Quarterly Report • Oct 27, 2022
Quarterly Report
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Solid underlying performance with strong profitability and improved cash flow
• None.
| Pro forma(1) | ||||||
|---|---|---|---|---|---|---|
| KEUR | 2022 Jul-Sep |
2021 Jul-Sep |
2022 Jan-Sep |
2021 Jan-Sep |
2021 Jan-Dec |
2021 Jul-Sep |
| Net sales | 74,319 | 34,280 | 214,847 | 94,170 | 138,925 | 59,985 |
| Net sales growth | 116.8% | 44.6% | 128.1% | 41.2% | 41.4% | - |
| Gross profit | 47,134 | 17,457 | 134,583 | 48,414 | 71,155 | 38,086 |
| Gross margin | 63.4% | 50.9% | 62.6% | 51.4% | 51.2% | 63.5% |
| EBITDA | 8,223 | 6,547 | 19,342 | 15,407 | 6,060 | - |
| EBITDA margin | 11.1% | 19.1% | 9.0% | 16.4% | 4.4% | - |
| Adjusted EBITDA | 14,136 | 6,639 | 35,246 | 17,337 | 25,821 | 8,896 |
| Adjusted EBITDA margin | 19.0% | 19.4% | 16.4% | 18.4% | 18.6% | 14.8% |
| FX gain/loss on operating items | 139 | 754 | 262 | 605 | 1,193 | 436 |
| EPS, before dilution | -0.01 | 0.03 | -0.06 | 0.04 | -0.04 | - |
| Adjusted EPS, before dilution | 0.04 | 0.04 | 0.09 | 0.09 | 0.12 | - |
| Net debt | 64,896 | -45,935 | 64,896 | -45,935 | 36,498 | - |
(1) Pro forma figures include Cint organic and Lucid
As we conclude the third quarter, I am pleased to say that Cint continues to develop positively with a sales growth of 24 percent on a pro forma basis compared to the same period last year (11 percent in constant currency). Of particular note are commercial successes in our newer markets with record growth in Middle East & Africa and Latin America – albeit from low levels - the new business momentum in Americas, and substantially upgraded contracts with two of our global customers.
Our gross margin was 63.5 percent in the quarter, which is encouraging and an improvement from earlier this year. Our gross profit amounted to EUR 47.1m which corresponds to a growth of 24 percent on a pro forma basis year-over-year. The growth in gross profit is a consequence of our net sales growth and a measure of productivity.
The macro-economic context made some clients more cautious about initiating new projects during the quarter. At the same time, our revenue growth this quarter was negatively impacted by both a hosting migration that lasted longer than expected and resulted in degraded platform performance for about five days, and a delayed migration of one of our key partners onto a new API.
Our business segment Marketplace increased sales by 21 percent pro forma. Our enterprise solution is gaining more traction and we are delighted to see more customers that plan to use Cint's enterprise platform to bring speed and efficiency benefits to their product suite. Media Measurement increased sales by 48 percent pro forma, which is an acceleration from the previous quarter indicating we take share of wallet in a market where customers prune their marketing spend. Our ability to cross-sell our adtracking products is continuing to proof the synergies in our merged company.
Our profitability shows continued improvement. EBITDA, adjusted for items affecting comparability, amounted to 14.1 MEUR in the quarter, corresponding to a margin of 19 percent compared to 14.8 percent on a pro forma basis for the same period last year. As planned, profitability has increased significantly compared to the beginning of this year due to positive scale benefits on operating expenses. In this uncertain market environment, we are expending great efforts on managing our overall cost level to continue improving profitability according to plan.
We launched several initiatives last quarter to increase our working capital efficiency, with special focus on accounts receivable. This has contributed positively to our cash flow management, and we also started to see benefits in the third quarter. We expect the cash flow to continue to improve in the coming quarters.
We are on track with our integration efforts and on delivering our defined OPEX synergies. We are also starting to unlock revenue synergies from multiple commercial programs. As part of the ongoing integration, we have focused extensively on promoting a common corporate culture and defining critical forward-leaning strategic initiatives. As we enter Q4, we continue our efforts to bring together a unified Cint in terms of people, processes and systems.
As previously communicated the non-recurring integration costs and run-rate synergy value from the integration, are expected to amount to EUR 40m each.
Weaker markets mean more challenges but also many opportunities for us. We have seen in the past that turbulence and uncertainty raises questions from our customers where we can provide many of the answers.
Overall, I believe in our ability to continue winning market share and deliver on our financial targets. Our present and future performance is only possible thanks to our dedicated colleagues, new and existing customers and valued partners. To all of you, thank you.
Tom Buehlmann CEO, Cint
Cint is a global software leader in technologyenabled 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 252 million engaged respondents across more than 130 countries. More than 4,800 insights-driven companies – including Survey-Monkey, 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.
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 in the quarter increased by 116.8 percent to EUR 74.3m (34.3). Pro forma sales growth was 23.9 percent and 11.0 percent excluding currency effects. Sales from Lucid added EUR 33.6m to net sales in the quarter. Organic growth was 19.5 percent (34.0) and organic growth excluding currency effects was 9.1 percent (34.0). The quarter was impacted both by a softening of demand due to the macro-economic situation but also by degraded platform performance following an extended platform hosting migration and a delayed migration of one of our key partners onto a new API. Net sales in the first nine months increased by 128.1 percent to EUR 214.8m (94.2). Pro forma sales growth in the first nine months was 28.0 percent and 17.7 percent excluding currency effects.
Gross profit in the quarter was EUR 47.1m (17.5) and the gross margin was 63.4 percent (50.9). Gross profit for the first nine months was EUR 134.6m (48.4) and the gross margin was 62.6 percent (51.4). The higher gross margin in 2022 is primarily driven by the acquisition of Lucid.
