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Q4 2018 Press release: Infront reports revenue and user growth, executes on M&A strategy

Infront ASA (INFRNT) today announced its interim results for Q4 2018, reporting revenue and user growth, executes on M&A strategy

Infront reports revenue and user growth, executes on M&A strategy

• Acquisition of Market Connect in Italy to expand European client- and revenue base.
  • Adding over 20k professional users and access to more than 100k retail investors
  • Complementary operations including feeds, web solutions and terminal products
  • Expected to add approximately NOK 125m of annual revenue
  • Platform for growth in Italy and surrounding markets
    
    
• Q4 2018 revenue increased 7% to NOK 70.8 million from NOK 65.8 million in Q4 2017
  • User growth in all regions
  • Continued good quarterly growth in UK, South Africa and Finland
  • Positive contribution from Infront Web Technology solutions
  • Revenue adjusted for foreign exchange translation effects was NOK 72.7 million
    
    
• Adjusted EBITDA of NOK 12.0 million, decreased from NOK 13.9 million in Q4 2017
  • Increased operational investments for geographic expansion and product development for future growth
    
    
• Full-year 2018 revenue increased 9%
  
  
• The Board of Directors proposes a dividend of NOK 0.45 per share for 2018

Oslo, 12 February: Infront ASA (INFRNT) today announced its interim results for Q4 2018. Group revenue was NOK 70.8 million (NOK 65.8 million), an increase of 7% from the same quarter last year, driven by higher sales and prices across the group, as growth in new markets led by South Africa and UK continued to develop positively. Approximately 63% of revenue was recognized in foreign currencies, which moved in an unfavorable direction yearover-year with a negative impact on revenue of NOK 1.9 million in the reporting currency (NOK).

EBITDA adjusted for other income and M&A-related cost (for Market Connect acquisition) decreased by 14% to NOK 12.0 million from adjusted EBITDA of NOK 13.9 million in Q4 2017 mainly due to high employee and other operational investments related to geographic expansion and product development for future growth.

On 20 December, Infront acquired the Market Connect to expand the European revenue base and market share. The Italian financial data provider reaches more than 20,000 finance professionals and over 100,000 retail investors through its partners. Market Connect is complementary to Infront’s existing operations, and includes, feed, web solution and terminal products, and adds approximately NOK 125m of revenue on an annual basis.

“The acquisition of Market Connect is in line with our strategy to grow organically and by consolidating the European market. We are two complementary businesses with a strong combined market position, innovative solutions and access to some of the leading global brokers and investment banks. Additionally, we had good growth the fourth quarter in our markets and we were very pleased that the leading broker in South Africa chose Infront for their trading platform,” said Kristian Nesbak, CEO and Founder of Infront.

Infront generates most of its revenue based on recurring subscription contracts for the products. Subscription revenue represented 99% of total sales in Q4 2018.

Please find the full financial report and presentation enclosed.

CEO Kristian Nesbak and CFO Max Hofer will present the results via a live webcast at 10.00 CET at:
https://www.infrontfinance.com/ir/webcast-q4-2018/
It will be possible to ask questions via e-mail during the presentation. Send your questions to ir@infrontfinance.com. The presenters are also available for questions after the presentation, please schedule a time via the same email. A recording of the presentation will be available on the website shortly after the live webcast has ended.

For further information please contact:
Kristian Nesbak, CEO of Infront, +47 940 04 000
Max Hofer, CFO of Infront, +47 971 48 953

The interim report and presentation are also available on the investor relations pages at
https://www.infrontfinance.com/investor-relations

About Infront
Infront provides a unique combination of global market data, news, analytics and trading tools. As separate offers or as an integral part of the Infront Professional Terminal, Infront's services help buy-side and sell-side institutions grow their businesses, reduce costs, adapt to fast changing market requirements and work more effectively with ever-increasing amounts of information. Over 20,000 subscribers worldwide rely on Infront's services. Infront is listed on the Oslo Stock Exchange and has offices in seven countries. Read more at www.infrontfinance.com