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Cint Group
Quarterly Report • Apr 25, 2024
2902_10-q_2024-04-25_b0357364-a1b4-4c47-9470-9dd4cc0fc548.pdf
Quarterly Report
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Interim report
January – March 2024 Q12024
Improved profitability with flat sales. Platform unification on plan
First 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 1.1 percent to EUR 36.4m (36.0 pro forma) and by 1.6 percent on a constant currency basis. Reported net sales decreased by 39.2 percent to EUR 36.4m (59.9m).
- Gross profit amounted to EUR 30.3m (30.9 pro forma) corresponding to a margin of 83.3 percent (85.7 pro forma). Reported gross profit last year amounted to EUR 35.9m
- EBIT amounted to EUR -8.4m (-10.1) with an EBIT margin of -23.1 percent (-28.1 pro forma). Reported EBIT margin last year was -16.9 percent.
- EBITA amounted to EUR 1.5m (0.9) with an EBITA margin of 4.1 percent (2.5 pro forma). Reported EBITA margin last year was 1.5 percent.
- EPS, before dilution amounted to EUR -0.04 (-0.04).
- Adjusted EPS, before dilution amounted to EUR 0.00 (0.00).
Significant events during and after the quarter
- In January 2024, Cint announced an upcoming change of CFO. On 2 April 2024 Niels Boon assumed the position as CFO replacing Olivier Lefranc who has left the company.
- In April 2024, Cint announced changes in the financial reporting effective from the first quarter 2024. The changes encompass a change in revenue recognition, a new presentation format for the income statement and the introduction of an EBITA measure. For more information, please refer to note 2 Summary of significant accounting policies and note 3 Pro forma.
Key financial ratios for the Group
| Pro forma* | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2023 | 2023 | |
| KEUR | Jan-Mar | Jan-Mar | Jan-Mar | Jan-Dec |
| Net sales | 36,414 | 59,870 | 36,026 | 266,538 |
| Net sales growth, reported | -39.2% | -11.1% | n.a. | -9.7% |
| Net sales growth, pro forma | 1.1% | -13.1% | -13.1% | -10.1% |
| Gross profit | 30,345 | 35,940 | 30,890 | 166,174 |
| Gross margin | 83.3% | 60.0% | 85.7% | 62.3% |
| Operating profit/loss before amortization (EBITA) | 1,492 | 910 | 910 | 28,704 |
| Operating profit/loss before amortization (EBITA) margin | 4.1% | 1.5% | 2.5% | 10.8% |
| FX gain/loss on operating items | -592 | -272 | -272 | -1,221 |
| EPS, before dilution | -0.04 | -0.04 | -0.04 | -2.10 |
| Adjusted EPS, before dilution | 0.00 | 0.00 | 0.00 | 0.07 |
| Net debt | 79,944 | 59,912 | 59,912 | 72,277 |
*Pro forma figures include changes in revenue recognition and a 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
Comments by the CEO
Growth and profitability
As we conclude the first quarter 2024, I am pleased to report pro forma net sales growth of 1.1 percent to EUR 36.4m compared to EUR 36.0m in the same period last year (1.6 percent in constant currency). Growth was driven by a continued strong development in Media Measurement where we are growing with existing clients as well as bringing on new clients. Cint Exchange sales decreased, mostly driven by lower demand from a few large clients.
The gross margin was 83.3 percent (85.7 percent pro forma 2023) as a result of higher hosting costs in the period. EBITA amounted to EUR 1.5m, up from EUR 0.9m last year due to lower operating expenditures with an EBITA margin of 4.1 percent (2.5 percent pro forma).
Net cash flow was negative, caused by negative cash flow from operating activities and amortization payments of loans.
Focus for 2024
The work on consolidating the different technology platforms into a new unified platform - The Cint Exchange - is developing in line with our plans with the following phases:
-
Launch internally and migrate managed services customers. By the end of the first quarter this year, we migrated 16 percent of our total customers to run new projects as they are commissioned, and we are on track to migrate all managed service customers by the end of the third quarter this year.
-
New self-service platform launch and customer migration. Internal beta-testing started during the first quarter and external beta-testing started in April. The target is to start migrating our first self-service cohorts in May with a phased roll-out throughout 2024.
-
Migrating our largest and most complex customers will be done in two parts: new projects will be run through the new Cint Exchange this year whilst for long-term studies like Brand Trackers we will support our current products into early 2025, giving them more time to migrate.
This consolidation is a strategic initiative aimed at unifying our resources to deliver a more streamlined and cohesive experience for our customers. As we
complete these phases, we will deprecate older systems, generate savings, and free up R&D resources to accelerate innovation.
The second focus area, which is running alongside the consolidation effort, is standardizing operational processes across the company to align them with our customers' needs. In addition, we are also establishing a standardized data and KPIs framework to better track and measure our performance to achieve higher optimization.
Optimization and automation, the third focus area, will scrutinize all internal processes to create efficiency and drive profitability.
