Quarterly Report • Apr 24, 2018
Quarterly Report
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Net Insight AB (publ) reg.no. 556533-4397
"Launch of new generation Nimbra in the first quarter."
Fredrik Tumegård, CEO, Net Insight
| Jan–Mar | Jan–Mar | Apr 2017– | Jan–Dec | |||
|---|---|---|---|---|---|---|
| SEK millions | 2018 | 2017 | Change | Mar 2018 | 2017 | Change |
| Net sales by region | ||||||
| Western Europe | 48.2 | 48.0 | 0.3% | 194.2 | 194.1 | 0.1% |
| Americas | 36.9 | 33.8 | 9.2% | 137.3 | 134.2 | 2.3% |
| Rest of World | 25.4 | 28.6 | -11.1% | 95.5 | 98.7 | -3.2% |
| Net sales | 110.5 | 110.4 | 0.0% | 427.1 | 427.0 | 0.0% |
| Operating earnings | 2.4 | 6.8 | -63.9% | -11.9 | -7.5 | 57.3% |
| Operating margin | 2.2% | 6.1% | -2.8% | -1.8% | ||
| Net income | 3.0 | 11.2 | -73.5% | -4.7 | 3.5 | |
| EBITDA | -1.0 | -3.9 | -73.5% | -20.8 | -23.7 | -12.2% |
| EBITDA margin | -0.9% | -3.5% | -4.9% | -5.5% | ||
| Total cash flow | -13.5 | 15.3 | -65.5 | -36.8 | 78.1% |
2018 started with several highlights, even if market conditions remained cautious. The global media industry is undergoing a major realignment, both in terms of equipment and media networks. Customers need to continue to increase capacity to be able to produce relevant content and meet changing viewing patterns. One example of this rapid progress is the roll-out of 4K video, which increases the demands on quality and flexibility. Other examples include OTT, 360° video and virtual reality, as well as new services to viewers using multiple screens simultaneously.
In order to satisfy our customers' need for increased capacity, we launched Nimbra 1060, the next generation platform for media transport, in the first quarter. The development has taken place in close collaboration with customers in order to ensure the platform meets their future needs. This is one of our biggest launches ever, and has been very well received to date. Nimbra 1060 will help our customers to increase capacity in their media networks for a long time ahead. Increased capacity is a pre-requisite for creating more content, introducing new business models and increasing flexibility for the media production of the future. Nimbra 1060 was recently awarded "Best of Show by TV Technology" at the NAB trade fair in Las Vegas.
Revenues in the first quarter were SEK 110.5 (110.4) million, in line with the first quarter of 2017. Operating margin in the first quarter was 2 (6) percent, generating operating earnings of SEK 2.4 (6.8) million. Cash flow was SEK -13.5 (15.3) million, influenced by factors including investments in product development and the launch of Sye (Net Insight's live OTT solution).
The commercialization of Sye is continuing, and in the first quarter we announced that our live OTT streaming solution Sye will be available on Microsoft Azure. This means that Sye will be available as a service on Microsoft Azure from the second quarter 2018. In addition, Net Insight will be included in Microsoft's partner network, an important step towards increasing reach and accessibility on the global market.
In connection with the winter Olympics in South Korea, we contributed ScheduALL solutions for resource and transmission planning for TV production for NBC Olympics, a division of NBC Sports Group. The deal included software and staff on site. The project was very successful and the technology worked flawlessly.
Our assessment is that demand has stabilized, but that the transformation will continue to affect the market further.
As previously communicated, I will be leaving Net Insight this summer. It has been a real pleasure to work at Net Insight together with all our customers and competent staff.
Even though I am leaving Net Insight, I think it has never been more exciting to be a part of the global media industry. A great deal remains to be done at Net Insight and I can guarantee that the level of activity is high throughout the company.
Stockholm, Sweden, April 24, 2018
Fredrik Tumegård, CEO
The global media industry continued to experience a high level of structural activity, with operators re-positioning themselves in the new market landscape. Disney's USD 52 billion bid for 21st Century FOX and ComCast's USD 31 billion bid for SKY were the two main recent examples. Within the media tech industry, Grass Valley (Belden Group) placed a USD 92 million bid for their competitor SAM (Snell Advanced Media).
According to data from sector organization IABM, the global media technology market had a relatively slow start to 2018. Customers' changing business models and purchasing behavior of buyers are having a significant impact on market prospects. Based on early 2018 data (IABM), revenues for media tech companies continue to grow but by a small margin, and profitability remains under pressure.
Media companies' CAPEX are generally flat to declining. Investments are moving towards OPEX as the companies try to make their businesses more flexible. Whilst 2017 was a year without major sporting events, 2018 is a large event year which bodes well for suppliers who provide media technology for live production.
Market growth for OTT is strong and shows no signs of abating. At the same time, the trend continues for content owners to launch proprietary OTT services. The sports service ESPN+ (Disney) was launched on April 12, with ESPN's program offering and live sports. Turner also announced plans to launch a proprietary OTT service (B/R Live) broadcasting live sports content, and Viacom is expected to launch its service in the US towards the end of 2018.
Net Insight has a strong market position through its competitive customer offering, both in the core and the OTT business. During the quarter, Net Insight released several important product launches. The biggest release was Nimbra 1060, the next generation terabit platform for media transport over IP networks, which enables Net Insight's customers to produce more high-quality events cost effectively. This is one of Net Insight's largest product developments and secures our future position as the leading network transport supplies. In April 2018, Nimbra 1060 was awarded "Best of Show by TV Technology" at the NAB trade fair in Las Vegas.
We also launched the CPN-in-a-box solution, which brings together the core elements of Net Insight's portfolio (Nimbra and ScheduALL), pre-packaged with product and support services. The solution will reduce the time to market for customers who wish to launch media services.
The importance of remote production means that demand for efficient workflows and media transport continues to increase. Net Insight had success with global production service provider Gearhouse Broadcast's deployment of the company's remote production solution for the Australian Open tennis event at the beginning of the year.
In live OTT, one of the big milestones for Net Insight during the quarter was that Sye live OTT will be available on Microsoft Azure, as well as joining the Microsoft Partner Network which provides additional benefits to extend the reach of its solution to Microsoft customers.
In early April, we announced our second reference customer for our Sye-as-a-Service (SaaS) offering in Trippel Media, with the live and interactive trivia app Primetime broadcasting in real time. After the end of the first quarter, Net Insight also communicated a collaboration with CDNetworks, a global leader in CDN (Content Delivery Networks).
Net sales in the first quarter of 2018 were SEK 110.5 (110.4) million, in line with the corresponding quarter in the previous year. In comparable currencies, net sales increased by 2.7 percent, due to an appreciating SEK against the USD.
Market conditions were stable compared to the preceding quarter and in year-on-year terms.
In Western Europe net sales were SEK 48.2 (48.0) million, in line with the corresponding period in the previous year. The quarter was characterized by stable revenue streams, mainly from existing customers.
