).

During the first quarter 2022 a new share option program was launched. The total cost for this program, in accordance with IFRS 2, was EUR 2.7m (-) for the full year. In the fourth quarter an adjustment of the retention assumption was done in the calculation, resulting in a positive effect in the income statement of EUR 0.8m in total. The impact from the IFRS valuation is included in the personnel expense line in the income statement. For more details about the program please refer to page 6.

EBITDA for the full year amounted to EUR 27.5m (6.1) and the EBITDA margin was 9.3 percent (4.4). Deducting items affecting comparability for the period of EUR 21.2m (19.8) the adjusted EBITDA amounted to EUR 48.8m (25.8) and the adjusted EBITDA margin was 16.5 percent (18.6). Adjusted EBITDA, excluding the FX effect from the revaluation of operating balance sheet items, amounted to EUR 49.2m (24.6) corresponding to a margin of 16.7 percent (17.7).

The margin is lower this year compared to last year as a consequence of the acquisition and consolidation of Lucid. Legacy Cint was in 2021 operating on a higher EBITDA margin than Lucid. On a pro forma basis, the adjusted EBITDA margin improved from 15.2 percent in the fourth quarter 2021 to 16.8 percent in the same quarter 2022 and from 15.1 percent to 16.5 percent for the full year.

Non-recurring items

To enable a more accurate tracking of the underlying performance, items affecting comparability, or nonrecurring items, are excluded from Adjusted EBITDA. In the quarter, in total EUR 5.3m (17.8) was adjusted for of which integration costs amounted to EUR 5.3m (-).

Non-recurring items for the full year was EUR 21.2m (19.8) of which EUR 20.2m (-) was related to integration cost. These costs are recognized in the respective line in the income statement. Please refer to note 10 Alternative Performance Measures for details of the non-recurring items split by line and category.

Profit and Earnings Per Share

The operating profit in the quarter amounted to EUR - 344.4m (-12.0) with an operating margin of -428.7 percent (-26.7), impacted by a non-cash impairment of goodwill of EUR -341m. Operating profit for the full year amounted to EUR -357.5m (-3.1) with an operating margin of -121.1 percent (-2.3).

Profit for the quarter amounted to EUR -341.0m (-11.2) and EPS (basic and diluted) was EUR -1.60 (-0.07). Adjusted EPS (basic and diluted) was EUR 0.05 (0.02).

Profit for the full year amounted to EUR -352.9m (-3.2) and EPS (basic and diluted) was EUR -1.66 (-0.04). Adjusted EPS (basic and diluted) was EUR 0.14 (0.12).

Cash flow and investments

Operating cash flow before changes in working capital in the quarter was EUR -1.7m (-10.2). The Group's operating cash flow before changes in working capital for the full year was EUR 16.7m (3.5).

Cash flow from changes in working capital was EUR 7.2m (-31.1) in the quarter. The positive change mainly related to efficiency measures taken during the end of the year, including higher focus on managing payment terms and conditions in relation to both payables and receivables. Cash flow from changes in working capital for the full year was EUR -10.0m (-41.5).

Cash flow from investing activities for the quarter amounted to EUR -5.1m (-455.5) and to EUR -18.1m (-482.9) for the full year. The same period last year was mainly impacted by the acquisition of Lucid. Investments in intangible fixed assets amounted to EUR -4.0m (-2.1) in the quarter and consisted of capitalized development costs for the platform, investments in new features and functions to support future growth. Investments in intangible fixed assets for the full year amounted to EUR -16.2m (-9.5). The increase compared with last year is mainly due to the acquisition and consolidation of Lucid.

Investments in tangible fixed assets amounted to EUR –1.1m (0.0) in the quarter. Investments in tangible fixed assets for the full year amounted to EUR -1.9m (-0.3). For details on the depreciation and amortization, please refer to note 7.

Cash flow from financing activities amounted to EUR -1.6m (526.7) in the quarter. The cash flow impact for the quarter was related to payments of financial lease liabilities amounting to EUR -1.1m (-0.2). The negative impact from share-based payments amounted to EUR -0.5m in the quarter and relates to re-purchase of warrants from the long-term incentive programs. Cash flow from financing activities for the full year was EUR -2.0m (595.0). The cash flow impact for the year was related to proceeds from new long-term incentive programs launched in the beginning of the year, mitigated by the effect from re-purchase of warrants, with a total net effect of EUR 0.9m and to payments of lease liabilities of EUR -2.9m (-1.1). The fourth quarter last year was mainly impacted by transactions related to the acquisition of Lucid.

The net cash flow in the quarter was EUR -1.1m (29.8) and for the full year to -13.4m (74.1). The current year was negatively impacted by payments of transaction cost in the first quarter related to the acquisition of Lucid, amounting to approximately EUR 14.4m.

Net working capital

Net working capital amounted to EUR 21.5m (11.1) at the end of the fourth quarter. The increase in net working capital compared to last year was mainly related to increase in business due to the acquisition of Lucid and general growth. The reduction of net working capital in the third and fourth quarter this year mainly related to efficiency measures taken during the year, including higher focus on managing payment terms and conditions in relation to both payables and receivables.

Net debt and financing activities

The Group ended the year with a total cash position of EUR 62.6m (77.7) and a total debt of EUR 119.0m (114.2). Net debt was EUR 56.4m at the end of the year compared to net debt of EUR 36.5m at the end of 2021. The increase in net debt compared to last year mainly relates to the strengthening of the USD impacting the external bank loan raised in USD. At the end of the fourth quarter the company complied with the covenants related to the external financing.

Capitalization

At the end of the quarter, total consolidated equity of the Group amounted to EUR 850.0m to be compared with EUR 1,147.9m at the end of 2021.

Currency effects

Due to the global nature of the business, the company is exposed to currency fluctuations with most of the net sales in USD and EUR and a large part of the operating expenses in SEK and USD.

