AI Terminal
Cint Group
Quarterly Report • Oct 24, 2024
2902_10-q_2024-10-24_cbca5454-3ea2-4f6d-a41f-62cde03dd396.pdf
Quarterly Report
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Interim report January - September 2024
Q32024
Stable sales combined with continued profitability improvements
Third quarter 2024
- · Effective from the first quarter 2024, Cint implemented changes in its financial reporting. Pro forma figures are presented for the purpose of comparability.
- · On a pro forma basis net sales increased by 1.0 percent to EUR 42.4m (41.9 pro forma) and by 1.6 percent on a constant currency basis. Reported net sales last year amounted to EUR 66.6m.
- · Gross profit amounted to EUR 37.3m (36.6 pro forma) corresponding to a margin of 88.0 percent (87.4 pro forma). Reported gross profit last year amounted to EUR 41.4m and reported gross margin last year was 62.2 percent.
- · EBITA amounted to EUR 11.7m (9.2) with an EBITA margin of 27.5 percent (22.0 pro forma). Reported EBITA margin last year was 13.9 percent.
- · EBIT amounted to EUR 3.1m (-21.4) with an EBIT margin of 7.2 percent (-51.0 pro forma). Reported EBIT margin last year was -32.1 percent.
- · EPS, before dilution amounted to EUR 0.00 (-0.09).
- · Adjusted EPS, before dilution amounted to EUR 0.03 (0.02).
January-September 2024
- · Net sales amounted to EUR 120.8m (120.9 pro forma) and were stable also on a constant currency basis. Reported net sales last year amounted to EUR 194.2m.
- · Gross profit amounted to EUR 104.2m (105.3 pro forma) corresponding to a margin of 86.3 percent (87.1 pro forma). Reported gross profit last year amounted to EUR 120.0m and reported gross margin last year was 61.8 percent.
- EBITA amounted to EUR 20.3m (16.5) with an EBITA margin of 16.8 percent (13.6 pro forma). Reported EBITA margin last year was 8.5 percent.
- EBIT amounted to EUR -10.5m (-37.2) with an EBIT margin of -8.7 percent (-30.8 pro forma). Reported EBIT margin last year was -19.2 percent.
- · EPS, before dilution amounted to EUR -0.07 (-0.15).
- · Adjusted EPS, before dilution amounted to EUR 0.04 (0.04).
Significant events during the period
In September, Cint announced that Patrick Comer, who has served as Chairman of the Cint Board, assumed the role of CEO and that Anna Beffrage, previously Deputy Chair of the Cint Board, assumed the role of Chair. Furthermore, Brett Schnittlich was appointed and assumed the role as Chief Operating Officer and member of the Global Leadership Team. Felicia Winberg has resigned from her role as General Counsel and will leave the company on 30 November.
Key financial ratios for the Group
| KEUR | 2024 Jul-Sep |
2023 Jul-Sep |
2023 Jul-Sep |
2024 Jan-Sep |
2023 Jan-Sep |
2023 Jan-Dec |
|---|---|---|---|---|---|---|
| Net sales | 42,355 | 66,570 | 41,935 | 120,837 | 194,241 | 266,538 |
| Net sales growth, reported | -36.4% | -10.4% | n.a. | -37.8% | -9.6% | -9.7% |
| Net sales growth, pro forma | 1.0% | -11.8% | -11.8% | 0.0% | -10.8% | -10.1% |
| Gross profit | 37,287 | 41,386 | 36,635 | 104,225 | 119,971 | 166,174 |
| Gross margin | 88.0% | 62.2% | 87.4% | 86.3% | 61.8% | 62.3% |
| Operating profit/loss before amortization (EBITA) | 11,654 | 9,230 | 9,230 | 20,266 | 16,478 | 28,704 |
| Operating profit/loss before amortization (EBITA) margin | 27.5% | 13.9% | 22.0% | 16.8% | 8.5% | 10.8% |
| FX gain/loss on operating items | -797 | 3-0 | 310 | -1,511 | -511 | -1,221 |
| EPS, before dilution | 0.00 | -0.09 | -0.09 | -0.07 | -0.15 | -2.10 |
| Adjusted EPS, before dilution | 0.03 | 0.02 | 0.02 | 0.04 | 0.04 | 0.07 |
| Net debt | 78,572 | 74,027 | 74,027 | 78,572 | 74,027 | 72,277 |
*Pro forma figures include changes in revenue reclassification of direct platform costs from operating experses to cost of services sold, for more information please refer to note 2 Summary of significant accounting policies and note 3 Pro forma
Comments by the CEO
Stable sales combined with continued profitability improvements
It is an honor to step into the role of CEO after 2.5 years as the Chair of the Board, bringing over two decades of industry experience with me. In the nearterm focus will remain on executing the ongoing platform consolidation while positioning Cint for a future defined by growth, innovation and commercial excellence.
Sales and profitability
Net sales in the third quarter 2024 increased by one percent to EUR 42.4m compared with EUR 41.9m pro forma in the same period last year. Similar to earlier quarters this year, sales in Cint Exchange were slow as a result of lower demand from some key customers and overall uncertain economic conditions. This was offset by a continued strong momentum in Media Measurement driven by growth from existing customers but also from new client gains.
"Once we complete our platform integration and strengthen our commercial team, we will be wellpositioned to scale and capture new growth opportunities."
Higher gross margin at 88.0 percent (87.4 pro forma) and lower operating expenses resulted in improved EBITA margins to 27.5 percent (22.0 pro forma). Operating expenses were lower partly as a result of the efficiency program communicated in July and in addition, G&A costs decreased quarter-on-quarter due to changed assumptions regarding the longterm incentive programs, reducing costs by EUR 2.0m compared to EUR 0.9m last year.
Net cash flow for the quarter amounted to EUR -7.0m (-4.3). Cash flow from operating activities before changes in working capital increased to EUR 11.6m (5.1). However, this was more than offset by negative cash flow related to working capital and a loan repayment of EUR 3.6m. Working capital was mainly affected by a reduction of accounts payable and an increase in unbilled revenue compared to the previous quarter. Managing our working capital remains a key focus area for the company, primarily on reducing accounts receivable.
Platform consolidation
The work on consolidating our technology platforms into the new unified Cint Exchange is progressing. Building on the strong foundations laid by Giles Palmer through the development and execution of an integration and migration plan, we anticipate that this process will be completed by the end of H1 2025. Progress is also being made regarding the migration of our customers to the Cint Exchange. By the end of Q3, we had successfully migrated 66 percent of our total customers, and by the end of the year, we will have 75-80 percent of the customers migrated.
Investment in innovation
We are proud of the many feature and product improvements, including:
The Fielding Assistant, an Al agent trained on millions of platform transactions, is a compelling feature of the new platform. It offers customers the best price and delivery options while significantly reducing the time a project manager needs to complete a study.
Our new take-rate model, Revenue per Interview (RPI), harmonizes the legacy schema on the Cint Exchange by optimizing for delivery, quality, and price. More than 70 percent of the supply volume has already been integrated with the RPI, and we expect 90 percent to be delivered via this new mechanism by the end of the year.
Building on our success with Disney in creating a selfservice workflow and reporting system for Media Measurement, we've expanded the platform to new customers. This makes setting up and launching studies easier in just a few minutes, enabling them to move from study concepts to real-time insights faster.
Looking ahead
Following the completion of the platform consolidation in the first half of 2025, we will be able to accelerate innovation and expand our commercial footing further, especially within our core marketplace business.
Our vision is for our market research platform to provide the fastest access to the largest variety of consumer insights with the highest quality. Cint will be the most efficient way for market research agencies to obtain all the insights their clients need.
