AI Terminal
Cint Group
Quarterly Report • Jul 19, 2024
2902_ir_2024-07-19_08694ad0-1fec-4da2-b4bd-962673a4ffbf.pdf
Quarterly Report
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Q22024
Improved profitability, steady sales
Second 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 decreased by 2.0 percent to EUR 42.1m (42.9 pro forma) and by 2.7 percent on a constant currency basis. Reported net sales last year amounted to EUR 67.8m.
- · Gross profit amounted to EUR 36.6m (37.7 pro forma) corresponding to a margin of 87.0 percent (87.9 pro forma). Reported gross profit last year amounted to EUR 42.6m and reported gross margin last year was 62.9 percent.
- · EBITA amounted to EUR 7.1m (6.3) with an EBITA margin of 16.9 percent (14.8 pro forma). Reported EBITA margin last year was 9.3 percent.
- EBIT amounted to EUR -5.1m (-5.7) with an EBIT margin of -12.1 percent (-13.3 pro forma). Reported EBIT margin last year was -8.4 percent.
- · EPS, before dilution amounted to EUR -0.03 (-0.02).
- · Adjusted EPS, before dilution amounted to EUR 0.01 (0.02).
Significant event after the end of the period
January-June 2024
- · On a pro forma basis net sales decreased by 0.6 percent to EUR 78.5m (79.0 pro forma) and by 0.8 percent on a constant currency basis. Reported net sales last year amounted to EUR 127.7m.
- · Gross profit amounted to EUR 66.9m (68.6 pro forma) corresponding to a margin of 85.3 percent (86.9 pro forma). Reported gross profit last year amounted to EUR 78.6m and reported gross margin last year was 61.6 percent.
- · EBITA amounted to EUR 8.6m (7.2) with an EBITA margin of 11.0 percent (9.2 pro forma). Reported EBITA margin last year was 5.7 percent.
- EBIT amounted to EUR -13.5m (-15.8) with an EBIT margin of -17.2 percent (-20.0 pro forma). Reported EBIT margin last year was -12.4 percent.
- · EPS, before dilution amounted to EUR -0.07 (-0.06).
- · Adjusted EPS, before dilution amounted to EUR 0.01 (0.02).
In July 2024 Cint announced that the company is carrying out an efficiency program resulting in a reduction of approximately 10 percent of the personnel costs. As part of the organizational changes, Jake Wolff, Chief Revenue Officer, and Mike Misel, Chief Supply and Partnership Officer, have made the decision to leave the company.
Key financial ratios for the Group
| Pro forma* | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2023 | 2024 | 2023 | 2023 | |
| KEUR | Apr-Jun | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec |
| Net sales | 42,068 | 67,801 | 42,925 | 78.482 | 127,671 | 266,538 |
| Net sales growth, reported | -38.0% | -7.4% | n.a. | -38.5% | -9.1% | -9.7% |
| Net sales growth, pro forma | -2.0% | -7.8% | -7.8% | -0.6% | -10.3% | -10.1% |
| Gross profit | 36,592 | 42,646 | 37,744 | 66,937 | 78,585 | 166,174 |
| Gross margin | 87.0% | 62.9% | 87.9% | 85.3% | 61.6% | 62.3% |
| Operating profit/loss before amortization (EBITA) | 7,119 | 6,337 | 6,337 | 8,611 | 7,248 | 28,704 |
| Operating profit/loss before amortization (EBITA) margin | 16.9% | 9.3% | 14.8% | 11.0% | 5.7% | 10.8% |
| FX gain/loss on operating items | -122 | -549 | -549 | -714 | -821 | -1,221 |
| EPS, before dilution | -0.03 | -0.02 | -0.02 | -0.07 | -0.06 | -2.10 |
| Adjusted EPS, before dilution | 0.01 | 0.02 | 0.02 | 0.01 | 0.02 | 0.07 |
| Net debt | 79,523 | 66,959 | 66,959 | 79,523 | 66,959 | 72,277 |
*Pro forma figures include changes in revenue reclassification of direct platform costs from operating expenses to cost of services sold, for more information please refer to note 2 Summary of significant accounting policies and note 3 Pro forma
Cint
Comments by the CEO
Improved profitability, steady sales
We closed the second quarter of 2024 with steady sales performance and improved profitability. Net sales for the quarter amounted to EUR 42.1m, a slight decrease compared to EUR 42.9m pro forma in the same period last year. The decline was driven by a temporary reduction in supply due to the migration of panel providers to the new platform. These issues peaked in May and our estimation is that they caused a reduction in net sales of circa EUR 2m in the quarter.
Our Media Measurement business continues to perform well, with growth from both existing customers and new client logos.
A gross margin of 87.0 percent combined with lower operating expenditures resulted in an improved EBITA margin of 16.9 percent (14.8 pro forma).
Net cash flow for the quarter was EUR -0.5m influenced by net working capital and the quarterly loan amortization payment of EUR 2.3m.
Platform consolidation
The consolidation of our technology platforms into the new unified Cint Exchange is progressing. Most of the work is on plan but two areas are delayed - the new front end is roughly three months behind plan and the hosted panel system is two months behind plan.
In the second quarter, we successfully deprecated and fully decommissioned one of the legacy platforms from our portfolio. This resulted in reduced hosting expenses and decreased system complexity, helping to streamline our operations and improve efficiency.
As with all integration processes of this nature, there is complexity and execution risk, which we as a team are managing on a daily basis. We anticipate that this process will take to the end of H1 2025 to complete.
Managed services customer migration
We continue to make progress with the migration of our managed services customers. By the end of the second quarter, we had successfully migrated 32% of our total customers. We remain on track to complete the migration of all managed service customers to the Cint Exchange for new projects by the end of the third quarter.
