Friday, 17 July 2015

Eniro report Q2 2015

Eniro, Q2, 2015, front page

Yet another bad report from Eniro and it seems to be a never ending story. Well actually there are two ends to that. A) I sell my shares and B) They go belly up. What was then of interest this time I wonder?

Here is the report in full and for my previous summary please visit Eniro report Q1 2015 or why not take a look at analysis of Eniro 2015.

I seem to have missed the announcement that they would have to write down another 1.1 billion SEK from their "assets" and it annoys me since I did not know this and therefore it becomes yet another cold shower for me with this tremendous book value loss.

Below is the financial statement from Eniro with yet another quarter of reduced revenue in all categories (when I looked at the segments) so there is no turn around even in sight at the moment. The costs have still not decreased to a level corresponding to their revenue and earnings so things will take a long, long time.

Eniro, Q2, 2015, financial statement

Can this fascination write-down business go on any further then? Yes, amazingly enough it can go on for a bit longer as can be seen below. The intangible assets that have gone from 7 billion is now down at 3.8 billions SEK so there is still 3.8 billion more to write-down. I make the assumption that they will make a write down every second quarter so I am sure that the annual report for 2015 will be fun to read.

Eniro, Q2, 2015, assets

Conclusion: Eniro is doing bad and even more rats are fleeing the sinking ship... board members, CFOs etc. which is a bad sign for the future of a company. People usually flee just before a belly up. From Eniro I have learnt two things: Always look at goodwill & intangible assets and when there is a sign of cooked books then more usually follows in the after match so just simply stay away from those companies. I directly draw a parallel here to Balda that I recently analysed because when there are problems more usually follows.

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