Nets A/S: Financial results for 2016
(Thomson Reuters ONE) -
Company announcement
No. 2/2017
Financial results for 2016
Highlights for 2016
* Strong organic growth in net revenue of 7%, driven by strong growth in both
Merchant Services and Financial & Network Services with organic growth of
13% and 10%, respectively. Corporate Services experienced organic growth of
2%
* EBITDA b.s.i. was up with 16.5%, equivalent to a margin expansion of 260
basis points to 35.5%
* Net profit of minus DKK 584 million, which as expected was significantly
impacted by special items related to the transformation programme and one-
off expenses related to the IPO and refinancing. Adjusted net profit
amounted to DKK 997 million equivalent to an increase of 28.2% compared to
2015
* Capital expenditures amounted to DKK 668 million, which corresponds to a
capital expenditure/revenue ratio of 9.0%
* Operating free cash flow was DKK 1,434 million up by 16%
* The IPO strengthened the capital structure with DKK 5.5 billion, which
together with continued strong cash flow generation resulted in a
significant deleveraging. Net interest-bearing debt / EBITDA b.s.i. was
3.2x at the end of 2016
Financial performance
Q4 Q4 Change FY FY Change
DKKm 2016 2015 2016 2015
Revenue, net 1,910 1,704 12.1% 7,385 6,836 8.0%
EBITDA before special items 676 558 21.1% 2,619 2,248 16.5%
Special items (64) (104) (38%) (606) (538) 13%
Adjusted EBIT 564 493 14.4% 2,203 1,977 11.4%
Net profit 223 111 100.9% (584) 119 n/a
Adjusted net profit 370 189 95.7% 997 778 28.2%
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Capital expenditure/revenue 11.2% 8.1% +3.1 pp 9.0% 7.9% +1.1 pp
Net interest-bearing debt / EBITDA
b.s.i. 3.2x 3.2x
Organic growth 10% 7%
EBITDA b.s.i. margin 35.4% 32.7% +2.7 pp 35.5% 32.9% +2.6 pp
EBITDA margin 32.0% 26.6% +5.4 pp 27.3% 25.0% +2.3 pp
---------------------------------------------------------- --------------------
Bo Nilsson, CEO of Nets, said,
"2016 was a year of continued accelerated financial performance. The strong
organic growth of 7% was powered by transactions and volume increases across all
business segments and we are pleased that we have delivered financial results in
line with or better than we expected."
"We have successfully transformed Nets into a significantly more customer-
focused and innovation-driven company. Today we have a strong foundation for
future growth and for 2017 we expect solid growth in both revenue and earnings."
Outlook
Compared to the latest guidance for 2016, published in the Q3 2016 Report, Nets
met or exceeded the expectations on all parameters.
-------------------------------------------------------------------------------
Targets Guidance 9 Nov Actual Guidance
2016 FY 2016 FY 2017
FY 2016
-------------------------------------------------------------------------------
Organic revenue 6-7% 7% 5-6%
growth
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EBITDA b.s.i. margin 35-36% 35.5% Above 36.0%
-------------------------------------------------------------------------------
Special items DKK 630 million, DKK 606 million, DKK 150 million, of
(including IPO- of which approx. of which DKK 261 which approx. DKK
related expenses) DKK 290 million is million is IPO- 30 million is IPO-
IPO-related related related
-------------------------------------------------------------------------------
Capital expenditure Around 10% 9.0% Around 8% excluding
incurred M&A activities
(% of revenue)
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Net interest-bearing At or below 3.4x 3.2x Around 2.5x
debt / EBITDA b.s.i. including effect of
share buyback of
approx. DKK 150
million to cover
long-term incentive
programme and
assuming no
additional M&A
activities
-------------------------------------------------------------------------------
Additional information
Annual Report 2016
Nets' annual report for 2016 is available on https://investor.nets.eu
Conference call
In connection with the publication of the results for 2016, Nets will host a
conference call on Tuesday, 28 February 2017, from 10:00 to 11:00 am CET. The
conference call can be followed live via the company's website,
https://investor.nets.eu
Dial-in details for investors and analysts:
Participants, DK: +45 32 71 16 60
Participants, UK: +44(0)20 3427 1919
Participants, US: +1 646 254 3362
Confirmation code: 8978598
For further information, please contact:
For media enquiries:
Karsten Anker Petersen, Head of Communications, at +45 44 89 78 83 or
kapet(at)nets.eu
For investor and analyst enquiries:
Lars Oestmoe, Head of M&A and IR, at +47 91 34 71 77 or lostm(at)nets.eu
Financial calendar
* 22 March 2017: Annual General Meeting
* 9 May 2017: Interim Report for the First Quarter of 2017
* 17 August 2017: Interim Report for the First Half-year of 2017
* 9 November 2017: Interim Report for the Third Quarter of 2017
Forward-looking statements
This report contains forward-looking statements, including, but not limited to,
the statements and expectations contained in the outlook section. Forward-
looking statements are statements (other than statements of historical fact)
relating to future events and Nets' anticipated or planned financial and
operational performance. The words 'may', 'will', 'will continue', 'should',
'expect', 'foresee', 'anticipate', 'believe', 'estimate', 'plan', 'predict',
'intend' or variations of these words, including negatives thereof, as well as
other statements regarding matters that are not historical fact or regarding
future events or prospects, constitute forward-looking statements. Nets has
based these forward-looking statements on its current views with respect to
future events and financial performance. These views involve a number of risks
and uncertainties, which could cause actual results to differ materially from
those predicted in the forward-looking statements and from the past performance
of Nets. Although Nets believes that the estimates and projections reflected in
the forward-looking statements are reasonable, they may prove materially
incorrect and actual results may materially differ, e.g. as the result of risks
related to the industry in general or to Nets in particular, including those
described in Nets Annual Report 2016.
Factors that may affect future results include, but are not limited to, global
and economic conditions, including currency exchange rate and interest rate
fluctuations, delay or failure of projects related to research and/or
development, unexpected contract breaches or terminations, unplanned loss of
patents, government-mandated or market-driven price decreases for Nets'
products, introduction of competing products, reliance on information
technology, Nets' ability to successfully market current and new products,
exposure to product liability, litigation and investigations, regulatory
developments, actual or perceived failure to adhere to ethical marketing
practices, unexpected growth in costs and expenses, failure to recruit and
retain the right employees, and failure to maintain a culture of compliance.
As a result, forward-looking statements should not be relied on as a prediction
for actual results. Nets undertakes no obligation to update or revise any
forward-looking statements, neither because of new information, nor because of
future events or otherwise, except to the extent required by law.
Information on Nets
Nets is a leading provider of digital payment services and related technology
solutions across the Nordic region. Nets sits at the centre of the digital
payments ecosystem and operates a deeply entrenched network, which connects
merchants, corporate customers, financial institutions and consumers enabling
them to make and receive payments as well as, increasingly, utilise value-added
services to help them improve their respective activities.
Nets_Q4_Company_Announcement_FINAL:
http://hugin.info/173023/R/2082708/784908.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Nets A/S via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 28.02.2017 - 08:14 Uhr
Sprache: Deutsch
News-ID 527391
Anzahl Zeichen: 10849
contact information:
Town:
Ballerup
Kategorie:
Business News
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