During the quarter, net sales were impacted by EUR 1.9m (1.0) from currency fluctuations. On a pro forma basis, net sales were impacted by EUR 4.9m. Net sales for the full year were impacted by EUR 10.8m (-1.1). On a pro forma basis, net sales were impacted by EUR 17.5m.

The revaluation of balance sheet items had a negative impact on the result with an increase of total operating expenses of EUR -0.7m (0.6) during the quarter. For the full year, there was a negative impact of EUR -0.4m (1.2). This impact is included in both EBITDA and adjusted EBITDA.

Integration of Lucid

The integration project to fully combine Lucid with Cint was launched at the beginning of 2022. The initial analysis indicated annual run-rate EBITDA synergies of at least EUR 40m to be fully implemented within 24 months starting from 2022. The synergy potential is estimated to come from a combination of growth, COGS and OPEX synergies, with a majority coming from OPEX synergies. As mentioned earlier in the report, the integration is challenging but proceeding according to plan.

The cost for the integration is estimated to approximately EUR 40m. The integration cost is driven primarily by investments into new and upgraded CRM and ERP systems and processes, and people related costs such as project management and severance payments. Total integration costs for the quarter amounted to EUR 5.3m and EUR 21.2m for the full year.

Significant events during and after the quarter

In November 2022, Olivier Lefranc assumed the position as CFO. He replaced Britta Mittler who was interim CFO.

In January 2023, Cint announced an upcoming change of CEO. Tom Buehlmann will leave his position and the board of directors has appointed Giles Palmer as new CEO as of 1 April 2023.

In January 2023, Cint held an EGM on which the shareholders decided to approve the proposal regarding a new LTIP-programme for management and key employees.

In February 2023, Cint issued a trading update regarding net sales and results for the fourth quarter 2022.

Operating profit for the fourth quarter was impacted by non-cash impairment amounting to EUR -341m, for more information please refer to note 7.

Personnel

At the end of the period, the total number of FTEs (employees and consultants) was 1015 (455 excluding Lucid and 1051 including Lucid). The average number of FTEs in the quarter was 1008 (451). The total number of employees was 830 (306) at the end of the period. The average number of employees during the quarter was 823 (306).

Organizational updates

In addition to the above-mentioned changes in the CEO and CFO positions, in January 2023, Jake Wolff assumed the position as Chief Revenue Officer, replacing Jonathan Kurzner who has left the company.

In January 2023, Bregje Meuwissen was appointed new Chief Human Resources Officer. She will assume this position in March 2023.

Shares

On 28 October 2021, as part of the acquisition of Lucid, Cint registered the first tranche of the directed new share issue amounting to 13,076,200 shares.

On 29 December, as part of the acquisition of Lucid, Cint registered the second tranche of the directed new share issue amounting to 26,385,683 shares.

As of 31 December 2021, the total number of shares and votes was 176,683,686. The 36,292,902 consideration shares relating to the acquisition of Lucid were registered in January 2022.

As of 31 December 2022, the total number of shares and votes was 212,976,588.

Long-term share-based incentive programs

Two new long-term incentive programs, resolved on the extra general meeting held in December 2021, were launched in the first quarter 2022.

The warrant program is encompassing about 30 employees with maximum 4,259,532 number of warrants. Each warrant entitles the employee to subscribe for one share. The warrant program covers the period 2022/2024.

The share option program is encompassing about 70 employees with maximum 4,259,532 number of options. Each option entitles the employee to subscribe for one share subject to certain vesting criteria. The option program covers the period 2022/2025.

The right to participate in the warrant program and share option program shall rest with certain senior executives and key employees of the Group. Both programs were launched in the beginning of the first quarter 2022. For more information on the programs, please see note 6 in the Annual report.

Parent Company

The parent company's activities are focused on direct or indirect holding of shares in the operational subsidiaries. In addition, the parent company provides management services to the Group. At the end of the period, the parent company had six employees. The parent company has no external business activities, and the risks are mainly related to the operations of the subsidiaries.

The parent company's operating profit was SEK 20.0m (24.4) in the fourth quarter and SEK -3.2m (14.1) for the full year. The parent company's net result/loss was SEK -2,683.1m (32.7) in the quarter and -2,929.4m (24.6) for the full year. Net result was impacted by write-down of shares in subsidiaries of SEK 2,779.0m in the fourth quarter. The parent company's financial position by end of the year, measured in terms of total equity in relation to total assets ratio, was 86.4 percent (91.2) and it had a cash balance of SEK 2.6m (165.4).

Net sales development

Business segments

Net sales in the Marketplace segment amounted to EUR 68.3m (44.0) in the quarter. Sales from Lucid added EUR 25.4m to net sales. Organic growth was - 0.6 percent and on a pro forma basis, net sales increased by 3.2 percent. Marketplace gives customers instant programmatic connections to millions of global respondents to conduct costeffective digital market research at speed and scale, delivered through automated matching of survey criteria and deep profiling data. Net sales for the full year amounted to EUR 258.5m (136.5) and organic growth was 17.4 percent.

Net sales in the Media Measurement segment amounted to EUR 12.0m (0.7) in the quarter. Sales from Lucid added EUR 10.6m to net sales. Organic growth was 87.4 percent and on a pro forma basis, net sales increased by 31.2 percent. Media Measurement delivers proprietary brand lift metrics and daily survey results for customers to measure digital campaign effectiveness and optimize their media performance in real-time. Net sales for the full year amounted to EUR 36.6m (2.5) and organic growth was 59.5 percent.

Regional development

Net sales in the Americas region amounted to EUR 48.5m (20.4) in the quarter. Sales from Lucid added EUR 29.5m to net sales. Organic growth was -6.5 percent and on a pro forma basis, net sales increased by 6.9 percent. Net sales for the full year amounted to EUR 176.4m (62.7) and organic growth was 17.3 percent.

