Eniro Group (ENRO) investor relations material

Executive summary

• Organic net sales grew in Q3 for the first time in more than a decade; customer value and the organic customer base increased, with net customer growth in August and September.

• Q3 continuing-operations revenue rose to SEK 194m from SEK 161m, with SEK 4m organic growth and SEK 30m from acquisitions; adjusted EBITDA was SEK 36m.

• The August Dynava divestment left a focused Nordic marketing business; management is directing resources toward customer growth, product development and cross-selling.

Financial highlights

• Q3 revenue was SEK 194m (161), operating result SEK 24m (20), profit before tax SEK 16m (18), and continuing-operations net result SEK 16m (19).

• Q3 adjusted EBITDA was SEK 36m (38), excluding SEK 3m (6) of comparability items; adjusted EBITDA margin was 19% (24%).

• 9M revenue was SEK 532m (468), up 13.7%; acquisitions contributed SEK 65m, while operating result fell to SEK 32m (51).

• 9M continuing-operations net result was SEK 10m (44), EPS SEK 0.69 (3.03), and operating cash flow SEK 23m (46).

• Total 9M net result was a loss of SEK 23m, including SEK 34m loss from discontinued operations; Q3 total net result was a loss of SEK 24m.

Outlook and guidance

• Entering Q4 with a customer base that grew over the prior two months; plans include expanding regional capacity and increasing cross-selling across offerings.

• Management sees greatest future potential in Denmark and Finland, where customer reach and market-specific business development need further work.

• Management expects margin headroom as new products reach market and acquired businesses are integrated; investments in sales, product and technology and lower-margin acquired mix weigh on current margins.