Net sales in Americas were SEK 36.9 (33.8) million, up 9.2 percent. The increase was due to the stronger US sales force, in terms of staff numbers and competences, which took place in 2017. Net Insight also won couple of major orders from existing key customers.
Net sales in Rest of World were SEK 25.4 (28.6) million, down -11.1 percent. The market was generally characterized by slightly decreased activity amongst existing customers, although sales to India were positive.
Net sales from hardware were SEK 37.0 (44.0) million and net sales from software licenses totaled SEK 30.3 (28.3) million. The decrease in hardware sales is mainly due to the North American market. Sales of support and services amounted to SEK 43.2 (38.1) million.
Gross profit was SEK 65.9 (65.8) million, in line with the corresponding quarter of the previous year due to largely unchanged sales and retained gross margin of 59.6 (59.6) percent. Gross profit included amortization of capitalized development expenditure of SEK -15.2 (-13.9) million. Gross margin excluding amortization of capitalized development expenditure was strong at 73.4 (72.2) percent, due to a favorable product mix.
Operating expenses in the first quarter were SEK 64.4 (59.4) million, up SEK 5.0 million year on year. This was due to increased sales resources, particularly in Americas, and increased resources allocated to the commercialization of Sye. At the same time, expenditures for development of core products decreased gradually ahead of and in connection with the launch of Nimbra 1060. Total development expenditures were SEK 33.4 (39.5) million.
Operating earnings were SEK 2.4 (6.8) million, equating to an operating margin of 2.2 percent (6.1). The lower operating earnings year-on-year was attributable to decided increased sales and marketing expenses, both for core operations and live OTT. EBITDA was SEK -1.0 (-3.9) million, corresponding to an EBITDA margin of -0.9 (-3.5) percent.
Activities in development, sales and marketing of the company's live OTT solution Sye affected operating earnings and EBITDA by SEK -10.1 (-5.3) million and SEK -15.5 (-12.7) million respectively.
In the first quarter, net financial items were positively affected by SEK 1.1 (6.0) million for the revaluation of synthetic options programs due to a lower share price at the end of the quarter. Net financial items amounted to SEK 1.5 (5.3) million.
Profit before tax was SEK 4.0 (12.1) million, and net income for the period was SEK 3.0 (11.2) million, corresponding to a net margin of 2.7 (10.1) percent.
First quarter investments were SEK 21.7 (27.3) million, of which SEK 20.0 (26.1) million related to capitalization of development expenditure. Depreciation and amortization in the period was SEK 16.6 (15.4), of which SEK 15.2 (13.9) related to amortization of capitalized development expenditure. The net value of capitalized development expenditure at the end of the period was SEK 256.4 against SEK 251.6 million as of 31 December 2017.
| Key Ratios | Jan–Mar 2018 |
Jan–Mar 2017 |
Apr 2017– Mar 2018 |
Jan–Dec 2017 |
|---|---|---|---|---|
| Net sales, SEK | ||||
| millions | 110.5 | 110.4 | 427.1 | 427.0 |
| Gross margin | 59.6% | 59.6% | 58.0% | 58.0% |
| Operating margin | 2.2% | 6.1% | -2.8% | -1.8% |
| EBITDA margin | -0.9% | -3.5% | -4.9 | -5.5% |
Net Sales by Region SEK millions by quarter SEK millions rolling four quarters 140 70 0 600 300 0 2016 2017 2018 ■ Western Europe ■ Americas ■ Rest of World Rolling four quarters
■ Software licenses
Operating margin, rolling four quarters
Cash flow in the first quarter was SEK -13.5 (15.3) million. Adjusted for repurchases of own shares, totaling SEK -0.7 (0.0) million, cash flow was SEK -12.7 (15.3). The negative cash flow was due to accumulated trade receivables caused by positive sales focused on the latter half of the quarter, and that cash flow from operating activities does not cover R&D investment activities.
Cash and cash equivalents were SEK 164.6 million at the end of the quarter, against SEK 177.7 million as of December 31, 2017.
Remaining tax loss carry-forwards for group companies were SEK 55.2 million at the end of the period, against SEK 55.8 million as of 31 December, 2017. For more information, see the section Tax on page 13.
Equity was SEK 549.6 million at the end of the period, against SEK 546.1 million as of 31 December, 2017. The equity/assets ratio was 78.8, against 78.3 percent as of 31 December 2017. For more information see the section Share capital and other contributed equity on page 13.
At the end of the period, Net Insight had 248 (245) employees and consultants, of which 156 (157) were employed by parent company Net Insight AB (publ).
Two new members joined management in the quarter: Marcus Sandberg, Vice President Business Development, and Gustav Grundström, Vice President Live OTT.
On March 21, 2018, the company announced that CEO Fredrik Tumegård will be resigning and that the process of recruiting his successor has begun.
Pelle Bourn was appointed CFO after the end of the quarter, on 9 April.
The parent company's net sales in the first quarter were SEK 125.1 (124.6) million, and net income for the period was SEK 7.7 (18.2) million. In the first quarter, intra-group sales totaled SEK 31.6 (35.2) million, and intra-group purchasing SEK -35.5 (24.6) million.
Progress in the parent company in the first quarter largely shadowed Group progress as indicated above.
Net Insight's operations and results of operations are affected by a number of external and internal factors. The company conducts a continuous process to identify all risks present, and to assess how each risk should be managed.
Primarily, those risks the company is exposed to are market-related risks (including competition, technological progress and political risks), operational risks (including product liability, intellectual property, disputes, customer dependency and contract risks) as well as financial risks.
No additional critical risks and uncertainty factors, other than those reviewed in the Annual Report for 2017, arose to date or are anticipated in 2018.
For a complete review of the company's risk and sensitivity analysis, and its risk management process, see pages 34-35, 37-41 and 55-56 of the Annual Report for 2017.
In the past three calendar years, average seasonality has been fairly modest. In the first, second and third quarters, net sales were 24 percent respectively, and in the fourth quarter 28 percent of yearly sales.