The fourth focus area, Innovation, will fast-track Cint's position as the industry leader and open up expansion opportunities. Although our current focus is on consolidation, we have initiated innovation projects to add new capabilities to our products and expand Cint's offerings to the market. This includes investments aimed at combating fraud on the platform such as Trust Score which we launched in 2023 and which will be deployed across all new and legacy systems beginning the second quarter 2024. Additionally, investments are being made to grow the Impact Measurement offering with innovative tools for media buyers to measure performance of advertising on TV, audio and on social media, along with a heavy focus on the Data Solution aspect of the business.
Our strategic implementation plan is on track. Focus for 2024 is to return to growth and drive innovation while retaining profitability and at the same time improve cash flow from operations.
Giles Palmer CEO
Group Financial Overview
Net Sales
On a pro forma basis net sales increased by 1.1 percent to EUR 36.4m (36.0 pro forma) and by 1.6 percent on constant currency basis. Somewhat higher revenue driven by increase in the Media Measurement segment partly offset by lower Cint Exchange sales.Reported net sales decreased by 39.2 percent to EUR 36.4m (59.9m).
LTM Pro forma net sales and growth by quarter
Gross Profit
Gross profit in the quarter amounted to EUR 30.3m (30.9 pro forma) corresponding to a margin of 83.3 percent (85.7 pro forma). The lower margin reflects higher hosting costs in the quarter. Reported gross profit same quarter last year amounted to EUR 35.9m.
EBITA
EBITA in the quarter amounted to EUR 1.5m (0.9) and the EBITA margin was 4.1 percent (2.5 pro forma). The increase in EBITA margin pro forma by 1.6 percentage points compared to the same period last year is a consequence of reduced operating expenses, due to released integration synergies as well as cost containment measures. Reported EBITA margin same quarter last year was 1.5 percent.
Total cost for LTIP programs, in accordance with IFRS 2 in the first quarter was EUR 0.4m (0.7). The impact from the IFRS valuation is included in personnel costs split by function.
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. Items affecting comparability for the quarter totaled
EUR 2.5m (3.0) of which integration costs amounted to EUR 2.5m (2.9).
Please refer to note 11 Alternative Performance Measures for details of the non-recurring items split by category.
LTM Operating profit/loss before amortization (EBITA)
Profit and Earnings Per Share
pro forma net sales, %
The operating loss in the quarter amounted to EUR -8.4m (-10.1) with an operating margin of -23.1 percent (-28.1 pro forma). Reported EBIT margin same quarter last year was -16.9 percent. Loss for the quarter amounted to EUR -7.8m (-8.4) and EPS (basic and diluted) was EUR -0.04 (-0.04). Adjusted EPS (basic and diluted) was EUR 0.00 (0.00).
Cash flow and investments
Operating cash flow before changes in working capital in the quarter was EUR -1.5m (-5.9). Interest paid in the quarter increased by EUR 0.9m compared with same quarter last year.
Cash flow from changes in working capital was EUR 0.5m (5.3) 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 -4.5m (-4.0), affected by investments in intangible fixed assets amounting to EUR -4.4m (-3.9), 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 -2.4m (-0.6) in the quarter, where the negative impact compared with same quarter last year primarily related to repayment of loans amounting to EUR 1.9m.
The net cash flow in the quarter was EUR -7.9m (-5.2).
Net working capital
Net working capital amounted to EUR 37.1m compared with EUR 35.9m as per December 2023. Net working capital at the end of the first quarter last year amounted to EUR 21.2m. Working capital increased by EUR 1.2m in the quarter, mainly due to lower other current liabilities. Receivables were stable compared to December 2023. Moving forward, our emphasis will remain on improving working capital in relation to total customer spend. The consolidation, automation and optimization efforts will contribute to this as well.
Net debt and financing activities
The Group ended the first quarter with a total cash position of EUR 31.0m (56.6) and a total debt of EUR 110.9m (116.6).
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. The credit facility agreement includes financial covenants that were renegotiated during the fourth quarter of 2023. As per the end of the first quarter 2024, the financial covenants were met.
Currency effects
Due to the global nature of the business, the company is exposed to currency fluctuations with most of the net sales in USD and EUR and a large part of the operating expenses in SEK and USD.
During the quarter, net sales were impacted by EUR - 0.4m (0.8) from currency fluctuations.
The revaluation of balance sheet items had a negative impact on the result of EUR 0.6m (0.3) during the quarter. This impact is included in EBITA.
Platform unification
The work on consolidating the different technology platforms into a new unified platform - The Cint Exchange -, is developing in line with the company's plans.The cost for the total business integration is estimated to approximately EUR 40m and total accumulated cost for the integration amounted to EUR 36.6m as per end of the first quarter 2024. Total integration costs for the quarter amounted to EUR 2.5m (2.9).
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. By the second half of 2024 the board of directors will review the medium-term financial targets. At present, the dividend policy remains unchanged - Cint will not pay annual dividends in the short term.
