Asiakastieto Group Oyj - Interim report (Q1 and Q3)

Asiakastieto Group's Interim Report 1.1. - 30.9.2016: The brisk growth continued in the third quarter

Asiakastieto Group Plc, stock exchange release, 2 November 2016 AT 12.00 EET

Asiakastieto Group's Interim Report 1.1. - 30.9.2016: The brisk growth continued
in the third quarter

SUMMARY

The figures presented in this Interim Report are unaudited.

July - September 2016 in short:

-  Net sales amounted to EUR 11,7 million (EUR 10,5 million), an increase of
11,6 %.
-  Adjusted EBIT excluding non-recurring and other adjusted items was EUR 4,8
million (EUR 4,4 million), an increase of 8,7 %.
-  Operating profit (EBIT) was EUR 4,6 million (EUR 4,4 million). Operating
profit included non-recurring expenses and other adjusted items of EUR 0,2
million (EUR 0,0 million).
-  The share of new products and services of net sales was 6,0 % (8,6 %).
-  The share of value-added services of net sales was 65,0 % (58,6 %).
-  Free cash flow amounted to EUR 5,2 million (EUR 3,9 million). The impact of
non-recurring and other adjusted items on free cash flow was EUR -0,2 million
(EUR -0,1 million).
-  Earnings per share were EUR 0,23 (EUR 0,22).

January - September 2016 in short:

-  Net sales amounted to EUR 36,5 million (EUR 32,4 million), an increase of
12,9 %.
-  Adjusted EBIT excluding non-recurring and adjusted items was EUR 14,8 million
(EUR 13,4 million), an increase of 10,3%.
-  Operating profit (EBIT) was EUR 15,7 million (EUR 10,9 million). Operating
profit included non-recurring expenses and other adjusted items of EUR 0,2
million (EUR 2,5 million) as well as EUR 1,1 million (EUR 0,0 million) non-
recurring, adjusted profit on sale of office premises.
-  The share of new products and services of net sales was 8,2 % (8,5 %).
-  The share of value-added services of net sales was 64,9 % (59,3 %).
-  Free cash flow amounted to EUR 12,6 million (EUR 9,1 million). The impact of
non-recurring and other adjusted items on free cash flow was EUR -0,3 million
(EUR -2,9 million).
-  Earnings per share were EUR 0,80 (EUR 0,52).
-  Profit on non-recurring the sale of shares of office premises was EUR 1,1
million
Future outlook

Asiakastieto Group expects its net sales growth rate to exceed on annual level
the last year's level. Adjusted euro-denominated net operating profit is
expected to increase from last year, despite the new rental cost for 2016 caused
by the eventual realization of office premises.

KEY FIGURES

                                 1.7.-     1.7.-     1.1.-     1.1.-      1.1.-

 EUR million                 30.9.2016 30.9.2015 30.9.2016 30.9.2015 31.12.2015
-------------------------------------------------------------------------------
 Net sales                        11,7      10,5      36,5      32,4       43,7

 Net sales growth, %              11,6       3,5      12,9       4,9        5,6

 Adjusted EBITDA(2)                5,4       5,0      16,6      15,2       20,5

 Adjusted EBITDA margin,
 %(2)                             46,0      47,9      45,4      46,8       47,0

 Adjusted operating profit
 (EBIT)(2)                         4,8       4,4      14,8      13,4       18,3

 Adjusted EBIT margin, %(2)       41,3      42,4      40,5      41,5       41,8

 New products and services
 share of net sales, %(1)          6,0       8,6       8,2       8,5        8,6

 Free cash flow(3)                 5,2       3,9      12,6       9,1       13,8

 Net debt to EBITDA, x             2,2       2,6       2,2       2,6        2,4



(___________________________________________________________________)
(1 )The method used for calculating the share of new products and services, the
comparative figures for 1 July - 30 September 2015, 1 January - 30 September
2015 and the financial year 2015 have been changed into rolling starting from 1
January 2016, so that the share include sales of products, which have been
launched during the past 24 months. Earlier the share was calculated from the
sales of products launched during the previous and current financial year.
Figures based on the old calculation method were 5,1 % for the third quarter 1
July - 30 September 2016, 8,1 % for the comparative period 1 July - 30 September
2015, 6,6 % for the interim period 1 January - 30 September 2016, 7,1 % for the
comparative period 1 January - 30 September 2015 and 7,6 % for the financial
year 2015.

