asknet AG: Upon completing acquisition of Nexway Group AG, asknet AG initiates migration to a single product and technology platform, triggering write-downs of asknet pre-Nexway capital expenMarch 22, 2019
asknet AG / Key word(s): Change in Forecast/Takeover
asknet AG: Upon completing acquisition of Nexway Group AG, asknet AG initiates migration to a single product and technology platform, triggering write-downs of asknet pre-Nexway capital expenditures, earnings forecast is also adjusted
22-March-2019 / 10:11 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
UPON COMPLETING ACQUISITION OF NEXWAY GROUP AG, ASKNET AG INITIATES MIGRATION TO A SINGLE PRODUCT AND TECHNOLOGY PLATFORM, TRIGGERING WRITE-DOWNS OF ASKNET PRE-NEXWAY CAPITAL EXPENDITURES, EARNINGS FORECAST IS ALSO ADJUSTED
March 22, 2019, Karlsruhe (Germany) – asknet AG is advancing the integration of Nexway Group and has decided to carry out special depreciations on internally (pre-Nexway acquisition) developed software already for the 2018 financial year. Subsequently, a low seven-digit loss (EBT) is now expected on a provisional basis. The depreciation on internally developed asknet software will create a conservative balance sheet basis for the consolidation of the Nexway as of the 2019 financial year. The acquisition of Nexway Group AG, the holding company of Nexway SAS, had been completed at the end of January 2019.
This non-cash adjustment follows the strategic decision to primarily utilize Nexway’s e-commerce platform technology. New asknet customer shops are already being launched on Nexway technology, existing asknet shops will be migrated step by step over the next few years if requested by the customers. By using one platform and gradually integrating special features of the asknet platform into the superior Nexway technology, costs can be reduced and scalability as well as utilization increased to become a leading global commerce-as-a-service and merchant services provider.
At the same time, with the continued progress of the growth plan adopted in September 2018, asknet Group (without Nexway) accounted in 2018 as projected a significant growth (double-digit) both in sales revenues and gross profit on the basis of preliminary figures. The full consolidated annual report for the 2018 financial year will be published as planned on April 30, 2019.
For 2019, the integration and consolidation of Nexway Group will result in a substantial increase in sales revenues and gross profit. On the earnings side, it is planned to significantly reduce the loss and to generate positive earnings on an adjusted basis (before extraordinary and restructuring costs pertinent to streamlining an expanded asknet AG organization.
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