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 7.4 percent on a pro forma basis to EUR 27.1m (29.3 pro forma) in the quarter, and by 7.9 percent on a constant currency basis. Sales were negatively affected by a decline in business from a few major clients.
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 37.9 percent on a pro forma basis to EUR 9.3m (6.7 pro forma) and by 44.7 percent on a constant currency basis. Sales increased as a result of new client gains and higher volumes with existing clients.
Net sales by business segment, (KEUR)
Regional development
Net sales in the Americas region decreased by 1.6 percent on a pro forma basis to EUR 22.1m (22.5 pro forma) in the quarter and increased by 1.1 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 in EMEA increased by 1.5 percent on a pro forma basis to EUR 11.1m (10.9 pro forma) in the quarter and by 0.1 percent on a constant currency basis with relatively stable volumes and prices.
Net sales in APAC increased by 22.3 percent on a pro forma basis to EUR 3.2m (2.6 pro forma) in the quarter and by 11.2 percent on a constant currency basis. Cint Exchange sales increased due to higher sales per customer.
Net sales by region (Q1-2024)
1 Previously called Marketplace, which includes both the legacy platforms and new Cint Exchange
Operational development
B2B customers
Cint had 4,419 customers by end of March 2024, compared with 4,681 customers in December prior year. 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 337 million. Counting methodologies on the legacy platforms are different due to differing underlying business models.
Number of connected respondents, million
Significant events during and after the quarter
In January 2024, Cint announced an upcoming change of CFO. On 2 April 2024 Niels Boon assumed the position as CFO, replacing Olivier Lefranc who has left the company .
In April 2024, Cint announced changes in the financial reporting effective from the first quarter 2024. The changes encompass a change in revenue recognition, a new presentation format for the income statement and the introduction of an EBITA measure. For more information, please refer to note 2 Summary of significant accounting policies and note 3 Pro forma.
Other information
Personnel
At the end of the period, the total number of FTEs (employees and consultants) was 1,010 (1,012). The average number of FTEs in the quarter was 1,014 (1,001). The total number of employees was 938 (821) at the end of the period. The average number of employees during the quarter was 918 (819).
Share capital and shareholders
As of 31 March 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 31 March 2024, there were 9,899 shareholders in the company.
The company's five largest shareholders on 31 March 2024 were Nordic Capital through companies (8.2 percent), Handelsbanken Fonder (7.1 percent), DNB Asset Management AS (6.7 percent), Fourth Swedish National Pension Fund (6.0 percent) and Premier Miton Investors (4.6 percent). For more information about Cint's ownership structure, see Cint™ Investors | Ownership.
AGM 2024
The Annual General Meeting of Cint Group AB will be held on 15 May 2024 at 10.00 a.m. CEST at Convendum, Vasagatan 16 in Stockholm, Sweden. The notice and other related information are available at Cint™ Investors | General Meetings.
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 B2B customers' 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.
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 loss was SEK -70.7m (8.3) in the first quarter. The parent company's net result/loss was SEK -91.8m (-8.1) in the quarter. The parent company's financial position by end of the first quarter, measured in terms of total equity in relation to total assets ratio, was 67.6 percent (86.1) and it had a cash balance of SEK 3.3m (4.5), to be compared with a ratio of 69.9 percent and a cash balance of SEK 0.4m by end of December 2023.
Financial statements
Condensed consolidated income statement
| KEUR | Note | 2024 Jan-Mar |
2023 Jan-Mar |
2023 Jan-Dec |
|---|---|---|---|---|
| Net Sales | 5 | 36,414 | 59,870 | 266,538 |
| Cost of services sold | -6,069 | -23,930 | -100,365 | |
| Gross profit | 30,345 | 35,940 | 166,174 | |
| Sales and Marketing Expenses | 10 | -12,193 | -11,892 | -45,792 |
| Research and Development Expenses | 10 | -6,147 | -12,620 | -45,369 |
| General and Administrative Expenses | 10 | -9,956 | -10,256 | -45,175 |