Cint aims to offer the most advanced brand lift and measurement platform for media companies across all channels. For consumer brands, Cint will provide the easiest way to reach their audiences directly and enhance their data ecosystems. Under this vision, Cint will operate more efficiently by focusing on growing customer relationships through an expanded suite of insights, workflows, and use cases. As we work on the platform consolidation and migration of customers to the new platform, we anticipate modest year-on-year sales growth, especially given the persisting macroeconomic challenges. Nevertheless, we expect a seasonally strong fourth quarter in terms of sales and profitability, also driven by the efficiency program announced in July of this year.
Once we complete our platform integration and strengthen our commercial team, we will be wellpositioned to scale and capture new growth opportunities. With a solid foundation, we are ready to drive innovation and efficiency, ensuring long-term success.
Patrick Comer
CFO
Group Financial Overview
Net Sales
Third quarter
On a pro forma basis net sales increased by 1.0 percent to EUR 42.4m (41.9 pro forma) and by 1.6 percent on constant currency basis. Sales development in Cint Exchange were slow impacted by overall weak economic conditions. This was more than offset by a continued strong momentum in Media Measurement. Reported net sales last year were EUR 66.6m.
January - September
Net sales amounted to EUR 120.8m (120.9 pro forma) and were stable also on a constant currency basis. Reported net sales last year were EUR 194.2m.
•Q Pro forma growth, organic constant currency %
Gross Profit
Third quarter
Gross profit in the quarter amounted to EUR 37.3m (36.6 pro forma) corresponding to a margin of 88.0 percent (87.4 pro forma). Gross margin was slightly higher mainly as a result of lower hosting costs. Reported gross profit same quarter last year amounted to EUR 41.4m.
January - September
Gross profit in the period amounted to EUR 104.2m (105.3 pro forma) corresponding to a margin of 86.3 percent (87.1 pro forma). Reported gross profit same period last year amounted to EUR 120.0m.
EBITA
Third quarter
EBITA in the quarter amounted to EUR 11.7m (9.2) and the EBITA margin was 27.5 percent (22.0 pro forma). The increase in EBITA margin pro forma is mainly a consequence of reduced operating expenses. Reported EBITA margin same quarter last year was 13.9 percent.
Changed assumptions about retention assumptions of the LTIP in accordance with IFRS 2 had a positive impact of EUR 2.0m (0.9) in the third quarter. The impact from the IFRS valuation is included in the personnel costs under General and Administrative expenses.
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 -0.3m (-4.3) from currency fluctuations. The revaluation of balance sheet items had a negative impact on the result of EUR -0.8m (0.3) during the quarter. This impact is included in EBITA.
LTM Operating profit/loss before amortization (EBITA)
January - September
EBITA amounted to EUR 20.3m (16.5) and the EBITA margin was 16.8 percent (13.6 pro forma). Reported EBITA margin same period last year was 8.5 percent.
Lower cost for LTIP, in accordance with IFRS 2, had a positive impact in the period of EUR 1.2m (-0.6).
During the period, net sales were impacted by EUR -0.2m (-5.5) from currency fluctuations. The revaluation of balance sheet items had a negative impact on the result of EUR -1.5m (-0.5) during the period
Items affecting comparability
To enable a more accurate tracking of the underlying performance, items affecting comparability, or nonrecurring items, are included below the EBITA line. Please refer to note 11 Alternative Performance Measures for details of the non-recurring items split by category.
Third quarter
ltems affecting comparability for the quarter totaled EUR 1.3m (3.5) of which integration costs amounted to EUR 0.0m (3.4).
January - September
Items affecting comparability for the period totaled EUR 8.7m (10.4) of which integration costs amounted to EUR 4.5m (10.3), with EUR 2.9mn (0.0) related to the efficiency program.
Profit and Earnings Per Share
Third quarter
The operating profit in the quarter amounted to EUR 3.1m (-21.4) with an operating margin of 7.2 percent (-51.0 pro forma). Reported EBIT margin same quarter last year was -32.1 percent. Profit for the quarter amounted to EUR 0.4m (-20.0) and EPS (basic and diluted) was EUR 0.00 (-0.09). Adjusted EPS (basic and diluted) was EUR 0.03 (0.02).
January - September
The operating loss in the period amounted to EUR -10.5m (-37.2) with an operating margin of -8.7 percent (-30.8 pro forma). Reported EBIT margin same period last year was -19.2 percent. Loss for the period amounted to EUR -14.4m (-32.7) and EPS (basic and diluted) was EUR -0.07 (-0.15). Adjusted EPS (basic and diluted) was EUR 0.04 (0.04).
Cash flow and investments
Third quarter
Operating cash flow before changes in working capital in the quarter was EUR 11.6m (5.1). Interest paid in the quarter was in line with the same quarter last year.
Cash flow from changes in working capital was EUR -9.9m (-3.8) in the quarter. For further information regarding working capital, refer to the Net working capital section.
Cash flow from investing activities for the quarter was EUR -4.6m (-5.0), affected by investments in intangible fixed assets amounting to EUR -4.7m (-4.8), attributable to capitalized development costs for the platform, investments in new features and functions to support future growth.
For details on the depreciation and amortization, please refer to note 8.
Cash flow from financing activities amounted to EUR -4.1m (-0.7) in the quarter, where the negative impact compared with same quarter last year primarily related to repayment of loans amounting to EUR 3.6m.
The net cash flow in the quarter was EUR -7.0m (-4.3).
January - September
Operating cash flow before changes in working capital in the period was EUR 19.5m (5.3).
Cash flow from changes in working capital was EUR -11.5m (-6.5) in the period.
Cash flow from investing activities for the period was EUR -14.0m (-16.6), affected by investments in intangible fixed assets amounting to EUR -13.9m (-13.6). The same period previous year was impacted by the final payment from the acquisition of GapFish amounting to EUR -2.5m
Cash flow from financing activities amounted to EUR -9.3m (-2.0), primarily related to repayment of loans amounting to EUR 7.8m.
The net cash flow in the period was EUR -15.4m (-19.7).
Net working capital
Net working capital amounted to EUR 42.4m at the end of the period compared with EUR 34.5m as per June 2024. Working capital increased by EUR 7.9m compared to June 2024, mainly driven by lower accounts payable and decreased other current liabilities. Our emphasis remains on improving working capital in relation to total customer spend, with a strong focus on accounts receivable.
Net debt and financing activities
At the end of the period the Group had a total cash position of EUR 23.4m (42.1) and a total debt of EUR 101.9m (116.1).
Since December 2021, Cint has a credit facility agreement with two Nordic banks. The facility has a USD 120m term loan with an original tenor of three years. As per the end of the third quarter, the company has amortized EUR 7.8m of the original loan.
Personnel
At the end of the period, the total number of FTEs (employees and consultants) was 901 (1,018). The average number of FTEs in the quarter was 904 (1,016). The total number of employees was 839 (890) at the end of the period. The average number of employees during the quarter was 842 (863).
Platform unification
The consolidation of the Cint's technology platforms into the new unified Cint Exchange is progressing with the aim of completing this process by the first half of 2025. Cint had no integration costs in the third quarter of 2024. Total integration costs since the acquisition of Lucid at the end of December 2021 and up until the end of the second quarter of 2024 amounted to EUR 38.7m.
Financial targets and dividend policy
During 2024, Cint will concentrate on finalizing the consolidation and standardization of its platforms. In the short term, Cint will focus on maintaining adequate profitability and improving the operating cashflow. Work is ongoing to finalize the new threeyear plan, and the board of directors will present new mid-term targets during 2024. At present, the dividend policy remains unchanged - Cint will not pay annual dividends in the short term.
