Interim report for the period 1 January - 30 September 2021
July - September
- Net sales amounted to SEK 78.7 (68.4) million, an increase of 15.1% compared to the same period last year.
- EBITDA earnings amounted to SEK 19.7 (12.0) million.
- EBITDA margin amounted to 25.1% (17.6%).
- Profit after tax amounted to SEK 1.9 (1.8) million.
- Earnings per share amounted to SEK 0.19 (0.22).
- Total cash flow amounted to SEK -11.4 (0.2) million.
January - September
- Net sales amounted to SEK 209.4 (224.5) million, a decrease of -6.8% compared to the same period last year.
- EBITDA earnings amounted to SEK 44.7 (38.8) million.
- EBITDA margin amounted to 21.3% (17.3%).
- Adjusted EBITDA earnings amounted to SEK 50.0 (38.8) million, adjusted for acquisition costs.
- Adjusted EBITDA margin amounted to 23.9% (17.3%), adjusted for acquisition costs.
- Profit after tax amounted to SEK 0.6 (10.3) million.
- Adjusted profit after tax amounted to SEK 5.9 (10.3) million, adjusted for acquisition costs.
- Earnings per share amounted to SEK 0.06 (1.26).
- Total cash flow amounted to SEK 20.8 (-1.3) million.
New breakthrough deal with Vodafone Oman and SDS highest EBITDA result in a single quarter.
During the third quarter of the year, SDS's business operations continued at robust levels. We have been able to close several new deals with the breakthrough deal with Vodafone Oman being the highlight of the quarter. Vodafone is one of the world's biggest mobile telephone brand in telecom with presence in almost 70 markets. At the same time, our EBITDA landed at an all-time high this quarter.
The fact that Vodafone Oman has signed an agreement with SDS conveys a very clear signal about the high quality of our services and products. The customer has also chosen almost the entire SDS product portfolio for indirect sales called "Retail Value Management" and that emphasis the quality of our products once again. When Vodafone Oman established itself as the country's third mobile operator, the goal was to become the most customer-oriented and digitalized 5G operator in the world. That the technology used by Vodafone is our latest cloud native software and that it would be delivered as a SaaS from SDS was given however in addition the fact that the commercial model is also based on the number of users, stock movements and customer purchases gives SDS a fantastic upside when it comes to growth.
The acquisition in May of the big data analysis company Riaktr is now in an intensive phase where we have started marketing Riaktr's products to the SDS customer base. We have seen that the product that optimizes telecom operators 'infrastructure investment (Smart Capex) has great potential and takes us to exciting new engagements with customers highest level of management. During the quarter, Riaktr sold its AI analysis product to a mobile operator in Togo, which is both a new group of operators for us and a new market in West Africa. At the same time, we can state that the product is also attractive for the European market, something that may open new opportunities for SDS.
The financial key figures, which now include the acquisition of Riaktr, raised our EBITDA to SEK 19.7 million, which means an increase of 21% compared with the second quarter. Revenue landed at SEK 78.7 million, which means an increase of 14% compared to the second quarter.
In the wake of the pandemic, we can state that our customers have generally set prudent budgets for 2021. This has meant that our order intake was lower than expected. The lead times have become longer, not least the additional sales to our existing customers. We have therefore reached a plateau in our growth where we are now moving towards new heights based on our current strategy, which includes both organic and acquired growth. Our growth journey will continue to be volatile, and sales and results will vary from quarter to quarter. However, the underlying growth trend will continue to be good.
In our Nordic distribution business, SDD, the negative trend has now reversed, and we are seeing growth both in the traditional distribution, as well as in our new initiative where we sell digitized advertising campaigns to retailers.
Since 2018, the SDS Group has had an average growth (CAGR) of revenues of 42%, EBITDA of 52% and market cap of 64% during this period. We are determined to continue this trend in the coming years!
When I look ahead, I can state that recent business guarantees a bright future. Our growth comes, among other things, from the fact that we are growing with our customers and it is therefore important that we invest resources in joining new operator groups. Therefore, it is very gratifying to note that in the last twelve months we have joined eight new operator groups, where giants such as Vodafone and Telenor are proof of the SDS Group's ability to reach and attract new large operator groups. With these customers, we will continue to grow into new markets, with a much stronger offering.
Our growth strategy remains unchanged. We will continue to grow organically with our existing and new customers, at the same time we want to be a driving force in the ongoing consolidation. We have very good experience of adding more services and customers through acquisitions. The acquisition of eServGlobal in 2019 has been a success and has contributed to both increased sales and improved profitability. The acquisition of Riaktr means that we have already broadened our offer and added the operator Orange to the customer list. The deal will gradually lead to additional sales and earnings improvements.
CEO, Seamless Distribution Systems AB
For more information contact:
Chief Financial Officer
+46 70 438 14 42
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 through the agency of the above contact person on October 21th, 2021 at. 08.30 CEST.
About Seamless Distribution Systems AB (SDS)
SDS is a Swedish software company with solutions for electronic distribution of services to private consumers via mobile operators in emerging countries. The company offers its corporate customers a complete solution for digital accounts and transactions.
Following the acquisition of Riaktr, SDS has approximately 325 employees in Sweden, France, Belgium, Romania, South Africa, Ghana, Nigeria, Côte d'Ivoire, the United Arab Emirates, Pakistan, India, and Indonesia.