Net sales in EMEA amounted to EUR 25.1m (20.8) in the quarter. Sales from Lucid added EUR 4.3m. Organic growth was 4.5 percent and on a pro forma basis, net sales increased by 3.0 percent. Net sales for the full year amounted to EUR 95.4m (64.5) and organic growth was 16.4 percent.

Net sales in APAC amounted to EUR 6.8m (3.6) in the quarter. Sales from Lucid added EUR 2.3m to net sales. Organic growth was 23.1 percent and on a pro forma basis, net sales increased by 20.2 percent. Net sales for the full year amounted to EUR 23.4m (11.8) and organic growth was 31.7 percent.

Customer types

Net sales from tech-enabled insights companies amounted to EUR 22.8m (15.4). Sales from Lucid added EUR 6.5m to net sales. Organic growth was 6.5 percent and on a pro forma basis, net sales increased by 9.1 percent. Net sales for the year amounted to EUR 84.6m (51.0) and organic growth was 17.9 percent.

Net sales from established insights companies amounted to EUR 57.5m (29.4) in the quarter. Sales from Lucid added EUR 29.6m to net sales. Organic growth was -2.1 percent and on a pro forma basis net sales increased by 5.6 percent. Net sales for the year amounted to EUR 210.5m (88.0) and organic growth was 18.2 percent.

Operational Highlights

B2B customers

The total number of active customers was 4,940 by the end of the fourth quarter. This includes active customers from Lucid after removing overlapping accounts.

The total number of completed surveys during the last twelve months was 216 million, including contribution from Lucid in 2022.

The total number of connected consumers from Cint, and unique number of Lucid platform entrants (new and active in the last 12 months) was 266 million. Counting methodologies are different due to the different underlying business models.

Other information

Financial Calendar 2023

Annual report 2022 April 5, 2023
Interim Report Q1 May 3, 2023
Interim Report Q2 Jul 26, 2023
Interim Report Q3 Oct 25, 2023
Annual General Meeting May 9, 2023
in Stockholm

Conference call and webcast of the year-end 2022 report

CEO Tom Buehlmann and CFO Olivier Lefranc will present the results through a telephone conference which will be held at 09.30 CEST on 22 February. The conference call will also be available by webcast.

Telephone numbers

Please make sure you are connected to the phone conference by calling in a few minutes before the conference begins.

Sweden: +46 10 884 80 16 International: +44 20 3936 2999 Access code: 116 647

Link to the live broadcast: webcast The report will be available at Cint™ Investors in connection with the publication. The presentation will be available in connection to the conference call and a replay will be available at the site later the same day.

Financial statements

Condensed consolidated income statement

KEUR Note 2022
Oct-Dec
2021
Oct-Dec
2022
Jan-Dec
2021
Jan-Dec
Net Sales 4 80,341 44,755 295,188 138,925
Cost of services sold -31,617 -22,014 -111,881 -67,769
Capitalized development cost 3,984 2,081 15,994 7,826
Personnel expenses -26,454 -13,960 -105,598 -38,456
Other operating income 59 774 457 2,829
Other external expenses -18,120 -20,984 -66,626 -37,295
EBITDA 8,192 -9,348 27,534 6,060
Depreciation 7 -1,132 -410 -3,812 -1,476
EBITA 7,060 -9,757 23,723 4,584
Amortization and impairment 7 -351,462 -2,210 -381,270 -7,733
Operating profit/loss -344,402 -11,967 -357,548 -3,148
Net financial expenses 9 114 737 -4,986 2,086
Earnings before tax -344,287 -11,230 -362,534 -1,062
Income tax expense 3,301 15 9,621 -2,156
Profit/loss for the period -340,986 -11,215 -352,913 -3,218
Profit/loss for the period attributable to:
Parent Company shareholders -340,986 -11,215 -352,913 -3,218
2022
Oct-Dec
2021
Oct-Dec
2022
Jan-Dec
2021
Jan-Dec
Earnings per share before and after dilution, EUR 6 -1.60 -0.07 -1.66 -0.04

Condensed consolidated statement of other comprehensive income

2022
Oct-Dec
2021
Oct-Dec
2022
Jan-Dec
2021
Jan-Dec
Profit/loss for the period -340,986 -11,215 -352,913 -3,218
Other comprehensive income
Items that may be transferred to income
Exchange differences on translation of foreign operations -109,043 -7,062 60,861 -7,341
Hedge accounting of net investments 7,762 - -11,401 -
Tax effect from items in OCI -1,601 - 2,347 -
Other comprehensive income for the period -102,881 -7,062 51,807 -7,341
Total comprehensive income for the period -443,867 -18,277 -301,106 -10,559

Condensed consolidated statement of financial position

2022 2021
KEUR 31 Dec 31 Dec
ASSETS
Non-current assets
Goodwill 599,728 905,411
Other intangible assets 321,862 329,999
Right-of-use assets 4,895 5,522
Equipment, tools and installations 1,325 1,241
Other financial assets 1,030 1,107
Deferred tax assets 26,593 10,641
Total non-current assets 955,433 1,253,921
Current assets
Accounts receivable 104,501 91,136
Current tax assets 3,995 2,396
Other receivables 1,720 1,906
Prepaid expenses and accrued income 27,242 24,665
Cash and cash equivalents 62,609 77,674
Total current assets 200,067 197,777
TOTAL ASSETS 1,155,500 1,451,698
2022 2021
KEUR 31 Dec 31 Dec
EQUITY
Total equity attributable to the shareholders of the parent company 850,009 1,147,925
LIABILITIES
Non-current liabilities
Borrowings 114,226 108,869
Lease liabilities 2,435 3,073
Deferred tax liabilities 73,789 78,150
Total non-current liabilities 190,450 190,092
Current liabilities
Lease liabilities 2,346 2,230
Accounts payable 65,955 48,585
Current tax liabilities 777 4,802
Other current liabilities 3,843 4,459
Accrued expenses and deferred income 42,121 53,604
Total current liabilities 115,042 113,680
TOTAL EQUITY AND LIABILITIES 1,155,500 1,451,698

