Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Cint Group AB (FRA:8QX, Financial) has maintained stable sales and achieved continued improvements in profitability despite challenging market conditions.
- The company's Media Measurement business continues to grow strongly, offsetting slower sales in other areas.
- Cint Group AB (FRA:8QX) has improved its gross margin to 88%, up from 87.4% last year, driven by higher operational efficiency and lower costs.
- The company has successfully migrated 66% of its customers to the new Cint Exchange and aims for 80% by the end of the year, with full migration expected by mid-2025.
- Cint Group AB (FRA:8QX) has introduced innovative products like the AI-powered Fielding Assistant and RPI model, enhancing platform efficiency and customer experience.
Negative Points
- The Cint Exchange has experienced slower sales due to weaker demand, impacting overall growth.
- The company reported a negative cash flow of EUR7 million for the quarter, compared to minus EUR4.3 million in the previous year.
- Cint Group AB (FRA:8QX) faces ongoing challenges in the global research market, with sluggish growth observed across the industry.
- The company's net working capital has increased, partly due to a decrease in accounts payable.
- There is a risk of potential conflicts between the Media Measurement and Cint Exchange businesses, although currently considered minimal.
Q & A Highlights
Q: Do you see any signs of improvement in the overall market, and is there a risk that Media Measurement is competing with Cint Exchange customers?
A: The market has been challenging globally, with some improvement in the US due to the election. Media Measurement customers often use both our products, so conflicts are minimal. Most Media Measurement clients are agencies and platforms, reducing potential conflicts. - Patrick Comer, CEO
Q: Is there anything in Media Measurement's year-over-year comparables that could affect growth, and what's the OpEx plan for 2025?
A: Media Measurement is expected to continue growing due to its evolving market. We implemented an efficiency program, and with no NRIs next year, we anticipate improved cash flow and a positive free cash flow environment. - Patrick Comer, CEO & Niels Boon, CFO
Q: How are you viewing net debt and gearing in light of cash flow and cash position? Also, what factors contributed to the gross margin change?
A: We expect lower OpEx due to efficiency programs, improving cash flow. The gross margin improvement is mainly due to better processes and platform consolidation, not mix changes. - Niels Boon, CFO
Q: What are other current receivables related to, and what is the impact of unbilled revenue?
A: Other current receivables include items not invoiced by period end, with a temporary increase due to system consolidation. This is expected to normalize in future quarters. - Niels Boon, CFO
Q: Has Triton Partners or other institutional investors expressed alternative support beyond share purchases?
A: We have positive interactions with investors like Bolero, who have shown interest and support, including participation at the Board level. - Patrick Comer, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