Parent Company
The parent company's activities are focused on direct or indirect holding of shares in the operational subsidiaries. In addition, the parent company provides management services to the Group. At the end of the period, the parent company had three 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 66.2m (-9.5) in the third quarter. The parent company's net profit was SEK 38.6m (-40.9) in the quarter. The parent company's financial position by end of the third quarter, measured in terms of total equity in relation to total assets ratio, was 72.6 percent (84.4) and it had a cash balance of SEK 0.3m (2.3), to be compared with a ratio of 69.9 percent and a cash balance of SEK 0.4m by end of December 2023.
Net sales development
Business segments
Cint Exchange gives customers instant programmatic connections to millions of global respondents to conduct cost-effective digital market research at speed and scale, delivered through automated matching of survey criteria and deep profiling data.
Net sales in the Cint Exchange1 segment decreased by 12.2 percent on a pro forma basis to EUR 28.5m (32.5 pro forma) in the quarter, and by 11.9 percent on a constant currency basis. Sales were negatively affected by lower prices on relatively stable volumes. Net sales for the first nine months decreased by 10.4 percent on a pro forma basis to EUR 86.3m (96.3 pro forma), and by 10.7 percent on a constant currency basis.
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 Media Measurement segment increased by 46.7 percent on a pro forma basis to EUR 13.8m (9.4 pro forma) in the quarter and by 48.6 percent on a constant currency basis. Sales increased as a result of new client gains and higher volumes with existing clients. Net sales for the first nine months increased by 40.7 percent on a pro forma basis to EUR 34.5m (24.5 pro forma), and by 42.8 percent on a constant currency basis.
Net sales by business segment, (KEUR)
Regional development
Net sales in the Americas region increased by 4.2 percent on a pro forma basis to EUR 28.0m (26.8 pro forma) in the quarter and increased by 5.3 percent on a constant currency basis. This was driven by strong Net sales in EMEA decreased by 1.1 percent on a pro forma basis to EUR 11.6m (11.7 pro forma) in the quarter and by 2.0 percent on a constant currency basis. Net sales for the first nine months decreased by 5.0 percent on a pro forma basis to EUR 33.9m (35.7 pro forma), and by 6.2 percent on a constant currency basis.
Net sales in APAC decreased by 16.9 percent on a pro forma basis to EUR 2.8m (3.4 pro forma) in the quarter and by 14.9 percent on a constant currency basis. Cint Exchange sales decreased mainly due to lower sales per customer. Net sales for the first nine months increased by 13.2 percent on a pro forma basis to EUR 10.2m (9.0 pro forma), and by 12.7 percent on a constant currency basis.
Net sales by region, (KEUR)
Net sales by region (Q3-2024)
sales in Media Measurement partly offset by lower sales in Cint Exchange. Net sales for the first nine months increased by 0.8 percent on a pro forma basis to EUR 76.8m (76.2 pro forma), and by 1.5 percent on a constant currency basis.
1 Previously called Marketplace, which includes both the legacy platforms and new Cint Exchange
Operational development
B2B customers
Cint had 4,322 customers by end of September 2024, compared with 4,298 customers in June 2024. As previously, an account is considered active if the client has placed an order during the last 12 months.
Completed surveys
The total number of completed surveys during the last twelve months was 203 million.
Completed surveys LTM, million
Connected respondents
The total number of connected respondents (new and active in the last 12 months) was 336 million. Counting methodologies on the legacy platforms are different due to differing underlying business models.
Number of connected respondents, million
Other information
Significant events during the quarter
In September, Cint announced that Patrick Comer, who has served as Chairman of the Cint Board, assumed the role of CEO and that Anna Belfrage, previously Deputy Chair of the Cint Board, assumed the role of Chair. Furthermore, Brett Schnittlich was appointed and assumed the role as Chief Operating Officer and member of the Global Leadership Team and Felicia Winberg has resigned from her role as General Counsel and will leave the company on 30 November
Share capital and shareholders
As of 30 September 2024, the share capital of Cint amounted to SEK 21,298,185, apportioned among 212,981,851 shares. The shares increased by 5,263 during August 2024 as a result of the exercise of warrants of series 2021/2024 Il that were issued within the framework of the share savings program that was established pursuant to a resolution at the extraordinary general meeting held on 19 February 2021. The shares have a quotient value of SEK 0.10 per share and each share is entitled to one vote. On 30 September 2024, there were 9,419 shareholders in the company.
The company's five largest shareholders on 30 September 2024 were Bolero Holdings (20.9 percent), DNB Asset Management AS (8.9 percent), Nordic Capital through companies (8.2 percent), Fourth Swedish National Pension Fund (6.0 percent) and Janus Henderson Investors (5.4 percent). For more information about Cint's ownership structure, Cint™ Investors | Ownership.
Seasonality
There are certain seasonal variations whereby net sales and profits are somewhat tilted towards the second half of the year, driven by variations in demand. The fourth quarter is usually the strongest quarter in terms of net sales and profit as it coincides with the needs of our customers for insight during major holidays, sales discount days and budget discussions.
ESG
Cint's sustainability impact is represented in the company's sustainability strategy through the three focus areas We are fair and equal, We create business value, and We reduce our environmental impact. These constitute the core of Cint's sustainability work, and thanks to close integration with the company business model, they play a natural part in all Cint's operations. Continuous work on KPIs and measurement entails refining existing metrics while also integrating new requirements. Further to this, the company is preparing itself to be fully compliant with CSRD reporting requirements.
New long-term share-based incentive program
At the annual general meeting held on May 15, 2024, it was resolved to establish a new long-term incentive program ("LTIP 2024"). The LTIP 2024 comprises in total up to 5,642,913 restricted stock units ("RSUs") which will be awarded free of charge to members of group management and other employees as allocated by the board of directors. Each RSU entitles the holder to one share in the Company. The RSUs will fully vest after three years from the date of award, subject to both performance and continued employment.
In order to secure the Company's obligation to deliver shares and to cover costs under the LTIP 2024, the general meeting resolved to issue and transfer up to 6,771,496 warrants of series 2024/2027. The maximum dilution effect will be approximately 3.11 percent if all 6,771,496 warrants of series 2024/2027 are exercised for subscription of 6,771,496 new shares in the Company.
The program was launched during the third quarter 2024 and the RSUs were awarded to approximately 50 participants.