Working Capital Trend
Working capital to net sales rolling
4 quarters %
| SEK thousands | Jan-Mar 2018 |
Jan-Mar 2017* |
Apr 2017- Mar 2018 |
Jan-Dec 2017* |
|---|---|---|---|---|
| Net sales | 110,475 | 110,440 | 427,058 | 427,023 |
| Cost of sales | -44,615 | -44,632 | -179,398 | -179,415 |
| Gross earnings | 65,860 | 65,808 | 247,660 | 247,608 |
| Sales and marketing expenses | -40,063 | -34,342 | -150,406 | -144,685 |
| Administration expenses | -10,927 | -11,690 | -48,934 | -49,697 |
| Development expenses | -13,392 | -13,414 | -62,363 | -62,385 |
| Other operating income & expenses | 969 | 409 | 2,171 | 1,611 |
| Operating earnings | 2,447 | 6,771 | -11,872 | -7,548 |
| Net financial items | 1,525 | 5,312 | 9,066 | 12,853 |
| Profit/loss before tax | 3,972 | 12,083 | -2,806 | 5,305 |
| Tax | -1,012 | -933 | -1,857 | -1,778 |
| Net income | 2,960 | 11,150 | -4,663 | 3,527 |
| Net income for the period attributable to the shareholders of the parent company |
2,960 | 11,150 | -4,663 | 3,527 |
| Earnings per share, based on net income attributable to the parent company's sha reholders during the period |
Jan-Mar 2018 |
Jan-Mar 2017 |
Apr 2017- Mar 2018 |
Jan-Dec 2017 |
|---|---|---|---|---|
| Earnings per share, basic (SEK) | 0.01 | 0.03 | -0.01 | 0.01 |
| Earnings per share, diluted (SEK) | 0.01 | 0.03 | -0.01 | 0.01 |
| Average number of oustanding shares in thousands, basic |
383,538 | 385,658 | 384,527 | 385,057 |
| Average number of oustanding shares in thousands, diluted |
383,538 | 385,658 | 384,527 | 385,057 |
| SEK thousands | Jan-Mar 2018 |
Jan-Mar 2017 |
Apr 2017- Mar 2018 |
Jan-Dec 2017 |
|---|---|---|---|---|
| Net income | 2,960 | 11,150 | -4,663 | 3,527 |
| Other comprehensive income Items that may be reclassified subsequently to the income statement |
||||
| Translation differences | 1,331 | -1,394 | -4,800 | -7,525 |
| Total other comprehensive income, net after tax | 1,331 | -1,394 | -4,800 | -7,525 |
| Total other comprehensive income for the period | 4,291 | 9,756 | -9,463 | -3,998 |
| Total comprehensive income for the period attri | ||||
| butable to the shareholders of the parent company | 4,291 | 9,756 | -9,463 | -3,998 |
*) Restated comparative periods, see pages 12-13.
| SEK thousands | Mar 31, 2018 |
Dec 31, 2017* |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Capitalized expenditure for development | 256,434 | 251,622 |
| Goodwill | 59,289 | 58,452 |
| Other intangible assets | 18,168 | 19,458 |
| Equipment | 6,396 | 4,636 |
| Deferred tax asset | 13,394 | 14,285 |
| Deposits | 4,870 | 4,911 |
| Totalt non-current assets | 358,551 | 353,364 |
| Current assets | ||
| Inventories | 40,835 | 43,598 |
| Accounts receivable | 112,042 | 106,186 |
| Other receivables | 21,367 | 16,551 |
| Cash and cash equivalents | 164,569 | 177,745 |
| Total current assets | 338,813 | 344,080 |
| TOTAL ASSETS | 697,364 | 697,444 |
| EQUITY AND LIABILITIES | ||
| Equity attributable to parent company's shareholders | ||
| Share capital | 15,597 | 15,597 |
| Other paid-in capital | 1,192,727 | 1,192,727 |
| Translation reserve | 198 | -1,133 |
| Accumulated deficit | -658,881 | -661,102 |
| Total shareholders' equity | 549,641 | 546,089 |
| Non-current liabilities | ||
| Other liabilities | 19,458 | 19,738 |
| Total non-current liabilities | 19,458 | 19,738 |
| Current liabilities | ||
| Accounts payable | 14,075 | 21,841 |
| Other liabilities | 114,190 | 109,776 |
| Total current liabilities | 128,265 | 131,617 |
| TOTAL EQUITY AND LIABILITIES | 697,364 | 697,444 |
*) Restated comparative periods, see pages 12-13.
| Attributable to parent company's shareholders | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK thousands | Share capital |
Other paid-in capital |
Translation reserve |
Accumulated deficit |
Total shareholders' equity |
||||
| January 1, 2017 | 15,597 | 1,192,727 | 6,392 | -653,385 | 561,331 | ||||
| Repurchase of own shares | - | - | - | -11,244 | -11,244 | ||||
| Total comprehensive income | - | - | -7,525 | 3,527 | -3,998 | ||||
| December 31, 2017 | 15,597 | 1,192,727 | -1,133 | -661,102 | 546,089 | ||||
| January 1, 2018 | 15,597 | 1,192,727 | -1,133 | -661,102 | 546,089 | ||||
| Repurchase of own shares | - | - | - | -739 | -739 | ||||
| Total comprehensive income | - | - | 1,331 | 2,960 | 4,291 | ||||
| March 31, 2018 | 15,597 | 1,192,727 | 198 | -658,881 | 549,641 |
| Jan-Mar | Jan-Mar | Apr 2017- | Jan-Dec | |
|---|---|---|---|---|
| SEK thousands | 2018 | 2017 | Mar 2018 | 2017 |
| Ongoing activities | ||||
| Profit/loss before tax | 3,972 | 12,083 | -2,806 | 5,305 |
| Income tax paid | 0 | 0 | -247 | -247 |
| Depreciation, amortization & impairment | 16,555 | 15,375 | 72,334 | 71,154 |
| Other items not affecting liquidity | -452 | -5,980 | -6,820 | -12,348 |
| Cash flow from operating activities | ||||
| before changes in working capital | 20,075 | 21,478 | 62,461 | 63,864 |
| Changes in working capital | ||||
| Increase-/decrease+ in inventories | 2,982 | -1,430 | 4,518 | 106 |
| Increase-/decrease+ in receivables | -11,282 | 20,362 | -22,197 | 9,447 |
| Increase+/decrease- in liabilities | -2,837 | 2,103 | -7,091 | -2,151 |
| Cash flow from operating activities | 8,938 | 42,513 | 37,691 | 71,266 |
| Investment activities | ||||
| Investment in intangible assets | -19,703 | -26,906 | -82,866 | -90,069 |
| Investment in tangible assets | -2,021 | -354 | -4,573 | -2,906 |
| Increase-/decrease+ in financial assets, net | 41 | -1 | -4,560 | -4,602 |
| Cash flow from investment activities | -21,683 | -27,261 | -91,999 | -97,577 |
| Financing activities | ||||
| Option premium | - | - | 763 | 763 |
| Repurchase of own shares | -739 | - | -11,983 | -11,244 |
| Cash flow from financing activities | -739 | 0 | -11,220 | -10,481 |
| Net change in cash and cash equivalents | -13,484 | 15,252 | -65,528 | -36,792 |
| Exchange differences in cash and cash equivalents | 308 | -49 | -49 | -406 |
| Cash and cash equivalents at the beginning of the period | 177,745 | 214,943 | 230,146 | 214,943 |
| Cash and cash equivalents at the end of the period | 164,569 | 230,146 | 164,569 | 177,745 |
| Jan–Mar 2018 | Jan–Mar 2017 | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK millions | WE | AM | RoW | Total | WE | AM | RoW | Total |
| Net sales | 48.2 | 36.9 | 25.4 | 110.5 | 48.0 | 33.8 | 28.6 | 110.4 |
| Regional contribution | 15.3 | 7.4 | 3.1 | 25.8 | 16.8 | 8.7 | 6.0 | 31.5 |
| Regional contribution margin | 32% | 20% | 12% | 23% | 35% | 26% | 21% | 28% |
| Administration expenses | -10.4 | -11.7 | ||||||
| Development expenses | -13.4 | -13.4 | ||||||
| Other operating income expenses | 1.0 | 0.4 | ||||||
| Net financial items | 1.5 | 5.3 | ||||||
| Profit before tax | 4.0 | 12.1 |
Regional Contribution is defined as Gross earnings less Sales and marketing expenses.