| Other operating income/expenses | -556 | -261 | -1,133 | |
| Operating profit/loss before amortization (EBITA) | 1,492 | 910 | 28,704 | |
| Amortization and impairment on acquisition related assets | -7,434 | -8,069 | -463,162 | |
| Items affecting comparability | -2,487 | -2,970 | -14,218 | |
| Operating profit/loss (EBIT) | -8,430 | -10,129 | -448,676 | |
| Net financial expenses | 9 | -2,526 | -1,990 | -9,434 |
| Earnings before tax | -10,955 | -12,119 | -458,110 | |
| Income tax expense | 3,146 | 3,737 | 9,896 | |
| Profit/loss for the period | -7,810 | -8,381 | -448,213 | |
| Profit/loss for the period attributable to: | ||||
| Parent Company shareholders | -7,810 | -8,381 | -448,213 | |
| 2024 | 2023 | 2023 | ||
| Jan-Mar | Jan-Mar | Jan-Dec | ||
| Earnings per share before and after dilution, EUR | 7 | -0,04 | -0,04 | -2,10 |
Condensed consolidated statement of other comprehensive income
| 2024 Jan-Mar |
2023 Jan-Mar |
2023 Jan-Dec |
|
|---|---|---|---|
| Profit/loss for the period | -7,810 | -8,381 | -448,213 |
| Other comprehensive income | |||
| Items that may be transferred to income | |||
| Exchange differences on translation of foreign operations | 10,782 | -23,606 | -40,190 |
| Hedge accounting of net investments | -5,001 | 1,209 | 4,872 |
| Tax effect from items in OCI | 1,055 | -251 | -1,128 |
| Other comprehensive income for the period | 6,836 | -22,648 | -36,446 |
| Total comprehensive income for the period | -973 | -31,029 | -484,659 |
Condensed consolidated statement of financial position
| KEUR | 2024 31 Mar |
2023 31 Mar |
2023 31 Dec |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 158,494 | 581,431 | 155,559 |
| Other intangible assets | 271,441 | 309,461 | 271,726 |
| Right-of-use assets | 2,575 | 4,235 | 3,139 |
| Equipment, tools and installations | 1,128 | 1,288 | 1,183 |
| Other financial assets | 1,347 | 993 | 1,333 |
| Deferred tax assets | 29,057 | 27,356 | 26,764 |
| Total non-current assets | 464,043 | 924,764 | 459,704 |
| Current assets | |||
| Accounts receivable | 97,894 | 84,881 | 96,001 |
| Other receivables | 5,250 | 5,835 | 5,989 |
| Prepaid expenses and accrued income | 24,145 | 26,233 | 25,379 |
| Cash and cash equivalents | 30,982 | 56,642 | 38,862 |
| Total current assets | 158,270 | 173,591 | 166,231 |
| TOTAL ASSETS | 622,313 | 1,098,355 | 625,935 |
| KEUR | 2024 31 Mar |
2023 31 Mar |
2023 31 Dec |
|---|---|---|---|
| EQUITY | |||
| Total equity attributable to the shareholders of the parent company | 365,355 | 819,535 | 365,974 |
| LIABILITIES | |||
| Non-current liabilities | |||
| Borrowings | 97,822 | 112,420 | 95,923 |
| Lease liabilities | 942 | 2,192 | 1,146 |
| Deferred tax liabilities | 59,484 | 70,262 | 60,265 |
| Total non-current liabilities | 158,248 | 184,874 | 157,334 |
| Current liabilities | |||
| Borrowings | 10,634 | - | 12,217 |
| Lease liabilities | 1,527 | 1,942 | 1,853 |
| Accounts payable | 44,502 | 48,793 | 42,939 |
| Current tax liabilities | -157 | 519 | 398 |
| Other current liabilities | 6,470 | 4,388 | 5,504 |
| Accrued expenses and deferred income | 35,733 | 38,304 | 39,715 |
| Total current liabilities | 98,709 | 93,946 | 102,627 |
| TOTAL EQUITY AND LIABILITIES | 622,313 | 1,098,355 | 625,935 |
Condensed consolidated statement of changes in equity
Equity attributable to the equity holders of the parent company
| Retained earnings, |
||||||
|---|---|---|---|---|---|---|
| KEUR | Share capital | Additional paid in capital |
Hedging reserve |
Reserves | including 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-Mar | - | - | - | - | -8,381 | -8,381 |
| Other comprehensive income | - | - | 958 | -23,606 | - | -22,648 |
| Total comprehensive income | - | - | 958 | -23,606 | -8,381 | -31,029 |
| Share-based incentive program (IFRS 2) | - | 556 | - | - | - | 556 |
| Closing balance, 31 Mar 2023 | 2,165 | 1,165,586 | -8,605 | 21,026 | -360,637 | 819,535 |
| Profit/loss for the period Apr-Dec | - | - | - | - | -439,832 | -439,832 |
| Other comprehensive income | - | - | 2,786 | -16,584 | - | -13,798 |
| Total comprehensive income | - | - | 2,786 | -16,584 | -439,832 | -453,630 |
| Share-based incentive program (IFRS 2) | - | 69 | - | - | - | 69 |
| Closing balance, 31 Dec 2023 | 2,165 | 1,165,655 | -5,819 | 4,442 | -800,468 | 365,974 |
| Profit/loss for the period Jan-Mar | - | - | - | - | -7,810 | -7,810 |
| Other comprehensive income | - | - | -3,946 | 10,782 | - | 6,836 |