Financial statements
Condensed consolidated income statement
| KEUR | Note | 2024 Jul-Sep |
2023 Jul-Sep |
2024 Jan-Sep |
2023 Jan-Sep |
2023 Jan-Dec |
|---|---|---|---|---|---|---|
| Net Sales | 5 | 42,355 | 66,570 | 120,837 | 194,241 | 266,538 |
| Cost of services sold | -5,068 | -25,185 | -16,612 | -74,270 | -100,365 | |
| Gross profit | 37,287 | 41,386 | 104,225 | 119,971 | 166,174 | |
| Sales and Marketing Expenses | 10 | -8,428 | -10,806 | -32,295 | -34,684 | -45,792 |
| Research and Development Expenses | 10 | -7,311 | -10,994 | -21,066 | -34,955 | -45,369 |
| General and Administrative Expenses | 10 | -9,105 | -10,678 | -29,153 | -33,375 | -45,175 |
| Other operating income/expenses | -789 | 323 | -1,445 | -479 | -1,133 | |
| Operating profit/loss before amortization (EBITA) | 11,654 | 9,230 | 20,266 | 16,478 | 28,704 | |
| Amortization and impairment on acquisition related assets | 8 | -7,254 | -27,152 | -22,004 | -43,265 | -463,162 |
| Items affecting comparability | -1,337 | -3,452 | -8,725 | -10,412 | -14,218 | |
| Operating profit/loss (EBIT) | 3,063 | -21,374 | -10,463 | -37,199 | -448,676 | |
| Net financial expenses | 9 | -2,910 | -2,988 | -8,295 | -6,882 | -9,434 |
| Earnings before tax | 153 | -24,362 | -18,758 | -44,081 | -458,110 | |
| Income tax expense | 278 | 4,337 | 4,400 | 11,390 | 9,896 | |
| Profit/loss for the period | 432 | -20,025 | -14,359 | -32,691 | -448,213 | |
| Profit/loss for the period attributable to: | ||||||
| Parent Company shareholders | 432 | -20,025 | -14,359 | -32,691 | -448,213 | |
| 2024 | 2023 | 2024 | 2023 | 2023 | ||
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Jan-Dec | ||
| Earnings per share before and after dilution, EUR | 7 | 0.00 | -0.09 | -0.07 | -0.15 | -2.10 |
Condensed consolidated statement of other comprehensive income
| 2024 Jul-Sep |
2023 Jul-Sep |
2024 Jan-Sep |
2023 Jan-Sep |
2023 Jan-Dec |
|
|---|---|---|---|---|---|
| Profit/loss for the period | 432 | -20,025 | -14,359 | -32,691 | -448,213 |
| Other comprehensive income | |||||
| Items that may be transferred to income | |||||
| Exchange differences on translation of foreign operations | -16,933 | 26,957 | -2.839 | 6,417 | -40,190 |
| Hedge accounting of net investments | 5,663 | -1,556 | 1,552 | -4.110 | 4,872 |
| Tax effect from items in OCI | -1.106 | 253 | -177 | 754 | -1,128 |
| Other comprehensive income for the period | -12,376 | 25,654 | -1.464 | 3,061 | -36,446 |
| Total comprehensive income for the period | -11,945 | 5,629 | -15,823 | -29,630 | -484,659 |
Condensed consolidated statement of financial position
| 2024 | 2023 | 2023 | |
|---|---|---|---|
| KEUR | 30 Sep | 30 Sep | 31 Dec |
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 154,037 | 603,979 | 155,559 |
| Other intangible assets | 253,311 | 286,848 | 271,726 |
| Right-of-use assets | 2,711 | 2,820 | 3,139 |
| Equipment, tools and installations | 845 | 1,331 | 1,183 |
| Other financial assets | 1,289 | 1,057 | 1,333 |
| Deferred tax assets | 27,470 | 31,069 | 26,764 |
| Total non-current assets | 439,632 | 927,104 | 459,704 |
| Current assets | |||
| Accounts receivable | 103,787 | 95,772 | 96,001 |
| Other receivables | 3,059 | 8,853 | 5,989 |
| Prepaid expenses and accrued income | 29,339 | 26,475 | 25,379 |
| Cash and cash equivalents | 23,376 | 42,121 | 38,862 |
| Total current assets | 159,561 | 173,222 | 166,231 |
| TOTAL ASSETS | 599,193 | 1,100,326 | 625,935 |
| KEUR | 2024 30 Sep |
2023 30 Sep |
2023 31 Dec |
|---|---|---|---|
| EQUITY | |||
| Total equity attributable to the shareholders of the parent company | 349,343 | 821,001 | 365,974 |
| LIABILITIES | |||
| Non-current liabilities | |||
| Borrowings | 81,424 | 113,439 | 95,923 |
| Lease liabilities | 1,338 | 1,365 | 1,146 |
| Deferred tax liabilities | 53,902 | 64,045 | 60,265 |
| Total non-current liabilities | 136,665 | 178,849 | 157,334 |
| Current liabilities | |||
| Borrowings | 17,861 | 12,217 | |
| Lease liabilities | 1,326 | 1,344 | 1,853 |
| Accounts payable | 52,265 | 52,678 | 42,939 |
| Current tax liabilities | 1,034 | 759 | 398 |
| Other current liabilities | 5,011 | 6,899 | 5,504 |
| Accrued expenses and deferred income | 35,689 | 38,796 | 39,715 |
| Total current liabilities | 113,186 | 100,476 | 102,627 |
| TOTAL EQUITY AND LIABILITIES | 599,193 | 1,100,326 | 625,935 |
| Retained earnings, including |
||||||
|---|---|---|---|---|---|---|
| KEUR | Share capital | Additional paid in capital |
Hedging reserve |
Reserves | profit/loss for the period |
Total equity |
| Opening balance, 1 Jan 2023 | 2,165 | 1,165,030 | -9,563 | 44,632 | -352,255 | 850,009 |
| Profit/loss for the period Jan-Sep | -32,691 | -32,691 | ||||
| Other comprehensive income | -3,356 | 6,417 | 3,061 | |||
| Total comprehensive income | -3,356 | 6,417 | -32,691 | -29,630 | ||
| Share-based incentive program (IFRS 2) | 622 | 622 | ||||
| Closing balance, 30 Sep 2023 | 2,165 | 1,165,652 | -12,919 | 51,049 | -384,946 | 821,001 |
| Profit/loss for the period Oct-Dec | -415,522 | -415,522 | ||||
| Other comprehensive income | 7,100 | -46,607 | -39,507 | |||
| Total comprehensive income | 7,100 | -46,607 | -415,522 | -455,029 | ||
| Share-based incentive program (IFRS 2) | 3 | 3 | ||||
| Closing balance, 31 Dec 2023 | 2,165 | 1,165,655 | -5,819 | 4,442 | -800,468 | 365,974 |
| Profit/loss for the period Jan-Sep | -14,359 | -14,359 | ||||
| Other comprehensive income | 1,375 | -2,839 | -1,464 | |||
| Total comprehensive income | 1,375 | -2,839 | -14,359 | -15,823 | ||
| Share-based incentive program (IFRS 2) | -809 | -809 | ||||
| Closing balance, 30 Sep 2024 | 2,165 | 1,164,846 | -4,444 | 1,603 | -814,827 | 349,343 |
Equity attributable to the equity holders of the parent company
Condensed consolidated statement of cash flows
| KEUR | 2024 Jul-Sep |
2023 Jul-Sep |
2024 Jan-Sep |
2023 Jan-Sep |
2023 Jan-Dec |
|---|---|---|---|---|---|
| Cash flow from operating activities | |||||
| Operating profit/loss | 3,063 | -21,374 | -10,463 | -37,199 | -448,676 |
| Adjustments for non-cash items | 10,888 | 29,671 | 37,845 | 53,573 | 484,258 |
| Interest received | 13 | 80 | 257 | 266 | 415 |
| Interest paid | -2,807 | -2,803 | -8,579 | -7,390 | -10,093 |
| Income tax paid | 448 | -450 | 439 | -3,910 | -4,271 |
| Cash flow from operating activities before changes in working capita | 11,605 | 5,123 | 19,499 | 5,340 | 21,633 |
| Change in accounts receivable | -235 | -6,587 | -13,449 | 8,896 | 4,218 |
| Change in other current receivables | -5,560 | 34 | -3,326 | -1,226 | 581 |
| Change in accounts payable | -2,824 | 276 | 10,570 | -12,278 | -22,657 |
| Change in other current liabilities | -1,284 | 2,480 | -5,343 | -1,889 | -2,000 |
| Cash flow from changes in working capital | -9,903 | -3,797 | -11,547 | -6,497 | -19,857 |
| Cash flow from operating activities | 1,702 | 1,325 | 7,952 | -1,156 | 1,776 |
| Cash flow from investing activites | |||||
| Acquisitions of intangible assets | -4,653 | -4,780 | -13,893 | -13,642 | -18,430 |