The CEO reviews the business from Western Europe (WE), Americas (North and South America, AM) and Rest of World (RoW) geographic perspectives.
| Jan–Mar 2018 | Jan–Mar 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK millions | WE | AM | RoW | Total | WE | AM | RoW | Total | |
| Net sales by product group | |||||||||
| Hardware | 15.8 | 12.3 | 9.0 | 37.0 | 20.9 | 10.0 | 13.1 | 44.0 | |
| Software licenses | 13.4 | 8.8 | 8.0 | 30.3 | 9.9 | 9.0 | 9.0 | 28.3 | |
| Support and services | 19.0 | 15.8 | 8.4 | 43.2 | 17.2 | 14.8 | 6.1 | 38.1 | |
| Total | 48 .2 | 36.9 | 25.4 | 110.5 | 48.0 | 33.8 | 28.6 110.4 | ||
| Timing of revenue recognition | |||||||||
| Products and services transferred | |||||||||
| at a point in time | 29.5 | 21.1 | 17.0 | 67.6 | 30.8 | 19.0 | 22.5 | 72.4 | |
| Services transferred over time | 18.7 | 15.8 | 8.3 | 42.9 | 17.2 | 14.8 | 6.1 | 38.0 | |
| Total | 48.2 | 36.9 | 25.4 | 110.5 | 48.0 | 33.8 | 28.6 110.4 |
| Group's financial instruments by category |
Mar 31, 2018 | Dec 31, 2017 | ||||
|---|---|---|---|---|---|---|
| SEK thousands | Value tier |
Loan receivables and accounts receivables |
Assets measured at fair value through profit or loss |
Value tier |
Loan receivables and accounts receivables |
Assets measured at fair value through profit or loss |
| Assets in Balance Sheet | ||||||
| Derivative instruments | 2 | - | - | 2 | - | 556 |
| Accounts receivable and other receivables, excluding excluding non-financial assets |
119 922 | - | 112 031 | - | ||
| Cash and cash equivalents | 164 569 | - | 177 745 | - | ||
| Total | 284 491 | 0 | 289 776 | 289 776 | 556 |
| Group's financial instruments by category |
Mar 31, 2018 | Dec 31, 2017 | ||||||
|---|---|---|---|---|---|---|---|---|
| SEK thousands | Value tier |
Other financial liabilities |
Liabilities measured at fair value through profit or loss |
Value tier |
Other financial liabilities |
Liabilities measured at fair value through profit or loss |
||
| Liabilities in Balance Sheet | ||||||||
| Synthetic options | 2 | - | 1 948 | 2 | - | 3 003 | ||
| Derivative instruments | 2 | 595 | - | 2 | - | - | ||
| Accounts payable and other liabilities, | ||||||||
| excluding non-financial liabilities | 21 565 | - | 29 169 | - | ||||
| Total | 22 160 | 1 948 | 29 169 | 3 003 |
The fair value of derivative instruments is measured using exchange rates of currency forwards on the reporting date. The closing balance for synthetic options represents the total assessed value of a number of outstanding options, which has been measured on the basis of accepted market principles and are based on Net Insight's share price.
| Jan–Mar | Jan–Mar | Apr 2017– | Jan–Dec | |
|---|---|---|---|---|
| SEK thousands | 2018 | 2017 | Mar 2018 | 2017 |
| Net sales | 125,071 | 124,622 | 488,628 | 488,179 |
| Cost of sales | -45,858 | -43,232 | -204,003 | -201,377 |
| Gross earnings | 79,213 | 81,390 | 284,625 | 286,802 |
| Sales and marketing expenses | -33,680 | -24,128 | -139,596 | -130,044 |
| Administration expenses | -9,829 | -9,704 | -43,573 | -43,448 |
| Development expenses | -28,319 | -31,414 | -119,413 | -122,508 |
| Other operating income and expenses | 788 | 362 | 1,317 | 891 |
| Operating earnings | 8,173 | 16,506 | -16,640 | -8,307 |
| Net financial items | 1,444 | 5,231 | 8,941 | 12,728 |
| Profit/loss before tax | 9,617 | 21,737 | -7,699 | 4,421 |
| Tax | -1,909 | -3,546 | 3,446 | 1,809 |
| Net income | 7,708 | 18,191 | -4,253 | 6,230 |
| SEK thousands | Mar 31, 2018 | Dec 31, 2017 |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Other intangible assets | 6,167 | 6,875 |
| Equipment | 6,174 | 4,414 |
| Participations in group companies | 295,068 | 295,068 |
| Deferred tax asset | 84 | 1,994 |
| Deposits | 4,737 | 4,736 |
| Total non-current assets | 312,230 | 313,087 |
| Current assets | ||
| Inventories | 40,835 | 43,598 |
| Accounts receivable | 102,263 | 86,438 |
| Receivables from group companies | 140,923 | 132,978 |
| Other receivables | 13,364 | 13,809 |
| Cash and cash equivalents | 153,011 | 166,200 |
| Total current assets | 450,396 | 443,023 |
| Total assets | 762,626 | 756,110 |
| EQUITY AND LIABILITIES | ||
| Equity | ||
| Restricted equity | 128,419 | 128,419 |
| Non-restricted equity | 534,600 | 527,631 |
| Total equity | 663,019 | 656,050 |
| Non-current liabilities | ||
| Deferred tax liabilities | - | - |
| Other liabilities | 7,103 | 9,246 |
| Total non-current liabilities | 7,103 | 9,246 |
| Current liabilities | ||
| Accounts payable | 12,649 | 20,284 |
| Other liabilities | 79,855 | 70,530 |
| Total current liabilities | 92,504 | 90,814 |
| Total equity and liabilities | 762,626 | 756,110 |
This Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable regulations of the Swedish Annual Accounts Act. The Interim Report of the parent company complies with chapter 9 of the Swedish Annual Accounts Act, Interim Financial Reporting, and RFR 2 Accounting for Legal Entities.
Disclosures in accordance with IAS 34 are presented in the interim financial statements and the associated notes as well as elsewhere in the interim financial report. Effective January 1, 2018, Net Insight applies the following new or amended International Financial Reporting Standards (IFRS):
IFRS 9 Financial Instruments addresses the classification, measurement, recognition, impairment and de-recognition of financial instruments as well as hedge accounting. The effect from applying IFRS 9 does not have any material impact on the group's or parent company's results or financial position and there was no opening balance adjustment in 2018.