Investment in innovation
While our current focus remains on consolidating our technology platforms, we are also innovating to enhance our products and expand Cint's market offering. Customers migrating to the new Cint Exchange will benefit from our investments in automation and artificial intelligence. Key customer benefits include using Al to automate the process of getting surveys answered at the best price as quickly as possible.
Additionally, we are increasing investment in our Media Measurement business. This quarter, we enhanced our capability to surface social insights and introduced the ability to measure out-of-home digital display ads.
The Cint Trust Score, launched in 2023 to combat fraud on our platforms, was successfully deployed across all new and legacy platforms during the second quarter. This underscores our commitment to maintaining high standards of trust and security.
Looking ahead
As announced at the beginning of July, we are implementing an efficiency program designed to reduce personnel-related costs by circa 10 percent, primarily within the Sales organization. This corresponds to approximately EUR 10.8m per year. This initiative is expected to incur one-off costs of circa EUR 3m, due to redundancy packages.
We will continue to increase efficiency within the organization, rationalizing systems, using Al and other techniques to automate processes while managing all areas of company performance with diligence.
During the transition period, as we migrate our customers and panel providers to the new platform and phase out the legacy systems, we do not anticipate decisive year-on-year sales growth, especially given the persisting macroeconomic challenges. However, we expect the typical seasonal sales pattern to persist, with stronger performance in the second half of the year compared to the first.
In conclusion, we expect the second half of 2024 to deliver improved profitability, due to higher seasonal sales combined with the impact of the cost reduction described above.
Giles Palmer CEO
Group Financial Overview
Net Sales
Second quarter
On a pro forma basis net sales decreased by 2.0 percent to EUR 42.1m (42.9 pro forma) and by 2.7 percent on constant currency basis. Somewhat lower revenue, driven by a temporary reduction in supply due to the migration of panel providers and deprecation of a legacy platform. Reported net sales last year were EUR 67.8m.
January - June
On a pro forma basis net sales decreased by 0.6 percent to EUR 78.5m (79.0 pro forma) and by 0.8 percent on constant currency basis. Reported net sales last year were EUR 127.7m.
LTM Pro forma net sales and growth by quarter
Gross Profit
Second quarter
Gross profit in the quarter amounted to EUR 36.6m (37.7 pro forma) corresponding to a margin of 87.0 percent (87.9 pro forma). Gross margin was slightly lower mainly as a result of higher labor costs. Reported gross profit same quarter last year amounted to EUR 42.6m.
January - June
Gross profit in the period amounted to EUR 66.9m (68.6 pro forma) corresponding to a margin of 85.3 percent (86.9 pro forma), mainly driven by one-off effects in hosting costs as well as higher labor costs. Reported gross profit same period last year amounted to EUR 78.6m.
FRITA
Second quarter
EBITA in the quarter amounted to EUR 7.1m (6.3) and the EBITA margin was 16.9 percent (14.8 pro forma). The increase in EBITA margin pro forma is a consequence of reduced operating expenses. Reported EBITA margin same quarter last year was 9.3 percent.
Total cost for LTIP programs, in accordance with IFRS 2 in the second quarter was EUR 0.4m (0.9). The impact from the IFRS valuation is included in 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 0.5m (-2.0) from currency fluctuations. The revaluation of balance sheet items had a negative impact on the result of EUR -0.1m (-0.5) during the quarter. This impact is included in EBITA.
LTM Operating profit/loss before amortization (EBITA)
·LTM Operating profit/loss before amortization (EBITA) over pro forma net sales, %
January - June
EBITA amounted to EUR 8.6m (7.2) and the EBITA margin was 11.0 percent (9.2 pro forma). Reported EBITA margin same period last year was 5.7 percent.
Total cost for LTIP programs, in accordance with IFRS 2 in the period was EUR 0.8m (1.5).
During the period, net sales were impacted by EUR 0.1m (-1.2) from currency fluctuations. The revaluation of balance sheet items had a negative impact on the result of EUR -0.7m (-0.8) 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.
Second quarter
Items affecting comparability for the quarter totaled EUR 4.9m (4.0) of which integration costs amounted to EUR 2.0m (4.0) and costs related to the efficiency program announced in July 2024 amounted to EUR 29m.
January - June
Items affecting comparability for the period totaled EUR 7.4m (7.0) of which integration costs amounted to EUR 4.5m (6.9), with EUR 2.9mn (0.0) related to the efficiency program.
Profit and Earnings Per Share
Second quarter
The operating loss in the quarter amounted to EUR -5.1m (-5.7) with an operating margin of -12.1 percent (-13.3 pro forma). Reported EBIT margin same quarter last year was -8.4 percent. Loss for the quarter amounted to EUR -7.0m (-4.3) and EPS (basic and diluted) was EUR -0.03 (-0.02). Adjusted EPS (basic and diluted) was EUR 0.01 (0.02).
January - June
The operating loss in the period amounted to EUR -13.5m (-15.8) with an operating margin of -17.2 percent (-20.0 pro forma). Reported EBIT margin same period last year was -12.4 percent. Loss for the period amounted to EUR -14.8m (-12.7) and EPS (basic and diluted) was EUR -0.07 (-0.06). Adjusted EPS (basic and diluted) was EUR 0.01 (0.02).
Cash flow and investments
Second quarter
Operating cash flow before changes in working capital in the quarter was EUR 9.3m (6.1). Interest paid in the quarter increased by EUR 0.3m compared with same quarter last year.
Cash flow from changes in working capital was EUR -2.2m (-8.0) 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 -4.8m (-7.7), affected by investments in intangible fixed assets amounting to EUR -4.8m (-5.0), attributable to capitalized development costs for the platform, investments in new features and functions to support future growth. The same quarter previous year was impacted by the final payment from the acquisition of GapFish amounting to EUR -2.5m
For details on the depreciation and amortization, please refer to note 8.
Cash flow from financing activities amounted to EUR -2.8m (-0.7) in the quarter, where the negative impact compared with same quarter last year primarily related to repayment of loans amounting to EUR 2.3m.