| Acquisitions of tangible assets | -19 | -173 | -152 | -396 | -540 |
| Acquistions of entites | -0 | -9 | -0 | -2,550 | -2,550 |
| Change in other financial assets | 24 | -3 | 29 | -16 | -65 |
| Cash flow from investing activities | -4,649 | -4,965 | -14,016 | -16,605 | -21,585 |
| Cash flow from financing activities | |||||
| Repayment of loans | -3,554 | -7,781 | |||
| Repayment of lease liabilities | -528 | -656 | -1,560 | -1,970 | -2,647 |
| Cash flow from financing activities | -4,082 | -656 | -9,340 | -1,970 | -2,647 |
| Net cash flow | -7,029 | -4,296 | -15,404 | -19,731 | -22,456 |
| Decrease/increase of cash and cash equivalents | |||||
| Cash and cash equivalents at the beginning of the period | 30,751 | 45,940 | 38,862 | 62,609 | 62,609 |
| Currency translation difference in cash and cash equivalents | -346 | 477 | -81 | -757 | -1,292 |
| Cash and cash equivalents at the end of the period | 23,376 | 42,121 | 23,376 | 42,121 | 38,862 |
Condensed parent company income statement
| AUZE | 4025 | 4024 | AULS | 2025 | |
|---|---|---|---|---|---|
| KSEK | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Jan-Dec |
| Net sales | 17,626 | 7,963 | 33,404 | 43,784 | 44,500 |
| General and Administrative Expenses | -10,022 | -9,502 | -26,639 | -54,107 | -60,843 |
| Other operating income/expenses | 58,582 | -7,912 | -4,666 | -59,285 | 42,337 |
| Operating profit/loss | 66,185 | -9,452 | 2,099 | -69,608 | 25,994 |
| Write-down of shares in subsidiaries | -5,257,446 | ||||
| Interest expenses and similar profit/loss items | -29,843 | -33,083 | -101,984 | -84,331 | -103,747 |
| Total net financial items | -29,843 | -33,083 | -101,984 | -84,331 | -5,361,193 |
| Earnings before tax | 36,342 | -42,535 | -99,885 | -153,938 | -5,335,198 |
| Taxes for the period | 2,286 | 1,635 | 18,165 | 28,463 | -6.484 |
| Net loss/profit for the period | 38,627 | -40,900 | -81,719 | -125,475 | -5,341,682 |
| Condensed parent company balance sheet |
| KSEK | 2024 30 Sep |
2023 30 Sep |
2023 31 Dec |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Shares in subsidiary | 4,202,132 | 9,459,578 | 4,202,132 |
| Deferred tax assets | 83,362 | 100,144 | 65,197 |
| Intercompany non-current assets | 27,392 | 278,137 | 278,137 |
| Total non-current assets | 4,312,885 | 9,837,859 | 4,545,466 |
| Current assets | |||
| Intercompany receivables | 417,490 | 523,908 | 526,747 |
| Other current receivables | 23,033 | 17,930 | 79 |
| Prepaid expenses and accrued income | 4,019 | 5,062 | 3,403 |
| Total current receivables | 444,542 | 546,900 | 530,229 |
| Cash and cash equivalents | 282 | 2,315 | 412 |
| Total current assets | 444,824 | 549,216 | 530,641 |
| TOTAL ASSETS | 4,757,709 | 10,387,074 | 5,076,107 |
| KSEK | 2024 30 Sep |
2023 30 Sep |
2023 31 Dec |
| EQUITY AND LIABILITIES | |||
| Total restricted equity | 21,298 | 21,298 | 21,298 |
| Total non-restricted equity | 3,431,846 | 8,740,815 | 3,526,714 |
| Total equity | 3,453,144 | 8,762,113 | 3,548,012 |
| Non-current liabilities | |||
| External loan | 920,096 | 1,303,621 | 1,064,360 |
| Total non-current liabilities | 920,096 | 1,303,621 | 1,064,360 |
| Current liabilities | |||
| External loan | 201,824 | 135,561 | |
| Accounts payable | 4,498 | 832 | 866 |
| Intercompany liabilities | 155,131 | 282,422 | 310,062 |
| Other liabilities | 17,509 | 22,067 | 5,925 |
| Accrued expenses and deferred income | 5,506 | 16,020 | 11,321 |
| Total current liabilities | 384,468 | 321,341 | 463,735 |
| TOTAL FOUITY AND HARILITIES | 4 757 709 | 10 387 074 | 5 076 107 |
Notes
Note 1 General information
Cint Group AB (publ) ("Cint"), Corp. Reg. No 559040-3217 is the Parent Company registered in Sweden with its main office in Stockholm at Luntmakargatan 18, 111 37 Stockholm, Sweden.
Unless otherwise stated, all amounts are in thousands of EUR (KEUR). Data in parentheses pertain to the comparative period.
This interim report was authorised for issue by the board of directors on 24 October 2024.
Note 2 Summary of significant accounting policies
Cint applies International Financial Reporting Standards (FRS) as adopted by the EU. The accounting policies applied are consistent with those described in the 2023 Annual Report for Cint Group AB (publ). 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.
Segment reporting
Cint's chief operating decision maker (CODM) is represented by the chief executive officer (CEO) who monitors the operating result for the Group to manage the organisation and evaluate resources. The Group's operation is based on the financial information reported to the CEO. The financial information reported to the Group on a consolidated basis since the Group's offerings comprise the company's single the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements.
The pro forma figures are shown during the first year after the changes in revenue recognition since than a material impact on presented Net Sales. The pro forma figures give accurate comparison between the development in the business.
Changes in financial reporting
Starting from the first quarter 2024, Circ has applied changes in the financial revenue recognition, presentaton format for the income statement and introduction of EBITA measure.
Change in revenue recognition: Cint is reporting revenue streams according to IFRS 15 Revenue from Contracts with Customers. This change replaces the previous principle of recognizing a substantial portion of revenue streams on a gross basis. This change is due to Cint migrating customers to the unified platform. This change is not to ensure comparable figures, pro forma figures are presented separately, please refer to note 3 Pro forma.
New presentation format for the income statement: To provide a more comprehensive understanding of its cost structure, Cint presents expenses in the income statement based on their respective functions. This departure from the previous method, which categorized expenses by cost type, will offer stakeholders greater clarty regarding the allocation of resources across different operational areas and follows industry practice
Introduction of EBITA Measure: Cinthas introduced the EBITA (Earrings Before Interest, Taxes, and Amortization) measure to its financial reporting framework. Under this methodology, depreciation of capitalized development costs will be included in EBTTA, while amortization of acquisition related intangible assets and non-recurring items will be reported separately, below the EBITA line. This adjustment aims to provide investors and analysts with a clearer understanding of Cint's operational profitability, free from the distortions caused by nonoperational factors.
Note 3 Pro forma
Pro forma figures includes revenue recognized as net according to IFRS 15 for all significant revenue streams. Furthermore, the pro forma figures includes a reclassification of direct platform costs from operating expenses to cost of services sold.