EBITDA in the quarter amounted to EUR 8.2m (6.5) and the EBITDA margin was 11.1 percent (19.1). Items affecting comparability for the quarter, totalled EUR 5.9m (0.1) and were mainly costs related to the integration of Lucid. Adjusting for these items, the EBITDA amounted to EUR 14.1m (6.6) and the adjusted EBITDA margin was 19.0 percent (19.4). Adjusted EBITDA, excluding the FX effect from the revaluation of operating balance sheet items, amounted to EUR 14.0m (5.9) corresponding to a margin of 18.8 percent (17.2).
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 1.0m (-) in the third quarter and EUR 2.9m (-) in the first nine months. The cost is included in the personnel expense line in the income statement. For more details about the program please refer to page 6.
EBITDA in the first nine months amounted to EUR 19.3m (15.4) and the EBITDA margin was 9.0 percent (16.4). Deducting items affecting comparability for the period of EUR 15.9m (1.9) the adjusted EBITDA amounted to EUR 35.2m (17.3) and the adjusted EBITDA margin was 16.4 percent (18.4). Adjusted EBITDA, excluding the FX effect from the revaluation of operating balance sheet items, amounted to EUR 35.0m (16.7) corresponding to a margin of 16.3 percent (17.8).
The lower margin so far this year compared to last year is a consequence of the acquisition and consolidation of Lucid in the financial accounts. Legacy Cint was in 2021 operating on a higher EBITDA margin than Lucid. On a pro forma basis, the adjusted EBITDA margin improved from 14.8 percent in 2021 to 19.0 percent in the quarter and from 15.4 percent to 16.4 percent for the first nine months.
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 5.9m (0.1) was adjusted for of which integration costs amounted to EUR 5.6m (-). Non-recurring items for the first nine months was EUR 15.9 m (1.9) where EUR 14.8 m (-) were 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.
The operating profit in the quarter amounted to EUR - 3.4m (4.0) with an operating margin of -4.5 percent (11.5). Operating profit in the first nine months amounted to EUR -13.1m (8.8) with an operating margin of -6.1 percent (9.4).
Profit for the quarter amounted to EUR -2.6m (4.0) and EPS (basic and diluted) was EUR -0.01 (0.03). Adjusted EPS (basic and diluted) was EUR 0.04 (0.04).
Profit for the first nine months amounted to EUR -11.9m (8.0) and EPS (basic and diluted) was EUR -0.06 (0.04). Adjusted EPS (basic and diluted) was EUR 0.09 (0.09).
Operating cash flow before changes in working capital in the quarter was EUR 11.9m (5.5). The Group's operating cash flow before changes in working capital for the first nine months was EUR 18.4m (13.8).
Cash flow from changes in working capital was EUR 7.9m (-0.8) in the quarter. The positive change mainly relates to efficiency measures taken during the quarter, 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 first nine months was EUR -17.2m (-10.4).
Cash flow from investing activities for the quarter amounted to EUR -4.0m (-4.9) and to EUR –13.0m (-27.4) for the first nine months. The same period last year was mainly impacted by the acquisition of GapFish done in the second quarter 2021. Investments in intangible fixed assets amounted to EUR - 3.8m (-2.8) 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 first nine months amounted to EUR -12.2m (-7.4). The increase compared with last year is mainly due to the acquisition and consolidation of Lucid.
Investments in tangible fixed assets amounted to EUR -0.4m (-0.1) in the quarter. Investments in tangible fixed assets for the first nine months amounted to EUR -0.8m (-0.3). For details on the depreciation and amortization, please refer to note 7. Cash flow from financing activities amounted to EUR -0.7m (-0.3) in the quarter. The cash flow impact for the quarter was related to payments of financial lease liabilities amounting to EUR -0.7 (-0.3). Cash flow from financing activities for the first nine months was EUR -0.5m (68.3). The cash flow impact for the year was related to proceeds from new long-term incentive programs launched in the beginning of the year amounting to EUR 1.4m. The same period last year was mainly impacted by transactions related to the IPO.
The net cash flow in the quarter was EUR 15.2m (-0.5) and for the first nine months to -12.3m (44.3). The current year was negatively impacted by payments of transaction cost in the first quarter related to the acquisition of Lucid, amounting to EUR 14.4m.
Net working capital amounted to EUR 24.2m (15.0) at the end of the third 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 from the second quarter this year (from EUR 38.1m) mainly relates to efficiency measures taken during the quarter, including higher focus on managing payment terms and conditions in relation to both payables and receivables.
The Group ended the quarter with a total cash position of EUR 65.8m (51.1) and a total debt of EUR 130.7m (5.2). Net debt was EUR 64.9m at the end of the quarter compared to net cash of EUR 45.9m at the end of the same quarter 2021 and net debt of EUR 36.5m at the end of 2021. The increase in net debt compared to the same quarter last year mainly relates to the financing of the acquisition of Lucid and the increase of the total debt in 2022 mainly relates to the strengthening of the USD.
At the end of the quarter, total consolidated equity of the Group amounted to EUR 1,294.3m to be compared with EUR 1,147.9m at the end of 2021.
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 3.2m (-4k) from currency fluctuations. On a pro forma basis, net sales were impacted by EUR 7.0m. Net sales during the first nine months were impacted by EUR 6.5m (-2.1). On a pro forma basis, net sales were impacted by EUR 14.3m.
The revaluation of balance sheet items had a positive impact on the result with a decrease of total operating expenses of EUR 0.1m (0.8) during the quarter. For the first nine months, there was a positive impact of EUR 0.3m (0.6). This impact is included in both EBITDA and adjusted EBITDA.
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 was 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, benefits are impacting positively, and the overall integration is tracking according to the 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 5.9m and EUR 14.8m for the first nine months.
No significant events to report during or after the end of the third quarter 2022.
At the end of the period, the total number of FTEs (employees and consultants) was 972 (445). The average number of FTEs in the quarter was 957 (435). The total number of employees was 805 (308) at the end of the period. The average number of employees during the quarter was 791 (303).
The increase compared with last year is related to the acquisition of Lucid.
During the quarter, JD Deitch was appointed Chief Human Resources Officer. JD Deitch replaced Marie-Louise Howett who left the company.