The net cash flow in the quarter was EUR -0.5m (-10.3).
January - June
Operating cash flow before changes in working capital in the period was EUR 7.9m (0.2).
Cash flow from changes in working capital was EUR -1.6m (-2.7) in the period.
Cash flow from investing activities for the period was EUR -9.4m (-11.6), affected by investments in intangible fixed assets amounting to EUR -9.2m (-8.9).
Cash flow from financing activities amounted to EUR -5.3m (-1.3), primarily related to repayment of loans amounting to EUR 4.2m.
The net cash flow in the period was EUR -8.4m (-15.4).
Net working capital
Net working capital amounted to EUR 34.5m at the end of the period compared with EUR 37.1m as per March 2024. Working capital decreased by EUR 2.6m compared to March 2024, mainly driven by higher accounts payable, offsetting increased accounts receivable. Our emphasis remains on improving working capital in relation to total customer spend, with a strong focus on accounts receivable. The consolidation, automation and optimization efforts will contribute to this as well.
Net debt and financing activities
At the end of the period the Group had a total cash position of EUR 30.8m (45.9) and a total debt of EUR 110.3m (112.9).
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. During the fourth quarter 2023 an extension of the tenor by one year was agreed with the lenders. The loan matures in December 2025. As per the end of the second quarter, the company has amortized EUR 4.2m of the original loan.
Personnel
At the end of the period, prior to the communicated reorganization, the total number of FTEs (employees and consultants) was 958 (1,020). The average number of FTEs in the quarter was 967 (1,017). The total number of employees was 892 (817) at the end of the period. The average number of employees during the quarter was 901 (820).
Platform unification
The consolidation of the Cint's technology platforms into the new unified Cint Exchange is progressing as planned, despite some delays. Integration costs for the quarter amounted to EUR 2.0m and total integration cost since the acquisition of Lucid end of 2021 amounted to EUR 38.7m as per end of the second quarter 2024.
Financial targets and dividend policy
During 2024, Cint will be focused 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 6.6m (-68.5) in the second quarter. The parent company's net result/loss was SEK -28.5m (-76.5) in the quarter. The parent company's financial position by end of the second quarter, measured in terms of total equity in relation to total assets ratio, was 67.1 percent (84.9) and it had a cash balance of SEK 0.8m (3.7), 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 11.2 percent on a pro forma basis to EUR 30.7m (34.6 pro forma) in the quarter, and by 11.9 percent on a constant currency basis. Sales were negatively affected by lower prices on stable volumes. Net sales for the first six months decreased by 9.5 percent on a pro forma basis to EUR 57.8m (63.8 pro forma), and by 10.0 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 36.1 percent on a pro forma basis to EUR 11.4m (8.4 pro forma) in the quarter and by 34.8 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 six months increased by 36.9 percent on a pro forma basis to EUR 20.7m (15.1 pro forma), and by 39.1 percent on a constant currency basis.
Net sales by business segment, (KEUR)
Regional development
Net sales in the Americas region decreased by 0.7 percent on a pro forma basis to EUR 26.7m (26.9 pro forma) in the quarter and decreased by 1.8 percent on a constant currency basis. This was driven by weaker sales in Cint Exchange, explained by lower prices, partly offset by strong sales in Media Measurement. Net sales for the first six months decreased by 1.1 percent on a pro forma basis to EUR 48.8m (49.4 pro forma), and by 0.5 percent on a constant currency basis.
Net sales in EMEA decreased by 14.1 percent on a pro forma basis to EUR 11.3m (13.1 pro forma) in the quarter and by 15.2 percent on a constant currency basis as a result of lower prices on stable volumes. Net sales for the first six months decreased by 7.0 percent on a pro forma basis to EUR 22.4m (24.0 pro forma), and by 8.3 percent on a constant currency basis.
Net sales in APAC increased by 39.9 percent on a pro forma basis to EUR 4.1m (2.9 pro forma) in the quarter and by 47.3 percent on a constant currency basis. Cint Exchange sales increased mainly due to higher sales per customer. Net sales for the first six months increased by 31.6 percent on a pro forma basis to EUR 7.3m (5.6 pro forma), and by 29.0 percent on a constant currency basis.
Net sales by region, (KEUR)
Net sales by region (G2-2024)
1 Previously called Marketplace, which includes both the legacy platforms and new Cint Exchange
Operational development
B2B customers
Cint had 4,298 customers by end of June 2024, compared with 4,419 customers in March 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 204 million.
Completed surveys LTM, million
Connected respondents
The total number of connected respondents (new and active in the last 12 months) was 320 million. Counting methodologies on the legacy platforms are different due to differing underlying business models.
Number of connected respondents, million
Other information
Significant event after the end of the quarter
In July 2024 Cint announced that the company is carrying out an efficiency program resulting in a reduction of approximately 10 percent of the personnel costs, mostly within the Sales organization. As part of the organizational changes, Jake Wolff, Cint's Chief Revenue Officer, and Mike Misel, Chief Supply and Partnership Officer, have made the decision to leave the company.
Annual General Meeting
The annual general meeting of Cint Group AB was held on 15 May 2024 in Stockholm, Sweden. The AGM resolved to re-elect Patrick Comer, Anna Belfrage, Donna L. DePasquale, Carl Sparks and Mark Simon, and to elect Linda Höglund as members of the board of directors for the period until the close of the annual general meeting 2025. Patrick Comer was reelected as chairman of the board of directors for the same period. Information related to the AGM can be accessed here Cint™ Investors | General Meetings.
Share capital and shareholders
As of 30 June 2024, the share capital of Cint amounted to SEK 21,297,659, apportioned among 212,976,588 shares. The shares have a quotient value of SEK 0.10 per share and each share is entitled to one vote. On 30 June 2024, there were 9,852 shareholders in the company.