IFRS 15 Revenue from Contracts replaces IAS 18 and IAS 11 and establishes a new mindset for revenue recognition. The new standard is based on the principle that revenue is recognized when control of a good or service transfers to a customer, i.e. under IFRS 15 there is a focus on the 'transfer of control' instead of 'transfer of risks and rewards' under current standards. Net Insight adopted IFRS 15 with full retrospective application. The impact on the group's earnings and financial position 2017 are presented in the restated income statements and balance sheets below. The net reduction of at January 1, 2017 was SEK -1.7 million. Applying IFRS 15 also includes extended disclosure requirements, hence the table Disaggregation of revenue on page 9.
Effective January 1, 2018, Net Insight presents exchange gains and losses from operating receivables and liabilities in the Income Statement as Other operating income and expenses. Exchange gains and losses from Cash and cash equivalents are, as before, presented as Net financial items. For a description of previous accounting principles, please refer to the note 1.4B in the Annual Report for 2017. The impact on the group's earnings for the 2017 are presented in the restated income statements below.
The Company adjusted in the last quarter of 2017 its calculation method for capitalized development expenditure in certain development projects. The adjustments have been applied retroactively. The impact on the group's earnings for the period January-March, 2017, are presented in the restated income statements below.
| Restated consolidated income statement | Jan–Mar 2017 | |||||
|---|---|---|---|---|---|---|
| SEK thousands | Previously reported |
Impact of IFRS 15 |
Adj. dev. | Reclassification Income statement |
Restated Income statement |
|
| Net sales | 110,410 | -31 | 61 | 110,440 | ||
| Cost of sales | -44,517 | 145 | -260 | -44,632 | ||
| Gross earnings | 65,893 | -31 | 145 | -199 | 65,808 | |
| Sales and marketing expenses | -34,342 | -34,342 | ||||
| Administration expenses | -11,690 | -11,690 | ||||
| Development expenses | -12,408 | -1,014 | 8 | -13,414 | ||
| Other operating income & expenses | 409 | 409 | ||||
| Operating earnings | 7,453 | -31 | -869 | 218 | 6,771 | |
| Net financial items | 5,530 | -218 | 5,312 | |||
| Profit before tax | 12,983 | -31 | -869 | 0 | 12,083 | |
| Tax | -1,131 | 7 | 191 | -933 | ||
| Net income | 11,852 | -24 | -678 | 0 | 11,150 |
| Restated consolidated income statement | Jan–Dec 2017 | ||||||
|---|---|---|---|---|---|---|---|
| Previously | Impact of IFRS 15 | Reclassification | Restated Income | ||||
| reported | Jan– | Apr– | Jul– | Oct– | Income statement | statement | |
| SEK thousands | Mar | Jun | Sep | Dec | |||
| Net sales | 426,746 | -31 | 360 | -243 | -317 | 508 | 427,023 |
| Cost of sales | -178,707 | -708 | -179,415 | ||||
| Gross earnings | 248,039 | -31 | 360 | -243 | -317 | -200 | 247,608 |
| Sales and marketing expenses | -144,741 | 56 | -144,685 | ||||
| Administration expenses | -49,680 | -17 | -49,697 | ||||
| Development expenses | -63,100 | 715 | -62,385 | ||||
| Other operating income & expenses | 1,611 | 1,611 | |||||
| Operating earnings | -9,482 | -31 | 360 | -243 | -317 | 2,165 | -7,548 |
| Net financial items | 15,018 | -2,165 | 12,853 | ||||
| Profit before tax | 5,536 | -31 | 360 | -243 | -317 | 0 | 5,305 |
| Tax | -1,829 | 7 | -79 | 53 | 70 | -1,778 | |
| Net income | 3,707 | -24 | 281 | -190 | -247 | 0 | 3,527 |
| Restated consolidated balance sheet | Mar 31, 2017 | Dec 31, 2017 | |||||
|---|---|---|---|---|---|---|---|
| SEK thousands | Earlier reported |
Impact of IFRS 15 |
Adj Dev |
Restated balance sheet |
Earlier reported |
Impact of IFRS 15 |
Restated balance sheet |
| ASSETS | |||||||
| Non-current assets | |||||||
| Capitalized expenditure for development | 241,894 | -3,787 | 238,107 | 251,622 | 251,622 | ||
| Goodwill | 63,060 | 63,060 | 58,452 | 58,452 | |||
| Other intangible assets | 25,503 | 25,503 | 19,458 | 19,458 | |||
| Equipment | 3,109 | 3,109 | 4,636 | 4,636 | |||
| Deferred tax asset | 14,290 | 485 | 833 | 15,608 | 13,756 | 529 | 14,285 |
| Deposits | 310 | 310 | 4,911 | 4,911 | |||
| Total non-current assets | 348,166 | 485 | -2,954 | 345,697 | 352,835 | 529 | 353,364 |
| Current assets | 388,446 | 0 | 0 | 388,446 | 344,080 | 0 | 344,080 |
| Total assets | 736,612 | 485 | -2,954 | 734,143 | 696,915 | 529 | 697,444 |
| EQUITY AND LIABILITIES | |||||||
| Shareholders'equity | 575,762 | -1,721 | -2,954 | 571,087 | 547,966 | -1,877 | 546,089 |
| Non-current liabilities | 35,950 | 0 | 0 | 35,950 | 19,738 | 0 | 19,738 |
| Current liabilities | 124,900 | 2,206 | 0 | 127,106 | 129,211 | 2,406 | 131,617 |
| Total equity and liabilities | 736,612 | 485 | -2,954 | 734,143 | 696,915 | 529 | 697,444 |
Except for stated above, the same accounting principles and basis of calculation as those used in the latest Annual Report have been applied to the group and parent company. For a description of these accounting principles, please refer to the Annual Report for 2017.
The preparation of the Interim Report requires management to make judgements, estimates and assumptions that affect the company's earnings and position and information presented generally. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Figures in brackets in this report refer to comparison with the corresponding period or date in the previous year, if not stated otherwise. Divergences due to rounding may occur in this report.
During the period February 16-23, the parent company acquired 160,000 of its own class B shares through purchases on Nasdaq Stockholm. The total amount paid to acquire the shares, net of income tax, was SEK 0.7 million. This corresponds to the total number of shares that the parent company has repurchased during the year.