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 30 September 2022, the total number of shares and votes was 212,976,588.
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.
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 9.4m (-0.4) in the third quarter and SEK -23.2m (-10.3) in the nine-month period. The parent company's financial position by end of the period, measured in terms of total equity in relation to total assets ratio, was 88.9 percent (99.0) and it had a cash balance of SEK 26.2m (200.2), to be compared with a ratio of 91.2 percent and a cash balance of SEK 165.4m by end of December 2021.
Net sales in the Marketplace segment amounted to EUR 64.4m (33.7) in the quarter. Sales from Lucid added EUR 24.7m to net sales. Organic growth was 18.5 percent and on a pro forma basis, net sales increased by 20.8 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 in the ninemonth period amounted to EUR 190.3m (92.4) and organic growth was 26.1 percent.
Net sales in the Media Measurement segment amounted to EUR 10.0m (0.6) in the quarter. Sales from Lucid added EUR 8.9m to net sales. Organic growth was 71.6 percent and on a pro forma basis, net sales increased by 48.2 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 in the ninemonth period amounted to EUR 24.6m (1.7) and organic growth was 47.4 percent.
Net sales in the Americas region amounted to EUR 45.4m (15.3) in the quarter. Sales from Lucid added EUR 27.3m to net sales. Organic growth was 19.0 percent and on a pro forma basis, net sales increased by 26.9 percent. Net sales in the nine-month period amounted to EUR 127.9m (42.3) and organic growth was 28.7 percent.
Net sales in EMEA amounted to EUR 23.1m (16.1) in the quarter. Sales from Lucid added EUR 4.4m. Organic growth was 17.7 percent and on a pro forma basis, net sales increased by 17.3 percent. Net sales in the nine-month period amounted to EUR 70.3m (43.7) and organic growth was 22.5 percent.
Net sales in APAC amounted to EUR 5.8m (2.9) in the quarter. Sales from Lucid added EUR 1.9m to net sales. Organic growth was 31.9 percent and on a pro forma basis, net sales increased by 29.0 percent. Net sales in the nine-month period amounted to EUR 16.6m (8.2) and organic growth was 35.4 percent.
Net sales from tech-enabled insights companies amounted to EUR 20.5m (12.8). Sales from Lucid added EUR 6.3m to net sales. Organic growth was 12.0 percent and on a pro forma basis, net sales increased by 17.3 percent. Net sales in the ninemonth period amounted to EUR 61.8m (35.6) and organic growth was 22.9 percent.
Net sales from established insights companies amounted to EUR 53.8m (21.5) in the quarter. Sales from Lucid added EUR 27.4m to net sales. Organic growth was 24.0 percent and on a pro forma basis net sales increased by 26.6 percent. Net sales in the nine-month period amounted to EUR 153.0m (58.6) and organic growth was 28.6 percent.
The total number of active customers was 4,840 by the end of the third quarter. This includes active customers from Lucid after removing overlapping accounts.
The total number of completed surveys during the last twelve months was 189 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 252 million. Counting methodologies are different due to the different underlying business models.
A nomination committee has been established ahead of the annual general meeting 2023. The committee consist of Robert Furuhjelm (Chairman) appointed by Nordic Capital, Jan Dworsky appointed by Swedbank Robur, Anna Henricsson appointed by Handelsbanken Fonder and Patrick Comer in the capacity of Chairman of the Board of Cint Group AB.
| Full year report 2022 | Feb 22, 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 |
CEO Tom Buehlmann and interim CFO Britta Mittler will present the results through a telephone conference which will be held at 10.00 CEST on 27 October. The conference call will also be available by webcast.
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: 337 366
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
| 2022 | 2021 | 2022 | 2021 | 2021 | Rolling | ||
|---|---|---|---|---|---|---|---|
| KEUR | Note | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Jan-Dec | 12-months |
| Net Sales | 4 | 74,319 | 34,280 | 214,847 | 94,170 | 138,925 | 259,602 |
| Cost of services sold | -27,184 | -16,823 | -80,264 | -45,756 | -67,769 | -102,278 | |
| Capitalized development cost | 3,813 | 1,920 | 12,010 | 5,745 | 7,826 | 14,092 | |
| Personnel expenses | -27,597 | -8,224 | -79,144 | -24,496 | -38,456 | -93,104 | |
| Other operating income | 146 | 815 | 397 | 2,055 | 2,829 | 1,171 | |
| Other external expenses | -15,273 | -5,422 | -48,505 | -16,311 | -37,295 | -69,489 | |
| EBITDA | 8,223 | 6,547 | 19,342 | 15,407 | 6,060 | 9,994 | |
| Depreciation | 7 | -931 | -391 | -2,679 | -1,066 | -1,476 | -3,089 |
| EBITA | 7,293 | 6,155 | 16,662 | 14,342 | 4,584 | 6,905 | |
| Amortization and impairment | 7 | -10,644 | -2,197 | -29,808 | -5,523 | -7,733 | -32,018 |
| Operating profit/loss | -3,352 | 3,958 | -13,146 | 8,819 | -3,148 | -25,113 | |