The company's five largest shareholders on 30 June 2024 were Nordic Capital through companies (8.2 percent), Bolero Holdings (8.0 percent), DNB Asset Management AS (7.8 percent), Handelsbanken Fonder (6.0 percent) and Fourth Swedish National Pension Fund (6.0 percent). For more information about Cint's ownership structure, see 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 profits as the quarter coincides with our B2B customers' in our targeted industries need for insights during major holidays, sales discount days and budget discussions for the forthcoming year.
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 will be launched during the third quarter 2024 and the RSUs are anticipated to be awarded to approximately 30 participants.
Financial statements
Condensed consolidated income statement
| KEUR | Note | 2024 Apr-Jun |
2023 Apr-Jun |
2024 Jan-Jun |
2023 Jan-Jun |
20923 Jan-Dec |
|---|---|---|---|---|---|---|
| Net Sales | 5 | 42,068 | 67,801 | 78,482 | 127,671 | 266,538 |
| Cost of services sold | -5,476 | -25,155 | -11,545 | -49,085 | -100,365 | |
| Gross profit | 36,592 | 42,646 | 66,937 | 78,585 | 166,174 | |
| Sales and Marketing Expenses | 10 | -11,674 | -11,986 | -23,867 | -23,878 | -45,792 |
| Research and Development Expenses | 10 | -7,608 | -11,341 | -13,755 | -23,961 | -45,369 |
| General and Administrative Expenses | 10 | -10,092 | -12,441 | -20,048 | -22,697 | -45,175 |
| Other operating income/expenses | -100 | -541 | -656 | -802 | -1,133 | |
| Operating profit/loss before amortization (EBITA) | 7,119 | 6,337 | 8,611 | 7,248 | 28,704 | |
| Amortization and impairment on acquisition related assets | 8 | -7,316 | -8,044 | -14,750 | -16,113 | -463,162 |
| Items affecting comparability | -4,900 | -3,990 | -7,387 | -6,960 | -14,218 | |
| Operating profit/loss (EBIT) | -5,097 | -5,696 | -13,526 | -15,825 | -448,676 | |
| Net financial expenses | 9 | -2,860 | -1,905 | -5,386 | -3,894 | -9,434 |
| Earnings before tax | -7,956 | -7,601 | -18,912 | -19,719 | -458,110 | |
| Income tax expense | 976 | 3,316 | 4,121 | 7,053 | 9,896 | |
| Profit/loss for the period | -6,981 | -4,285 | -14,790 | -12,666 | -448,213 | |
| Profit/loss for the period attributable to: | ||||||
| Parent Company shareholders | -6,981 | -4,285 | -14,790 | -12,666 | -448,213 | |
| 2024 | 2023 | 2024 | 2023 | 2023 | ||
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | ||
| Earnings per share before and after dilution, EUR | 7 | -0.03 | -0.02 | -0.07 | -0.06 | -2.10 |
Condensed consolidated statement of other comprehensive income
| 2024 Apr-Jun |
2023 Apr-Jun |
2024 Jan-Jun |
2023 Jan-Jun |
2023 Jan-Dec |
|
|---|---|---|---|---|---|
| Profit/loss for the period | -6,981 | -4,285 | -14,790 | -12,666 | -448,213 |
| Other comprehensive income | |||||
| Items that may be transferred to income | |||||
| Exchange differences on translation of foreign operations | 3,312 | 3,066 | 14,094 | -20,540 | -40,190 |
| Hedge accounting of net investments | 890 | -3,763 | -4.111 | -2,554 | 4,872 |
| Tax effect from items in OCI | -126 | 752 | 029 | 501 | -1,128 |
| Other comprehensive income for the period | 4,076 | 55 | 10,912 | -22,594 | -36.446 |
| Total comprehensive income for the period | -2,905 | -4,230 | -3,878 | -35,260 | -484,659 |
Condensed consolidated statement of financial position
| KEUR | 2024 30 Jun |
2023 30 Jun |
2023 31 Dec |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 160,349 | 582,155 | 155,559 |
| Other intangible assets | 269,279 | 304,110 | 271,726 |
| Right-of-use assets | 3,078 | 3,231 | 3,139 |
| Equipment, tools and installations | 1,001 | 1,266 | 1,183 |
| Other financial assets | 1,343 | 1,047 | 1,333 |
| Deferred tax assets | 28,669 | 33,041 | 26,764 |
| Total non-current assets | 463,719 | 924,849 | 459,704 |
| Current assets | |||
| Accounts receivable | 108,842 | 87,667 | 96,001 |
| Other receivables | 5,202 | 5,372 | 5,989 |
| Prepaid expenses and accrued income | 24,094 | 26,718 | 25,379 |
| Cash and cash equivalents | 30,751 | 45,940 | 38,862 |
| Total current assets | 168,889 | 165,698 | 166,231 |
| TOTAL ASSETS | 632,608 | 1,090,547 | 625,935 |
| KEUR | 2024 30 Jun |
2023 30 Jun |
2023 31 Dec |
|---|---|---|---|
| EQUITY | |||
| Total equity attributable to the shareholders of the parent company | 362,807 | 816,087 | 365,974 |
| LIABILITIES | |||
| Non-current liabilities | |||
| Borrowings | 89,557 | 109,807 | 95,923 |
| Lease liabilities | 1,470 | 1,556 | 1,146 |
| Deferred tax liabilities | 58,294 | 68,287 | 60,265 |
| Total non-current liabilities | 149,320 | 179,650 | 157,334 |
| Current liabilities | |||
| Borrowings | 17,728 | 12,217 | |
| Lease liabilities | 1,519 | 1,536 | 1,853 |
| Accounts payable | 57,273 | 51,444 | 42,939 |
| Current tax liabilities | 445 | 155 | 398 |
| Other current liabilities | 5,460 | 5,951 | 5,504 |
| Accrued expenses and deferred income | 38,057 | 35,723 | 39,715 |
| Total current liabilities | 120,481 | 94,809 | 102,627 |
