Infront - 24% revenue growth and a solid conclusion to an active year

Oslo, 16 February 2018: Infront ASA (INFRNT) today announced its interim results for Q4 2017. Group operating revenue for the quarter was NOK 65.8 million (NOK 53.1 million). The growth of 24% from the same period of last year was driven by increased sales and prices across the group, the inclusion of external revenues from the acquisition of Inquiry Financial Europe AB, as well as continued impact from the SIX-transaction. EBITDA adjusted for IPO-related costs of 0.8 million was NOK 14 million in Q4 2017, an increase of 214% compared to the same quarter last year (NOK 4.5 million).
  • Q4 2017 revenue increased 24% to NOK 65.8 million from NOK 53.1 million in Q4 2016
  • Positive contribution from acquisitions of Inquiry Financial Europe AB, SIX News and finalised migration of SIX Edge customers
  • Adjusted EBITDA increased to NOK 14.0 million from NOK 4.5 million in Q4 2016 driven by higher revenues across all segments, increased gross margin and stable operating expenses
  • 23% growth in number of paying terminal subscribers year-over-year
  • Systems and products successfully upgraded to comply with new MiFID II requirements
  • Signed Infront Web Technology agreement with SEB - further manifesting the product's appeal to large retail institution

  • Full-year 2017 revenue increased 21% increase to NOK 253.6 million

  • 53% increase in adjusted full-year EBITDA to NOK 48.0 million
  • The Board of Directors proposes a dividend of NOK 0.4 per share for 2017

"2017 was an exciting year for Infront with growth in our core markets and a successful listing on Oslo Børs. We maintained a steady pace of terminal growth in Q4 2017 while updating our systems to ensure our customers have the tools they need to comply with EU's new financial markets regulations. Furthermore, we successfully completed the migration of SIX Edge customers to our suite of products, and we experienced increasing interest in our new retail web technology from leading financial institutions. Going into 2018, we see opportunities for further growth across all regions and products", said Kristian Nesbak, CEO and Founder of Infront.

Revenue in Q4 2017 was impacted by two exceptional items. One was a NOK 0.5 million customer credit. The second item was a reversal of NOK 1.1 million of internal revenue included in the Q3 2017 accounts, which should have been eliminated. The reversal had no impact on operating results.

Infront generates the vast majority of its revenue based on recurring subscription contracts for the products. In 2017, Infront continued to show a steady growth of recurring revenue, which represented 99% of total sales in the period.