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

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. 

SDS fullbordar förvärv av Riaktr

Seamless Distribution Systems AB ("SDS" eller "Bolaget") har idag undertecknat ett slutligt avtal om att förvärva samtliga aktier och tillgångar i Real Impact Analytics S.A. ("Riaktr"). Köpeskillingen på kontant och skuldfri basis uppgår till EUR 10,4 miljoner.

SDS completes acquisition of Riaktr

Seamless Distribution Systems AB ("SDS" or "the Company") has today signed a final agreement to acquire all shares and assets in Real Impact Analytics S.A. ("Riaktr"). The purchase price on a cash and debt-free basis amounts to EUR 10.4 million.

SDS kallar till pressträff - VD håller presentation inför bolagsstämman

Med anledning av den rådande pandemin håller SDS ingen fysisk bolagsstämma. För att aktieägare och investerare ska erhålla en tydlig genomgång av verksamheten under fjolåret, samt information om hur verksamheten har utvecklats hittills under 2021, kallar bolaget till en livesänd pressträff.

SDS publicerar preliminärt koncernresultat för första kvartalet 2021.

Seamless Distribution Systems AB (publ) ("SDS" eller "Bolaget" och tillsammans med dess dotterbolag, "Koncernen") offentliggör idag vissa preliminära siffror för Koncernens första kvartal 2021 som en följd av att Bolaget undersöker möjligheten att emittera ett obligationslån.

SDS announces preliminary results for Q1 FY2021

Seamless Distribution Systems AB (publ) ("SDS" or the "Company" and together with its subsidiaries, the "Group") today publishes preliminary figures for the Group's first quarter 2021 in conjunction with the Company exploring the possibility of issuing a bond loan.

SDS håller livesänd pressträff med anledning av förvärvet av belgiska Riaktr

Med anledning av SDS förvärv av Riaktr, som annonserades på onsdagskvällen, kallar SDS till en livesänd pressträff. Pressträffen hålls torsdagen den 18 mars klockan 08.45.

SDS tecknar villkorat avtal om att förvärva Riaktr, en global leverantör av Business Intelligence ("BI") och Big Data Analytics ("BDA").

Köpeskillingen på kontant och skuldfri basis uppgår till EUR 10,4 miljoner. Förvärvet är villkorat av finansiering genom obligationsemission och i samband med detta kommer även befintliga aktieägarlån att konverteras till aktier vilket kräver stämmobeslut.

Seamless Distribution Systems AB ("SDS") har idag undertecknat avtal om att förvärva samtliga aktier och tillgångar i Real Impact Analytics S.A. ("Riaktr").

Riaktr är en global leverantör av system för BI och BDA, främst till telekomsektorn, med huvudkontor i Bryssel, Belgien. Slutförandet av förvärvet förväntas ske senast den 3 maj 2021.

Genom förvärvet får SDS tillgång till ett bolag som erbjuder i) en avancerad kompletterande teknik och en starkt utökad kundportfölj både i Afrika och nya marknader, ii) mer än 50 procent återkommande intäkter genom SaaS, samt iii) en produktmixförbättring som möjliggör en acceleration av koncernens organiska tillväxt.

Säljarna är grundarna (ledningen, anställda och privatinvesterare) av Riaktr och tre europeiska fonder. I samband med förvärvet har SDS gett Pareto Securities mandat att undersöka möjligheten att emittera ett säkerställt obligationslån med en förväntat löptid om tre år och en initial volym om SEK 200 miljoner.

I samband med och till stöd för denna transaktion kommer befintliga aktieägarlån i SDS om SEK 44,2 miljoner att konverteras till aktier. Detta är en stark signal från befintliga större aktieägare och ledande befattningshavare om deras stöd för denna transaktion.

Ledningen för SDS förväntar sig att förvärvet av Riaktr kan leda till ökade marginaler samt att både EBITDA och EPS kommer att förbättras för koncernen redan på kort sikt.

SDS has entered into a conditional agreement to acquire Riaktr, a global supplier of analytic software solutions.

The purchase price on a cash and debt-free basis amounts to EUR 10.4 million. The acquisition is conditional on financing through issuing a secured bond loan and in connection with this, existing shareholder loans will be converted into shares, which requires a general meeting resolution.

Seamless Distribution Systems AB (publ) ("SDS") hereby announces that the company today has entered into an agreement to acquire 100 percent of the shares in Real Impact Analytics S.A. ("Riaktr"). Riaktr is a global supplier of proprietary software technology for Business Intelligence ("BI") and Big Data Analytics ("BDA"), primarily in the telecom sector, headquartered in Brussels, Belgium. Completion of the acquisition is expected to take place no later than May 3, 2021.

Through the acquisition, SDS gains access to a company that offers; i) advanced complementary technology and a considerably expanded customer portfolio both in Africa and new markets, ii) has more than 50 percent recurring revenues from SaaS, and iii) brings critical technology and product enhancements to the SDS portfolio that enables an acceleration of the Group's organic growth.

The sellers are Riaktr's founders (management, employees and early investors) and three European funds. In connection with the acquisition, SDS has mandated Pareto Securities to investigate the possibility of issuing a secured bond loan with an expected maturity of three years and an initial volume of SEK 200 million.

In connection with, and in support of this transaction, existing shareholder loans of SEK 44.2 million will be converted into shares. This is a strong signal from existing major shareholders and senior executives of their support for this transaction.

The management of SDS expects that the acquisition of Riaktr can lead to increased margins and that both EBITDA and EPS will improve for the Group in the short term.

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