| TOTAL EQUITY AND LIABILITIES | 632,608 | 1,090,547 | 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-Jun | -12,666 | -12,666 | ||||
| Other comprehensive income | -2,053 | -20,540 | -22,593 | |||
| Total comprehensive income | -2,053 | -20,540 | -12,666 | -35,260 | ||
| Share-based incentive program (IFRS 2) | 1,338 | 1,338 | ||||
| Closing balance, 30 Jun 2023 | 2,165 | 1,166,368 | -11,616 | 24,092 | -364,921 | 816,087 |
| Profit/loss for the period Jul-Dec | -435,547 | -435,547 | ||||
| Other comprehensive income | 5,797 | -19,650 | -13,853 | |||
| Total comprehensive income | 5,797 | -19,650 | -435,547 | -449,400 | ||
| Share-based incentive program (IFRS 2) | -713 | -73 | ||||
| Closing balance, 31 Dec 2023 | 2,165 | 1,165,655 | -5,819 | 4,442 | -800,468 | 365,974 |
| Profit/loss for the period Jan-Jun | -14,790 | -14,790 | ||||
| Other comprehensive income | -3,182 | 14,094 | 10,912 | |||
| Total comprehensive income | -3.182 | 14,094 | -14,790 | -3,878 | ||
| Share-based incentive program (IFRS 2) | 710 | 710 | ||||
| Closing balance, 30 Jun 2024 | 2,165 | 1,166,365 | -9,001 | 18,536 | -815,258 | 362,807 |
Equity attributable to the equity holders of the parent company
Condensed consolidated statement of cash flows
| KEUR | 2024 Apr-Jun |
2023 Apr-Jun |
2024 Jan-Jun |
2023 Jan-Jun |
2023 Jan-Dec |
|---|---|---|---|---|---|
| Cash flow from operating activities | |||||
| Operating profit/loss | -5,097 | -5,696 | -13,526 | -15,825 | -448,676 |
| Adjustments for non-cash items | 16,625 | 17,062 | 26,957 | 23,903 | 484,258 |
| Interest received | 107 | 186 | 244 | 186 | 415 |
| Interest paid | -2,923 | -2,660 | -5,772 | -4,587 | -10,093 |
| Income tax paid | 633 | -2,808 | -9 | -3,459 | -4,271 |
| Cash flow from operating activities before changes in working capita | 9,347 | 6,084 | 7,894 | 217 | 21,633 |
| Change in accounts receivable | -10,979 | -5,063 | -13,213 | 15,483 | 4,218 |
| Change in other current receivables | 226 | -2,702 | 2,233 | -1,260 | 581 |
| Change in accounts payable | 12,472 | 4,069 | 13,395 | -12,554 | -22,657 |
| Change in other current liabilities | -3,894 | -4,277 | -4,059 | -4,369 | -2,000 |
| Cash flow from changes in working capital | -2,175 | -7,973 | -1,644 | -2,699 | -19,857 |
| Cash flow from operating activities | 7,172 | -1,889 | 6,250 | -2,482 | 1,776 |
| Cash flow from investing activites | |||||
| Acquisitions of intangible assets | -4,816 | -4,978 | -9,240 | -8,862 | -18,430 |
| Acquisitions of tangible assets | -20 | -131 | -133 | -223 | -540 |
| Acquistions of entites | -0 | -2,541 | -0 | -2,541 | -2,550 |
| Change in other financial assets | 8 | -13 | 5 | -13 | -65 |
| Cash flow from investing activities | -4,829 | -7,663 | -9,367 | -11,639 | -21,585 |
| Cash flow from financing activities | |||||
| Repayment of loans | -2,348 | -4,227 | |||
| Repayment of lease liabilities | -485 | -701 | -1,031 | -1,314 | -2,647 |
| Cash flow from financing activities | -2,832 | -701 | -5,258 | -1,314 | -2,647 |
| Net cash flow | -489 | -10,253 | -8,376 | -15,435 | -22,456 |
| Decrease/increase of cash and cash equivalents | |||||
| Cash and cash equivalents at the beginning of the period | 30,982 | 56,642 | 38,862 | 62,609 | 62,609 |
| Currency translation difference in cash and cash equivalents | 259 | -449 | 265 | -1,234 | -1,292 |
| Cash and cash equivalents at the end of the period | 30,751 | 45,940 | 30,751 | 45,940 | 38,862 |
Condensed parent company income statement
| KSEK | 2024 Apr-Jun |
2023 Apr-Jun |
2024 Jan-Jun |
2023 Jan-Jun |
2023 Jan-Dec |
|---|---|---|---|---|---|
| Net sales | 4,429 | 23,469 | 15,778 | 35,822 | 44,500 |
| General and Administrative Expenses | -4,655 | -32,746 | -16,617 | -44,605 | -60,843 |
| Other operating income/expenses | 6,875 | -59,223 | -63,247 | -51,373 | 42,337 |
| Operating profit/loss | 6,648 | -68,500 | -64,086 | -60,156 | 25,994 |
| Write-down of shares in subsidiaries | -5,257,446 | ||||
| Interest expenses and similar profit/loss items Total net financial items |
-31,622 -31,622 |
-31,127 -31,127 |
-72,140 -72,140 |
-51,248 -51,248 |
-103,747 -5,361,193 |
| Earnings before tax | -24,974 | -99,627 | -136,227 | -111,404 | -5,335,198 |
| Taxes for the period | -3,534 | 23,127 | 15,880 | 26,828 | -6.484 |
| Net loss/profit for the period | -28,507 | -76,500 | -120,347 | -84,575 | -5,341,682 |
Condensed parent company balance sheet
| KSEK | 2024 30 Jun |
2023 30 Jun |
2023 31 Dec |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Shares in subsidiary | 4,202,132 | 9,459,578 | 4,202,132 |
| Deferred tax assets | 81,076 | 98,509 | 65,197 |
| Intercompany non-current assets | 332,056 | 278,137 | 278,137 |
| Total non-current assets | 4,615,264 | 9,836,224 | 4,545,466 |
| Current assets | |||
| Intercompany receivables | 452,082 | 526,803 | 526,747 |
| Other current receivables | 43,988 | 3,855 | 79 |
| Prepaid expenses and accrued income | 5,136 | 6,604 | 3,403 |
