Interim report for the period January 1 - June 30, 2019

April - June

  • Net sales amounted to MSEK 54.6 (18.9), an increase of 188.7 % compared to the same period the previous year.
  • EBITDA result amounted to MSEK 3.3 (2.4).
  • EBITDA margin amounted to 6.1% (12.6%).
  • The EBITDA result without acquisition costs amounted to SEK 4.7 million
  • EBITDA margin excluding acquisition costs amounted to 8.5%.
  • Profit after tax amounted to MSEK -1.0 (2.1).
  • Profit after tax amounted to SEK 0.3 million without acquisition costs.
  • Earnings per share amounted to MSEK -0.13 (0.30).
  • Total cash flow amounted to MSEK -2.8 (2.9).

January - June

  • Net sales amounted to MSEK 105.7 (31.1), an increase of 239.8 % compared to the same period the previous year.
  • EBITDA result amounted to MSEK 9.5 (-0.6).
  • EBITDA margin amounted to 9.0% (-2.1%).
  • The EBITDA result without acquisition costs amounted to SEK 11.3 million
  • EBITDA margin excluding acquisition costs amounted to 10.7%.
  • Profit after tax amounted to MSEK 1.5 (-4.2).
  • Profit after tax amounted to SEK 3.2 million without acquisition costs.
  • Earnings per share amounted to MSEK 0.19 (-0.61).
  • Total cash flow amounted to MSEK -2.3 (1.4).

CEO comment
"It is with pleasure that I can say that SDS's long-term growth journey continued during the second quarter of the year. Revenues increased to just over SEK 54 million, where the contribution from the distribution operations we acquired last autumn is SEK 29 million. But even without distribution revenue, quarter revenues are higher compared to the same quarter in 2018. We have benefited from good sales of short projects and some major hardware deals. Operating profit, on a comparable basis, amounted to 0.2 million, which is a slight improvement to the corresponding period last year. The result is held back by a changed product mix with more hardware than usual. We also have a significantly higher product development rate today compared to 2018, which we expect to be reflected in future organic growth and development opportunities. In addition, the acquisition costs of eServGlobal amount to 1.3 million. Thus, we will show an operating profit for the quarter of SEK 1.5 million.

Our Swedish distribution business is growing steadily and we are constantly recruiting new retailers, both individual stores and chains. This is proof that the market reacts positively to us as a stable and competent player. We are now planning to introduce in the Nordics new technology and products from our African markets. Products we originally created for the more advanced cash card markets in the developing countries.

Acquisition of eServGlobal
Biggest news of the quarter is our acquisition of French eServGlobal, which is a global supplier of distribution systems for prepaid cards and mobile financial services. The acquisition is an important part of our long-term growth strategy and at the same time strengthens operational efficiency. Through the acquisition, we strengthen our presence in North Africa and the Middle East. In addition, we reach new geographic markets in Southeast Asia which complements our geographical presence optimally. In addition, the acquisition doubles SDS's sales of systems for digitization of value transactions. The acquisition is expected to be fully completed July 25 this year after the seller's extraordinary general meeting formally approves the deal.

Contract with leading mobile operator in South Africa
We are also proud and pleased that during the quarter we received an order for seven million SEK from the leading operator in Eswatini (formerly Swaziland). This is the result of our long-term investment with the aim of maximizing the customers' business benefits. The delivery of our system that handles digital distribution helps us strengthen our presence in the southern regions of Africa and is an acknowledgment that an investment in our basic system ERS 360 gives customers a direct additional return.

Success with add on products
In addition to the customer contract in Eswatini and the acquisition of eServGlobal, we have also had great success with our add on products for the ERS 360 platform, products that are now starting to be sold and used in a larger scale. The operators' need to strengthen and further integrate the platform improves our organic growth and increases our revenue already within this quarter. In parallel, it establishes ERS 360 as a business-critical market channel for mobile operators' sales of airtime and the exponentially growing sales of mobile data. In this way, we will continue to develop long-term relationships with customers, which will contribute to increased future profitability.

Increasing shares of recurrent revenue
In order to smoothen out the revenue, work continues in order to increase the share of recurring revenue. An example of this is the agreement we signed last year with a distributor with close relations with Ethiopia's only mobile operator. With 66 million mobile customers, the operator has previously distributed talk time with physical "scratch cards". Now this will increasingly be digitized. The agreement with Smart Digital Technologies differs in terms of the business model from previous transactions. The explanation is that we will receive a share of the revenues generated by the transactions via the ERS platform. The deal is thus the first major deal to generate recurring revenue.

Through the acquisition of eServGlobal, SDS can further accelerate its expansion in the fintech area. SDS journey of change during past years gives us a unique opportunity to create a successful merger with strategic values, economies of scale and significant synergies. We see a continued need for consolidation in the industry and intend to play an active role in that process.