| Total comprehensive income | - | - | -3,946 | 10,782 | -7,810 | -973 |
| Share-based incentive program (IFRS 2) | - | 354 | - | - | - | 354 |
| Closing balance, 31 Mar 2024 | 2,165 | 1,166,010 | -9,765 | 15,224 | -808,278 | 365,355 |
Condensed consolidated statement of cash flows
| KEUR | 2024 Jan-Mar |
2023 Jan-Mar |
2023 Jan-Dec |
|---|---|---|---|
| Cash flow from operating activities | -8,430 | -10,129 | -448,676 |
| Operating profit/loss | |||
| Adjustments for non-cash items | 10,332 | 6,841 | 484,258 |
| Interest received | 136 | - | 415 |
| Interest paid | -2,849 | -1,927 | -10,093 |
| Income tax paid | -642 | -651 | -4,271 |
| Cash flow from operating activities before changes in working capital | -1,453 | -5,867 | 21,633 |
| Change in accounts receivable | -2,234 | 20,546 | 4,218 |
| Change in other current receivables | 2,007 | 1,442 | 581 |
| Change in accounts payable | 922 | -16,623 | -22,657 |
| Change in other current liabilities | -165 | -92 | -2,000 |
| Cash flow from changes in working capital | 531 | 5,274 | -19,857 |
| Cash flow from operating activities | -922 | -593 | 1,776 |
| Cash flow from investing activites | |||
| Acquisitions of intangible assets | -4,424 | -3,884 | -18,430 |
| Acquisitions of tangible assets | -113 | -92 | -540 |
| Acquistions of entites | - | - | -2,550 |
| Change in other financial assets | -2 | - | -65 |
| Cash flow from investing activities | -4,538 | -3,976 | -21,585 |
| Cash flow from financing activities | |||
| Repayment of loans | -1,879 | - | - |
| Repayment of lease liabilities | -547 | -613 | -2,647 |
| Cash flow from financing activities | -2,426 | -613 | -2,647 |
| Net cash flow | -7,886 | -5,182 | -22,456 |
| Decrease/increase of cash and cash equivalents | |||
| Cash and cash equivalents at the beginning of the period | 38,862 | 62,609 | 62,609 |
| Currency translation difference in cash and cash equivalents | 6 | -785 | -1,292 |
| Cash and cash equivalents at the end of the period | 30,982 | 56,642 | 38,862 |
Condensed parent company income statement
| KSEK | 2024 Jan-Mar |
2023 Jan-Mar |
2023 Jan-Dec |
|---|---|---|---|
| Net sales | 11 350 | 12 353 | 44 500 |
| General and Administrative Expenses | -11 962 | -11 859 | -60 843 |
| Other operating income/expenses | -70 122 | 7 850 | 42 337 |
| Operating profit/loss | -70 735 | 8 344 | 25 994 |
| Write-down of shares in subsidiaries | - | - | -5 257 446 |
| Interest expenses and similar profit/loss items | -40 519 | -20 121 | -103 747 |
| Total net financial items | -40 519 | -20 121 | -5 361 193 |
| Earnings before tax | -111 253 | -11 777 | -5 335 198 |
| Taxes for the period | 19 413 | 3 701 | -6 484 |
| Net loss/profit for the period | -91 840 | -8 075 | -5 341 682 |
| Condensed parent company balance sheet | 2024 | 2023 | 2023 |
| KSEK | 31 Mar | 31 Mar | 31 Dec |
| ASSETS | |||
| Non-current assets | |||
| Shares in subsidiary | 4 202 132 | 9 459 578 | 4 202 132 |
| Deferred tax assets | 84 610 | 75 381 | 65 197 |
| Intercompany non-current assets | 332 056 | 277 437 | 278 137 |
| Total non-current assets | 4 618 798 | 9 812 396 | 4 545 466 |
| Current assets | |||
| Intercompany receivables | 448 154 | 480 034 | 526 747 |
| Other current receivables | 37 066 | 2 599 | 79 |
| Prepaid expenses and accrued income | 6 294 | 12 171 | 3 403 |
| Total current receivables | 491 514 | 494 804 | 530 229 |
| Cash and cash equivalents | 3 328 | 4 529 | 412 |
| Total current assets | 494 842 | 499 333 | 530 641 |
| TOTAL ASSETS | 5 113 640 | 10 311 728 | 5 076 107 |
| KSEK | 2024 31 Mar |
2023 31 Mar |
2023 31 Dec |
| EQUITY AND LIABILITIES | |||
| Total restricted equity | 21 298 | 21 298 | 21 298 |
| Total non-restricted equity | 3 436 769 3 458 067 |
8 857 317 8 878 615 |
3 526 714 3 548 012 |
| Total equity | |||
| Non-current liabilities | |||
| External loan | 1 127 397 | 1 243 307 | 1 064 360 |
| Total non-current liabilities | 1 127 397 | 1 243 307 | 1 064 360 |
| Current liabilities | |||
| External loan | 122 561 | - | 135 561 |
| Accounts payable | 2 849 | 7 607 | 866 |
| Intercompany liabilities | 385 869 | 167 282 | 310 062 |
| Other liabilities | 6 821 | 6 585 | 5 925 |
| Accrued expenses and deferred income | 10 077 | 8 333 | 11 321 |
| Total current liabilities | 528 176 | 189 807 | 463 735 |
| TOTAL EQUITY AND LIABILITIES | 5 113 640 | 10 311 728 | 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 25 April 2024.