With the acquisition of Riaktr, SDS will handle more than 15 billion transactions worth more than 14 billion US dollars annually. Via over 3 million monthly active resellers of digital products, more than 700 million consumers are served globally.
SDS shares are listed on Nasdaq First North Premier.
The company's Certified Adviser is FNCA Sweden AB, phone number 08-528 00 399, email: [email protected]
Seamless Distribution Systems (SDS) har fått en order värd 3,0 miljoner SEK från en helt ny kund i Ghana. Affären avser driftsättningen av SDS flaggskeppsprodukt ERS 360°, som ska ersätta kundens befintliga lösning och underlätta digitaliseringen av kundens försäljnings- och distributionskanal.
Seamless Distribution Systems (SDS) has received an order worth 3.0 million SEK from a brand-new customer in Ghana. The deal concerns the commissioning of SDS's flagship product ERS 360 °, which will replace the customer's existing solution and facilitate the digitization of the customer's sales and distribution channel.
SDS kallar till en livesänd pressträff torsdag 21 oktober klockan 11.30. Under pressträffen kommer SDS vd Tommy Eriksson gå igenom bolagets utveckling under kvartalet, samt berätta om bolagets utveckling framåt.
Seamless Distribution Systems (SDS) har fått en storaffär från Vodafone Oman på hela sitt produkterbjudande. Affären är den första med Vodafonegruppen och innebär att SDS blir strategisk leverantör av teknologi till Vodafone Oman, som ingår i en av världens största telekom-grupper. Ordern avser Vodafones lansering i Oman som är en ny marknad för operatören och inkluderar SDS SaaS-erbjudande Retail Value Management (RVM) suite. Ett SaaS-avtal som sträcker sig över tre år har tecknats, vilket kan komma att ge återkommande intäkter uppgående till ca 10-15% av SDS nuvarande supportintäkter om Vodafone lyckas med sin marknadspenetration under kontraktsperioden.
Seamless Distribution Systems (SDS) secures a major deal to become the strategic technology provider of Vodafone Oman, part of one of the world's largest telecom groups. The order is for Vodafone's launch of operations in Oman as a greenfield operator and includes a SaaS offering of SDS' Retail Value Management (RVM) suite. The signed three-year SaaS agreement can render recurring revenues of up to approximately 10-15% of SDS's current support revenue if Vodafone Oman reaches their target market penetration during the contract period.
Seamless Distribution Systems (SDS) har via en global systemleverantör fått en strategisk order värd 7,7 miljoner kronor. Ordern avser implementering av SDS flaggskeppsprodukt ERS 360° och support över fem år och slutkunden är en helt ny operatörsgrupp och avser deras verksamhet i Algeriet.
Seamless Distribution Systems (SDS) has received a strategic order worth SEK 7.7 million via a global system supplier. The order refers to the implementation of SDS transaction system ERS 360 ° and support over five years. The end customer is a completely new telecom operator group to SDS, and the installation concerns their operations in Algeria.
SDS säkrar ytterligare order för integrationstjänster från projektet med Telenor Pakistan till ett värde av 4,0 miljoner SEK
SDS secures additional integration services order from the project with Telenor Pakistan worth SEK 4.0 million
Seamless Distribution Systems AB (SDS) har fått en order på en USSD gateway och applikationsportal från en av Nigerias största mobiloperatörer. Denna order inkluderar distribution av en viktig intäktsförstärkande plattform för kundens mervärdetjänster (VAS) och serviceerbjudanden.
Seamless Distribution Systems AB (SDS) has received an order for USSD gateway and application portal from one of Nigeria's largest mobile operators. This order includes the deployment of an important revenue-increasing platform for the client's various VAS offerings.
Seamless Distribution Systems (SDS) har fått ytterligare en order från Telenor. Seamless ska migrera och ersätta en konkurrents lösning i Grameenphone Bangladesh. Ordern är den andra från Telenor idag och är värd 11 miljoner Kronor. SDS har därmed ökat sin orderstock med totalt 20 miljoner kronor idag.
Seamless Distribution Systems (SDS) has received another order from Telenor. The order is for Seamless to replace and migrate an existing competitor's solution in Grameenphone Bangladesh. The order is the second from Telenor today and is worth USD 1.3 million. SDS has thereby increased the orderbook with in total USD 2.3 million
Seamless Distribution Systems (SDS) har erhållit en genombrottsorder till ett initialt värde av 9 miljoner kronor från Telenor med en emotsedd tjänsteleverans av ytterligare 4 miljoner kronor inom en snar framtid. Seamless ska migrera och ersätta en konkurrents lösning hos mobiloperatören Telenor i Pakistan. Ordern är den första från Telenorgruppen och förutom att expandera till en ny asiatisk marknad så ger ordern framtida möjligheter till SDS att fortsätta stärka sin kundbas.
Seamless Distribution Systems (SDS) has received a breakthrough order worth USD 1 million from Telenor with an anticipated additional services order worth USD 0.5 million. The order is for Seamless to replace and migrate a competitor's solution in Pakistan. The order is the first from the Telenor Group and means, besides expanding into a new Asian market with many future opportunities, that SDS continues to strengthen its client base.
Seamless Distribution Systems AB