| Total current receivables | 501,205 | 537,262 | 530,229 |
| Cash and cash equivalents | 846 | 3,681 | 412 |
| Total current assets | 502,021 | 540,943 | 530,641 |
| TOTAL ASSETS | 5,117,285 | 10,377,167 | 5,076,107 |
| KSEK | 2024 30 Jun |
2023 30 Jun |
2023 31 Dec |
| EQUITY AND LIABILITIES | |||
| Total restricted equity | 21,298 | 21,298 | 21,298 |
| Total non-restricted equity | 3,412,270 | 8,789,728 | 3,526,714 |
| Total equity | 3,433,568 | 8,811,026 | 3,548,012 |
| Non-current liabilities | |||
| External loan | 1,017,321 | 1,294,764 | 1,064,360 |
| Total non-current liabilities | 1,017,321 | 1,294,764 | 1,064,360 |
| Current liabilities | |||
| External loan | 201,385 | 135,561 | |
| Accounts payable | 3,541 | 3,317 | 866 |
| Intercompany liabilities | 449,509 | 227,647 | 310,062 |
| Other liabilities | 6,160 | 23,398 | 5,925 |
| Accrued expenses and deferred income | 5,801 | 17,015 | 11,321 |
| Total current liabilities | 666,396 | 271,377 | 463,735 |
| TOTAL EQUITY AND LIABILITIES | 5,117,285 | 10,377,167 | 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 19 July 2024.
Note 2 Summary of significant accounting policies
Cint applies International Financial Reporting (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 clarity 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 Apr-Jun |
2023 Apr-Jun |
2024 Jan-Jun |
2023 Jan-Jun |
2023 Jan-Dec |
|---|---|---|---|---|---|
| Americas | 26,670 | 39,231 | 48,810 | 74,042 | 159,123 |
| EMEA | 11,277 | 23,795 | 22,355 | 44,365 | 87,791 |
| APAC | 4,121 | 4,775 | 7,316 | 9,263 | 19,624 |
| Total | 42,068 | 67,801 | 78,482 | 127,671 | 266,538 |
| Net sales by business segment | 2024 | 2023 | 2024 Jan-Jun |
2023 Jan-Jun |
2023 Jan-Dec |
| Apr-Jun | Apr-Jun | ||||
| Cint Exchange | 30,671 | 56,521 | 57,784 | 107,678 | 214,918 |
| Media Measurement | 11,397 | 11,280 | 20,698 | 19,992 | 51,621 |
| Total | 42,068 | 67,801 | 78,482 | 127,671 | 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 Apr-Jun |
2023 Apr-Jun |
2024 Jan-Jun |
2023 Jan-Jun |
2023 Jan-Dec |
|
|---|---|---|---|---|---|
| Earnings per share before dilution, EUR | -0.03 | -0.02 | -0.07 | -0.06 | -2.10 |
| Earnings per share after dilution, EUR | -0.03 | -0.02 | -0.07 | -0.06 | -2.10 |
| Calculation of earnings per share: | |||||
| Earnings attributable to Parent Company shareholders, KEUR | -6,981 | -4,285 | -14,790 | -12,666 | -448,213 |
| Total | -6,981 | -4,285 | -14,790 | -12,666 | -448,213 |
| Weighted average number of ordinary shares | 212,976,588 | 212,976,588 | 212,976,588 | 212,976,588 | 212,976,588 |
| 2024 Apr-Jun |
2023 Apr-Jun |
2024 Jan-Jun |
2023 Jan-Jun |
2093 Jan-Dec |
|
| Adjusted Earnings per share before dilution, EUR | 0.01 | 0.02 | 0.01 | 0.02 | 0.07 |
| Adjusted Earnings per share after dilution, EUR | 0.01 | 0.02 | 0.01 | 0.02 | 0.07 |
| Calculation of adjusted earnings per share | |||||
| Earnings attributable to Parent Company shareholders, KEUR | -6,981 | -4,285 | -14,790 | -12,666 | -448,213 |
| Adjustment for items affecting comparability", KEUR | 3,891 | 3,168 | 5,866 | 5,526 | 11,289 |
| Add-back of amortization of intangible assets from acquisitions1', KEUR |
5,618 | 6,178 | 11,328 | 12,374 | 451,884 |
| Total | 2,528 | 5,060 | 2,403 | 5,234 | 14,960 |
| Weighted average number of ordinary shares | 212,976,588 | 212,976,588 | 212,976,588 | 212,976,588 | 212,976,588 |
(1) Net of tax effect
Note 8 Depreciations, amortizations and impairments
| KEUR | 2024 Apr-Jun |
2023 Apr-Jun |
2024 Jan-Jun |
2023 Jan-Jun |
2023 Jan-Dec |
|---|---|---|---|---|---|
| Depreciation on tangible assets | -658 | -760 | -1,369 | -1,535 | -3,240 |
| Depreciation on capitalized development costs | -2,379 | -2,061 | -4,607 | -4.054 | -8.174 |
| Depreciation included in EBITA | -3.037 | -2,821 | -5,976 | -5,589 | -11,414 |
| Amortization and write-downs | -7,316 | -8,044 | -14,750 | -16,113 | -50,949 |
| Impairment of goodwill | - | 1 | -412,213 | ||
| Amortization and impairment on acquisition related assets | -7,316 | -8,044 | -14,750 | -16,113 | -463,162 |
Note 9 Financial income and expenses
| KEUR | 2024 Apr-Jun |
2023 Apr-Jun |
2024 Jan-Jun |
2023 Jan-Jun |
2023 Jan-Dec |
|---|---|---|---|---|---|
| Interest income | 107 | 34 | 244 | 186 | 415 |
| Interest expenses | -2,760 | -2,425 | -5,503 | -4.467 | -9,812 |
| Realized and unrealized currency effects | -45 | 569 | 143 | 507 | 170 |
| Other financial expenses | -163 | -83 | -268 | -120 | -206 |
| Financial income/expenses net | -2,860 | -1,905 | -5,386 | -3,894 | -9,434 |
Note 10 Expense by type of cost
| 2024 | 2023 | 2024 Jan-Jun |
2023 Jan-Jun |
2023 Jan-Dec |
|
|---|---|---|---|---|---|
| Apr-Jun | Apr-Jun | ||||
| Personnel costs | -10,265 | -10,112 | -20,493 | -19,930 | -38,829 |
| Other external expenses | -1,409 | -1,874 | -3,374 | -3,948 | -6,964 |
| Total Sales and Marketing Expenses | -11,674 | -11,986 | -23,867 | -23,878 | -45,792 |