| Net financial expenses | 9 | -3,435 | 859 | -5,101 | 1,349 | 2,086 | -4,363 |
| Earnings before tax | -6,786 | 4,817 | -18,247 | 10,168 | -1,062 | -29,476 | |
| Income tax expense | 4,157 | -826 | 6,319 | -2,171 | -2,156 | 6,334 | |
| Profit/loss for the period | -2,630 | 3,991 | -11,927 | 7,997 | -3,218 | -23,142 | |
| Profit/loss for the period attributable to: | |||||||
| Parent Company shareholders | -2,630 | 3,991 | -11,927 | 7,997 | -3,218 | -23,142 | |
| 2022 | 2021 | 2022 | 2021 | 2021 | Rolling | ||
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Jan-Dec | 12-months | ||
| Earnings per share before and after dilution, EUR | -0.01 | 0.03 | -0.06 | 0.04 | -0.04 | -0.11 |
| 2022 Jul-Sep |
2021 Jul-Sep |
2022 Jan-Sep |
2021 Jan-Sep |
2021 Jan-Dec |
Rolling 12-months |
|
|---|---|---|---|---|---|---|
| Profit/loss for the period | -2,630 | 3,991 | -11,927 | 7,997 | -3,218 | -23,142 |
| Other comprehensive income | ||||||
| Items that may be transferred to income | ||||||
| Exchange differences on translation of foreign operations |
74,213 | -642 | 169,904 | 279 | -7,341 | 162,284 |
| Hedge accounting of net investments | -8,725 | 0 | -19,163 | - | - | -19,163 |
| Tax effect from items in OCI | 1,784 | - | 3,948 | - | - | 3,948 |
| Other comprehensive income for the period | 67,272 | -642 | 154,688 | 279 | -7,341 | 147,068 |
| Total comprehensive income for the period | 64,642 | 3,349 | 142,761 | 8,276 | -10,559 | 123,926 |
| KEUR | 2022 30 Sep |
2021 30 Sep |
2021 31 Dec |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 1,026,442 | 122,906 | 905,411 |
| Other intangible assets | 354,041 | 50,014 | 329,999 |
| Right-of-use assets | 5,277 | 2,728 | 5,522 |
| Equipment, tools and installations | 1,286 | 777 | 1,241 |
| Other financial assets | 1,098 | 252 | 1,107 |
| Deferred tax assets | 29,175 | 4,986 | 10,641 |
| Total non-current assets | 1,417,319 | 181,663 | 1,253,921 |
| Current assets | |||
| Accounts receivable | 100,674 | 38,144 | 91,136 |
| Current tax assets | 1,078 | 55 | 2,396 |
| Other receivables | 1,897 | 403 | 1,906 |
| Prepaid expenses and accrued income | 29,285 | 16,768 | 24,665 |
| Cash and cash equivalents | 65,780 | 51,098 | 77,674 |
| Total current assets | 198,714 | 106,468 | 197,777 |
| TOTAL ASSETS | 1,616,034 | 288,131 | 1,451,698 |
| KEUR | 2022 30 Sep |
2021 30 Sep |
2021 31 Dec |
|---|---|---|---|
| EQUITY | |||
| Total equity attributable to the shareholders of the parent company | 1,294,320 | 233,116 | 1,147,925 |
| LIABILITIES | |||
| Non-current liabilities | |||
| Borrowings | 125,527 | 2,520 | 108,869 |
| Lease liabilities | 2,833 | 1,668 | 3,073 |
| Deferred tax liabilities | 82,108 | 7,749 | 78,150 |
| Total non-current liabilities | 210,468 | 11,937 | 190,092 |
| Current liabilities | |||
| Lease liabilities | 2,316 | 975 | 2,230 |
| Other financial liabilities | - | - | - |
| Accounts payable | 64,375 | 15,209 | 48,585 |
| Current tax liabilities | 1,282 | 1,747 | 4,802 |
| Other current liabilities | 3,688 | 2,146 | 4,459 |
| Accrued expenses and deferred income | 39,585 | 23,001 | 53,604 |
| Total current liabilities | 111,246 | 43,078 | 113,680 |
| TOTAL EQUITY AND LIABILITIES | 1,616,034 | 288,131 | 1,451,698 |
| KEUR | Share capital | Additional paid in capital |
Reserves | Retained earnings, including 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-Sep | 7,997 | 7,997 | |||
| Other comprehensive income | 279 | 279 | |||
| Total comprehensive income | - | - | 279 | 7,997 | 8,276 |
| New share issue | 118 | 86,043 | 86,161 | ||
| Transaction cost net of tax | -2,435 | -2,435 | |||
| Payments from share-based incentive program | 1,953 | 1,953 | |||
| Closing balance, 30 Sep 2021 | 1,418 | 228,943 | -9,118 | 11,873 | 233,116 |
| Profit/loss for the period Sep-Dec | -7,224 | -7,224 | |||
| Other comprehensive income | -8,262 | -8,262 | |||
| Total comprehensive income | - | - | -8,262 | -7,224 | -15,486 |
| New share issue | 747 | 942,771 | 943,518 | ||
| Transaction cost net of tax | -9,875 | -9,875 | |||
| Closing balance, 31 Dec 2021 | 2,165 | 1,161,840 | -16,738 | 658 | 1,147,925 |
| Profit/loss for the period Jan-Sep | -11,927 | -11,927 | |||
| Other comprehensive income | 154,688 | 154,688 | |||
| Total comprehensive income | - | - | 154,688 | -11,927 | 142,761 |
| Payments from share-based incentive program | 1,354 | 1,354 | |||
| Share-based incentive program (IFRS 2) | 2,919 | 2,919 | |||
| Tax on share-based incentive program (IFRS 2) | -639 | -639 | |||
| Closing balance, 30 Sep 2022 | 2,165 | 1,165,474 | 137,951 | -11,269 | 1,294,320 |
Equity attributable to the equity holders of the parent company
| KEUR | 2022 Jul-Sep |
2021 Jul-Sep |
2022 Jan-Sep |
2021 Jan-Sep |
2021 Jan-Dec |
Rolling 12-months |
|---|---|---|---|---|---|---|
| Cash flow from operating activities | ||||||
| Operating profit/loss | -3 352 | 3 958 | -13 146 | 8 819 | -3 148 | -25 113 |
| Adjustments for non-cash items | 16 629 | 1 930 | 38 586 | 5 724 | 8 234 | 41 095 |
| Interest received | - | -0 | - | 3 | - | -3 |
| Interest paid | -1 252 | -75 | -2 552 | -208 | -151 | -2 494 |
