Entire Year 2008
• Net turnover amounted to SEK 290.8 m (SEK 168.6 m), an increase of 72%.
• Net turnover in the business area Internet Media reached SEK 235.6 m (SEK 122.1 m), an increase of 93%, and net turnover in Internet Solutions reached SEK 79.6 m (SEK 50.8 m), an increase of 57%.
• Operating profits amounted to SEK -90.2 m (SEK 20.5 m). As a phase in the consolidation of operations, earnings were affected by non-recurring items, the majority of which can be attributed to the fourth quarter, in the amount of approx. SEK 92 m, of which:
• approx. SEK 30 m refers to restructuring costs, particularly write-downs of older accounts receivables, costs for personnel and premises, as well as a more conservative application of the accounting principle for revenue recognition and
• approx. SEK 62 m of which refers to goodwill write-downs.
• Operating profits before non-recurring items reached SEK 1.7 m (SEK 21.3 m).
• The Board has decided to propose to the annual general meeting that no dividends for 2008 will be paid.
Fourth quarter 2008
• Net turnover reached SEK 60.9 m (SEK 67.8 m). A more conservative application of the accounting principle for revenue recognition and exchange rate changes negatively impacted sales and profits by approx. SEK 9 m.
• Operating profits reached SEK -104.8 m (SEK 9.0 m). Earnings are affected by restructuring costs of approx. SEK 30 m and good will write-downs of approx. SEK 62 m.
• Dan Sehlberg became CEO on December 1, 2008, and Håkan Juserius became CFO and deputy CEO.
• The wholly owned subsidiary Crystone AB was sold for SEK 40 m.
After the end of the period
• The board decided to carry out a rights issue which is expected to inject approx. SEK 59 m before issuing costs are subtracted. The rights issue is secured through subscription warranties from larger shareholders and through issuing guarantees. A short-term credit of SEK 35 m has been attained in order to resolve outstanding payments in the interim until the funds from the rights issue are available.
• The additional purchase sum and due payments in regards to Just Search to be paid with approx. SEK 20 m in cash payments, and approx. SEK 18 m as a directed offset issue, subject to a decision to this effect at the annual general meeting.
• The Swedish Tax Agency approved Getupdated’s appeal for deficit deductions. Thus the management deems the previously reported exposure of at maximum SEK 13.2 m to no longer be applicable.
Future prospects
• During the year the company estimates operating profits and cash flow improving considerably and successively, in comparison to operating profits for 2008 before non-recurring items.
• Despite the weakness of the business cycle the company is expected to report strong growth for 2009.
• Consolidation work will continue for the first quarter of 2009.
| Key indicators |
Oct-Dec 2008 |
Oct-Dec 2007 |
Jan-Dec 2008 |
Jan-Dec 2007 |
| Net turnover, thousand SEK |
60,891* |
67,774 |
290,769* |
168,643 |
| Growth in turnover |
–10.2% |
|
72.4% |
|
| Operating profits, thousand SEK |
–104,818 |
8,965 |
–90,206 |
20,533 |
| Operating margin |
–172.1% |
13.2% |
–31.0% |
12.2% |
| Operating profits, not including non-recurring items, thousand SEK |
–12,426 |
9,769 |
1,731 |
21,337 |
| Operating margin, not including non-recurring items |
–20.4% |
14.4% |
0.6% |
12.7% |
| Profits after tax, thousand SEK |
–114,354 |
6,062 |
–104,623 |
13,327 |
| Profit per share before dilution, current business activities, SEK |
–4.07 |
0.31 |
–4.26 |
0.84 |
| Cash flow from day-to-day operations, thousand SEK |
–9,897 |
17,203 |
–19,832 |
28 |
| Liquid assets, thousand SEK |
9,952 |
14,131 |
9,952 |
14,131 |
| Net liabilities, thousand SEK |
59,035 |
82,551 |
59,035 |
82,551 |
|
|
|
|
|
* Including a more conservative application of the accounting principle for revenue recognition.
For more information please contact:
Dan Sehlberg, CEO
Tel: +46 70 899 26 44
e-mail: dan.sehlberg@getupdated.com
Håkan Juserius, CFO and deputy CEO
Tel: +46 70 669 48 88
e-mail: hakan.juserius@getupdated.com
All figures are excluding Crystone’s business operations, sold during the period. The figures in parentheses refer to the corresponding period of the previous year. This information must be made public by Getupdated Internet Marketing AB (public) according to the Securities Market Act and/or the Financial Instruments Trading Act. This information was submitted for publishing on February 17, 2009 at 8:30 a.m.
About Getupdated Internet Market AB
Getupdated is a leading international player in the innovative and expansive field of Internet marketing and search engine optimization. We provide products and services for Internet marketing within: infrastructure, brand profiling, traffic generation and conversion of visitors to sales. Getupdated can increase the profitability of your Internet investment using Internet strategies, communications, concept development, web and portal development, business operations systems, web design, e-commerce, social media, publishing tools, advertising on the Internet, search engine optimization and affiliate networks.
Getupdated’s clients are companies and organizations who want to reach out to their customers and do business on the Net. Since 1999, our company has helped many companies develop their activities on the Internet, including Sandys, Arkitektkopia, IBIS (Accor Hotels), L’Oréal, Vasakronan, DSV Road AB, Ledarna, Sens-Nature and Q-Med and RPO. Getupdated has a total of approximately 300 employees in Sweden, Great Britain, France and the US. Getupdated Internet Marketing is listed on NASDAQ OMX First North, and has Erik Penser Bankaktiebolag as its Certified Advisor.
Getupdated Internet Marketing AB: Year-End Report 2008
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