Condensed consolidated statement of changes in equity

Equity attributable to the equity holders of the parent company

Retained
earnings,
including
KEUR Share capital Additional
paid in capital
Reserves profit/loss for
the period
Total equity
Opening balance, 1 Jan 2021 1,300 143,383 -9,397 3,876 139,162
Profit/loss for the period Jan-Dec - - - -3,218 -3,218
Other comprehensive income - - -7,341 - -7,341
Total comprehensive income - - -7,341 -3,218 -10,559
New share issue 865 1,028,814 - - 1,029,679
Transaction cost net of tax - -12,310 - - -12,310
Share-based incentive program (IFRS 2) - 1,953 - - 1,953
Closing balance, 31 Dec 2021 2,165 1,161,840 -16,738 658 1,147,925
Profit/loss for the period Jan-Dec - - - -352,913 -352,913
Other comprehensive income - - 51,807 - 51,807
Total comprehensive income - - 51,807 -352,913 -301,106
Payments and disbursements share-based incentive program - 881 - - 881
Share-based incentive program (IFRS 2) - 2,309 - - 2,309
Closing balance, 31 Dec 2022 2,165 1,165,030 35,069 -352,255 850,009

Condensed consolidated statement of cash flows

KEUR 2022
Oct-Dec
2021
Oct-Dec
2022
Jan-Dec
2021
Jan-Dec
Cash flow from operating activities
Operating profit/loss -344,402 -11,967 -357,548 -3,148
Adjustments for non-cash items 348,376 2,591 386,963 8,234
Interest received - -3 - -
Interest paid -2,022 -25 -4,574 -151
Income tax paid -3,630 -825 -8,151 -1,391
Cash flow from operating activities before changes in working capital -1,678 -10,229 16,690 3,544
Change in accounts receivable -1,880 -7,937 -13,139 -17,621
Change in other current receivables 2,835 -4,066 -2,328 -372
Change in accounts payable 2,801 2,597 17,652 3,901
Change in other current liabilities 3,460 -21,703 -12,161 -27,373
Cash flow from changes in working capital 7,216 -31,110 -9,975 -41,465
Cash flow from operating activities 5,538 -41,338 6,715 -37,921
Cash flow from investing activites
Acquisitions of intangible assets -3,981 -2,084 -16,214 -9,502
Acquisitions of tangible assets -1,092 43 -1,851 -301
Acquistions of entites - -453,446 - -473,133
Cash flow from investing activities -5,073 -455,487 -18,065 -482,936
Cash flow from financing activities
Bank overdraft facility - - - -5,310
Repayment of loans - -7,100 - -7,100
Repayment of lease liabilities -1,122 -228 -2,927 -1,128
New loan - 106,345 - 106,345
New shares issue - 436,965 - 512,537
Transaction cost new share issue - -9,328 - -12,310
Payments and disbursements share-based incentive program -473 - 881 1,953
Cash flow from financing activities -1,595 526,654 -2,046 594,987
Net cash flow -1,130 29,828 -13,396 74,129
Decrease/increase of cash and cash equivalents
Cash and cash equivalents at the beginning of the period 65,780 51,097 77,674 6,909
Currency translation difference in cash and cash equivalents -2,041 -3,251 -1,669 -3,364
Cash and cash equivalents at the end of the period 62,609 77,674 62,609 77,674

Condensed parent company income statement

KSEK 2022
Oct-Dec
2021
Oct-Dec
2022
Jan-Dec
2021
Jan-Dec
Net sales 49,840 39,745 198,268 80,324
Personnel expenses -2,390 -9,048 -53,975 -31,230
Other external expenses -27,457 -6,342 -147,470 -35,001
Operating profit/loss 19,993 24,356 -3,178 14,093
Write-down of shares in subsidiaries
Interest expenses and similar profit/loss items(1)
-2,779,000
76,495
-
-3
-2,779,000
-204,193
-
-32
Total net financial items -2,702,505 -3 -2,983,193 -32
Earnings before tax -2,682,512 24,353 -2,986,371 14,061
Taxes for the period -591 8,330 56,927 10,557
Net loss/profit for the period -2,683,103 32,682 -2,929,444 24,618

(1) For the Condensed parent company Income Statement, the Interest expenses has been adjusted for the full year figures compared with what was previously presented in the third quarter. Please refer to more information on page 17.

Condensed parent company balance sheet

KSEK 2022
31 Dec
2021
31 Dec
ASSETS
Non-current assets
Shares in subsidiary 9,459,578 12,238,578
Deferred tax assets 95,616 38,689
Intercompany non-current assets 279,137 268,656
Total non-current assets 9,834,331 12,545,923
Current assets
Intercompany receivables 459,826 200,497
Other current receivables 1,717 3,642
Prepaid expenses and accrued income 2,460 7,030
Total current receivables 464,003 211,169
Cash and cash equivalents 2,564 165,386
Total current assets 466,567 376,556
TOTAL ASSETS 10,300,898 12,922,478
2022 2021
KSEK 31 Dec 31 Dec
EQUITY AND LIABILITIES
Total restricted equity 21,298 21,298
Total non-restricted equity 8,883,429 11,760,017
Total equity 8,904,727 11,781,315
Non-current liabilities
External loan 1,243,046 1,087,580
Total non-current liabilities 1,243,046 1,087,580
Current liabilities
Accounts payable 2,687 31,688
Intercompany liabilities 119,786 1,382
Other liabilities 5,133 10,279
Accrued expenses and deferred income 25,519 10,235
Total current liabilities 153,125 53,583
TOTAL EQUITY AND LIABILITIES 10,300,898 12,922,478

Notes

Note 1 General information

Cint Group AB (publ) ("Cint"), Corp. Reg. No 559040-3217 is the Parent Company registered in Sweden with its main office in Stockholm at Luntmakargatan 18, 111 37 Stockholm, Sweden.