Income Statement, Pro forma
| KEUR | 2023 Jan-Mar |
2023 Apr-Jun |
2023 Jul-Sep |
2023 Oct-Dec |
2023 Jan-Dec |
|---|---|---|---|---|---|
| Net sales reported | 59,870 | 67,801 | 66,570 | 72,298 | 266,538 |
| Reclassifications | |||||
| Cost of services sold, net revenue | -23,844 | -24,876 | -24,635 | -25,622 | -98,977 |
| Net sales | 36,026 | 42,925 | 41,935 | 46,676 | 167,561 |
| Cost of sales reported | -23,930 | -25,155 | -25,185 | -26,095 | -100,365 |
| Reclassifications | |||||
| Cost of services sold, net revenue | 23,844 | 24,876 | 24,635 | 25,622 | 98,977 |
| Operating expenses related to platform | -5,050 | -4,902 | -4,751 | -4,360 | -19,063 |
| Cost of sales | -5,136 | -5,181 | -5,301 | -4,833 | -20,450 |
| Gross profit | 30,890 | 37,744 | 36,635 | 41,843 | 147,111 |
| Gross margin, % | 85.7% | 87.9% | 87.4% | 89.6% | 87.8% |
| Sales and Marketing Expenses | -11,892 | -11,986 | -10,806 | -11,108 | -45,792 |
| Research and Development Expenses | -7,570 | -6,439 | -6,243 | -6,054 | -26,306 |
| General and Administrative Expenses | -10,256 | -12,441 | -10,678 | -11,800 | -45,175 |
| Other operating income/expenses | -261 | -541 | 323 | -654 | -1,133 |
| Operating profit/loss before amortization (EBITA) | 910 | 6,337 | 9,230 | 12,226 | 28,704 |
| Amortization and impairment on acquisition related assets | -8,069 | -8,044 | -27,152 | -419,897 | -463,162 |
| Items affecting comparability | -2,970 | -3,990 | -3,452 | -3,806 | -14,218 |
| Operating profit/loss (EBIT) | -10,129 | -5,696 | -21,374 | -411,477 | -448,676 |
| Net financial expenses | -1,990 | -1,905 | -2,988 | -2,551 | -9,433 |
| Profit before taxes | -12,119 | -7,601 | -24,362 | -414,029 | -458,110 |
| Income tax expense | 3,737 | 3,316 | 4,337 | -1,493 | 9,896 |
| Net income | -8,381 | -4,285 | -20,025 | -415,522 | -448,213 |
Distribution of net sales, Pro forma
| 2023 | 2023 | 2023 | 2023 | 2023 | |
|---|---|---|---|---|---|
| Net sales by region, KEUR | Jan-Mar | Apr-Jun | Jul-Sep | Oct-Dec | Jan-Dec |
| Americas | 22,501 | 26,859 | 26,828 | 30,430 | 106,617 |
| EMEA | 10,912 | 13,121 | 11,689 | 13,173 | 48,895 |
| APAC | 2,613 | 2,945 | 3,418 | 3,073 | 12,049 |
| Total | 36,026 | 42,925 | 41,935 | 46,676 | 167,561 |
| 2023 | 2023 | 2023 | 2023 | 2023 | |
| Net sales by business segment, KEUR | Jan-Mar | Apr-Jun | Jul-Sep | Oct-Dec | Jan-Dec |
| Cint Exchange | 29,280 | 34,553 | 32,516 | 33,170 | 129,520 |
| Media Measurement | 6,745 | 8,371 | 9,419 | 13,505 | 38,041 |
| Total | 36,026 | 42,925 | 41,935 | 46,676 | 167,561 |
Expense by type of cost, Pro forma
| KEUR | 2023 | 2023 Apr-Jun |
2023 Jul-Sep |
2023 Oct-Dec |
2023 Jan-Dec |
|---|---|---|---|---|---|
| Jan-Mar | |||||
| Personnel costs | -9,818 | -10,112 | -9,523 | -9,375 | -38,829 |
| Other external expenses | -2,074 | -1,874 | -1,282 | -1,733 | -6,964 |
| Total Sales and Marketing Expenses | -11,892 | -11,986 | -10,806 | -11,108 | -45,792 |
| Personnel costs | -3,712 | -3,250 | -2,862 | -2,717 | -12,540 |
| Other external expenses | -1,866 | -1,128 | -1,342 | -1,256 | -5,592 |
| Depreciation of capitalized development cost | -1,992 | -2,061 | -2,039 | -2,081 | -8,174 |
| Total Research and Development Expenses | -7,570 | -6,439 | -6,243 | -6,054 | -26,306 |
| Personnel costs | -4.408 | -5,819 | -3,836 | -4,724 | -18,787 |
| Other external expenses | -5,074 | -5,862 | -6,073 | -6.139 | -23,148 |
| Other depreciation | -775 | -760 | -769 | -937 | -3,240 |
| Total General and Administrative Expenses | -10,256 | -12,441 | -10,678 | -11,800 | -45,175 |
Note 4 Risk and uncertainties
An account of the Group's material financial and business risks can be found in the administration report and under note 3 in the 2023 Annual Report.
Note 5 Distribution of net sales
| Net sales by region | 2024 Jul-Sep |
2023 Jul-Sep |
2024 Jan-Sep |
2023 Jan-Sep |
2023 Jan-Dec |
|---|---|---|---|---|---|
| Americas | 27,952 | 40,188 | 76,762 | 114,231 | 159,123 |
| EMEA | 11,563 | 21,034 | 33,919 | 65,399 | 87,791 |
| APAC | 2,840 | 5,348 | 10,157 | 14,611 | 19,624 |
| Total | 42,355 | 66,570 | 120,837 | 194,241 | 266,538 |
| 2024 | 2023 | 2024 | 2023 | 2023 | |
| Net sales by business segment | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Jan-Dec |
| Cint Exchange | 28,533 | 52,662 | 86,317 | 160,341 | 214,918 |
| Media Measurement | 13,822 | 13,908 | 34,520 | 33,900 | 51,621 |
| Total | 42,355 | 66,570 | 120,837 | 194,241 | 266,538 |
Note 6 Related party transactions
No transactions between Cint and related parties that materially affected the financial position or results have taken place.
Note 7 Earnings per share
| 2024 Jul-Sep |
2023 Jul-Sep |
2024 Jan-Sep |
2023 Jan-Sep |
2023 Jan-Dec |
|
|---|---|---|---|---|---|
| Earnings per share before dilution, EUR | 0.00 | -0.09 | -0.07 | -0.15 | -2.10 |
| Earnings per share after dilution, EUR | 0.00 | -0.09 | -0.07 | -0.15 | -2.10 |
| Calculation of earnings per share: | |||||
| Earnings attributable to Parent Company shareholders, KEUR | 432 | -20,025 | -14,359 | -32,691 | -448,213 |
| Total | 432 | -20,025 | -14,359 | -32,691 | -448,213 |
| Weighted average number of ordinary shares | 212,981,851 | 212,976,588 | 212,981,851 | 212,976,588 | 212,976,588 |
| 2024 Jul-Sep |
2023 Jul-Sep |
2024 Jan-Sep |
2023 Jan-Sep |
2023 Jan-Dec |
|
| Adjusted Earnings per share before dilution, EUR | 0.03 | 0.02 | 0.04 | 0.04 | 0.07 |
| Adjusted Earnings per share after dilution, EUR | 0.03 | 0.02 | 0.04 | 0.04 | 0.07 |
| Calculation of adjusted earnings per share | |||||
| Earnings attributable to Parent Company shareholders, KEUR | 432 | -20,025 | -14,359 | -32,691 | -448,213 |
| Adjustment for items affecting comparability", KEUR | 1,062 | 2,741 | 6,927 | 8,267 | 11,289 |
| Add-back of amortization of intangible assets from acquisitions"}, KEUR |
5,571 | 20,853 | 16,899 | 33,227 | 451,884 |
| Total | 7,065 | 3,569 | 9,468 | 8,803 | 14,960 |
| Weighted average number of ordinary shares | 212,981,851 | 212,976,588 | 212,981,851 | 212,976,588 | 212,976,588 |
(1) Net of tax effect
Note 8 Depreciations, amortizations and impairments
| KEUR | 2024 Jul-Sep |
2023 Jul-Sep |
2024 Jan-Sep |
2023 Jan-Sep |
2023 Jan-Dec |
|---|---|---|---|---|---|
| Depreciation on tangible assets | -698 | -769 | -2,067 | -2,304 | -3,240 |
| Depreciation on capitalized development costs | -2,513 | -2,039 | -7,120 | -6,093 | -8,174 |
| Depreciation included in EBITA | -3,211 | -2,808 | -9,187 | -8,396 | -11,414 |
| Amortization and write-downs | -7,254 | -27,152 | -22,004 | -43,265 | -50,949 |
| Impairment of goodwill | 1 | -412,213 | |||
| Amortization and impairment on acquisition related assets | -7,254 | -27,152 | -22,004 | -43,265 | -463,162 |
