Eniro arrived with their report and the share price jumped up with 17.1% why oh why I wonder... and as you can see below I really do wonder when the share price jumps like that.
All the material in this summary can be found in full on the Eniro home page here.
On the front page they have a couple of highlights that are of course twisted to make things look better than what they are. There are also a section that informs about the latest storms that have happened... such as the previous CEO and CFO leaving the company and that there has been filed a complain against the previous CEO.
In the financial statement we do however see that the revenue keep decreasing and even worse their costs keep increasing also. There is also a beautiful chunk of money gone (1.7 billion SEK) under the heading impairment of non-current assets. Even without that they made a loss during the quarter. Especially since they due to the previous error with the accounting were able to deduct revenue from other quarters and bring them in to this one...
Looking at the segments then we see that all that voice as well as the local search (besides from mobile) have been loosing money. They are proud of their increase in the mobile segment but as long as that does not even be close to cover the losses in the other segments then the only one can say is that it is looking bad.
The wonderful decrease of 1.7 billion SEK is here in the balance sheet. If you look at the Intangible assets then that made a whopping -25% decrease due to the write off of some goodwill from for instance a Norwegian company that they acquired back in 2005.
Conclusion: The report in my eyes were seriously bad. I expected revenues to be bad but this was extraordinary. I made this investment based on the low P/B which back then were 0.2 and due to this "little" write off it is now up at 0.6. For me this means that the reason for which I made the investment in Eniro has now very quickly deteriorated.
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