Unless otherwise stated, all amounts are in thousands of EUR (KEUR). Data in parentheses pertain to the comparative period.

This interim report was authorised for issue by the board of directors on 22 February 2023.

Note 2 Summary of significant accounting policies

Cint applies International Financial Reporting Standards (IFRS) as adopted by the EU. The accounting policies applied are consistent with those described in the 2021 Annual Report for Cint Group AB (publ) except for the new accounting principle mentioned below. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting.

The Parent Company's interim report has been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2. In the full year figures for the parent company income statement there has been a re-classifcation leading to an increase of interest cost in the financial net. Total adjustment amounts to SEK -27m.

New accounting principles

During the first quarter 2022, the company has implemented hedge accounting in accordance with IFRS 9 Financial Instruments. This means that currency effects from hedging instruments have been recorded in other comprehensive income. The purpose of this change is to hedge the translation differences from foreign entities and will make the financial reports more transparent and the Income statement less affected by currency impacts related to financing of the foreign entities. This change do not impact previous periods.

Segment reporting

Cint's chief operating decision maker (CODM) is represented by the chief executive officer (CEO) who monitors the operating result for the Group to manage the organisation and evaluate resources. The assessment of the Group's operation is based on the financial information reported to the CEO. The financial information reported to the CEO refers to the Group on a consolidated basis since the Group's offerings comprise the company's single platform. Therefore, the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements.

Earnings per share

(i) Earnings per share before dilution Basic earnings per share is calculated by dividing:

  • the income attributable to owners of the Parent Company, excluding any dividends attributable to preference shares
  • by the weighted average number of ordinary shares outstanding during the period, adjusted for bonus elements in ordinary shares issued during the year and excluding treasury shares.

(ii) Earnings per share after dilution

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

  • The after-income tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and
  • the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares

Estimation of fair value

In accordance with IFRS 9 certain financial instruments should be measured at fair value in the balance sheet. As defined for Level 3 in IFRS 9, the fair value is calculated according to inputs that are not based on observable market data. Due to the acquisition of GapFish in 2021 the Group has a financial liability in accordance with Level 3 of EUR 2.5m. The liability has a fair value estimation based on an assessment of amount and time of recognition.

Note 3 Risk and uncertainties

An account of the Group's material financial and business risks can be found in the administration report and under Note 3 in the 2021 Annual Report. The Covid-19 pandemic impacted all global markets during the fiscal year 2022 and the Group is following the situation on continuously basis. No direct effects have been noted on the company's financial performance yet but is continuously evaluated. Since the acquisition of Lucid is significant for the Group, there can be increased risks related to the integration. The risk preliminary identified is that the integration can be more complex and take longer time than anticipated. This is something that management will follow, and when needed, mitigate, and act on continuously during 2022. No further significant risks are deemed to have arisen during the period.

Note 4 Distribution of net sales

2022 2021 2022 2021
Net sales by region Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Americas 48,521 20,387 176,414 62,694
EMEA 25,063 20,765 95,388 64,461
APAC 6,757 3,602 23,387 11,769
Total 80,341 44,755 295,188 138,925
2022 2021 2022 2021
Net sales by customer type Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Established insights companies 57,533 29,399 210,544 87,961
Tech-enabled companies 22,808 15,356 84,644 50,963
Total 80,341 44,755 295,188 138,925
2022 2021 2022 2021
Net sales by business segment Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Marketplace 68,295 44,009 258,544 136,454
Media measurement 12,046 746 36,644 2,470
Total 80,341 44,755 295,188 138,925

Note 5 Related party transactions

No transactions between Cint and related parties that materially affected the financial position or results have taken place, except for a transaction with shareholders in February 2021 in relation to a conversion of a loan of EUR 5.5m into new shares.

Note 6 Earnings per share

2022
Oct-Dec
2021
Oct-Dec
2022
Jan-Dec
2021
Jan-Dec
Earnings per share before dilution, EUR -1.60 -0.07 -1.66 -0.04
Earnings per share after dilution, EUR -1.60 -0.07 -1.66 -0.04
Calculation of earnings per share:
Earnings attributable to Parent Company shareholders, KEUR -340,986 -11,215 -352,913 -3,218
Interest attributable to preference shares, KEUR - - - -2,581
Total -340,986 -11,215 -352,913 -5,799
Weighted average number of ordinary shares 212,976,588 159,093,231 212,976,588 133,533,618
Number of potential shares from warrants - 961,845 - 432,933
2022
Oct-Dec
2021
Oct-Dec
2022
Jan-Dec
2021
Jan-Dec
Adjusted Earnings per share before dilution, EUR 0.05 0.02 0.14 0.12
Adjusted Earnings per share after dilution, EUR 0.05 0.02 0.14 0.11
Calculation of adjusted earnings per share(1)
Earnings attributable to Parent Company shareholders, KEUR -340,986 -11,215 -352,913 -3,218
Adjustment for items affecting comparability(2), KEUR 4,240 14,158 16,868 15,690
Add-back of amortization of intangible assets from acquisitions(2), KEUR 347,418 843 366,447 2,934
Total 10,671 3,786 30,402 15,406
Weighted average number of ordinary shares 212,976,588 159,093,231 212,976,588 133,533,618
Number of potential shares from warrants - 961,845 - 432,933

(1) Following the conversion of preference shares to ordinary shares during the quarter, part of the IPO process, interest attributable to preference shares have been excluded from the adjusted EPS calculation and weighted numbers have been recalculated for improved comparability going forward

