Cdon Group’s saw a total growth of 21 percent in the third quarter.
But it believes strongly in their new payment solutions, named Qliro.
Now Cdon adopts this name for the whole group and takes in 650 million SEK from its shareholders to invest in the payment service.
The change of name is subject to approval at an Extraordinary General Meeting to be held on 21 November 2014.
So is the 650 million contribution, which makes it a total of 1,15 billion SEK in one year.
”In order to launch Qliro Payment Solution in full scale, facilitate the expansion of subsidiaries, especially within Nelly, and to strengthen the balance sheet by early redemption of the convertible bond, the Board has resolved to execute a preferential rights issue of approximately 650 MSEK”, comments CEO Paul Fischbein.
It is explained as a correction of the balance sheet. 250 billion is to solve convertible bonds for MTG. Half of it is dedicated to the Qliro solution. The rest is for Nelly.com.
The rollout of Qliro invoice payments and payment by instalments hits Klarna hard, since Cdon is their biggest costumer. Qliro Payment Solution is now in the process of being rolled out to the Group’s Swedish stores. 97 percent of today’s transactions through Klarna will be converted to Qliro at the end of next year. It was introduced on Tretti.se in September.
”It is an important next step in the launch of Qliro Payment Solution and something we are very much looking forward to”, Paul Fischbein comments.
Gymgrossisten is the star in the Group right now, contributing with 17 million SEK in Q3. Cdon Group also launches Gymsector.com for the EU-market. The launch of the EU-site makes Gymgrossisten’s leading range of supplements available in 22 new markets in Europe, including Benelux, France, Poland, Italy and Spain.
Previously Cdon Group announced that the subsidiary Cdon.com will be consolidating the majority of its warehouse operations to Ljungby, Sweden, into one of the country’s largest and most modern e- commerce facilities. The move will be initiated in the fourth quarter 2014 and will be carried out in stages over a period of 12 months.
The Swedish operations of Nelly reported a 5 percent operating margin for Q3 and 4 percent for the nine-month period, compared with a loss in the previous year. Lekmer and Tretti continues to show healthy growth, with 58% and 29% respectively.
Cdon Group is also splitting the Entertainment segment into Cdon.com and Lekmer meaning all larger operating companies or sub-Groups will be reported separately.
Cdon Group, third quarter:
- Net sales, excluding divested operations, were up 21%, amounting to SEK 1,121.2 (928.8) million. Including divested operations, net sales rose by 18%, amounting to SEK 1,121.2 (949.6) million.
- Operating profit, excluding divested operations and non-recurring items, totalled SEK 1.5 (-17.2) million. Including divested operations and non-recurring items, operating profit totalled SEK 1.6 (-17.9) million.
- Net income totalled SEK -4.7 (-21.1) million.
- After end of the quarter, the board resolved on a preferential rights issue of approximately SEK 650 millio
Cdon Group, first nine months:
- Net sales, excluding divested operations, increased by 15%, amounting to SEK 3,317.2 (2,888.1) million. Including divested operations, net sales rose by 13%, amounting to SEK 3,365.2 (2,969.9) million.
- Operating profit, excluding divested operations and non-recurring items, totalled SEK 0.6 (-25.3) million. Including divested operations and non-recurring items, operating profit totalled SEK 36.6 (-74.6) million.
- Net income amounted to SEK 13.3 (-83.1) million.