| Income tax paid | -108 | -313 | -4 521 | -566 | -1 391 | -5 346 |
| Cash flow from operating activities before changes in working capital |
11 918 | 5 500 | 18 368 | 13 772 | 3 544 | 8 139 |
| Change in accounts receivable | -2 448 | -547 | -11 259 | -9 684 | -17 621 | -19 196 |
| Change in other current receivables | -2 455 | 3 579 | -5 163 | 3 695 | -372 | -9 230 |
| Change in accounts payable | 12 477 | 951 | 14 851 | 1 304 | 3 901 | 17 448 |
| Change in other current liabilities | 358 | -4 826 | -15 621 | -5 670 | -27 373 | -37 324 |
| Cash flow from changes in working capital | 7 933 | -843 | -17 191 | -10 355 | -41 465 | -48 301 |
| Cash flow from operating activities | 19 850 | 4 657 | 1 177 | 3 417 | -37 921 | -40 162 |
| Cash flow from investing activites | ||||||
| Acquisitions of intangible assets | -3 813 | -2 767 | -12 233 | -7 418 | -9 502 | -14 317 |
| Acquisitions of tangible assets | -362 | -65 | -759 | -344 | -301 | -716 |
| Acquistions of entites | 166 | -2 023 | - | -19 687 | -473 133 | -453 446 |
| Cash flow from investing activities | -4 009 | -4 855 | -12 992 | -27 449 | -482 936 | -468 480 |
| Cash flow from financing activities | ||||||
| Bank overdraft facility | - | - | - | -5 310 | -5 310 | - |
| Repayment of loans | - | - | - | - | -7 100 | -7 100 |
| Repayment of lease liabilities | -675 | -316 | -1 805 | -900 | -1 128 | -2 033 |
| New loan | - | - | - | - | 106 345 | 106 345 |
| New shares issue | - | - | - | 75 572 | 512 537 | 436 965 |
| Transaction cost new share issue | - | - | - | -2 982 | -12 310 | -9 328 |
| Proceeds from share-based incentive program | - | - | 1 354 | 1 953 | 1 953 | 1 354 |
| Cash flow from financing activities | -675 | -316 | -451 | 68 334 | 594 987 | 526 203 |
| Net cash flow | 15 167 | -514 | -12 266 | 44 301 | 74 129 | 17 561 |
| Decrease/increase of cash and cash equivalents | ||||||
| Cash and cash equivalents at the beginning of the period |
49 895 | 51 665 | 77 674 | 6 909 | 6 909 | 51 098 |
| Currency translation difference in cash and cash equivalents |
719 | -53 | 372 | -113 | -3 364 | -2 879 |
| Cash and cash equivalents at the end of the period | 65 780 | 51 098 | 65 780 | 51 098 | 77 674 | 65 780 |
| KSEK | 2022 Jul-Sep |
2021 Jul-Sep |
2022 Jan-Sep |
2021 Jan-Sep |
2021 Jan-Dec |
Rolling 12-months |
|---|---|---|---|---|---|---|
| Net sales | 54,998 | 13,065 | 148,428 | 40,578 | 80,324 | 188,174 |
| Personnel expenses | -12,577 | -7,649 | -51,586 | -22,183 | -31,230 | -60,633 |
| Other external expenses | -33,048 | -5,790 | -120,013 | -28,658 | -35,001 | -126,356 |
| Operating profit/loss | 9,373 | -374 | -23,171 | -10,263 | 14,093 | 1,185 |
| Interest expenses and similar profit/loss items | -114,876 | - | -253,667 | -30 | -32 | -253,670 |
| Total net financial items | -114,876 | - | -253,667 | -30 | -32 | -253,670 |
| Earnings before tax | -105,503 | -374 | -276,838 | -10,293 | 14,061 | -252,484 |
| Taxes for the period | 21,675 | 67 | 57,518 | 2,227 | 10,557 | 65,848 |
| Net loss/profit for the period | -83,828 | -307 | -219,319 | -8,066 | 24,618 | -186,636 |
| 2022 | 2021 | 2021 | |
|---|---|---|---|
| KSEK | 30 Sep | 30 Sep | 31 Dec |
| ASSETS | |||
| Non-current assets | |||
| Shares in subsidiary | 12,263,781 | 1,631,025 | 12,238,578 |
| Deferred tax assets | 96,208 | 11,281 | 38,689 |
| Intercompany non-current assets | 269,404 | 268,656 | 268,656 |
| Total non-current assets | 12,629,393 | 1,910,962 | 12,545,923 |
| Current assets | |||
| Intercompany receivables | 344,829 | 151,090 | 200,497 |
| Other current receivables | 3,565 | 3,642 | 3,642 |
| Prepaid expenses and accrued income | 12,121 | 6,116 | 7,030 |
| Total current receivables | 360,516 | 160,848 | 211,169 |
| Cash and cash equivalents | 26,179 | 200,154 | 165,386 |
| Total current assets | 386,694 | 361,002 | 376,556 |
| TOTAL ASSETS | 13,016,087 | 2,271,964 | 12,922,478 |
| KSEK | 2022 30 Sep |
2021 30 Sep |
2021 31 Dec |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Total restricted equity | 21,298 | 13,722 | 21,298 |
| Total non-restricted equity | 11,556,303 | 2,234,897 | 11,760,017 |
| Total equity | 11,577,601 | 2,248,619 | 11,781,315 |
| Non-current liabilities | |||
| External loan | 1,342,902 | - | 1,087,580 |
| Total non-current liabilities | 1,342,902 | - | 1,087,580 |
| Current liabilities | |||
| Accounts payable | 7,346 | 8,565 | 31,688 |
| Intercompany liabilities | 55,069 | 13 | 1,382 |
| Other liabilities | 15,272 | 2,613 | 10,279 |
| Accrued expenses and deferred income | 17,897 | 12,154 | 10,235 |
| Total current liabilities | 95,584 | 23,345 | 53,583 |
| TOTAL EQUITY AND LIABILITIES | 13,016,087 | 2,271,964 | 12,922,478 |
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 27 October 2022.
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.
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.
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.
(i) Earnings per share before dilution Basic earnings per share is calculated by dividing:
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
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.