Tommy Eriksson,
CEO, Seamless Distribution Systems AB"

July 18, 2019

For further information, please contact:
Martin Schedin, CFO
martin.schedin@seamless.se
+4670-4381442

This information is the information that Seamless Distribution Systems AB (publ) is required to disclose under the EU Market Abuse Regulation. The information was submitted for publication on July 18, 2019 at. 08.30 CET.

About Seamless Distribution Systems AB (SDS)
SDS is a Swedish software company with solutions for electronic distribution of services to private consumers through mobile operators in emerging countries. The company offers its corporate customers a comprehensive solution for digital transactions. The company has customers in all parts of the world that reach over 300 million mobile users through more than 1,000,000 active point-of-sales. SDS has approximately 140 employees in Sweden, Belgium, Ghana, Nigeria, USA, Pakistan, India, South Africa, Ecuador and the United Arab Emirates. With over 18 years of experience, SDS focuses on high level of customer satisfaction and effective development. SDS manages over 5.3 billion transactions annually and enables the growing population of emerging countries to become part of the mobile revolution.

SDS share is listed on NASDAQ First North Premier.

The company's Certified Adviser is FNCA Sweden AB, telephone number +46 8-528 00 399.
info@fnca.se 

SDS erhåller stor genombrottsorder i Sydafrika värd 20 miljoner SEK

SDS har fått en order från en av Sydafrikas största mobiloperatörer, som också är Afrikas största operatörsgrupp med verksamhet och affärer i flera länder. Ordern är den första SDS tagit i landet och har ett initialt värde på 20 MSEK. Sydafrika är regionens mest avancerade marknad och affären förstärker därmed ytterligare SDS position på den afrikanska kontinenten.


SDS receives major order in South Africa worth SEK 20 million

SDS has received an order from one of South Africa's largest mobile operators, which is also Africa's largest carrier group with operations across several countries. This is the first order received by SDS in South Africa and has an initial value of SEK 20 million. South Africa is the region's most advanced market and the deal strengthens SDS's position on the African continent.


SDS offentliggör uppdaterad strategi

Med anledning av förvärvet av eServGlobal har SDS styrelse beslutat att presentera en uppdaterad strategi för verksamheten. SDS är verksamt inom fintech-området och arbetar med digitalisering av logistiska och finansiella flöden i tillväxtländer. Till stor del innebär detta att utveckla och sälja systemlösningar för digital distribution av samtalstid, mobildata samt mobila finansiella tjänster till SDS kunder som är mobiloperatörer eller distributörer i tillväxtländer. Förvärvet av eServGlobal ökar SDS kundbas i Mellanöstern och ger SDS närvaro i Sydostasien. Den uppdaterade strategin har som syfte att konkretisera bolagets mål på både kort och lång sikt.


SDS announces updated strategy

Following the acquisition of eServGlobal, the SDS Board has decided to present an updated business strategy. SDS is active in the fintech area and is working on digitizing logistic and financial flows in emerging countries. This means developing and selling system solutions for digital distribution of airtime, mobile data and mobile financial services to SDS customers who are mobile operators or distributors in emerging markets. The acquisition of eServGlobal increases SDS' customer base in the Middle East and gives SDS a presence in Southeast Asia. The updated strategy explains the company's short- and long-term goals.




SDS AB säkrar miljonorder i Mellanöstern

SDS AB har säkrat en order på 6,3 miljoner kronor från en av regionens största mobiloperatörer, i den största marknaden i Mellanöstern.

Beställningen kommer från en av eServGlobals kunder. eServGlobal förvärvades av SDS i juli i år. Detta är ett konkret bevis på förtroendet för SDS förmåga att konsolidera sin nisch.


SDS AB has received a new order in the Middle East

SDS AB has received an order of 6,3 million SEK from one of the regions' most important mobile operators, in the largest market in the Middle East.

The order is received from a customer of eServGlobal, which was acquired by SDS in July this year. It is a tangible proof of trust in SDS ability to be a consolidator in its niche.


SDS fullbordar förvärv av eServGlobal Holding SAS

SDS AB fullbordar idag förvärvet om samtliga aktier och tillgångar i eServGlobal Holding SAS (eServGlobal). eServGlobal SAS är en global leverantör av system för förbetald laddning av kontantkort och mobila finansiella tjänster. Priset för aktierna är två (2) miljoner Euro (21,4 miljoner kronor). SDS får därmed tillgång till en kompletterande teknik och en fördubblad geografisk marknadstäckning.