(2) Net of tax effect

Note 7 Depreciations, amortizations and impairments

KEUR 2022
Oct-Dec
2021
Oct-Dec
2022
Jan-Dec
2021
Jan-Dec
EBITDA 8,192 -9,348 27,534 6,060
Depreciations -1,132 -410 -3,812 -1,476
EBITA 7,060 -9,757 23,723 4,584
Amortization of capitalized development cost -2,036 -1,112 -7,066 -3,912
Amortization of acquisition-related assets -8,657 -1,098 -33,435 -3,820
Impairment of goodwill -340,769 0 -340,769 0
Operating profit/loss -344,402 -11,967 -357,548 -3,148

The Group annually reviews goodwill for impairment in accordance with the accounting policy described in note 2 in the Annual report. In the fourth quarter 2022 an impairment test for the Group was carried out. This resulted in a total goodwill impairment of EUR -341m which has been recognized within the line Amortization and Impairment in the Condensed consolidated income statement for the Group. The impairment of goodwill is a result of increased interests rates, inflation and external macro-economic factors.

Note 8 Acquisition of entities

Acquisition of Lucid Holdings LLC

On 29 December, Cint acquired 100 percent of the shares in Lucid. Since the impact on the income statement between closing and 31 December 2021 was concluded to be not significant, the Lucid group was consolidated from 31 December 2021. There was consequently no impact in the income statement from Lucid in the fiscal year 2021.

The preliminary consideration amounted to USD 1,070m, on a cash and debt free basis. At the time of the closing the total consideration was EUR 985.0m whereof EUR 503.7m related to the issue of 36,292,902 new shares in Cint based on the share price as per 29 December 2021 and EUR 481.3m was paid in cash. The cash consideration was also impacted by a positive currency adjustment from a hedge amounting to EUR 19.3m. The cash consideration was financed by USD 120m (EUR 106.3m) debt financing and from the directed share issue in two tranches in a total amount of SEK 4,400m (EUR 437.0m) which was announced by Cint on 28 October 2021.

The purchase price allocation for Lucid is now closed and the final figures presented below. The adjustment done compared with the preliminary purchase price allocation is related to calculation of final tax for 2021 amounting to EUR 10.4m and to an update of accrual for external cost for concultancy, amounting to EUR 0.5m. The purchase price allocation indicates a reported goodwill of EUR 771.3m and refers mainly to future profit generation and future synergies. The integration between Cint and Lucid organizations started directly after the transaction date. Other intangibles amount to EUR 271.4m and relates to technology (EUR 182.3m), customer relations (EUR 67.8m) and brand (EUR 21.2m).

2021 Financial Performance Lucid Group 2021
Jan-Mar
2021
Apr-Jun
2021
Jul-Sep
2021
Oct-Dec
2021
FY
Net sales 20,847 24,508 25,951 31,519 102,826
Gross profit 16,300 18,997 20,737 23,882 79,916
Gross margin, % 78.2% 77.5% 79.9% 75.8% 77.7%
Adjusted EBITDA 2,755 2,865 2,326 2,822 10,768
Adjusted EBITA margin, % 13.2% 11.7% 9.0% 9.0% 10.5%

The deviation between the above data compared to data published in the Q4 2021 report is related to updated exchange rates.

Acquisition cost

Acquisition-related expenses for Lucid amounted to EUR 17.8m.

Fair value of acquired net assets - acquisitions financial 2021 Lucid

Intangible assets 271,393
Proprietary software 8,384
Right-of-use assets 47,219
Other non-current assets 4,350
Current receivables 8,410
Cash and cash equivalents 27,846
Deferred tax liabilities -60,207
Other non-current liabilities -10,013
Current liabilities -83,686
Total acquired net assets 213,696
Distribution of purchase consideration
Paid through share issue 503,745
Purchase consideration paid 481,292
Total purchase consideration 985,037
Fair value of acquired net assets 213,696
Goodwill 771,341
Effect on cash and cash equivalents attributable to acquisition
Purchase consideration paid 481,292
Cash and cash equivalents in acquired company 27,846
Total effect on cash flow of completed acquisitions 453,446
Estimated sales and profit/loss from acquired companies if they had been wholly owned for the entire 2021 financial year
Net sales 102,826
Profit/loss for the year -32,260

The deviation between the above income statement data for Lucid compared to data published in the Q4 2021 report is related to updated exchange rates. Also, Profit/loss for the year is updated with final tax calculations.

Note 9 Financial income and expenses

KEUR 2022
Oct-Dec
2021
Oct-Dec
2022
Jan-Dec
2021
Jan-Dec
Interest income 361 4 514 115
Interest expenses -2,373 -25 -5,088 -151
Realized and unrealized currency effects 2,126 758 -413 2,122
Financial income/expenses net 114 737 -4,986 2,086

Note 10 Alternative Performance Measures

Certain information in this report that management and analysts use to assess the Group's development is not defined in IFRS. Management believes that this information makes it easier for investors to analyse the Group's earnings trend and financial position. Investors should consider this information as a supplement to, rather than a replacement of, the financial reporting in accordance with IFRS.

