Eniro’s Print Problems Deepen in Norway

I just finished listening to the replay of Eniro’s second-quarter earnings call. A lot was covered on the call, and I will write up a detailed brief for TKR clients early next week. Eniro recorded total group revenues of SEK2.93 billion in the first half, a 4 percent drop. However, organically, revenues grew by 1 percent. Online growth was a solid 17 percent, while print revenues remain soft overall, particularly in Norway. Here are a few highlights:

• The situation with Eniro’s print directory business in Norway has deteriorated, and the company has revised its guidance for print in Norway from (10 percent) for the full year to (15 percent).
• While print continues to slide in Norway, it is showing improvement in Sweden. Eniro improved its guidance for Sweden print from (2 percent) to flat for the year. The reason? The implementation of value pricing on basic listings.
• The Kraks acquisition in Denmark will be consolidated as of July, and the combination of the two organizations will be completed Sept. 1, resulting in 150 redundancies. The acquisition makes Eniro the online leader in Denmark.
• Eniro also touted its deal with Google to distribute its online listings via Google Maps. It is a simple content for traffic deal, where Eniro hopes the traffic it gains for its advertisers makes giving away its content worthwhile. Eniro and Google remain competitors in search.
• Responding to a question, CEO Tomas Frànzen dismissed as “pure speculation” reports that he may leave Eniro to accept another position. In June, the Swedish newspaper Dagens Nyheter named Frànzen as a possible successor to Anders Ingel, who left his position as CEO of the Swedish telecom TeliaSonera in June.