STOCKHOLM: Cision, which offers media monitoring software and analysis, reported a 4.6% year-over-year decline in revenues for the first half of the year, which ended in June. The company group revenues totaled $112 million,* compared to about $117 million at the same time last year.
The company posted a loss of $3.9 million for the period, compared to a loss of $1.06 million in the year-ago period. The recession had a significant impact most of its markets, the company said, causing organic growth, to decline 10%. The decline in profitability for the group in the first half of 2009, compared to last year's similar period, was also impacted by worse results in the UK and Nordic regions, both areas where it has, and plans to, shed unprofitable divisions, the company said. However, in North America, the results were better.
“In most of our markets, we saw an increased impact of the recession in the second quarter. In North
America, good cost control still allowed us to increase our operating margins in the second quarter
compared with the first quarter,” said Cision CEO Hans Gieskes, in a statement. “The successful rollout of CisionPoint continued in the US, where we were also encouraged by CisionPoint winning a prestigious CODiE Award, confirming that we have a winning service platform for the future.”
For the second quarter, Cision reported a net profit of $173,200 on revenues of $50.2 million. The share of clients using the CisionPoint service platform increased 48% in the US at the end of the second quarter, up 35% from the Q1, the company said. Transaction-based Monitor services, though, continued to decline, it said. Total US revenues for January through June were $46 million, compared to $39 million in the year-ago period.
Cision also decided to shed its “loss-making” UK Print Monitor operations. It is selling the division to Durrants, another UK media monitoring company. Cision said it expected the transaction to complete in Q4 of this year, and following the sale, its “UK business is expected to return to profitability in 2010.”
Instead it will offer customers the CisionPoint platform, and media monitoring will be provided through Internet sources, electronic feed from news aggregators, and through a reseller agreement with Durrants, creating a “fully digital business in the UK,” Gieskes said.
During the first half of the year, the company's number of employees decreased by almost 500 for a total headcount of 1,966. Of these, 127 were layoffs, and 358 were related to the divestment of some of its Nordic businesses.
*[Note: All figures are converted from Swedish kroner to US dollars.]