Note 2 Summary of significant accounting policies
Cint applies International Financial Reporting Standards (IFRS) as adopted by the EU. The accounting policies applied are consistent with those described in the 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 assessment of the Group's operation is based on the financial information reported to the CEO. The financial information reported to the CEO refers to the Group on a consolidated basis since the Group's offerings comprise the company's single platform. Therefore, the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements.
The pro forma figures are shown during the first year after the changes in revenue recognition since the change has a material impact on presented Net Sales. The pro forma figures give accurate comparison between the periods and shows the development in the business.
Changes in financial reporting
Starting from the first quarter 2024, Cint has applied changes in the financial reporting impacting revenue recognition, presentaton format for the income statement and introduction of EBITA measure.
Change in revenue recognition: Cint is reporting revenues net for all significant 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 made retrospectively and 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 and utilization of resources across different operational areas and follows industry practice
Introduction of EBITA Measure: Cint has introduced the EBITA (Earnings Before Interest, Taxes, and Amortization) measure to its financial reporting framework. Under this methodology, depreciation of capitalized development costs will be included in EBITA, 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
| Net sales by region, KEUR | 2023 Jan-Mar |
2023 Apr-Jun |
2023 Jul-Sep |
2023 Oct-Dec |
2023 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
| 2023 | 2023 | 2023 | 2023 | 2023 | |
|---|---|---|---|---|---|
| KEUR | Jan-Mar | Apr-Jun | Jul-Sep | Oct-Dec | Jan-Dec |
| 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 Jan-Mar |
2023 Jan-Mar |
2023 Jan-Dec |
|---|---|---|---|
| Americas | 22 140 | 34 811 | 159 123 |
| EMEA | 11 078 | 20 570 | 87 791 |
| APAC | 3 196 | 4 488 | 19 624 |
| Total | 36 414 | 59 870 | 266 538 |
| Net sales by business segment | 2024 Jan-Mar |
2023 Jan-Mar |
2023 Jan-Dec |
| Cint Exchange | 27 112 | 51 157 | 214 918 |
| Media Measurement | 9 301 | 8 712 | 51 621 |
| Total | 36 414 | 59 870 | 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 Jan-Mar |
2023 Jan-Mar |
2023 Jan-Dec |
|
|---|---|---|---|
| Earnings per share before dilution, EUR | -0.04 | -0.04 | -2.10 |
| Earnings per share after dilution, EUR | -0.04 | -0.04 | -2.10 |
| Calculation of earnings per share: | |||
| Earnings attributable to Parent Company shareholders, KEUR | -7,810 | -8,381 | -448,213 |
| Total | -7,810 | -8,381 | -448,213 |
| Weighted average number of ordinary shares | 212,976,588 | 212,976,588 | 212,976,588 |
| 2024 Jan-Mar |
2023 Jan-Mar |
2023 Jan-Dec |
|
|---|---|---|---|
| Adjusted Earnings per share before dilution, EUR | 0.00 | 0.00 | 0.07 |
| Adjusted Earnings per share after dilution, EUR | 0.00 | 0.00 | 0.07 |
| Calculation of adjusted earnings per share | |||
| Earnings attributable to Parent Company shareholders, KEUR | -7,810 | -8,381 | -448,213 |
| Adjustment for items affecting comparability(1), KEUR | 1,975 | 2,358 | 11,289 |
| Add-back of amortization of intangible assets from acquisitions(1), KEUR | 5,710 | 6,197 | 451,884 |
| Total | -125 | 174 | 14,960 |
| Weighted average number of ordinary shares | 212,976,588 | 212,976,588 | 212,976,588 |
(1) Net of tax effect
Note 8 Depreciations, amortizations and impairments
| 2024 Jan-Mar |
2023 Jan-Mar |
2023 Jan-Dec |
|---|---|---|
| -711 | -775 | -3,240 |
| -2,228 | -1,992 | -8,174 |
| -2,939 | -2,767 | -11,414 |
| -7,434 | -8,069 | -50,949 |
| - | - | -412,213 |
| -7,434 | -8,069 | -463,162 |
Note 9 Financial income and expenses
| KEUR | 2024 Jan-Mar |
2023 Jan-Mar |
2023 Jan-Dec |
|---|---|---|---|
| Interest income | 136 | 152 | 415 |
| Interest expenses | -2,744 | -2,042 | -9,812 |
| Realized and unrealized currency effects | 187 | -63 | 170 |
| Other financial expenses | -105 | -37 | -206 |
| Financial income/expenses net | -2,526 | -1,990 | -9,434 |
