Bifogade filer
Cint announces changes in the financial reporting to enhance financial transparency and reporting to align with business strategy
Prenumeration
Beskrivning
| Land | Sverige |
|---|---|
| Lista | Mid Cap Stockholm |
| Sektor | Informationsteknik |
| Industri | Programvara |
Cint, a global leader in market research technology, is pleased to announce updates to its financial reporting, effective from the first quarter of 2024. These changes are a direct result of aligning international industry practice with Cint's commitment to streamlining operations and enhancing financial transparency.
The modifications will encompass several key areas, all aimed at providing stakeholders with a clearer and more insightful view of the company's financial performance. The changes consist of:
1. Change in revenue recognition: Cint will report revenues net for all significant revenue streams. This change replaces the previous principle of recognizing a substantial portion of revenue streams on a gross basis. This change is due to Cint migrating customers to the unified platform.
2. New presentation format for the income statement: To provide a more comprehensive understanding of its cost structure, Cint will present expenses in the income statement based on their respective functions. This departure from the previous method, which categorized expenses by cost type, will offer stakeholders greater clarity regarding the allocation and utilization of resources across different operational areas and follows industry practice
3. Introduction of EBITA Measure: Cint will introduce the EBITA (Earnings Before Interest, Taxes, and Amortization) measure to its financial reporting framework. Under this methodology, depreciation of capitalized development costs and depreciation of operational fixed assets will be included in EBITA, while amortization of acquisition related intangible assets and non-recurring items will be reported separately, below the EBITA line. This adjustment aims to provide investors and analysts with a clearer understanding of Cint's operational profitability, free from the distortions caused by non-operational factors.
Proforma figures for 2023 are presented in the appendix.
Commenting on these changes, Niels Boon, CFO, comments, "Our decision to revamp our financial reporting underscores our commitment to transparency and accuracy in financial reporting. By aligning with best practices and how the business is transforming, we are not only enhancing the quality of our financial disclosures but also facilitating better decision-making for our stakeholders."