(2 )Adjusted key figures are adjusted by following items: management fees which
the Company has paid to Investcorp, the former owner of the Company, until the
listing of the Company for certain ongoing advisory services, costs relating to
the listing, an expense relating to the discount given to the personnel in the
personnel offering, M&A related fees for legal and other advisory services,
redundancy payments and compensations paid. The above listed adjusted items were
EUR -0,2 million for the third quarter 1 July - 30 September 2016, EUR -0,0
million for the comparative period 1 July - 30 September 2015, EUR -0,2 million
for interim period 1 January - 30 September 2016, EUR -2,5 million for the
comparative period 1 January - 30 September 2015 and EUR -2,5 million for the
financial year 2015. Adjusted key figures for the interim period 1 January - 30
September 2016 are also adjusted by the non-recurring profit on the sale of
shares of office premises EUR 1,1 million.

(3 )The impact of adjusted items on free cash flow was EUR -0,2 million for the
third quarter 1 July - 30 September 2016, EUR         -0,1 million for the
comparative period 1 July - 30 September 2015, EUR - 0,3 million for the interim
period 1 January - 30 September 2016, EUR -2,9 million for the comparative
period 1 January - 30 September 2015 and EUR -2,9 million for the financial year
2015.

JUKKA RUUSKA, CEO

Asiakastieto Group's financial year 2016 in the third quarter continued with
strong net sales growth. The net sales were EUR 11,7 million (EUR 10,5 million),
growth from all four product areas being 11,6 % in total. The share of new
services decreased to 6,0 percent of the net sales (8,6 %), which is due to
ordinary fluctuation, when the period of examination of new services is
relatively short. The development portfolio of new services is still strong.

Also profitability developed as expected. Irrespective of transferring to rented
office premises and the data acquisition costs growing faster than the net
sales, the adjusted operating profit increased by 8,7 %, being EUR 4,8 million
in the third quarter (EUR 4,4 million).

In accordance with our reformed strategy, we will focus in the utilisation of
so-called unstructured data during the remainder of the year, such as data
collected from companies' websites and social media. An example of such data is
decision-maker data collected from home pages. Here we are assisted by the
strengthening brought on by the acquisition of Intellia Oy on 1 October 2016,
which brings more expertise and new sales and marketing databases for the use of
our clients.

A completely new way to process and test the applicability of data in business
will be the test environment DataLab, the building work of which has begun. In
DataLab also our clients and cooperation partners get to combine the data of
Asiakastieto's developing core i.e. database into their own data materials and
test their impact on each other. On the basis of experiences and results
obtained from DataLab, we will develop new digital services for the use of our
clients.

FUTURE OUTLOOK

Asiakastieto Group expects its net sales growth rate to exceed on annual level
the last year's level. Adjusted euro-denominated net operating profit is
expected to increase from last year, despite the new rental cost for 2016 caused
by the eventual realization of office premises.

The outlook is subject to risks related to, among other factors, the development
of the Finnish economy and the business operations of the Group. The most
significant risks related to business operations include, for example, risks
related to the success of product and service development activities, launches
of new products and services and risks related to competitive tenders and to
losing significant customer accounts.

Asiakastieto Group's business risks have been described in more detail on the
Company's investor pages at investors.asiakastieto.fi.

Helsinki, on 2 November 2016

ASIAKASTIETO GROUP PLC
Board of Directors


For further information:
Jukka Ruuska, CEO
Asiakastieto Group Plc
tel. +358 10 270 7111

Distribution:
Nasdaq Helsinki Ltd
major media
investors.asiakastieto.fi



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Asiakastieto Group Plc_Interim Report_Q3_2016.pdf