| Personnel costs | -4.031 | -4,320 | -6,027 | -9,488 | -17,727 |
| Other external expenses | -1,197 | -4,959 | -3,121 | -10,419 | -19,467 |
| Depreciation of capitalized development cost | -2,379 | -2,061 | -4,607 | -4,054 | -8,174 |
| Total Research and Development Expenses | -7,608 | -11,341 | -13,755 | -23,961 | -45,369 |
| Personnel costs | -4.512 | -5,819 | -8,433 | -10,227 | -18,787 |
| Other external expenses | -4,921 | -5,862 | -10,246 | -10,935 | -23,148 |
| Other depreciation | -658 | -760 | -1,369 | -1,535 | -3,240 |
| Total General and Administrative Expenses | -10,092 | -12,441 | -20,048 | -22,697 | -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.
| 2024 | 2023 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|---|
| Alternative performance measures, KEUR | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec |
| Net sales previous period | 67,801 | 73,187 | 127,671 | 140,529 | 295,188 |
| Net sales current period | 42,068 | 67,801 | 78,482 | 12/,6/1 | 266,538 |
| Net sales growth | -38.0% | -7.4% | -38.5% | -9.1% | -9.7% |
| Whereof acquired and discontinued net sales previous period | 141 | 141 | |||
| Net sales excluding acquired and discontinued net sales previous period | 67,801 | 73,187 | 127,671 | 140,388 | 295,048 |
| Net sales excluding acquired and discontinued net sales current period | 42,068 | 67,801 | /8,482 | 127,671 | 266,538 |
| Organic growth | -38.0% | -7.4% | -38.5% | -9.1% | -9.7% |
| Of which currency effects | 480 | -1,973 | റി | -1,179 | -8,672 |
| Organic growth constant currency, % | -38.4% | -4.8% | -38.6% | -8.3% | -6.9% |
| Pro forma net sales previous period | 42,925 | 46,545 | 78,951 | 88,016 | 186,369 |
| Pro forma net sales current period | 42,068 | 42,925 | 78,482 | 78,951 | 167,561 |
| Pro forma net sales growth, % | -2.0% | -7.8% | -0.6% | -10.3% | -10.1% |
| Whereof discontiuned Russian business previous period | 79 | 79 | |||
| Pro forma net sales organic previous period | 42,925 | 46,545 | 78,951 | 87,936 | 186,290 |
| Pro forma net sales organic current period | 42,068 | 42,925 | 78,482 | 78,951 | 167,561 |
| Pro forma organic growth, % | -2.0% | -7.8% | -0.6% | -10.2% | -10.1% |
| Of which currency effects | 330 | -924 | 156 | -396 | -4,529 |
| Pro forma organic growth constant currency, % | -2.7% | -5.9% | -0.8% | -9.8% | -7.8% |
| Net sales | 42,068 | 67,801 | 78,482 | 127,671 | 266,538 |
| Cost of services sold | -5,476 | -25,155 | -11,545 | -49,085 | -100,365 |
| Gross profit | 36,592 | 42,646 | 66,937 | 78,585 | 166,174 |
| Gross margin | 87.0% | 62.9% | 85.3% | 61.6% | 62.3% |
| Pro forma gross profit | 36,592 | 37,744 | 66,937 | 68,634 | 147,111 |
| Pro forma gross margin, % | 87.0% | 87.9% | 85.3% | 86.9% | 87.8% |
| Total customer spend | 88,148 | 88,680 | 169,957 | 168,544 | 352,764 |
| Net sales | 42,068 | 67,801 | 78,482 | 127,671 | 266,538 |
| Operating profit/loss | -5,097 | -5,696 | -13,526 | -15,825 | -448,676 |
| Operating margin, % | -12.1% | -8.4% | -17.2% | -12.4% | -168.3% |
| Items affecting comparability | 4,900 | 3,990 | 7,387 | 6,960 | 14,218 |
| Amortization and impairment on acquisition related items | 7,316 | 8,044 | 14,750 | 16,113 | 463,162 |
| Operating profit/loss before amortization (EBITA) | 7,119 | 6,337 | 8,611 | 7,248 | 28,704 |
| Operating profit/loss before amortization (EBITA) margin, % | 16.9% | 9.3% | 11.0% | 5.7% | 10.8% |
| Items affecting comparability by category | |||||
| Cost for strategic projects | 2,875 | 2,875 | 57 | 57 | |
| Integration costs | 2,025 | 3,978 | 4,512 | 6,855 | 13,963 |
| Other | 12 | O | 49 | 199 | |
| Items affecting comparability by category | 4,900 | 3,990 | 7,387 | 6,960 | 14,218 |
| FX gain/loss on operating balance sheet items | -122 | -549 | -714 | -821 | -1,221 |
| Operating profit/loss before amortization (EBITA), excl FX gain/loss on operating balance sheet items |
7,242 | 6,886 | 9,326 | 8,069 | 29,926 |
| Operating profit/loss before amortization (EBITA) margin, excl FX gain/loss on operating balance sheet items |
17.2% | 10.2% | 11.9% | 6.3% | 11.2% |
| Accounts receivable | 108,842 | 87,667 | 108,842 | 87,667 | 96,001 |
| Other current receivable | 26,467 | 29,624 | 26,467 | 29,624 | 27,738 |
| Accounts payable | -57,273 | -51,444 | -57,273 | -51,444 | -42,619 |
| Other current liabilities | -43,516 | -41,674 | -43,516 | -41,674 | -45,219 |
| Net working capital | 34,520 | 24,174 | 34,520 | 24,174 | 35,901 |
| Other interest-bearing liabilities (Borrowings) | 107,285 | 109,807 | 107,285 | 109,807 | 108,140 |
| Lease liabilities - Long term | 1,470 | 1,556 | 1,470 | 1,556 | 1,146 |
| Lease liabilities - Short term | 1,519 | 1,536 | 1,519 | 1,536 | 1,853 |
| Total interest-bearing debt | 110,274 | 112,899 | 110,274 | 112,899 | 111,139 |
| Cash and cash equivalents | 30,751 | 45,940 | 30,751 | 45,940 | 38,862 |
| Net debt | 79,523 | 66,959 | 79,523 | 66,959 | 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.