SDS completes the acquisition of eServGlobal Holding SAS

SDS AB today completes the acquisition of all shares and assets in eServGlobal Holding SAS (eServGlobal) with a purchase price of two (2) million Euro (21.4 million SEK). eServGlobal SAS is a global supplier of systems for electronic recharge of prepaid mobile phones and mobile financial services. With this transaction SDS has doubled its geographical presence and gained access to significant complementary technologies.


Delårsrapport för perioden 1 januari - 30 juni 2019

april - juni

  • Nettoomsättningen uppgick till 54,6 (18,9) MSEK, en ökning med 188,7 % jämfört med samma period föregående år.
  • EBITDA-resultatet uppgick till 3,3 (2,4) MSEK.
  • EBITDA-marginalen uppgick till 6,1% (12,6%).
  • EBITDA-resultatet utan förvärvskostnader uppgick till 4,7 MSEK.
  • EBITDA-marginalen utan förvärvskostnader uppgick till 8,5%.
  • Resultat efter skatt uppgick till -1,0 (2,1) MSEK.
  • Resultat efter skatt uppgick utan förvärvskostnader till 0,3 MSEK.
  • Resultat per aktie uppgick till -0,13 (0,30) SEK.
  • Totalt kassaflöde uppgick till -2,8 (2,9) MSEK.

Interim report for the period January 1 - June 30, 2019

April - June

  • Net sales amounted to MSEK 54.6 (18.9), an increase of 188.7 % compared to the same period the previous year.
  • EBITDA result amounted to MSEK 3.3 (2.4).
  • EBITDA margin amounted to 6.1% (12.6%).
  • The EBITDA result without acquisition costs amounted to SEK 4.7 million
  • EBITDA margin excluding acquisition costs amounted to 8.5%.
  • Profit after tax amounted to MSEK -1.0 (2.1).
  • Profit after tax amounted to SEK 0.3 million without acquisition costs.
  • Earnings per share amounted to MSEK -0.13 (0.30).
  • Total cash flow amounted to MSEK -2.8 (2.9).

Försäljningsstart och förstärkt samarbete i Etiopien

SDS och Smart Digital Technology har idag i Addis Abeba, Etiopien, framgångsrikt genomfört den första digitala försäljningen och elektroniska laddningen av ett kontantkort. Parterna förstärker det strategiska partnerskapet med Ethio Telecom och påskyndar införandet av digitala tjänster i försäljnings- och distributionskanalen.


First Sales transactions and accelerated cooperation in Ethiopia

SDS and Smart Digital Technology have today in Addis Ababa successfully performed the first digital sales transaction and electronic recharge. The partners reinforce the commitment in the strategic partnership with Ethio Telecom and accelerate the digital services adoption in the sales and distribution channel


SDS förvärvar eServGlobal Holding SAS

SDS AB har idag tecknat avtal om att förvärva samtliga aktier och tillgångar i eServGlobal Holding SAS (eServGlobal). EservGlobal är en global leverantör av system för förbetald laddning av kontantkort och mobila finansiella tjänster. Priset för aktierna är två (2) miljoner Euro (21,4 miljoner kronor). SDS får därmed tillgång till en kompletterande teknik och en fördubblad geografisk marknadstäckning.


SDS acquires eServGlobal Holding SAS

SDS AB has today signed an agreement to acquire all shares and assets in eServGlobal Holding SAS (eServGlobal) with a purchase price of two (2) million Euro (21.4 million SEK). eServGlobal SAS is a global supplier of systems for electronic recharge of prepaid mobile phones and mobile financial services. With this transaction SDS has doubled its geographical presence and gained access to significant complementary technologies.


Seamless mottar en signifikant order från en ny kund i Södra Afrika, värd 7 miljoner kronor

Seamless Distribution Systems AB (SDS) har tagit emot en initial order från den ledande operatören i Eswatini (tidigare Swaziland) till ett värde av 7 miljoner kronor för leverans av sitt system som hanterar digital distribution. Genom denna order så fortsätter Seamless att förstärka sin närvaro i Södra Afrika.


Seamless has received a significant order from a new customer in Southern Africa, worth 7 million SEK

Seamless Distribution Systems AB (SDS) has received an initial order from the leading operator in Eswatini (former Swaziland) for a value of 7 million SEK for the delivery of its digital distribution system. Through this order, Seamless continues to strengthen its presence in Southern Africa.


Följ oss

Om beQuoted

beQuoted publicerar nyheter, analyser och pressmeddelanden för investerare och journalister. Viktiga företagshändelser bevakas av vår egen nyhetsredaktion och vidaredistribueras i ledande finansiella medier.

Vi uppdaterar även nyhetsrum, Investor Relations och IR-webbplatser för företag som vill utveckla sina relationer med finansmarknaden.

Kontakta oss

beQuoted AB
Sturegatan 32
114 36 Stockholm

08-692 21 90
Kontaktformulär