MALMÖ, Sweden--(BUSINESS WIRE)--Regulatory News:
A Focused Aspiro Concentrates on Music and TV—Launching on Several Major Markets
Third Quarter 2011
-- Net sales for continuing operations for the third quarter were SEK 62.8 m (SEK 50.6 m), corresponding to growth of some 24%.
-- EBITDA for continuing operations for the third quarter was SEK -2.1 m (SEK -2.4 m).
-- Profit/loss after tax for continuing operations for the third quarter was SEK -5.3 m (SEK -6.7 m).
-- The Music business segment increased sales by over 130% on the corresponding quarter of the previous year. The number of paying users passed 350,000, up 50,000 quarter on quarter. WiMP was recognized as the best music service at the Meffy Awards in London.
-- Significantly improved profitability in the TV business segment. Aspiro reached an agreement with NII Holdings in Latin America. This is a three-year deal, with estimated annualized net sales of some SEK 5-8, m starting in the third quarter.
-- The Mobile Solutions business segment was sold to LINK Mobility AS for a purchase price of NOK 20m, the sales was completed on 14 October.
Post Period End Highlights
-- An EGM of 10 October resolved to authorize the Board of Directors to decide on new share issues and staff stock option plans in accordance with the Board of Directors’ proposals.
-- The Board decided to issue a total of 13,406,901 shares, to be used as payment for Platekompaniet’s shares in the Norwegian company WiMP Music AS. The acquisition was completed at a rate of 1.20 SEK, representing the volume weighted average share price on November 2. Issue increased the share capital by 13,406,901 SEK. Contribution in kind, equivalent to 60,000 shares of WiMP Music AS were carried at an amount of 16,103,979 SEK in the company’s balance sheet. The shares were admitted to trading on 9 November 2011. Aspiro thus have complete control over the music service WiMP in all markets and consolidates all revenues generated by WiMP from November 2011. Platekompaniet will obtain a 6.5% participating interest in Aspiro after the new share issue.
-- Aspiro signed a letter of intent with a new partner in one of the Benelux countries, for a streaming music service. The final agreement would provide Aspiro with revenues in the range of SEK 8-30 million over a period of four years.
Outlook
-- Aspiro’s goal is to achieve minimum growth of 150% in the Music business segment in 2011, compared to 2010. Aspiro is preparing launches on markets including Germany, Benelux and Ireland.
-- Aspiro’s goal is to achieve mimimum 10% growth in the TV business segment in 2011, compared to 2010. Due to sales processes in 2011 taking longer than expected, Aspiro does not expect to achieve this goal, but instead, growth will materialise during 2012. With cost control and effective operation, Aspiro has improved profitability in TV, progress expected to continue going forward.
”Aspiro divested its Mobile Solutions business segment in the third quarter to concentrate its business more. We’re focusing sharply on our prize-winning and future-oriented services in TV and music streaming. We already have 350,000 paying users of our WiMP music service and our TV unit has secured a new order for several Latin American countries. We’re now planning to launch WiMP on several major markets. We are evaluating Germany, have signed a letter of intent for Benelux and expect to launch in Ireland in the first quarter of 2012,” commented Gunnar Sellæg, Aspiro’s CEO.
This information is mandatory for Aspiro AB (publ) to publish pursuant to the Swedish Securities Exchange and Clearing Operations Act and/or the Swedish Financial Instruments Trading Act. This information was submitted for publication at 8:30 a.m. on 10 November 2011.
About Aspiro
Aspiro has unique positioning as the world’s
only provider of complete TV and music streaming services for partners
that want to put their own branding on the service. Aspiro also provides
the music streaming service WiMP directly to consumers on selected
markets. Aspiro has over ten years’ experience in mobile technology and
retail in northern Europe, and delivers services to partners worldwide
like Deutsche Telekom, Telenor, 3, TeliaSonera, the BBC, Entel and Canal
Digital. Aspiro is listed on Nasdaq OMX Nordic Exchange Stockholm.
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