At the end of the reporting period, the parent company had a total of 6,475,000 of its own class B shares, at an average cost of SEK 4.64 per share and with a par value of SEK 0.04 per share. The shares are held as own shares. The parent company has the right to reissue these shares at a later date. All shares issued by the parent company were fully paid.
| Mar 31, 2018 | Dec 31, 2017 | ||||||
|---|---|---|---|---|---|---|---|
| The division of shares | A-shares | B-shares | Total | A-shares | B-shares | Total | |
| Outstanding shares | 1,000,000 | 382,458,009 | 383,458,009 | 1,000,000 | 382,618,009 | 383,618,009 | |
| Repurchased own shares | - | 6,475,000 | 6,475,000 | - | 6,315,000 | 6,315,000 | |
| Issued shares | 1,000,000 | 388,933,009 | 389,933,009 | 1,000,000 | 388,933,009 | 389,933,009 |
The group reported tax of SEK -1.0 (-0.9) million for the period January–March, 2018. Reported tax corresponds to an effective tax rate of 25 (8) percent. Profit before tax of SEK 4.0 (12.1) million includes value changes on synthetic options of SEK 1.1 (6.0) million. The value change on synthetic options is not taxable if an income, or tax deductible if a cost. Hence, the relative share the value change on synthetic options is of profit/loss before tax has a significant effect on the differences in the effective tax rates between periods. The effective tax rate is also affected by the relative effects of foreign tax rates and temporary differences.
Remaining tax loss carry-forwards for group companies amounted to SEK 55.2 million at the end of the period, compared to SEK 55.8 million as of December 31, 2017. Deferred tax assets has been recognized for the tax loss carry-forwards.
No significant events have occurred after the end of the reporting period.
This Report has not been reviewed by the company's auditors.
The Annual General Meeting of Net Insight AB (publ) will be held on May 8, 2018 at 10 am at the company's office, Västberga Allé 9, Hägersten, Stockholm.
Shareholders who wish to participate in the annual general meeting must firstly be included in the shareholders' register maintained by Euroclear Sweden AB as of Wednesday, May 2, 2018, and secondly notify the company of their participation in the annual general meeting no later than Wednesday, May 2, 2018.
Net Insight AB (publ) Attn: Susanne Jonasson Box 42093 126 14 Stockholm, Sweden E-mail: [email protected]
The notification must state: Name, Personal/corporate identity number, Address, Telephone number, Shareholding
When applicable, should state information about representatives, counsels and assistants. When applicable, complete authorization documents, such as registration certificates and powers of attorney for representatives and counsels, shall be appended the notification.
Read more at: investors.netinsight.net/corporate-governance
Net Insight delivers products, software and services for effective, high-quality media transport, coupled with the effective management of resources, all which creates an enhanced TV experience. Net Insight's offerings stretch from the TV camera lens to the studio, right through to the TV viewer.
Net Insight's solutions offer network operators, TV and production companies the benefit of lower total cost of ownership and the potential for effective new media service launches.
Revenues are generated through direct and indirect sales of hardware, software and services. Revenues are sourced from hardware sales, software licenses, support and services.
Net Insight's ambition is to be a growth company, and the target is to create profitable growth. On a market in fundamental transformation, growth and profitability are created through close and strategic partnerships with customers. Innovative solutions are created together that generate business benefit. To grow for the long term, we need to transform Net Insight into a more customer and market-oriented company.
Value drivers affect Net Insight's progress and can be divided into three groups: market transformation, innovative technology and global reach. Net Insight benefits from the general increase in video traffic, live streaming and file transfers, the adoption of remote production and workflows, more widespread TV broadcasting over the internet and wider coverage of live events.
| Annual General Meeting 2018 | May 8, 2018 |
|---|---|
| Interim report January–June 2018 | July 20, 2018 |
| Interim report January–September 2018 | October 26, 2018 |
Stockholm, April 24, 2018
Fredrik Tumegård, CEO
Fredrik Tumegård, CEO, Net Insight AB (publ) Pelle Bourn, CFO, Net Insight AB (publ) Phone: +46 (0)8-685 04 00 Phone: +46 (0)8-685 04 00 E-mail: [email protected] E-mail: [email protected]
Net Insight AB (publ), reg.no 556533-4397 Box 42093 126 14 Stockholm, Sweden Phone: +46 (0)8-685 04 00 netinsight.net
This is information that Net Insight 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 8:45 am CEST on April 24, 2018.
| Jan-Mar | Jan-Mar | Apr 2017- | Jan–Dec | |
|---|---|---|---|---|
| SEK millions (if not defined differently) | 2018 | 2017 | Mar 2018 | 2017 |
| Income | ||||
| Net sales by segment | ||||
| Western Europe | 48.2 | 48.0 | 194.2 | 194.1 |
| Americas | 36.9 | 33.8 | 137.3 | 134.2 |
| Rest of World | 25.4 | 28.6 | 95.5 | 98.7 |
| Net sales | 110.5 | 110.4 | 427.1 | 427.0 |
| Gross earnings | 65.9 | 65.8 | 247.7 | 247.6 |
| Operating expenses | 64.4 | 59.4 | 261.7 | 256.8 |
| Total development expenditure | 33.4 | 39.5 | 143.6 | 149.7 |
| EBITDA | -1.0 | -3.9 | -20.8 | -23.7 |
| Operating earnings | 2.4 | 6.8 | -11.9 | -7.5 |
| Profit/loss before tax | 4.0 | 12.1 | -2.8 | 5.3 |
| Net income | 3.0 | 11.2 | -4.7 | 3.5 |
| Balance sheet and cashflow | ||||
| Working capital | 382.7 | 488.5 | 685.4 | 446.0 |
| Cash and cash equivalents | 164.6 | 230.1 | 164.6 | 177.7 |
| Total cash flow | -13.5 | 15.3 | -65.5 | -36.8 |
| The share | ||||
| Dividend per share, SEK | - | - | - | - |
| Earnings per share basic and diluted, SEK | 0.01 | 0.03 | -0.01 | 0.01 |
| Cash flow per share, SEK | -0.04 | 0.04 | -0.17 | -0.10 |
| Equity per share basic and diluted, SEK | 1.43 | 1.48 | 1.43 | 1.42 |
| Average number of oustanding shares, basic and diluted, thousands |
383,538 | 385,658 | 384,527 | 385,057 |
| Number of oustanding shares at the end of the period, | 383,458 | 385,658 | 383,458 | 383,618 |
| basic and diluted, thousands | ||||
| Share price at end of period, SEK | 4.43 | 7.20 | 4.43 | 4.73 |
| Employees and consultants | ||||
| Employees and consultants at the end of the period | 248 | 245 | 248 | 249 |
| KPI | ||||
| Net sales YoY, change in % | 0.0% | 0.4% | -15.3% | -15.2% |
| Gross margin | 59.6% | 59.6% | 58.0% | 58.0% |
| Total development expenditure/Net sales | 30.3% | 35.7% | 33.6% | 35.0% |
| Operating margin | 2.2% | 6.1% | -2.8% | -1.8% |
| EBITDA margin | -0.9% | -3.5% | -4.9% | -5.5% |
| Net margin | 2.7% | 10.1% | -1.1% | 0.8% |
| Return on capital employed | -2.2% | 8.6% | -2.2% | -1.4% |
| Equity/asset ratio | 78.8% | 77.8% | 78.8% | 78.3% |
| Return on equity | 0.5% | 2.0% | -0.8% | 0.6% |
Non-IFRS financial measures are presented to enhance an investors and management possibility to evaluate the ongoing operating results, to aid in forecasting future periods and to facilitate meaningful comparison of result between periods. The APMs in this report may differ from similar-titled measures used by other companies.