Quarterly Summary
| KEUR | 2024 Q2 |
Q1 | Q4 | @3 | 2023 Q2 |
Q1 | Q4 | Q3 | 2022 02 |
|---|---|---|---|---|---|---|---|---|---|
| Net sales | 42,068 | 36,414 | 72,298 | 66,570 | 67,801 | 59,870 | 80,341 | 74,319 | 73,187 |
| Net sales growth, % | -38.0% | -39.2% | -10.0% | -10.4% | -7.4% | -11.1% | 79.5% | 116.8% | 130.6% |
| Gross profit | 36,592 | 30,345 | 46,203 | 41,386 | 42,646 | 35,940 | 48,724 | 47,134 | 46,165 |
| Gross margin, % | 87.0% | 83.3% | 63.9% | 62.2% | 62.9% | 60.0% | 60.6% | 63.4% | 63.1% |
| Operating profit/loss before amortization (EBITA) |
7,119 | 1,492 | 12,226 | 9,230 | 6,337 | 910 | 10,364 | 11,323 | 11,260 |
| Operating profit/loss before amortization (EBITA), % |
16.9% | 4.1% | 16.9% | 13.9% | 9.3% | 1.5% | 12.9% | 15.2% | 15.4% |
| Amortization and impairment on acquisition related items |
7,316 | 7,434 | 419,897 | 27,152 | 8,044 | 8,069 | 349,426 | 8,762 | 8,243 |
| Items affecting comparability | 4,900 | 2,487 | 3,806 | 3,452 | 3,990 | 2,970 | 5,339 | 5,913 | 5,522 |
| Operating profit/loss (EBIT) | -5,097 | -8,430 | -411,477 | -21,374 | -5,696 | -10,129 | -344,402 | -3,352 | -2,504 |
| Operating margin (EBIT), % | -12.1% | -23.1% | -569.1% | -32.1% | -8.4% | -16.9% | -428.7% | -4.5% | -3.4% |
| Rolling 12-month | |||||||||
| Net sales | 217,350 | 243,083 | 266,538 | 274,582 | 282,331 | 287,716 | 295,188 | 259,602 | 219,563 |
| Gross profit | 154,526 | 160,579 | 166,174 | 168,695 | 174,444 | 177,963 | 183,307 | 157,325 | 127,647 |
| Operating profit/loss before amortization (EBITA) |
30,068 | 29,286 | 28,704 | 26,842 | 28,935 | 33,858 | 37,901 | 34,499 | 28,542 |
| Gross margin, % | 71.1% | 66.1% | 62.3% | 61.4% | 61.8% | 61.9% | 62.1% | 60.6% | 58.1% |
| Operating profit/loss before amortization (EBITA) marqin. % |
13.8% | 12.0% | 10.8% | 9.8% | 10.2% | 11.8% | 12.8% | 13.3% | 13.0% |
Board's assurance
The Board of Directors and the Chief Executive Officer of Cint Group AB (publ) hereby confirm that this interim report provides a true and fair overview of the operations, financial position and results of the Group and describes material risks and factors of uncertainties faced by the parent company and the companies in the Group.
19 July 2024
Giles Palmer CEO
Patrick Comer Chairman of the Board
Anna Belfrage Board member Donna L. DePasquale Board member
Linda Höglund Board member
Mark Simon Board member
Carl Sparks Board member
This report has not been subject to review by the company's independent auditor.
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 19 July 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: 878 175
The presentation will be available in connection to the conference call and a replay will be available later the same day.
Financial Calendar
Third quarter report: 24 October 2024
Publication
This disclosure contains information that Cint Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 a.m. CEST on 19 July 2024.
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 technology-enabled 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, ttr SE-111 37 Stockholm,
Sweden | Tel: +46 8 546 383 00 | www.cint.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 |
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| Connected respondents | Total registered as new and active panel- - lists in the last 12 months. |
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| EBITA | Operating profit/loss before amortization of acquisition related assets. |
The before operating profit/loss amortization of acquisition related assets is presented to assess the Group's 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. |
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| 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. |
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| 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. 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 |
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|---|---|---|---|---|---|---|
| Net working capital | Current assets less current liabilities | |||||
| 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. |
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| 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. |
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| 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 |
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| 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. |
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| 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 |
platforms including total project value and any take-rates or fees