Note 10 Expense by type of cost
| 2024 Jan-Mar |
2023 Jan-Mar |
2023 Jan-Dec |
|
|---|---|---|---|
| Personnel costs | -10,228 | -9,818 | -38,829 |
| Other external expenses | -1,965 | -2,074 | -6,964 |
| Total Sales and Marketing Expenses | -12,193 | -11,892 | -45,792 |
| Personnel costs | -1,996 | -5,167 | -17,727 |
| Other external expenses | -1,923 | -5,460 | -19,467 |
| Depreciation of capitalized development cost | -2,228 | -1,992 | -8,174 |
| Total Research and Development Expenses | -6,147 | -12,620 | -45,369 |
| Personnel costs | -3,921 | -4,408 | -18,787 |
| Other external expenses | -5,325 | -5,074 | -23,148 |
| Other depreciation | -711 | -775 | -3,240 |
| Total General and Administrative Expenses | -9,956 | -10,256 | -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 | 2023 | |
|---|---|---|---|
| Alternative performance measures, KEUR | Jan-Mar | Jan-Mar | Jan-Dec |
| Net sales previous period | 59,870 | 67,342 | 295,188 |
| Net sales current period | 36,414 | 59,870 | 266,538 |
| Net sales growth | -39.2% | -11.1% | -9.7% |
| Whereof acquired and discontinued net sales previous period | - | 141 | 141 |
| Net sales excluding acquired and discontinued net sales previous period | 59,870 | 67,201 | 295,048 |
| Net sales excluding acquired and discontinued net sales current period | 36,414 | 59,870 | 266,538 |
| Organic growth | -39.2% | -10.9% | -9.7% |
| Of which currency effects | -430 | 794 | -8,672 |
| Organic growth constant currency, % | -38.7% | -11.9% | -6.9% |
| Pro forma net sales previous period | 36,026 | 41,471 | 186,369 |
| Pro forma net sales current period | 36,414 | 36,026 | 167,561 |
| Pro forma net sales growth, % | 1.1% | -13.1% | -10.1% |
| Whereof discontiuned Russian business previous period | - | -79 | -79 |
| Pro forma net sales organic previous period | 36,026 | 41,392 | 186,290 |
| Pro forma net sales organic current period | 36,414 | 36,026 | 167,561 |
| Pro forma organic growth, % | 1.1% | -13.0% | -10.1% |
| Of which currency effects | -174 | 527 | -4,529 |
| Pro forma organic growth constant currency, % | 1.6% | -14.1% | -7.8% |
| Net sales | 36,414 | 59,870 | 266,538 |
| Cost of services sold | -6,069 | -23,930 | -100,365 |
| Gross profit | 30,345 | 35,940 | 166,174 |
| Gross margin | 83.3% | 60.0% | 62.3% |
| Pro forma gross profit | 30,345 | 30,890 | 147,111 |
| Pro forma gross margin, % | 83.3% | 85.7% | 87.8% |
| Total customer spend | 81,810 | 79,864 | 352,764 |
| Net sales | 36,414 | 59,870 | 266,538 |
| Operating profit/loss | -8,430 | -10,129 | -448,676 |
| Operating margin, % | -23.1% | -16.9% | -168.3% |
| Items affecting comparability | 2,487 | 2,970 | 14,218 |
| Amortization and impairment on acquisition related items | 7,434 | 8,069 | 463,162 |
| Operating profit/loss before amortization (EBITA) | 1,492 | 910 | 28,704 |
| Operating profit/loss before amortization (EBITA) margin, % | 4.1% | 1.5% | 10.8% |
| Items affecting comparability by category | |||
| Cost for strategic projects | - | 57 | 57 |
| Integration costs | 2,487 | 2,877 | 13,963 |
| Other | 0 | 37 | 199 |
| Items affecting comparability by category | 2,487 | 2,970 | 14,218 |
| FX gain/loss on operating balance sheet items | -592 | -272 | -1,221 |
| Operating profit/loss before amortization (EBITA), excl FX gain/loss on operating balance sheet items | 2,084 | 1,182 | 29,926 |
| Operating profit/loss before amortization (EBITA) margin, excl FX gain/loss on operating balance sheet items | 5.7% | 2.0% | 11.2% |
| Accounts receivable | 97,894 | 84,881 | 96,001 |
| Other current receivable | 25,872 | 27,823 | 27,738 |
| Accounts payable | -44,502 | -48,793 | -42,619 |
| Other current liabilities | -42,203 | -42,692 | -45,219 |
| Net working capital | 37,061 | 21,218 | 35,901 |
| Other interest-bearing liabilities (Borrowings) | 108,456 | 112,420 | 108,140 |
| Lease liabilities - Long term | 942 | 2,192 | 1,146 |
| Lease liabilities - Short term | 1,527 | 1,942 | 1,853 |
| Total interest-bearing debt | 110,925 | 116,554 | 111,139 |
| Cash and cash equivalents | 30,982 | 56,642 | 38,862 |
| Net debt | 79,944 | 59,912 | 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 calculations below derive from the Company's internal accounts and has neither been audited nor reviewed by the Company's auditor.
