M-Brain Oy Half Year Report 1 January - 30 June 2016

15 augustus 2016

M-Brain Oy Half Year Report 15.8.2016 04:00 pm

M-Brain Oy Half Year Report 1 January - 30 June 2016

Financial performance January - June 2016:

• Revenue increased by 7.8 per cent to EUR 16,689 (15,478) thousand
• EBITDA decreased by 24.8 per cent to EUR 1,081 (1,437) thousand
• Balance sheet total at 30 June 2016 was EUR 44,799 (34,711) thousand

             

Key figures

	2016	2015	2015
1000 EUR	1-6	1-6	1-12
Revenue	16,689	15,478	30,341
EBITDA	1,081	1,437	2,591
EBITDA % of revenue	6.5	9.3	8.5
Operating profit	287	778	1,284
Operating profit % of revenue	1.7	5.0	4.2
Profit (loss) for the period	-247	189	-395
Profit (loss) for the period % of revenue	-	1.2	-
Balance sheet total	44,799	34,711	35,042
Revenue of own equity, %	-1.7	1.6	-3.4
Equity ratio, %	40.7	36.4	34.9
Number of personnel (FTE) at the end of period	471	398	398

CEO Kim Nyberg's comments regarding the half year report

"M-Brain is a global information, technology and consulting services company with offices in 14 countries. We help our clients to navigate the turbulent and ever expanding business environment. We offer crucial external business information, and advice in its efficient management and utilization. We turn information into actionable insights for daily decision-making and strategic planning. We call it Informed Leadership.

M-Brain completed the acquisition Norwegian media monitoring and analysis company Opoint Group during the first half of 2016. The acquisition supports our strategic goal to become market leader in our field in the Nordics and throughout the Baltics and through the acquisition M-Brain operations expanded to Norway and Estonia. In connection with the transaction, M-Brain organised a share issue totaling EUR 6.2 million, which was fully subscribed by the current M-Brain shareholders.

The development of net sales in Finland was unsatisfactory, mainly due to poor development of the Finnish overall economy as well as the impact of the changing media landscape to the traditional media monitoring services. M-Brain announced starting of co-operative negotiations in the Nordic and Baltic region and the negotiations in Finland were finalised in June. The remaining planned actions in the rest of the Nordics and Baltics will be completed by the end of the year."

Events after the review period

The Company has not had any significant events after the review period.

Assessment of major operative risks and uncertainties

Technological development in the M-Brain's field of business is extremely fast. In accordance with its strategy, the Company has made significant investments in its own product development to improve its competitiveness compared to its competitors.

The core operations of the Group are insured against accidental damages and interruptions.

Accounts receivables is significant balance sheet item. Credit risk related to accounts receivables is managed by consistent credit policy and efficient credit management. Credit risk is also reduced by the large number of clients and by the fact that the receivables are allocated to a number of different industries.

M-Brain Group prepares goodwill impairment testing annually, in accordance with the timetable of its planning process or more frequently if there are indications that the value of the asset may be impaired. Changes in cash flow forecasts based on strategic plans, or in the discount rate or perpetuity growth rate, can cause a goodwill write-off, which would weaken M-Brain's result.

M-Brain EUR 15 million bond listed on First North Bond Market Finland market place is due on 17 June 2017. The company has initiated a process for arranging refinancing.

The Group's loan financing involves covenants agreed with the lenders to which the Company is committed. Fulfillment of the covenants with regard to the key figures are reviewed in connection with the preparation of half year report and annual accounts.

Outlook for the year 2016

M-Brain estimates its full-year 2016 revenue and EBITDA to increase from the previous year. The acquisition of Opoint is expected to improve the overall increase in revenue, and the measures taken in 2015 to integrate acquired subsidiaries and to rationalise operations is expected to improve increase in EBITDA.

The statements in this release, other than those related to historical facts, are forward looking statements. These statements are based on the management's best belief in the light of currently available information. As such statements involve risks and uncertainties, the actual results may differ materially from such statements.

Disclosure policy

This Stock Exchange Release is a summary of relevant information related to M-Brain's January - June 2016 half year report. The entire half year report is attached to this release and is also available on company's website at www.m-brain.com .

Helsinki 15 August 2016

M-BRAIN OY
Board of Directors

Further Information:

Kim Nyberg
CEO
Email: kim.nyberg@m-brain.com
Tel: +358 400 430 538

Mari Orttenvuori
CFO
Email: mari.orttenvuori@m-brain.com
Tel. +358 46 8765 233

Certified Adviser Evli Bank Plc / Petteri Nurminen
Tel. +358 40 5095 665

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