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 current Covid-19 pandemic continues to affect all global markets 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.
| Net sales by region | 2022 Jul-Sep |
2021 Jul-Sep |
2022 Jan-Sep |
2021 Jan-Sep |
2021 Jan-Dec |
Rolling 12-months |
|---|---|---|---|---|---|---|
| Americas | 45,433 | 15,278 | 127,893 | 42,307 | 62,694 | 148,280 |
| EMEA | 23,095 | 16,088 | 70,325 | 43,696 | 64,461 | 91,090 |
| APAC | 5,790 | 2,914 | 16,630 | 8,167 | 11,769 | 20,232 |
| Total | 74,319 | 34,280 | 214,847 | 94,170 | 138,925 | 259,602 |
| Net sales by customer type | 2022 Jul-Sep |
2021 Jul-Sep |
2022 Jan-Sep |
2021 Jan-Sep |
2021 Jan-Dec |
Rolling 12-months |
| Established insights companies | 53,781 | 21,507 | 153,012 | 58,563 | 87,961 | 182,410 |
| Tech-enabled companies | 20,538 | 12,772 | 61,836 | 35,607 | 50,963 | 77,192 |
| Total | 74,319 | 34,280 | 214,847 | 94,170 | 138,925 | 259,602 |
| Net sales by business segment | 2022 Jul-Sep |
2021 Jul-Sep |
2022 Jan-Sep |
2021 Jan-Sep |
2021 Jan-Dec |
Rolling 12-months |
| Marketplace | 64,363 | 33,666 | 190,250 | 92,446 | 136,454 | 234,259 |
| Media measurement | 9,956 | 613 | 24,598 | 1,724 | 2,470 | 25,344 |
| Total | 74,319 | 34,280 | 214,847 | 94,170 | 138,925 | 259,602 |
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.
| 2022 Jul-Sep |
2021 Jul-Sep |
2022 Jan-Sep |
2021 Jan-Sep |
2021 Jan-Dec |
Rolling 12-months |
|
|---|---|---|---|---|---|---|
| Earnings per share before dilution, EUR | -0.01 | 0.03 | -0.06 | 0.04 | -0.04 | -0.11 |
| Earnings per share after dilution, EUR | -0.01 | 0.03 | -0.06 | 0.04 | -0.04 | -0.11 |
| Calculation of earnings per share: Earnings attributable to Parent Company shareholders, KEUR Interest attributable to preference shares, KEUR |
-2,630 - |
3,991 - |
-11,927 - |
7,997 -2,581 |
-3,218 -2,581 |
-23,142 - |
| Total | -2,630 | 3,991 | -11,927 | 5,416 | -5,799 | -23,142 |
| Weighted average number of ordinary shares | 212,976,588 | 137,221,803 | 212,976,588 | 125,013,748 | 133,533,618 | 212,976,588 |
| Number of potential shares from warrants | - | 608,017 | - | 159,608 | 432,933 | 49,942 |
| 2022 Jul-Sep |
2021 Jul-Sep |
2022 Jan-Sep |
2021 Jan-Sep |
2021 Jan-Dec |
Rolling 12-months |
|
|---|---|---|---|---|---|---|
| Adjusted Earnings per share before dilution, EUR | 0.04 | 0.04 | 0.09 | 0.09 | 0.12 | 0.12 |
| Adjusted Earnings per share after dilution, EUR | 0.04 | 0.04 | 0.09 | 0.09 | 0.11 | 0.12 |
| Calculation of adjusted earnings per share(1) Earnings attributable to Parent Company shareholders, |
-2,630 | 3,991 | -11,927 | 7,997 | -3,218 | -23,142 |
| KEUR Adjustment for items affecting comparability(2), KEUR |
4,695 | 73 | 12,628 | 1,532 | 15,690 | 26,786 |
| Add-back of amortization of intangible assets from acquisitions(2), KEUR |
4,695 | 1,011 | 19,029 | 2,091 | 2,934 | 19,872 |
| Total | 6,760 | 5,075 | 19,730 | 11,620 | 15,406 | 23,516 |
| Weighted average number of ordinary shares | 212,976,588 | 137,221,803 | 212,976,588 | 125,013,748 | 133,533,618 | 199,505,749 |
| Number of potential shares from warrants | - | 608,017 | - | 159,608 | 432,933 | 49,942 |
(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
| KEUR | 2022 Jul-Sep |
2021 Jul-Sep |
2022 Jan-Sep |
2021 Jan-Sep |
2021 Jan-Dec |
Rolling 12-months |
|---|---|---|---|---|---|---|
| EBITDA | 8,223 | 6,547 | 19,342 | 15,407 | 6,060 | 9,994 |
| Depreciations | -931 | -391 | -2,679 | -1,066 | -1,476 | -3,089 |
| EBITA | 7,293 | 6,155 | 16,662 | 14,342 | 4,584 | 6,905 |
| Amortization of capitalized development cost | -1,882 | -881 | -5,030 | -2,800 | -3,912 | -6,142 |
| Amortization of acquired assets | -8,762 | -1,316 | -24,778 | -2,723 | -3,820 | -25,875 |
| Operating profit/loss | -3,352 | 3,958 | -13,146 | 8,819 | -3,148 | -25,113 |
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 is consequently no impact in the income statement from Lucid in the fiscal year 2021.
The preliminary consideration amounted to USD 1,070 million, 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 481.3 million 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 120 million (EUR 106.3m) debt financing and from the directed share issue in two tranches in a total amount of SEK 4,400 million (EUR 437.0m) which was announced by Cint on 28 October 2021.
