Interim report for the period July 1 - September 30, 2018

July - September

  • Net sales amounted to MSEK 17.6 (15.9), an increase of 10.2% compared to the same quarter last year
  • Net sales excluding withholding tax amounted to MSEK 15.9 (14.3), an increase of 11.1%.
  • EBITDA result amounted to MSEK 2.4 (4.3)
  • EBITDA margin amounted to 13.1% (21.0%)
  • Profit after tax amounted to MSEK -0.9 (0.7)
  • Profit per share amounted to SEK -0.12 (0.10)
  • Total cash flow amounted to MSEK -2.0 (1.9)

January - September

  • Net sales amounted to MSEK 48.7 (56.4), a decrease of 13.6% compared to the same period last year
  • Net sales excluding withholding tax amounted to MSEK 43.7 (48.5), a decrease of 10.0%
  • EBITDA result amounted to MSEK 1.7 (14.8)
  • EBITDA margin amounted to 3.4% (24.4%)
  • Profit after tax amounted to MSEK -5.1 (4.5)
  • Profit per share amounted to SEK -0.71 (0.95)
  • Total cash flow amounted to MSEK -0.6 (2.4)

CEO comment

"I'm very pleased to be able to show a quarterly outcome with continued positive results. This shows that we can balance costs and revenues even in a quarter where new major business is not realized. We are proving that our innovative solutions meet the needs of mobile operators to stimulate sales for their retailers. The increase to over 1.3 billion transactions this quarter from our customers has resulted in license upgrades directly linked to increased activity by the operators in the digital channel. The quarter's turnover was SEK 18.1 million and EBITDA SEK 2.4 million.

A new customer in East Africa has already reached full production after a project delivery at record speed. SDS's ability to delivery is better than ever and it looks promising for the future with the number of potential projects we face. During the quarter, we participated in an operator group strategy meeting where we were given the opportunity to listen and discuss their needs for the future, thus comparing our product strategy with their market needs.

We have long been focusing on broadening our business model with the intention of increasing the share of recurring earnings. Today we have a very good percentage of recurring income represented by annual support fees and managed operations for our customers systems. Most of the other income has been represented by project-based revenues in recent years. Different customers show different openness and willingness to replace a large initial project investment against a running profit sharing. During this quarter, one of our existing customers chose to pay monthly subscriptions to use our promotional and marketing solution for retailers, thus using some of their sales and marketing budgets instead of making a traditional IT investment into a product. We are also discussing several new potential business opportunities that have focus on recurring income in the form of either transaction-based revenue or profit sharing.

The third quarter is usually characterized by reduced activity from customers in the telecom industry. The focus is on the last quarter of the calendar year, where mobile operators spend the remainder of the year's budget and start spending the next year's budget to maximize returns within the same business year. SDS is well aware of the cyclical behavior of the customers and is well suited to take advantage of it. I'm really looking forward to an exciting and challenging future.

Tommy Eriksson, CEO, Seamless Distribution Services AB"

For the complete report see the attached file.


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 October 18, 2018 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 28 markets that reach over 200 million mobile consumers through more than 675,000 retailers. SDS has about 140 employees in Sweden, Belgium, Ghana, USA, Pakistan, India, Ecuador and the United Arab Emirates. With over 16 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 Mangold Fondkommission AB, telephone number +46 8-5030 1550.

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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