Nets A/S
Financial results for Q2 2017
Company announcement No. 24/2017 |
Financial results for Q2 2017
Highlights for Q2 2017
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Solid organic growth in net revenue of 5%, driven by strong growth in both Merchant Services and Corporate Services with organic growth of 10% and 3%, respectively. Organic growth in Financial & Network Services was 2% negatively impacted by high implementation revenues in Q2 last year. Organic revenue growth in H1 2017 was 6%
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Transaction volumes showed strong growth across all business segments, particularly within issuer processing and e-bill payment solutions
Bo Nilsson, CEO of Nets, said,
"I am pleased to report a solid organic growth in Q2 of 5% driven by strong growth in transactions and volumes across all business segments. The growth was as expected lower than
previous quarters due to the high implementation revenues in Financial & Network Services last year. I am furthermore pleased that our transformation of Nets continues to deliver solid margin
expansion"
Financial performance
Q2 | Q2 | Change | H1 | H1 | Change | FY | |||
DKKm | 2017 | 2016 | 2017 | 2016 | 2016 | ||||
Revenue, net | 1,919 | 1,844 | 4.1% | 3,816 | 3,587 | 6.4% | 7,385 | ||
EBITDA before special items | 690 | 646 | 6.8% | 1,316 | 1,197 | 9.9% | 2,619 | ||
Special items | (40) | (105) | (61.9%) | (124) | (245) | (49.4%) | (606) | ||
Adjusted EBIT | 594 | 542 | 9.6% | 1,134 | 1,002 | 13.2% | 2,203 | ||
Net profit | 333 | 163 | 104.3% | 535 | 23 | 2,226.1% | (584) | ||
Adjusted net profit | 389 | 211 | 84.4% | 742 | 362 | 105.0% | 997 | ||
Organic growth | 5% | 7% | 6% | 6% | 7% | ||||
EBITDA before special items margin | 36.0% | 35.0% | +1.0 pp | 34.5% | 33.4% | +1.1 pp | 35.5% | ||
EBITDA margin | 33.9% | 29.3% | +4.6 pp | 31.2% | 26.5% | +4.7 pp | 27.3% | ||
Capital expenditure/revenue | 10.7 % | 8.7 % | +2.0 pp | 9.3 % | 8.2 % | +1.1 pp | 9.0 % | ||
Net interest-bearing debt / LTM EBITDA bsi | 3.1x | 3.2x |
Outlook
Targets |
Guidance 9 May 2017 FY 2017 |
Guidance 17 August 2017 FY 2017 |
Organic revenue growth | 5-6% | 5-6% |
EBITDA b.s.i. margin | At or above 36.5% | At or above 36.5% |
Special items (including IPO-related retention expenses) |
DKK 150 million, which of approx. DKK 30 million is IPO-related | DKK 200 million, which of approx. DKK 30 million is IPO-related |
Capital expenditure incurred (% of net revenue) |
Around 8% | Around 8% |
Net interest-bearing debt / EBITDA b.s.i. | Around 2.5x, including effect of share buyback of approx. DKK 150 million to cover long-term incentive programme and including acquisition of OP's merchant acquiring business | Around 2.5x, including effect of share buyback of approx. DKK 150 million to cover long-term incentive programme and including acquisition of OP's merchant acquiring business |
Additional information
Conference call
In connection with the publication of the results for Q2 2017, Nets will host a conference call on Thursday, 17 August 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:
Lesen Sie auch
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@nets.eu
For investor and analyst enquiries:
Lars Oestmoe, Head of M&A and IR, at +47 91 34 71 77 or lostm@nets.eu
Financial calendar
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9 November 2017: Interim Report for Q3 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.
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