STOCKHOLM, Sweden, Jan. 31, 2003 (PRIMEZONE) -- Observer AB (publ) (Other OTC:OBSEF) (Stockholm:OBS):
-- The group's operating revenue amounted to SEK 1,699.0 million
(1,358.7), an increase of 25 percent. Exchange rate effects have
adversely affected the revenue by SEK 36.3 million. Organic growth
in local currency was -3 percent.
-- Operating profit before goodwill amortization and items affecting
comparability amounted to SEK 310.6 million (231.2), with exchange
rates adversely affecting profit by SEK 8.4 million. The operating
margin for the full year rose to 18.3 percent (17.0). Fourth-quarter
operating profit amounted to SEK 76.3 million, with exchange rates
adversely affecting profit by SEK 4.6 million. The operating margin
amounted to 17.9 percent (17.5).
-- Profit per share after dilution, excluding goodwill amortization and
items affecting comparability, amounted to SEK 2.89 (2.47).
-- Cash flow remains strong. Operating cash flow is the strongest ever,
amounting to SEK 324.5 million (130.6) for the full-year and SEK 89.6
million (42.4) for the fourth quarter.
-- A new investment in a system to digitalize print media through
scanning has begun. Digitalization will improve processing efficiency
and provide the opportunity to develop a number of new services at
low cost. The nonrecurring cost of the conversion is estimated at
SEK 10 million, which will be charged against profit in the first
quarter of 2003.
-- As a result of continued economic weakness, actions are being taken
that will reduce costs by SEK 45 million. The one-time cost for the
action program is estimated at SEK 17 million and will be charged
against profit in the first quarter of 2003.
For further information, please contact:
Anders Lundmark, Chief Financial Officer
telephone: +46 70 333 29 77
e-mail: anders.lundmark@observergroup.com
Per Blixt, Senior VP Corporate Communications/Investor Relations
telephone: +46 70 549 28 08
e-mail: per.blixt@observergroup.com
Robert Lundberg, President and CEO
telephone: +46 8 507 410 10
e-mail: robert.lundberg@observergroup.com
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