Nets A/S: Financial results for Q1 2017
(Thomson Reuters ONE) -
Company announcement
No. 14/2017
Financial results for Q1 2017
Highlights for Q1 2017
* Strong organic growth in netrevenue of 7%, driven by strong growth in both
Merchant Services and Corporate Services with organic growth of 12% and 5%,
respectively, and a solid growth of 5% in Financial and Network Services
* Transaction volumes showed strong growth across all business segments,
particularly within merchant acquiring, issuer processing and eBilling
solutions in both Denmark and Norway
* EBITDA b.s.i. was up 13.6% compared to Q1 2016, equivalent to a margin
expansion of 140 basis points to 33.0%
* Adjusted net profit amounted to DKK 353 million, equivalent to an increase
of 134% compared to Q1 2016
* Capital expenditures amounted to DKK 150 million, which corresponds to a
capital expenditure/revenue ratio of 7.9%
* Operating free cash flow was DKK 250 million up by 110% compared to Q1 2016
* Cash conversion improved to 79% up by 50 basis points compared to Q1 2016
* The capital structure was further improved with a net interest-bearing debt
/ EBITDA b.s.i. of 3.1x at the end of Q1 2017
* On 5 April, Nets signed an agreement to acquire the Finnish Bank OP's
merchant acquiring business, which consists of approximately 15,000 merchant
contracts and underlying annual card turnover of around DKK 37 billion and
includes a ten-year strategic partnership with close collaboration between
OP and Nets for sales to new merchants
* Guidance for EBITDA b.s.i. margin in 2017 is lifted from above 36.0% to at
or above 36.5%, based on a strong first quarter, and leverage guidance has
been reiterated following the acquisition of OP's merchant acquiring
business. The remaining parameters are unchanged
Bo Nilsson, CEO of Nets, said,
"With an organic revenue growth of 7%, powered by transaction- and volume
increases across all business segments, we once more demonstrated the strength
of our growth model. Furthermore, I am pleased with the continued margin
expansion, which has lead us to raise our guidance on EBITDA b.s.i. margin for
the year to at or above 36.5%.The first quarter of 2017 was a strong start of
the year."
Financial performance
Q1 Q1 Change FY
DKKm 2017 2016 2016
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Revenue, net 1,897 1,743 8.8% 7,385
EBITDA before special items 626 551 13.6% 2,619
Special items (84) (139) (39.6%) (606)
Adjusted EBIT 540 460 17.4% 2,203
Net profit 202 (139) n.a. (584)
Adjusted net profit 353 151 133.8% 997
-------------------------------------------------------------- ------
Organic growth 7% 6% 7%
EBITDA b.s.i. margin 33.0% 31.6% +1.4 pp 35.5%
EBITDA margin 28.6% 23.6% +5.0 pp 27.3%
Capital expenditure/revenue 7.9 % 7.6 % +0.3 pp 9.0 %
Net interest-bearing debt / EBITDA b.s.i. 3.1x 3.2x
-------------------------------------------------------------- ------
Outlook
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Targets Guidance 28 February 2017 Guidance 9 May 2017
FY 2017 FY 2017
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Organic revenue growth 5-6% 5-6%
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EBITDA b.s.i. margin Above 36.0% At or above 36.5%
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Special items (including DKK 150 million, of which DKK 150 million, of which
IPO- related retention approx. DKK 30 million is approx. DKK 30 million is
expenses) IPO-related IPO-related
-------------------------------------------------------------------------------
Capital expenditure Around 8% excluding M&A Around 8%, excluding M&A
incurred activities activities
(% of net revenue)
-------------------------------------------------------------------------------
Net interest-bearing debt Around 2.5x including Around 2.5x, including
/ EBITDA b.s.i. effect of share buyback effect of share buyback
of approx. DKK 150 of approx. DKK 150
million to cover long- million to cover long-
term incentive programme term incentive programme
and assuming no and including acquisition
additional M&A activities of OP's merchant
acquiring business and
assuming no additional
M&A activities
-------------------------------------------------------------------------------
Additional information
Conference call
In connection with the publication of the results for Q1 2017, Nets will host a
conference call on Tuesday, 9 May 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 29 48 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
* 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 Q1 Company Announcement_FINAL:
http://hugin.info/173023/R/2102835/797500.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: 09.05.2017 - 07:50 Uhr
Sprache: Deutsch
News-ID 541037
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contact information:
Town:
Ballerup
Kategorie:
Business News
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