Quarterly Summary
| 2024 | 2023 | 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| KEUR | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Net sales | 36,414 | 72,298 | 66,570 | 67,801 | 59,870 | 80,341 | 74,319 | 73,187 | 67,342 |
| Net sales growth, % | -39.2% | -10.0% | -10.4% | -7.4% | -11.1% | 79.5% | 116.8% | 130.6% | 139.3% |
| Gross profit | 30,345 | 46,203 | 41,386 | 42,646 | 35,940 | 48,724 | 47,134 | 46,165 | 41,284 |
| Gross margin, % | 83.3% | 63.9% | 62.2% | 62.9% | 60.0% | 60.6% | 63.4% | 63.1% | 61.3% |
| Operating profit/loss before amortization (EBITA) |
1,492 | 12,226 | 9,230 | 6,337 | 910 | 10,364 | 11,323 | 11,260 | 4,953 |
| Operating profit/loss before amortization (EBITA), % |
4.1% | 16.9% | 13.9% | 9.3% | 1.5% | 12.9% | 15.2% | 15.4% | 7.4% |
| Non-recurring items | 2,487 | 3,806 | 3,452 | 3,990 | 2,970 | 5,339 | 5,913 | 5,522 | 4,470 |
| Amortization and impairment on acquisition related items |
7,434 | 419,897 | 27,152 | 8,044 | 8,069 | 349,426 | 8,762 | 8,243 | 7,772 |
| Operating profit/loss | -8,430 | -411,477 | -21,374 | -5,696 | -10,129 | -344,402 | -3,352 | -2,504 | -7,290 |
| Operating margin, % | -23.1% | -569.1% | -32.1% | -8.4% | -16.9% | -428.7% | -4.5% | -3.4% | -10.8% |
| Rolling 12-month | |||||||||
| Net sales | 243,083 | 266,538 | 274,582 | 282,331 | 287,716 | 295,188 | 259,602 | 219,563 | 178,120 |
| Gross profit | 160,579 | 166,174 | 168,695 | 174,444 | 177,963 | 183,307 | 157,325 | 127,647 | 97,943 |
| Operating profit/loss before amortization (EBITA) |
29,286 | 28,704 | 26,842 | 28,935 | 33,858 | 37,901 | 34,498 | 28,541 | 21,031 |
| Gross margin, % | 66.1% | 62.3% | 61.4% | 61.8% | 61.9% | 62.1% | 60.6% | 58.1% | 55.0% |
| Operating profit/loss before amortization (EBITA) margin, % |
12.0% | 10.8% | 9.8% | 10.2% | 11.8% | 12.8% | 13.3% | 13.0% | 11.8% |
25 April 2024
Giles Palmer
CEO
This report has not been subject to review by the company's independent auditor.
This report is published in Swedish and English. In case of any differences between the English version and the Swedish original text, the Swedish version shall apply.
For more information, please contact Niels Boon, CFO
Investor relations: Patrik Linzenbold Tel: +46 708 252 630 [email protected]
Report presentation
The report will be presented via a webcast conference call on 25 April 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: 253 225
The presentation will be available in connection to the conference call and a replay will be available later the same day.
Financial Calendar
AGM: 15 May 2024
Second quarter report: 19 July 2024
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. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 a.m. CEST on 25 April 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 first– party survey data in over 110 countries. Bringing together Cint's European heritage, broad audience reach, and enterprise transformation capabilities with Lucid's deep access to US consumers and Media Measurement solutions will make the combined organization a global leader in technology-enabled insights.
Cint has a team of more than 1,000 FTEs in a number of global offices, including Stockholm, London, New York, New Orleans, Singapore, Tokyo and Sydney.
300M+ engaged respondents
130+ countries
1,000+ FTEs
Cint Group AB (publ) | Corp. Id. No. 559040-3217 | Registered office: Luntmakargatan 18, 1tr SE-111 37 Stockholm, Sweden | Tel: +46 8 546 383 00 | www.cint.com
Definitions
| Alternative performance measures | Definition | ||||
|---|---|---|---|---|---|
| Adjusted earnings per share (EPS) Profit/loss for the period adjusted for items affecting comparability (net of tax effect), add-back of amortization of intangible assets from acquisitions (net of tax effect) and interest attributable to preference share. |
Adjusted EPS shows the company's under lying operative profit generation capability per share. |
||||
| 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. |
The operating profit/loss before 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. |
|||
| 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. |
| 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 | Profit for the period before financial income, financial expenses and tax |
Net sales less total operating expenses. Operating profit is relevant for investors to understand the earnings trend before interest and tax |
|||
| Pro forma | Pro forma figures include changes in revenue recognition and a reclassification of direct platform costs from operating expenses to cost of services sold. The applied accounting principles for the pro forma figures are IFRS. |
The pro forma figures are shown during the first year after the changes in revenue recognition since the change has a material impact on presented Net Sales. 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 | Change in pro forma net sales compared to same period previous year. |
The measure shows growth in pro forma net sales compared to the same period during previous year. |
|||
Total customer spend Total amount spent and processed on the platforms including total project value and any take-rates or fees
-