The preliminary purchase price allocation for Lucid is presented below. Since the transaction was completed close to the year end of 2021 the purchase price allocation will be evaluated and updated during 2022. The preliminary purchase price allocation indicates a reported goodwill of EUR 772.1m 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-related expenses for Lucid amounted to EUR 17.8m.
| 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 | -70,562 |
| Other non-current liabilities* | -939 |
| Current liabilities | -83,205 |
| Total acquired net assets | 212,896 |
| 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 | 212,896 |
| Goodwill | 772,142 |
| 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 |
* Adjusted in Q1 2022 with EUR 9.1m related to a final tax adjustment for financial year 2021
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.
| KEUR | 2022 Jul-Sep |
2021 Jul-Sep |
2022 Jan-Sep |
2021 Jan-Sep |
2021 Jan-Dec |
Rolling 12-months |
|---|---|---|---|---|---|---|
| Interest income | 49 | 108 | 153 | 111 | 115 | 157 |
| Interest expenses | -1,419 | 115 | -2,715 | -126 | -151 | -2,740 |
| Realized and unrealized currency effects | -2,065 | 636 | -2,539 | 1,364 | 2,122 | -1,781 |
| Financial income/expenses net | -3,435 | 859 | -5,101 | 1,349 | 2,086 | -4,363 |
Cint Interim report January – September 2022 19
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 | Reason for use of measures | ||||
|---|---|---|---|---|---|---|
| Net sales growth | Change in net sales compared to same period previous year. |
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 |
|
|---|---|---|
| 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 | 2021 | Rolling | |
|---|---|---|---|---|---|---|
| Alternative performance measures, KEUR | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Jan-Dec | 12-months |
| Net sales previous period | 34,280 | 23,714 | 94,170 | 66,681 | 98,284 | 125,773 |
| Net sales current period | 74,319 | 34,280 | 214,847 | 94,170 | 138,925 | 259,602 |
| Net sales growth | 116.8% | 44.6% | 128.1% | 41.2% | 41.4% | 106.4% |
| Whereof acquired and discontinued net sales previous period | 245 | - | 1,532 | - | - | 1,737 |
| Whereof acquired and discontinued net sales current period | 33,651 | 2,501 | 97,703 | 3,440 | 6,520 | 101,108 |
| Net sales excluding acquired and discontinued net sales previous period | 34,035 | 23,714 | 92,638 | 66,681 | 98,284 | 124,035 |
| Net sales excluding acquired and discontinued net sales current period | 40,668 | 31,779 | 117,145 | 90,730 | 132,404 | 158,494 |
| Organic growth | 19.5% | 34.0% | 26.5% | 36.1% | 34.7% | 27.8% |
| Of which currency effects | 3,230 | -4 | 6,483 | -2,088 | -1,100 | 7,339 |
| Organic growth excluding currency effects, % | 9.1% | 34.0% | 18.2% | 40.5% | 36.2% | 20.6% |
| Net sales previous period | 34,280 | 23,714 | 94,170 | 66,681 | 98,284 | 125,773 |
| Net sales current period | 74,319 | 34,280 | 214,847 | 94,170 | 138,925 | 259,602 |
| Net sales growth | 116.8% | 44.6% | 128.1% | 41.2% | 41.4% | 106.4% |
| Whereof discontinued Russian business previous period | 245 | n/a | 1,532 | n/a | n/a | n/a |
| Adding Lucid previous period | 25,951 | n/a | 71,306 | n/a | n/a | n/a |
| Whereof discontinued Russian business current period | 3 | n/a | 4,989 | n/a | n/a | n/a |
| Net sales Cint organic and Lucid previous period | 59,985 | n/a | 163,944 | n/a | n/a | n/a |
| Net sales Cint organic and Lucid current period | 74,316 | n/a | 209,859 | n/a | n/a | n/a |
| Pro forma growth | 23.9% | n/a | 28.0% | n/a | n/a | n/a |
| Of which currency effects | 6,957 | n/a | 14,304 | n/a | n/a | n/a |
| Pro forma growth excluding currency effects, % | 11.0% | n/a | 17.7% | n/a | n/a | n/a |
| Net sales | 74,319 | 34,280 | 214,847 | 94,170 | 138,925 | 259,602 |
| Cost of services sold | -27,184 | -16,823 | -80,264 | -45,756 | -67,769 | -102,278 |
| Gross profit | 47,134 | 17,457 | 134,583 | 48,414 | 71,155 | 157,325 |
| Gross margin | 63.4% | 50.9% | 62.6% | 51.4% | 51.2% | 60.6% |
| Total customer spend | 105,188 | 36,907 | 299,138 | 101,503 | 149,624 | 347,260 |
| Net sales | 74,319 | 34,280 | 214,847 | 94,170 | 138,925 | 259,602 |
| Operating profit/loss | -3,352 | 3,958 | -13,146 | 8,819 | -3,148 | -25,113 |
| Operating margin, % | -4.5% | 11.5% | -6.1% | 9.4% | -2.3% | -9.7% |
| Amortization and write-offs of acquisition-related intangible assets | 8,762 | 1,316 | 24,778 | 2,723 | 3,820 | 25,875 |
| Amortization of capitalized development expenses | 1,882 | 881 | 5,030 | 2,800 | 3,912 | 6,142 |
| EBITA | 7,293 | 6,155 | 16,662 | 14,342 | 4,584 | 6,905 |
| EBITA margin, % | 9.8% | 18.0% | 7.8% | 15.2% | 3.3% | 2.7% |
| Depreciation of tangible non-current assets | 931 | 391 | 2,679 | 1,066 | 1,476 | 3,089 |
| EBITDA | 8,223 | 6,547 | 19,342 | 15,407 | 6,060 | 9,994 |
