Eniro to Concentrate Development and Production Resources

Regulatory News:

Eniro (STO:ENRO) will be concentrating the company’s development and production resources to Sweden and Poland. The aim is to further improve efficiency and thereby accelerate development and launches of Eniro’s products and services. The change will be carried out during the autumn and will entail a total reduction of 70 positions. The annual cost savings will amount to SEK 50 M, with full effect in 2016.

The change entails that large parts of the company’s development and production resources will be moved to Sweden and Poland. However, Eniro will keep resources in all countries to quality-assure content, product management and marketing at the local level. These functions must be near the local business activities in the respective countries. Union negotiations have been initiated.

"It is always unfortunate to have to give notice to employees, but we must become even more efficient,” comments Stefan Kercza, Acting President and CEO of Eniro. "We work in a highly competitive market and need short lead times to create new offerings for our users and customers.”

Union negotiations have been initiated. The change will entail a reduction of resources in Denmark, Norway, Poland and Sweden. At the same time, Eniro will need to create new positions in Poland and Sweden, as new functions will be established in these two countries. Among other things, a new service center will be set up in Malmö. The change will entail a total reduction of 70 positions. Eniro will provide assistance to the affected employees in finding new jobs, among other things through the new positions that will be created.

The annual cost savings will amount to SEK 50 M and will have full effect in 2016. The cost savings will take gradual effect and are expected to amount to approximately SEK 40 M in 2015.

After the changes, more than 100 people continue to work on product development with a focus on both customers and users. Each week Eniro Group has eight million unique visitors searching for local information.

This information is such that Eniro AB (publ) is required to disclose in accordance with the Swedish Financial Instruments Trading Act and/or the Swedish Securities Market Act. The information was submitted for publication at 09:00 CET, September 23, 2014.

Eniro is a search company that aggregates, filters and organizes local information. Our growth is driven by users’ increasing mobility and multiscreen behavior, where we are at the forefront with modern technical solutions. For more than 100 years Eniro has helped people find local information and companies find customers. Today it is a multiscreen solution – our users search for information using their smart phones, tablets and desktops. This creates great business opportunities for us as the local search company. Mobile advertising is today the fastest growing part of Eniro’s business. Eniro is the local search engine. A smart shortcut to what you need, no matter where you are or where you are going.

Eniro is one of the largest search companies in the Nordic region and Poland. The company has approximately 2,800 employees and has been listed on NASDAQ OMX Stockholm since 2000. During 2013, Eniro’s revenues amounted to SEK 3,660 M and EBITDA was SEK 849 M. More than 80 percent of Eniro’s advertising revenues come from multiscreen channels. The company’s headquarters are located in Stockholm, Sweden. More on Eniro at www.enirogroup.com.

Eniro – Discover local. Search local.

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