| Calculation of performance measures not inluded in IFRS framework | |
|---|---|
| ------------------------------------------------------------------- | -- |
| Performance measures | Various types of performance measures and margin measures as a percentage of sales. | |
|---|---|---|
| Non-IFRS perfomance measures |
Description | Reason for use of the measure |
| Gross margin | Gross earnings as a percentage of net sales. | The gross margin is of major importance, showing the margin for covering the operating expenses. |
| Operating expenses | Sales and marketing expenses, administration expenses and development expenses. |
|
| Operating expenses/net sales | Operating expenses as a percentage of net sales. | Used in charts to illustrate trend. |
| Operating earnings | Calculated as operating earnings before financial items and tax. |
Operating earnings provides an overall picture of earnings generated in the operating activities. |
| Operating margin | Operating earnings as a percentage of net sales. | The operating margin is a key measure together with sales growth and capital employed for monitoring value creation. |
| Net sales YoY, change in % | The relation between net sales for the period and the corresponding sales for the comparative period in previous year. |
The sales growth is a key measure together with operating margin and capital employed for monitor ing value creation. |
| Change in Net sales in compara ble currencies |
The relation between the net sales for the period, recalculated using the foreign currency rates from the comparative period, and the corresponding sales for the comparative period in previous year. Only sales from business combinations that's been part of the Group for the whole comparative period are recalculated. |
This measure is of major importance for management in its monitoring of underlying sales growth driven by changes in volume, price and product mix for compa rable currency rates between different periods. |
| Net margin | Net Income as a percentage of net sales. | The net margin shows the remaining share of net sales after all of the company's costs have been deducted. |
| Total development (R&D) ex penditure |
Development expenses and capitalized expenditures for development. |
The measure is a good complement to development expenses, as it shows the company's total expenditure |
| Total development (R&D) ex penditure/net sales |
Total development expenditure as percentage of net sales. |
in development. The development expenditures effect on income, financial position and presentation in the statement of cashflow is affected by the periods level of capitali zed development expenditures. |
| EBITDA | Operating earnings before depreciation and amortiza tion and capitalization of development expenditure. |
The measures are good complements to operating earnings and margin as it, simplified, shows the |
| EBITDA margin | EBITDA as a percentage of net sales. | earnings-generated cash flow in the operation and it shows operating earnings without influence of varia tions in the level of capitalized development expenditures in the company's development projects. |
| Segment | Region corresponds to an operating segment under IFRS 8. • Western Europe (WE). • Americas (AM), North and South America. • Rest of World (RoW), countries outside of Western Europe and Americas. |
| KPI Income Statement SEK millions (if not defined differently) |
Jan–Mar 2018 |
Jan–Mar 2017 |
Apr 2017– Mar 2018 |
Jan–Dec 2017 |
|---|---|---|---|---|
| Net sales | 110.5 | 110.4 | 427.1 | 427.0 |
| Net sales YoY, change in % | 0.0% | 0.4% | -15.3% | -15.2% |
| Cost of sales ex. amortization of capitalized development | -29.4 | -30.7 | -117.4 | -118.8 |
| Gross earnings ex. amortization of capitalized development | 81.1 | 79.7 | 309.6 | 308.3 |
| Gross margin ex. amortization of capitalized development | 73.4% | 72.2% | 72.5% | 72.2% |
| Cost of sales amortization of capitalized development | -15.2 | -13.9 | -62.0 | -60.7 |
| Gross earnings | 65.9 | 65.8 | 247.7 | 247.6 |
| Gross margin | 59.6% | 59.6% | 58.0% | 58.0% |
| Sales and marketing expenses | -40.1 | -34.3 | -150.4 | -144.7 |
| Administration expenses | -10.9 | -11.7 | -48.9 | -49.7 |
| Development expenses | -13.4 | -13.4 | -62.4 | -62.4 |
| Operating expenses | -64.4 | -59.4 | -261.7 | -256.8 |
| Operating expenses/net sales | 58.3% | 53.8% | 61.3% | 60.1% |
| Other operating income & expenses | 1.0 | 0.4 | 2.2 | 1.6 |
| Operating earnings | 2.4 | 6.8 | -11.9 | -7.5 |
| Operating margin | 2.2% | 6.1% | -2.8% | -1.8% |
| Net financial items | 1.5 | 5.3 | 9.1 | 12.9 |
| Profit/loss before tax | 4.0 | 12.1 | -2.8 | 5.3 |
| Tax | -1.0 | -0.9 | -1.9 | -1.8 |
| Net income | 3.0 | 11.2 | -4.7 | 3.5 |
| Net margin | 2.7% | 10.1% | -1.1% | 0.8% |
| Change in net sales in comparable currencies SEK millions (if not defined differently) |
Jan–Mar 2018 |
Jan–Mar 2017 |
Jan–Dec 2017 |
|---|---|---|---|
| Net sales | 110.5 | 110.4 | 427.0 |
| Net currency effect of comparable currencies | 2.9 | -4.3 | -2.1 |
| Net sales in comparable currencies | 113.4 | 106.2 | 425.0 |
| Change in net sales in comparable currencies | 2.7% | -3.2% | -15.2% |
| Total development expenditure/net Sales SEK millions (if not defined differently) |
Jan–Mar 2018 |
Jan–Mar 2017 |
Apr 2017– Mar 2018 |
Jan–Dec 2017 |
|---|---|---|---|---|
| Development expenses | 13.4 | 13.4 | 62.4 | 62.4 |
| Capitalization of development expenditure | 20.0 | 26.1 | 81.3 | 87.3 |
| Total development expenditure | 33.4 | 39.5 | 143.6 | 149.7 |
| Net Sales | 110.5 | 110.4 | 427.1 | 427.0 |
| Total development expenditure/net sales | 30.3% | 35.8% | 33.6% | 35.1% |
| EBITDA margin SEK millions (if not defined differently) |
Jan–Mar 2018 |
Jan–Mar 2017 |
Apr 2017– Mar 2018 |
Jan–Dec 2017 |
|---|---|---|---|---|
| Operating earnings | 2.4 | 6.8 | -11.9 | -7.5 |
| Amortization of capitalized development expenditure | 15.2 | 13.9 | 62.0 | 60.7 |
| Other depreciation, amortization & impairment | 1.3 | 1.5 | 10.4 | 10.5 |
| Capitalization of development expenditure | -20.0 | -26.1 | -81.3 | -87.3 |
| EBITDA | -1.0 | -3.9 | -20.8 | -23.7 |
| Net sales | 110.5 | 110.4 | 427.1 | 427.0 |
| EBITDA margin | -0.9% | -3.5% | -4.9% | -5.5% |
that describes how much the value of an asset changes from an earlier point in time.