Alternative performance measures
Definition
Net sales growth
Change in net sales compared to same
period previous year.
Reason for use of measures
The measure shows growth in net sales
compared to the same period during
previous year. The measure is a key ratio for
a company within a growth industry.
Organic net sales growth Change in net sales compared to same
period previous year adjusted for
acquisitions/divestments/discontinued
businesses.
The measure shows growth in net sales
adjusted for acquisitions, divestments and
discontinued business during the last 12
months. Acquired businesses are included
in organic growth once they have been part
of the Group for four quarters. The measure
is used to analyse underlying growth in net
sales.
Gross profit Net sales for the period reduced by the
total cost of services sold.
Gross profit is the profit after deducting the
costs associated with providing the ser
vices.
Gross margin Gross profit as a percentage of net sales. The measure is an indicator of a company's
gross earning ability.
EBITDA Operating profit/loss before depreciation,
amortization and impairment.
Operating profit/loss before depreciation,
amortization and impairment on tangible
and intangible non-current assets. The
purpose is to assess the Group's ope
rational activities. EBITDA is a supplement to
opera-ting income.
EBITDA margin EBITDA in relation to the Company's
net sales.
EBITDA in relation to net sales. To readers
of financial reports, the measure is an
indicator of a company's earning ability.
EBITA Operating profit/loss before amortization
of intangible non-current assets.
Operating profit/loss before amortization of
intangible non-current assets. The purpose
is to assess the Group's operational activi
ties. EBITA is a supplement to operating
income.
EBITA margin EBITA in relation to the Company's net
sales.
EBITA in relation to net sales. To readers of
financial reports, the measure is an indicator
of a company's earning ability.
Operating profit/loss
Profit for the period before financial income,
financial expenses and tax
Net sales less total operating expenses.
Operating profit is relevant for investors to
understand the earnings trend before int
erest and tax
Operating margin Operating profit/loss in percentage of
net sales.
Operating profit/loss in percentage of net
sales. To readers of financial reports, the
measure is an indicator of a company's
earning ability.
Items affecting comparability Significant and unusual items. Refers to items that are reported separately
as they are of a significant nature, affect
comparison and are considered unusual to
the Group's ordinary operations. Examples
are acquisition-related expenses and rest
ructuring costs.
Adjusted EBITDA Operating profit/loss before depreciation,
amortization and impairment adjusted
for items affecting comparability.
EBITDA adjusted for items affecting comp
arability. The purpose is to show EBITDA
excluding items that affect comparison with
other periods.
Adjusted EBITDA margin Adjusted EBITDA in relation to the
Company's net sales.
Adjusted EBITDA in relation to net sales. To
readers of financial reports, the measure is
an indicator of a company's earning ability.
Adjusted EBITA Operating profit/loss before amortization
and impairment and not amortization of in
tangible assets from acquisitions adjusted
for items affecting comparability.
EBITA adjusted for items affecting comp
arability. The purpose is to show EBITA
excluding items that affect comparison with
other periods.
Adjusted EBITA margin Adjusted EBITA in relation to the Company's
net sales.
Adjusted EBITA in relation to net sales. To
readers of financial reports, the measure is
an indicator of a company's earning ability.
Adjusted operating profit Operating profit/loss adjusted for items
affecting comparability.
Operating profit/loss according to the
income statement before items affecting
comparability. The measure is a supple
ment to operating profit/loss adjusted for
items affecting comparison. The purpose is
to show the operating profit/loss excluding
items that affect comparison with other
periods.
Adjusted operating margin Adjusted operating profit/loss in relation
to the Company's net sales.
Adjusted operating profit/loss in relation to
net sales. To readers of financial reports, the
measure is an indicator of a company's ear
ning ability.
Adjusted earnings per share (EPS) Profit/loss for the period adjusted for items
affecting comparability (net of tax effect),
add-back of amortization of intangible ass
ets from acquisitions (net of tax effect) and
interest attributable to preference share.
Adjusted EPS shows the company's under
lying operative profit generation capability
per share.
Net debt Interest-bearing non-current and
current liabilities less financial assets.
The measure shows the Company's real
level of debt.
Net working capital Current assets less current liabilities The measure is used since it shows the tie
up of short-term capital in the operations
and
facilitates
the
understanding
of
changes in the cash flow from operating
activities
B2B customers Total registered as new and active
customers in the last 12 months
-
Connected consumers Total registered as new and active panel
lists in the last 12 months
-
Total customer spend Total amount spent and processed on the
platforms including total project value and
any take-rates or fees
-
Pro forma Pro forma figures include Cint organic and
Lucid. The applied accounting principles for
the pro forma figures is IFRS.
The pro forma figures are shown during the
first year after the acquisitions since the
acquisitions of Lucid is material from a
financial perspective. The pro forma figures
give
accurate comparison between the
periods and shows the development in the
business.
2022 2021 2022 2021
Alternative performance measures, KEUR Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Net sales previous period 44,755 31,603 138,925 98,284
Net sales current period 80,341 44,755 295,188 138,925
Net sales growth 79.5% 41.6% 112.5% 41.4%
Whereof acquired and discontinued net sales previous period 910 - 2,279 -
Whereof acquired and discontinued net sales current period 36,085 3,080 133,788 6,520
Net sales excluding acquired and discontinued net sales previous period 43,844 31,603 136,646 98,284
Net sales excluding acquired and discontinued net sales current period 44,256 41,674 161,401 132,404
Organic growth 0.9% 31.9% 18.1% 34.7%
Of which currency effects 1,872 1,045 10,766 -1,100
Organic growth excluding currency effects, % -3.2% 27.6% 9.5% 36.2%
Net sales previous period 44,755 31,603 138,925 98,284
Net sales current period 80,341 44,755 295,188 138,925
Net sales growth 79.5% 41.6% 112.5% 41.4%
Whereof discontinued Russian business previous period 910 n/a 2,279 n/a
Adding Lucid previous period 31,519 n/a 102,826 n/a
Whereof discontinued Russian business current period -0 n/a 4,988 n/a
Net sales Cint organic and Lucid previous period 75,364 n/a 239,472 n/a
Net sales Cint organic and Lucid current period 80,341 n/a 290,200 n/a
Pro forma growth 6.6% n/a 21.2% n/a
Of which currency effects 4,903 n/a 17,478 n/a
Pro forma growth excluding currency effects, % 0.1% n/a 12.9% n/a
Net sales 80,341 44,755 295,188 138,925
Cost of services sold -31,617 -22,014 -111,881 -67,769
Gross profit 48,724 22,741 183,307 71,155
Gross margin 60.6% 50.8% 62.1% 51.2%
Total customer spend 112,351 48,121 411,489 149,624
Net sales 80,341 44,755 295,188 138,925
Operating profit/loss -344,402 -11,967 -357,548 -3,148
Operating margin, % -428.7% -26.7% -121.1% -2.3%
Amortization and write-offs of acquisition-related intangible assets 349,426 1,098 374,204 3,820
Amortization of capitalized development expenses 2,036 1,112 7,066 3,912
EBITA 7,060 -9,757 23,723 4,584
EBITA margin, % 8.8% -21.8% 8.0% 3.3%
Depreciation of tangible non-current assets 1,132 410 3,812 1,476
EBITDA 8,192 -9,348 27,534 6,060
EBITDA margin, % 10.2% -20.9% 9.3% 4.4%
Items affecting comparability (by line in Income statement)
Personnel expenses 1,298 2,987 5,474 4,429
Other operating income - - - -1,340
Other external expenses 4,041 14,844 15,770 16,673
Items affecting comparability (by line in Income statement) 5,339 17,831 21,244 19,761
Items affecting comparability (by category)
Cost for strategic projects - 17,831 449 21,101
Integration costs 5,332 - 20,159 -
Covid related US PPP loans - - - -1,340
Other 8 - 637 -
Items affecting comparability (by category) 5,339 17,831 21,244 19,761
FX gain/loss on operating balance sheet items -688 589 -426 1,193
Adjusted operating profit -339,062 5,864 -336,304 16,612
Adjusted operating margin, % -422.0% 13.1% -113.9% 12.0%
Adjusted EBITA 12,400 8,074 44,966 24,345
Adjusted EBITA margin, % 15.4% 18.0% 15.2% 17.5%
Adjusted EBITDA 13,532 8,484 48,778 25,821
Adjusted EBITDA margin, % 16.8% 19.0% 16.5% 18.6%
Adjusted EBITDA, excl FX gain/loss on operating balance sheet items 14,219 7,895 49,204 24,628
Adjusted EBITDA margin, excl FX gain/loss on operating balance sheet items, % 17.7% 17.6% 16.7% 17.7%
Accounts receivable 104,501 91,136 104,501 91,136
Other current receivable 28,962 26,571 28,962 26,571
Accounts payable -65,954 -48,585 -65,954 -48,585
Other current liabilities -45,964 -58,064 -45,964 -58,064
Net working capital 21,544 11,059 21,544 11,059
Other interest-bearing liabilities (Borrowings) 114,226 108,869 114,226 108,869
Lease liabilities - Long term 2,435 3,073 2,435 3,073
Lease liabilities - Short term 2,346 2,230 2,346 2,230
Total interest-bearing debt 119,006 114,172 119,006 114,172
Cash and cash equivalents 62,609 77,674 62,609 77,674
Net debt 56,397 36,498 56,397 36,498

