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Seamless Distribution - Interim Report, Second Quarter of 2017STOCKHOLM, August 10, 2017 /PRNewswire/ -- April – June 2017
Significant events during the period April – June 2017
Significant events after the close of the reporting period
CEO´s COMMENT Business and finance review The recent period has seen substantial positive change at Seamless. Management is intensively engaged on multiple fronts. First and foremost, the recent successful completion of the IPO of SDS provided critical funds to stabilise the company's financial position. Numerous actions are in progress to further solidify our financial situation in the coming months. These actions relate not only to funding, but also to cash burn. The blunt reality is that Seamless does not at this point have access to unlimited funds, and as such, Management is making critical choices to focus resource on highest probability of success investments. Management is also continuing to address the Company's structure in a way that will enable successful delivery of our growth strategy, but also reduces expenditures in non-critical areas. We have set a goal to move steadily toward cash flow breakeven by mid-2018. Actions taken by Management and the new CEO to optimise our focus will produce annualised cash-cost benefits in excess of 15 MSEK by Q4 of this year. In tandem with this, investment in key focus areas will be enhanced. Looking at each of the three business lines: e-Products Actions already taken by Management and the new CEO will enable our largest revenue generating activity to move into profit as of Q4, following a multi-year period of reported losses. A reallocation of resource into markets and contracts that are profitable will likely produce some reduction in revenues as we move forward. Our core market, Sweden, has the unusual situation of being a low profit duopoly, and we are addressing loss-making contracts. In other markets, we are moving to increase pricing and reduce exposure to loss-making endeavors. Product innovation will be maintained, such that we can continue to offer enhanced revenue generating opportunities to our clients. The goal is for e-Products to become sustainably profitable as we move forward. Seqr Under the new leadership of James Connelley (previously Head of Sales for Seqr), our core B2C enterprise is moving rapidly to focus on highest probability of success opportunities, in revenue and profit pools that have a high chance of sustained growth. In addition, we are moving aggressively to monetise opportunities with major global vendors such as MastercCard. Seqr will continue to support our QR offering, particularly with a view to enabling global vendor-partners. Until now, revenue traction in Seqr has disappointed our earlier expectations, especially when compared to peer European fintech disruptors of similar maturity. Fortunately, Seqr is blessed not only with outstanding people in our development and sales areas, but product functionality that is considered amongst the best available in the market. The consumer experience will become front-and-center of our efforts, and a focus on key markets where we believe we can gain meaningful traction, or build on existing strengths - such as Sweden, Belgium and Germany. In B2B, Seqr is working closely with MeaWallet to connect with potential partners and clients to offer comprehensive payment/wallet solutions. MeaWallet Acquired by Seamless in July 2016, MeaWallet is now showing acceleration in its order pipeline, and signed orders. MeaWallet is one of the leading European wallet providers, with solutions supporting Mastercard, Visa, Amex and local schemes, and MeaWallet's platform is now live in 20 countries. The long decision-making cycle of financial institutions results in some 'lumpiness' in quarterly delivery, but with PSD2 now a reality in Europe, MeaWallet is well positioned to accelerate growth as we move into 2018. Our goal is for MeaWallet to deliver profitable growth in the period ahead, in spite of the increase in resource required to deliver the anticipated increase in volumes. In summary The new Management team understands fully that our shareholders demand, and should receive, an acceptable return on their investment. Management also understands equally well that this can only come if the Company delivers products that offer economically beneficial solutions, and are of genuine enhanced day-to-day utility to users. These will be the guiding principles for the Company as we move forward. Tomas Jalling CEO This is the type of information that Seamless Distribution AB (publ) is required to disclose pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on August 10, 2017 at 08:50 a.m. (CET). For further information, please contact: About Seamless Seamless is one of the world's largest suppliers of payment systems for mobile phones. Founded in 2001 and active in 35 countries, Seamless handles more than 5.3 billion transactions annually through 675 000 active sales outlets. Seamless has three main business areas including the SDS/transaction switch, the technology provider for the distribution of e-products and the mobile payment platform SEQR. Seamless shares are traded on NASDAQ OMX Stockholm www.seamless.se The Seamless Interim Report 2017 for the period April-June 2017 has been approved for publication by the Board of Directors, by its decision on August 9, 2017. This financial report has not been subjected to a review by the Company's auditors. This information was brought to you by Cision http://news.cision.com The following files are available for download:
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