| Non-IFRS perfomance | ||
|---|---|---|
| measure | Description | Reason for use of the measure |
| Working capital | Current assets less cash and cash equivalents, accounts payable and other interest-free current liabilities. The Company has no inter est-bearing liabilities. |
This measure shows how much working capital that is tied up in the operations and can be put in relation to sales to under stand how effectively tied-up working capital is used. |
| Changes in working capital in the cash flow statement also includes adjustments for items not affecting liquidity and changes in non-cur rent operating assets and liabilities. |
||
| Capital employed | The Company capital employed is calculated as an average of total assets, less total liabilities, excluding interest-bearing liabilities. The Com pany has no interest-bearing liabilities. |
Return on capital employed is the central ratio for measuring the return on the capital tied up in operations. |
| Return on capital employed | Operating earnings plus interest income, in relation to average capital employed, rolling four quarters. |
|
| Equity/asset ratio | Shareholders' equity divided by the balance sheet total. |
A traditional measure for showing financial risk, expressing the ratio of the assets that is financed by the owners. |
| Return on equity | Net income as a percentage of average share holders' equity, rolling four quarters. . |
Return on equity shows the total return on shareholders' capital and reflects the effect of the company's profitability as well as the financial leverage. |
| The measure is primarily used to analyze shareholder profita bility over time. |
||
| Investments | Investments in intangible and tangible assets. | |
| Total cash flow | Change in cash and cash equivalents during the period, excluding exchange differences in cash and cash equivalents. |
| Working capital SEK millions |
Jan–Mar 2018 |
Jan–Mar 2017 |
Apr 2017– Mar 2018 |
Jan–Dec 2017 |
|---|---|---|---|---|
| Current assets | 341.4 | 390.4 | 360.5 | 371.2 |
| Cash and cash equivalents | 171.2 | 222.5 | 194.2 | 204.3 |
| Short term liabilities | -129.9 | -124.4 | 130.7 | -129.4 |
| Working capital | 382.7 | 488.5 | 685.4 | 446.0 |
| Return on capital employed SEK millions (if not defined differently) |
Jan–Mar 2018 |
Jan–Mar 2017 |
Apr 2017– Mar 2018 |
Jan–Dec 2017 |
|---|---|---|---|---|
| Capital employed | 0 | |||
| Total balance | 697.4 | 731.1 | 710.4 | 716.5 |
| Non-interest liabilities | -149.5 | -164.0 | -155.6 | -159.1 |
| Capital employed | 547.8 | 567.1 | 554.8 | 557.4 |
| Operating earings less interest income RQ4 | ||||
| Operating earnings RQ4 | -11.9 | 48.9 | -11.9 | -7.5 |
| Interest income RQ4 | 0.2 | 0.2 | 0.2 | 0.1 |
| Operating earnings less interest income RQ4 | -12.1 | 48.7 | -12.1 | -7.6 |
| Return on capital employed | -2.2% | 8.6% | -2.2% | -1.4% |
| Equity/asset ratio SEK millions (if not defined differently) |
Jan–Mar 2018 |
Jan–Mar 2017 |
Apr 2017– Mar 2018 |
Jan–Dec 2017 |
|---|---|---|---|---|
| Equity | 549.6 | 571.1 | 549.6 | 546.1 |
| Total equity and liabilities | 697.4 | 734.1 | 697.4 | 697.4 |
| Equity/asset ratio | 78.8% | 77.8% | 78.8% | 78.3% |
| Return on equity SEK millions (if not defined differently) |
Jan–Mar 2018 |
Jan–Mar 2017 |
Apr 2017– Mar 2018 |
Jan–Dec 2017 |
|---|---|---|---|---|
| Net income | 3.0 | 11.2 | -4.7 | 3.5 |
| Average equity | 547.9 | 567.1 | 554.8 | 557.4 |
| Return on equity | 0.5% | 2.0% | -0.8% | 0.6% |
| Shareholders' information | Measures related to the share. | |
|---|---|---|
| Non-IFRS perfomance measure |
Description | Reason for use of the measure |
| Dividend per share | Dividend divided by the average number of outstanding shares during the period. | Measures showing |
| Earnings per share (EPS) | Net income divided by the average number of outstanding shares during the period. | the return of the |
| Cash flow per share | Total cash flow, divided by average number of outstanding shares during the period. | business to the owners, per share. |
| Equity per share | Shareholders' equity divided by number of out- standing shares at the end of the period. | |
| Average number of outstanding shares |
Total number of shares in the Parent com- pany, less the number of group companies' holdings of shares in the Parent company (own/treasury shares). |
| Employees | Measures related to employees. | |||
|---|---|---|---|---|
| Non-IFRS perfomance | Description | |||
| measure | Reason for use of the measure | |||
| Employees and consultants/ co-workers |
The number of employees and consultants for non-temporary positions (longer than nine months) and who don't replace absent employ ees. |
To supplement the number of employees with consultants gives a better measure of the Company's cost. |
| Employees and consultants at the end of the period |
Jan–Mar 2018 |
Jan–Mar 2017 |
Apr 2017– Mar 2018 |
Jan–Dec 2017 |
|---|---|---|---|---|
| Number of employees | 213 | 211 | 213 | 211 |
| Number of consultants | 35 | 34 | 35 | 38 |
| Employees and consultants at the end of the period | 248 | 245 | 248 | 249 |
The group has identified a number of items which are material due to the significance of their nature and/or amount. These are listed separately here to provide a better understanding of the financial performance of the group:
| SEK millions | Note | Jan–Mar 2018 |
Jan–Mar 2017 |
Apr 2017– Mar 2018 |
Jan–Dec 2017 |
|---|---|---|---|---|---|
| Effects of the Net Insight share price development during the period |
|||||
| Share-based benefits | (a) | 0.3 | 1.2 | 2.4 | 3.4 |
| Synthetic opitons, change in value | (b) | 1.1 | 6.0 | 9.6 | 14.5 |
| Total | 1.3 | 7.3 | 12.0 | 18.0 |
All items in the table above effects operating earnings, except for (b) that effects net financial items.
(a) Support revenues that ScheduALL would have recognized if they had remained a stand-alone entity, but that Net Insight is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. The effects of these business combination rules will gradually decrease.
(b) Amortizations related to the intangible assets — trademark and customer relations — that Net Insight recognized under IFRS as a result of business combination accounting rules, but that ScheduALL would not have recognized if they had remained a stand- alone entity. These amortizations will continue to affect the income over time.
Phone: +46 (0)8 685 04 00, [email protected], www.netinsight.net
The information presented in this document may be subject to change without notice. For further information on product status and availability, please contact [email protected] or visit www.netinsight.net ©Copyright 2018. Net Insight AB (publ), Sweden.
All rights reserved. Net Insight, Nimbra, Sye and ScheduALL are trademarks of Net Insight Intellectual Property AB, Sweden. All other registered trademarks are the property of their respective owners.
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