Euroinvestor

Euroinvestor

September 04, 2012 06:59 ET

First Half 2012 Report for Euroinvestor.com A/S

Solid international growth for Euroinvestor.com A/S despite challenging market conditions in both advertising and financial markets

COPENHAGEN, DENMARK--(Marketwire - Sept. 4, 2012) - Euroinvestor.com had total revenue of DKK 11m in H1 2012 and made a pre-tax loss of DKK 3.3m (approx. DKK 1m below expectations).

For FY 2012 Euroinvestor.com still expects to achieve at least DKK 25m in revenue, equivalent to at least a 14 percent increase versus FY 2011. Net profit after tax and minorities is expected to be around DKK 0.

The Board of Euroinvestor.com has decided to investigate the opportunity to divest its 50.3 percent stake in Boliga ApS as it is no longer within the strategic focus areas of Euroinvestor.com.

The Board of Euroinvestor.com today approved the first half report for 2012.

Key first half 2012 highlights

In the first half of 2012 Euroinvestor.com saw largely unchanged revenue compared with the first half of 2011 (DKK 11.0m, versus DKK 11.2m) corresponding to a decline of 1.8 percent. The decline in revenue is mostly due to a drop in advertising income, both in Denmark and internationally. Growth in other revenue areas, such as Investor Relations Services, could not fully offset the lower advertising revenue.

Pre-tax losses deteriorated to DKK 3.3m from a loss of DKK 0.4 m in the first half of 2011. Profits were approximately DKK 1m worse than expected due to disappointing advertising income in the latter part of the first half. Operating costs were accordingly adjusted in the period to compensate for the lack of revenue.

Profits were however hampered by planned cost increases from additional employees to improve the quality of Euroinvestor's products and to speed up the pace of product development as well the pursuit of new international media partnerships.

Euroinvestor.com's focus on international markets has so far resulted in its English language site "Euroinvestor.com" (which was launched in October 2011) receiving more than 100,000 unique monthly visitors.

Furthermore, Euroinvestor.com has established a satisfactory pipeline of potential media-partners, of which some are expected to materialise during the second half of 2012.

As a result of the improved product quality and new interesting products, Euroinvestor.com's pace of growth within Investor Relations Services, Financial News and other business to business (B-t-B) products has exceeded expectations. These products are primarily sold outside the Danish market and are evenly spread throughout the world. It is expected that these activities will continue to grow at a satisfactory pace, regardless of the uncertain financial market climate and a challenging global macro picture. Investor Relations Services, as well as other B-t-B opportunities, are considered an important part of Euroinvestor.com's activities as they contribute to a balanced business portfolio, thereby reducing the dependency on the cyclical advertising market, and they provide a geographically diversified revenue stream.

In the first half of 2012 Euroinvestor.com's newly launched portal "Cockpit" won Danish Internet Awards' best new financial service application award. Euroinvestor has experienced solid interest for Cockpit both within the business to consumer (B-t-C) and the B-t-B segments since its launch in February.

Focus on product launches and international expansion

Euroinvestor.com launched a record number of new products and portals in H1 2012. These included the launch of:

a) a new Danish portal Euroinvestor.dk (new layout, improved functionality)

b) the new Forexinvestor.com (international Forex Trading site)

c) EuroinvestorPrivat.dk (a portal that helps users, both private and corporate, improve their negotiating position towards their financial service providers)

d) Euroinvestor Cockpit which brings financial information to its users in a unique look and feel layout. It can be customised to users' exact requirements and investors can share their customised layouts and widgets with others via social media and email

e) a webshop with several new products in both Denmark and Sweden, which will be introduced in more countries during H2.

Boliga ApS The 50.3 percent owned subsidiary Boliga ApS has developed satisfactorily during H1 2012, particularly when taking into consideration the standstill in the Danish real-estate market. During the past year Boliga strengthened its position as the leading property portal in the Danish market. In February, Boliga launched a new portal ITvang.dk, which will increase the transparency of the compulsory sales market for the benefit of purchasers and mortgage creditors alike. ITvang.dk has been warmly welcomed by market participants and advertised property has had very satisfactory sales responses.

The board of Euroinvestor.com today decided to investigate the divestment of its 50.3 percent stake in Boliga as it no longer fits with the strategy for the group which was approved earlier this year. The board of Euroinvestor.com is very satisfied with the market position that Boliga ApS has managed to establish in the Nordic countries and its divestment is expected to significantly strengthen the financial position of Euroinvestor.com. A divestment will only be considered however if Euroinvestor.com can obtain a satisfactory price for its majority stake in the company.

Euroinvestor.com's strategy and targets

The Strategy of Euroinvestor.com, as described in the annual report for 2010/2011, is to continue to accelerate growth in international markets, both organically as well as through partnerships. Furthermore, Euroinvestor.com strives to strengthen its position in the Danish market.

The Board of Euroinvestor.com approved the new strategy earlier in 2012. It includes the following vision and mission statements:

Vision and Mission

Vision

  • To be a global community for traders and investors, satisfying their needs within trading and investing, personal finance and lifestyle products
  • To be the preferred finance community partner for any financial and/or media company

Mission

  • Create the only truly cross border trader and investor community with "best in class" functionalities
  • Offer seamless trading access to the community from any device
  • Offer best in class investor/trader tools
  • Offer services that enable community members "best in class" financial terms and conditions when it comes to personal finance
  • Build economies of scale to be able to offer the most competitive price and technical solution on financial data (news and prices)

During H1 2012 focus has been on product development and product roll-out in existing international markets. This focus, together with geographical expansion, is set to continue in the first two years of strategy implementation. In the latter part of the strategy implementation period focus will increasingly shift to international partnerships.

Outlook for 2012

The developments in H1 2012 confirm Euroinvestor.com's full year expectations which are that:

  • Group revenue will be at least DKK 25.0m compared to DKK 21.9m in the 2011 calendar year, equivalent to at least a 14 percent growth rate.

  • Net profit after tax and minorities will be around DKK 0 compared to DKK 15.2m in 2010/11, which was an 18 month financial report because of the reorganisation of the financial year. Profit for 2010/11 included one-off earnings of DKK 14.4m.

  • Euroinvestor.com will continue to focus on its long-term growth ambitions, which include continued internationalisation and a fast pace in product development, which will have higher priority than short-term financial results. There is still some uncertainty concerning the global economic environment and this may have a negative impact on advertising revenue as well as on user generated income related to financial market information, which are the primary sources of income for Euroinvestor.com. The group will maintain its focus on product development, but at a slightly slower pace, in order to maintain a strong balance sheet.

  • Euroinvestor.com expects to introduce more new interesting products during the second half of 2012. Furthermore, the group expects to enter into new media partnerships in this period. Both of these initiatives are expected to strengthen the growth potential of Euroinvestor.com in the coming years.

About Euroinvestor

According to the Association of Danish Interactive Media (FDIM), Euroinvestor.com A/S is Denmark's largest business and investor portal.

Additionally, Euroinvestor is one of the leading investor portals in Scandinavia. Euroinvestor owns and operates investor and personal finance portals in Denmark, Norway, Sweden, France, the Netherlands, Italy, Spain and England. Euroinvestor also owns 50.3 percent of Boliga, which is the largest independent real estate portal in Scandinavia.

Euroinvestor is the leading investor portal in Denmark - see more on: www.euroinvestor.com.

Contact Information