Note 9 Financial income and expenses
| KEUR | 2024 Jul-Sep |
2023 Jul-Sep |
2024 Jan-Sep |
2023 Jan-Sep |
2023 Jan-Dec |
|---|---|---|---|---|---|
| Interest income | 13 | 80 | 257 | 265 | 415 |
| Interest expenses | -2,610 | -2,729 | -8,113 | -7,196 | -9,812 |
| Realized and unrealized currency effects | -116 | -264 | 27 | 243 | 170 |
| Other financial expenses | -197 | -74 | -465 | -194 | -206 |
| Financial income/expenses net | -2,910 | -2,988 | -8,295 | -6,882 | -9,434 |
Note 10 Expense by type of cost
| 2024 | 2023 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|---|
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Jan-Dec | |
| Personnel costs | -6,886 | -9,523 | -27,380 | -29,454 | -38,829 |
| Other external expenses | -1,541 | -1,282 | -4.915 | -5,230 | -6,964 |
| Total Sales and Marketing Expenses | -8,428 | -10,806 | -32,295 | -34,684 | -45,792 |
| Personnel costs | -3,402 | -4,186 | -9,429 | -13,674 | -17,727 |
| Other external expenses | -1,397 | -4,769 | -4.517 | -15,189 | -19,467 |
| Depreciation of capitalized development cost | -2,513 | -2,039 | -7,120 | -6,093 | -8,174 |
| Total Research and Development Expenses | -7,311 | -10,994 | -21,066 | -34,955 | -45,369 |
| Personnel costs | -1,526 | -3,836 | -9,959 | -14,063 | -18,787 |
| Other external expenses | -6,880 | -6,073 | -17,126 | -17,008 | -23,148 |
| Other depreciation | -698 | -769 | -2,067 | -2,304 | -3.240 |
| Total General and Administrative Expenses | -9,105 | -10,678 | -29,153 | -33,375 | -45,175 |
Note 11 Alternative Performance Measures
Certain information in this report that management and analysts use to assess the Group's development is not defined in IFRS. Management believes that this information makes it easier for investors to analyze 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, KEUR | 2024 Jul-Sep |
2023 Jul-Sep |
2024 Jan-Sep |
2023 Jan-Sep |
2023 Jan-Dec |
|---|---|---|---|---|---|
| Net sales previous period | 66,570 | 74,319 | 194,241 | 214,847 | 295,188 |
| Net sales current period | 42,355 | 66,570 | 120,837 | 194,241 | 266,538 |
| Net sales growth | -36.4% | -10.4% | -37.8% | -9.6% | -9.7% |
| Whereof acquired and discontinued net sales previous period | 141 | 141 | |||
| Net sales excluding acquired and discontinued net sales previous period | 66,570 | 74,319 | 194,241 | 214,707 | 295,048 |
| Net sales excluding acquired and discontinued net sales current period | 42,355 | 66,570 | 120,837 | 194,241 | 266,538 |
| Organic growth | -36.4% | -10.4% | -37.8% | -9.5% | -9.7% |
| Of which currency effects | -265 | -4,299 | -214 | -5,478 | -8,672 |
| Organic growth constant currency, % | -36.1% | -4.9% | -37.7% | -7.2% | -6.9% |
| Pro forma net sales previous period | 41,935 | 47,538 | 120,886 | 135,554 | 186,369 |
| Pro forma net sales current period | 42,355 | 41,935 | 120,837 | 120,886 | 167,561 |
| Pro forma net sales growth, % | 1.0% | -11.8% | 0.0% | -10.8% | -10.1% |
| Whereof discontiuned Russian business previous period | 79 | 79 | |||
| Pro forma net sales organic previous period | 41,935 | 47,538 | 120,886 | 135,475 | 186,290 |
| Pro forma net sales organic current period | 42,355 | 41,935 | 120,837 | 120,886 | 167,561 |
| Pro forma organic growth, % | 1.0% | -11.8% | 0.0% | -10.8% | -10.1% |
| Of which currency effects | -254 | -2,28/ | -99 | -2,683 | -4,529 |
| Pro forma organic growth constant currency, % | 1.6% | -7.3% | 0.0% | -9.0% | -7.8% |
| Net sales | 42,355 | 66,570 | 120,837 | 194,241 | 266,538 |
| Cost of services sold | -5,068 | -25,185 | -16,612 | -74,270 | -100,365 |
| Gross profit | 37,287 | 41,386 | 104,225 | 119,971 | 166,174 |
| Gross margin | 88.0% | 62.2% | 86.3% | 61.8% | 62.3% |
| Pro forma gross profit | 37,287 | 36,635 | 104,225 | 105,268 | 147,111 |
| Pro forma gross margin, % | 88.0% | 87.4% | 86.3% | 87.1% | 81.8% |
| Total customer spend | 88,761 | 88,452 | 258,719 | 256,996 | 352,764 |
| Net sales | 42,355 | 66,570 | 120,837 | 194,241 | 266,538 |
| Operating profit/loss | 3,063 | -21,374 | -10,463 | -37,199 | -448,676 |
| Operating margin, % | 7.2% | -32.1% | -8.7% | -19.2% | -168.3% |
| Items affecting comparability | 1,337 | 3,452 | 8,725 | 10,412 | 14,218 |
| Amortization and impairment on acquisition related items | 7,254 | 27,152 | 22,004 | 43,265 | 463,162 |
| Operating profit/loss before amortization (EBITA) | 11,654 | 9,230 | 20,266 | 16,478 | 28,704 |
| Operating profit/loss before amortization (EBITA) margin, % | 27.5% | 13.9% | 16.8% | 8.5% | 10.8% |
| Items affecting comparability by category | |||||
| Cost for strategic projects | - | 2,875 | 57 | 57 | |
| Integration costs | - | 3,411 | 4,512 | 10,266 | 13,963 |
| Other | 1,337 | 41 | 1,338 | 89 | 199 |
| Items affecting comparability by category | 1,337 | 3,452 | 8,725 | 10,412 | 14,218 |
| FX gain/loss on operating balance sheet items | -797 | 310 | -1,511 | -511 | -1,221 |
| Operating profit/loss before amortization (EBITA), excl FX gain/loss on operating balance sheet items |
12,451 | 8,920 | 21,777 | 16,989 | 29,926 |
| Operating profit/loss before amortization (EBITA) margin, excl FX gain/loss on operating balance sheet items |
29.4% | 13.4% | 18.0% | 8.7% | 11.2% |
| Accounts receivable | 103,787 | 95,772 | 103,787 | 95,772 | 96,001 |
| Other current receivable | 31,614 | 30,130 | 31,614 | 30,130 | 27,738 |
| Accounts payable | -52,265 | -52,678 | -52,265 | -52,678 | -42,939 |
| Other current liabilities | -40,700 | -45,695 | -40,700 | -45,695 | -45,218 |
| Net working capital | 42,436 | 27,529 | 42,436 | 27,529 | 35,582 |
| Other interest-bearing liabilities (Borrowings) | 99,285 | 113,439 | 99,285 | 113,439 | 108,140 |
| Lease liabilities - Long term | 1,338 | 1,365 | 1,338 | 1,365 | 1,146 |
| Lease liabilities - Short term | 1,326 | 1,344 | 1,326 | 1,344 | 1,853 |
| Total interest-bearing debt | 101,949 | 116,148 | 101,949 | 116,148 | 111,139 |
| Cash and cash equivalents | 23,376 | 42,121 | 23,376 | 42,121 | 38,862 |
| Net debt | 78,572 | 74,027 | 78,572 | 74,027 | 72,277 |
Note 12 Quarterly Summary
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 company's internal accounts and has neither been audited nor reviewed by the Company's auditor. The Profit and Loss format was updated as of Q1 2024, particularly with respect to revenue recognition, which transitioned from reporting a substantial portion of revenue streams on a gross basis to reporting all significant revenue streams net. Consequently, the reported figures for net sales growth on a year-over-year basis, rolling 12-month sales, and any metrics derived from these figures are not comparable to prior periods.