Note 11 Historical quarterly financial information

The board of directors and executive management of Cint believes that the information provided below is of material importance to investors. Unless stated otherwise, the information and the calculations below derive from the Company's internal accounts and has neither been audited nor reviewed by the Company's auditor.

2022 2021 2020
KEUR Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4
Net sales 80,341 74,319 73,187 67,342 44,755 34,280 31,744 28,147 31,603
Net sales growth, % 79.5% 116.8% 130.6% 139.3% 41.6% 44.6% 45.5% 33.1% 34.0%
Gross profit 48,724 47,134 46,165 41,284 22,741 17,457 16,460 14,497 16,449
Gross margin, % 60.6% 63.4% 63.1% 61.3% 50.8% 50.9% 51.9% 51.5% 52.1%
EBITDA 8,192 8,223 7,452 3,666 -9,348 6,547 5,737 3,124 2,892
EBITDA margin, % 10.2% 11.1% 10.2% 5.4% -20.9% 19.1% 18.1% 11.1% 9.2%
Adjusted EBITDA 13,532 14,136 12,974 8,136 8,484 6,639 5,163 5,535 5,540
Adjusted EBITDA margin, % 16.8% 19.0% 17.7% 12.1% 19.0% 19.4% 16.3% 19.7% 17.5%
Non-recurring items 5,339 5,913 5,522 4,470 17,831 92 -574 2,411 2,647
Operating profit/loss -344,402 -3,352 -2,504 -7,290 -11,967 3,958 3,683 1,177 1,045
Operating margin, % -428.7% -4.5% -3.4% -10.8% -26.7% 11.5% 11.6% 4.2% 3.3%
Rolling 12-month
Net sales 295,188 259,602 219,563 178,120 138,925 125,773 115,207 105,285 98,284
Gross profit 183,307 157,325 127,647 97,943 71,155 64,863 59,435 54,110 50,966
EBITDA 27,534 9,994 8,318 6,602 6,060 18,300 15,379 13,361 13,311
Adjusted EBITDA 48,778 43,730 36,233 28,422 25,821 22,877 20,082 18,638 16,273
Gross margin, % 62.1% 60.6% 58.1% 55.0% 51.2% 51.6% 51.6% 51.4% 51.9%
EBITDA margin, % 9.3% 3.8% 3.8% 3.7% 4.4% 14.6% 13.3% 12.7% 13.5%
Adjusted EBITDA margin, % 16.5% 16.8% 16.5% 16.0% 18.6% 18.2% 17.4% 17.7% 16.6%

Stockholm 22 February 2023

Cint Group AB (publ)

Tom Buehlmann, CEO

For more information, please contact: Olivier Lefranc, CFO Tel: +33 615 01 00 55 Email: [email protected]

Patrik Linzenbold, Head of IR Tel: +46 708 252 630 Email: [email protected]

This report has not been subject to review by the company's independent auditor.

This disclosure contains information that Cint Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 CET on 22 February 2023.

This report is published in Swedish and English. In case of any differences between the English version and the Swedish original text, the Swedish version shall apply.

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