BISNODE published its first quarter results and Johan Wall, CEO commented:  “The beginning of the year has been characterized by a challenging market climate. In spite of this, we enjoyed a continued positive development with both growth in revenue and stable profitability during the first quarter.”

“On 1 January 2009 we introduced a new organization based on geographical regions. The aim is to increase the Group’s opportunities to realize both revenue and cost synergies. Parallel to this, we have worked on the integration of German Wer Liefert Was (WLW), which was acquired at the end of last year.  Both, the launch of the new organization and the integration of WLW, are proceeding according to plan.”

Product Line Performance: The Credit Solutions product offering has delivered strong growth and higher profitability. Lower demand for marketing services is creating pressure on the Marketing Solutions product offering. Historically, operations in the Credit Solutions product offering have been somewhat countercyclical in nature, since demand for these products and services rises in periods of financial uncertainty. This experience is confirmed by strong demand for credit and risk information in the first quarter of the year. Sales in the product offering have increased substantially compared to the same period of last year and show no sign of slowing.

The economic downturn has had a negative impact on the Marketing Solutions product offering. Demand for marketing and sales-related products and services is largely campaign-driven and is affected by the general activity in the economy. In the first quarter of 2009, postponed projects and falling demand for own high margin products resulted in weak sales and weaker profitability.

The Business Information Solutions product offering is showing sustained high profitability and has not been visibly affected by the market decline. The Product Information product offering, with a large share of advertising-financed services, has been negatively affected by a weaker advertising market. The recently acquired Wer Liefert Was has demonstrated good resilience to the economic recession. As market leader the company is prioritized by customers, which has resulted in a low share of cancelled subscriptions. Due to the economic recession, Software and Applications is characterized by a shrinking market with declining demand and price pressure that is creating difficulties for the consulting companies in the product offering.

Regional Performance:  The region Sweden, Denmark, Finland, Estonia, which is the Group’s largest in terms of revenue, showed stable development in the first quarter. The region Norway is characterized by aggressive competition and severe price pressure, which has resulted in weaker margins. Profit was charged with onetime costs arising from changes in management. The increased revenue and improved margins in the region Germany, Austria, Switzerland is due to robust development, above all in Germany. The region Belgium, Netherlands, France noted weak development during the quarter. The negative earnings trend is mainly attributable to structural problems in the Group’s Dutch companies, and an action plan has been formulated to reverse the trend. The region United Kingdom, Ireland is characterized by a large number of small to mid-sized players and intense price pressure, leading to decreased revenue and falling margins.

The region Czech Republic, Hungary, Poland, Slovenia, Slovakia has delivered strong growth and improved margins. The development in Slovenia was especially positive.

The business area Product Information was strengthened through the acquisition of ‘Wer Liefert Was’ in December 2008, which explains the period’s growth in revenue and earnings. Other parts of the business area are showing signs of declining sales. In response to this, a review of the cost structure has been initiated to adapt operations to the current market situation. Central functions include costs for the Group’s head office and certain joint development projects, as well as costs for acquisitions and divestitures.  Source: BISNODE PRESS RELEASE

BIIA Newsletter June 2009 Issue