Quarterly Summary
| 2024 | 2023 | 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| KEUR | C3 | 02 | Q1 | Q4 | Q3 | 02 | Q1 | Q4 | es |
| Net sales | 42,355 | 42,068 | 36,414 | 72,298 | 66,570 | 67,801 | 59,870 | 80,341 | 74,319 |
| Net sales growth, % | -36.4% | -38.0% | -39.2% | -10.0% | -10.4% | -7.4% | -11.1% | 79.5% | 116.8% |
| Gross profit | 37,287 | 36,592 | 30,345 | 46,203 | 41,386 | 42,646 | 35,940 | 48,724 | 47,134 |
| Gross margin, % | 88.0% | 87.0% | 83.3% | 63.9% | 62.2% | 62.9% | 60.0% | 60.6% | 63.4% |
| Operating profit/loss before amortization (EBITA) |
11,654 | 7,119 | 1,492 | 12,226 | 9,230 | 6,337 | 910 | 10,364 | 11,323 |
| Operating profit/loss before amortization (EBITA), % |
27.5% | 16.9% | 4.1% | 16.9% | 13.9% | 9.3% | 1.5% | 12.9% | 15.2% |
| Amortization and impairment on acquisition related items |
7,254 | 7,316 | 7,434 | 419,897 | 27,152 | 8,044 | 8,069 | 349,426 | 8,762 |
| Items affecting comparability | 1,337 | 4,900 | 2,487 | 3,806 | 3,452 | 3,990 | 2,970 | 5,339 | 5,913 |
| Operating profit/loss (EBIT) | 3,063 | -5,097 | -8,430 | -411,477 | -21,374 | -5,696 | -10,129 | -344,402 | -3,352 |
| Operating margin (EBIT), % | 7.2% | -12.1% | -23.1% | -569.1% | -32.1% | -8.4% | -16.9% | -428.7% | -4.5% |
| Rolling 12-month | |||||||||
| Net sales | 193,135 | 217,350 | 243,083 | 266,538 | 274,582 | 282,331 | 287,716 | 295,188 | 259,602 |
| Gross profit | 150,428 | 154,526 | 160,579 | 166,174 | 168,695 | 174,444 | 177,963 | 183,307 | 157,325 |
| Operating profit/loss before amortization (EBITA) |
32,492 | 30,068 | 29,286 | 28,704 | 26,842 | 28,935 | 33,858 | 37,901 | 34,499 |
| Gross margin, % | 77.9% | 71.1% | 66.1% | 62.3% | 61.4% | 61.8% | 61.9% | 62.1% | 60.6% |
| Operating profit/loss before amortization (EBITA) margin, % |
16.8% | 13.8% | 12.0% | 10.8% | 9.8% | 10.2% | 11.8% | 12.8% | 13.3% |
24 October 2024
Patrick Comer CEO
This report is published in Swedish. In case of any differences between the English version and the Swedish original text, the Swedish version shall apply.
For more information, please contact
Niels Boon, CFO [email protected]
Investor relations: Patrik Linzenbold Tel: +46 708 252 630 [email protected]
Report presentation
The report will be presented via a webcast conference call on 24 October at 10.00 a.m. CEST.
Link to the live broadcast: webcast
Dial-in numbers:
Sweden: +46 10 884 80 16 Int.: +44 (0) 20 3936 2999 Access code: 977 550
The presentation will be available in connection to the conference call and a replay will be available later the same day.
Financial Calendar
Year-end report 2024: February 19, 2025
First quarter report 2025: April 24, 2025
Publication
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 a.m. CEST on 24 October 2024.
Auditor's report
Cint Group AB (publ) reg. no. 559040-3217
Unofficial translation
Introduction
We have reviewed the condensed interim financial information (interim report) Cint Group AB (publ) as of 30 September 2024 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
Scope of Review
We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.
Stockholm 24th of October PricewaterhouseCoopers AB
Niklas Renström Authorized Public Accountant Oskar Thorlsund Authorized Public Accountant
About Cint
Cint is a global software leader in technology-enabled insights. The Cint platform automates the insights gathering process so that companies can gain access to insights faster with unparalleled scale. Cint has the world's largest survey exchange for digital survey-based research, made up of more than 300 million engaged respondents across more than 130 countries. Insights-driven companies - including SurveyMonkey, Zappi, Kantar and GfK - use Cint to accelerate how they gather consumer insights and supercharge business growth.
In December 2021, Cint completed the acquisition of US-based Lucid a programmatic research technology platform that provides access to firstparty 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 technologyenabled insights.
Cint has a team of more than 900 FTEs in a number of global offices, including Stockholm, London, New York, New Orleans, Singapore, Tokyo and Sydney.
300M+ engaged respondents
130+ countries
900+ FTEs
Cint Group AB (publ) | Corp. Id. No. 559040-3277 | Registered office: Luntmakargatan 18, Itr SE-111 37 Stockholm,
Sweden | Tel: +46 8 546 383 00 | www.int.com
Definitions
| Alternative performance measures Definition |
Reason for use of measures | |||||
|---|---|---|---|---|---|---|
| Adjusted earnings per share (EPS) | add-back of amortization of intangible per share. assets from acquisitions (net of tax effect) and interest attributable to preference share. |
Profit/loss for the period adjusted for items Adjusted EPS shows the company's under- affecting comparability (net of tax effect), lying operative profit generation capability |
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| B2B customers | Total registered as new and active customers in the last 12 months |
|||||
| Connected respondents | Total registered as new and active panel- - lists in the last 12 months. |
|||||
| EBITA | Operating profit/loss before amortization of acquisition related assets. |
before The operating profit/loss amortization of acquisition related assets is to assess the Group's presented operational activities and defines the underlying business performance. Whereas depreciation of capitalized development costs for the platform is included in EBITA, non-recurring items (NRI) are excluded for better comparability. |
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| 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. |
||||
| Gross margin | Gross profit as a percentage of net sales. The measure is an indicator of a company's gross earning ability. |
|||||
| 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. |
||||
| 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. |
Interest-bearing non-current and current The measure shows the Company's real level of debt.
| 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. |
|||
|---|---|---|---|---|---|
| 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 |
|||
| 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 analyze underlying growth in net sales. |
|||
| 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. |
|||
| Operating profit/loss | financial expenses and tax | Profit for the period before financial income, Net sales less total operating expenses. Operating profit is relevant for investors to understand the earnings trend before interest and tax |
|||
| Pro forma | forma figures are IFRS. | Pro forma figures include changes in The pro forma figures are shown during the revenue recognition and a reclassification first year after the changes in revenue of direct platform costs from operating recognition since the change has a material expenses to cost of services sold. The impact on presented Net Sales. The pro applied accounting principles for the pro forma figures give an accurate comparison between the periods and show the development in the business. Pro forma figures include revenue recognized as Net according to IFRS 15 for all significant revenue streams. Furthermore, the pro forma figures include a reclassification of direct platform costs from operating expenses to cost of services sold. |
|||
| Pro forma growth | same period previous year. | Change in proforma net sales compared to The measure shows growth in pro forma net sales compared to the same period during previous year. |
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| Total customer spend | Total amount spent and processed on the - |
platforms including total project value and any take-rates or fees