| EBITDA margin, % | 11.1% | 19.1% | 9.0% | 16.4% | 4.4% | 3.8% |
| Items affecting comparability (by line in Income statement) | ||||||
| Personnel expenses | 2,303 | -40 | 4,176 | 1,442 | 4,429 | 7,163 |
| Other operating income | - | - | - | -1,340 | -1,340 | - |
| Other external expenses | 3,610 | 133 | 11,728 | 1,828 | 16,673 | 26,573 |
| Items affecting comparability (by line in Income statement) | 5,913 | 92 | 15,904 | 1,929 | 19,761 | 33,736 |
| Items affecting comparability (by category) | ||||||
| Cost for strategic projects | 25 | 92 | 449 | 3,270 | 21,101 | 18,280 |
| Integration costs | 5,585 | - | 14,827 | - | - | 14,827 |
| Covid related US PPP loans | - | - | - | -1,340 | -1,340 | - |
| Other | 303 | - | 629 | - | - | 629 |
| Items affecting comparability (by category) | 5,913 | 92 | 15,904 | 1,929 | 19,761 | 33,736 |
| FX gain/loss on operating balance sheet items | 139 | 754 | 262 | 605 | 1,193 | 851 |
| Adjusted operating profit | 2,561 | 4,050 | 2,759 | 10,748 | 16,612 | 8,623 |
| Adjusted operating margin, % | 3.4% | 11.8% | 1.3% | 11.4% | 12.0% | 3.3% |
| Adjusted EBITA | 13,206 | 6,247 | 32,567 | 16,271 | 24,345 | 40,641 |
| Adjusted EBITA margin, % | 17.8% | 18.2% | 15.2% | 17.3% | 17.5% | 15.7% |
| Adjusted EBITDA | 14,136 | 6,639 | 35,246 | 17,337 | 25,821 | 43,730 |
| Adjusted EBITDA margin, % | 19.0% | 19.4% | 16.4% | 18.4% | 18.6% | 16.8% |
| Adjusted EBITDA, excl FX gain/loss on operating balance sheet items | 13,997 | 5,885 | 34,984 | 16,732 | 24,628 | 42,880 |
| Adjusted EBITDA margin, excl FX gain/loss on operating balance sheet items, % | 18.8% | 17.2% | 16.3% | 17.8% | 17.7% | 16.5% |
| Accounts receivable | 100,674 | 38,144 | 100,674 | 38,144 | 91,136 | 100,674 |
|---|---|---|---|---|---|---|
| Other current receivable | 31,183 | 17,164 | 31,183 | 17,164 | 26,571 | 31,183 |
| Accounts payable | -64,375 | -15,209 | -64,375 | -15,209 | -48,585 | -64,375 |
| Other current liabilities | -43,273 | -25,146 | -43,273 | -25,146 | -58,064 | -43,273 |
| Net working capital | 24,208 | 14,952 | 24,208 | 14,952 | 11,059 | 24,208 |
| Other interest-bearing liabilities (Borrowings) | 125,527 | 2,520 | 125,527 | 2,520 | 108,869 | 125,527 |
| Lease liabilities - Long term | 2,833 | 1,668 | 2,833 | 1,668 | 3,073 | 2,833 |
| Lease liabilities - Short term | 2,316 | 975 | 2,316 | 975 | 2,230 | 2,316 |
| Total interest-bearing debt | 130,675 | 5,163 | 130,675 | 5,163 | 114,172 | 130,675 |
| Cash and cash equivalents | 65,780 | 51,098 | 65,780 | 51,098 | 77,674 | 65,780 |
| Net debt | 64,896 | -45,935 | 64,896 | -45,935 | 36,498 | 64,896 |
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 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 |
| Net sales | 74,319 | 73,187 | 67,342 | 44,755 | 34,280 | 31,744 | 28,147 | 31,603 | 23,714 |
| Net sales growth, % | 116.8% | 130.6% | 139.3% | 41.6% | 44.6% | 45.5% | 33.1% | 34.0% | 34.6% |
| Gross profit | 47,134 | 46,165 | 41,284 | 22,741 | 17,457 | 16,460 | 14,497 | 16,449 | 12,029 |
| Gross margin, % | 63.4% | 63.1% | 61.3% | 50.8% | 50.9% | 51.9% | 51.5% | 52.1% | 50.7% |
| EBITDA | 8,223 | 7,452 | 3,666 | -9,348 | 6,547 | 5,737 | 3,124 | 2,892 | 3,625 |
| EBITDA margin, % | 11.1% | 10.2% | 5.4% | -20.9% | 19.1% | 18.1% | 11.1% | 9.2% | 15.3% |
| Adjusted EBITDA | 14,136 | 12,974 | 8,136 | 8,484 | 6,639 | 5,163 | 5,535 | 5,540 | 3,844 |
| Adjusted EBITDA margin, % | 19.0% | 17.7% | 12.1% | 19.0% | 19.4% | 16.3% | 19.7% | 17.5% | 16.2% |
| Non-recurring items | 5,913 | 5,522 | 4,470 | 17,831 | 92 | -574 | 2,411 | 2,647 | 219 |
| Operating profit/loss | -3,352 | -2,504 | -7,290 | -11,967 | 3,958 | 3,683 | 1,177 | 1,045 | 1,841 |
| Operating margin, % | -4.5% | -3.4% | -10.8% | -26.7% | 11.5% | 11.6% | 4.2% | 3.3% | 7.8% |
| Rolling 12-month | |||||||||
| Net sales | 259,602 | 219,563 | 178,120 | 138,925 | 125,773 | 115,207 | 105,285 | 98,284 | 90,271 |
| Gross profit | 157,325 | 127,647 | 97,943 | 71,155 | 64,863 | 59,435 | 54,110 | 50,966 | 47,322 |
| EBITDA | 9,994 | 8,318 | 6,602 | 6,060 | 18,300 | 15,379 | 13,361 | 13,311 | 11,348 |
| Adjusted EBITDA | 43,730 | 36,233 | 28,422 | 25,821 | 22,877 | 20,082 | 18,638 | 16,273 | 13,802 |
| Gross margin, % | 60.6% | 58.1% | 55.0% | 51.2% | 51.6% | 51.6% | 51.4% | 51.9% | 52.4% |
| EBITDA margin, % | 3.8% | 3.8% | 3.7% | 4.4% | 14.6% | 13.3% | 12.7% | 13.5% | 12.6% |
| Adjusted EBITDA margin, % | 16.8% | 16.5% | 16.0% | 18.6% | 18.2% | 17.4% | 17.7% | 16.6% | 15.3% |
Stockholm 27 October 2022
Cint Group AB (publ)
Tom Buehlmann, CEO
For more information, please contact: Britta Mittler, Interim CFO Tel: +49 160 96797250 Email: [email protected]
Patrik Linzenbold, Head of IR Tel: +46 708 252 630 Email: [email protected]
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 27 October 2022.
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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