Cost relating to changes at Valitor in order to turn around the company’s losses estimated around ISK 600 million in Q4 2019

The Board of Directors of Valitor, a subsidiary of Arion Bank, has decided to undertake a reorganisation of the company in order to strengthen Valitor’s core business and to turn around the company’s losses. Cost relating to the changes is expected to be around ISK 600 million which will be reflected in Arion Bank’s Q4 financial results. The expected measures will take the company from an operating loss to an EBITDA profit.  Further details will be announced by Valitor within two weeks’ time. Valitor’s investments in international operations have been considerable in recent years. These investments have led to revenue growth, but sales of omni-channel solutions – a product line for large pan-European companies – have not met expectations. Compared to a total investment of ISK 6 billion in the omni-channel solutions since 2014, the current book value of these intangible assets is ISK 4.5 billion, while income from the solution is expected to be only ISK 1.1 billion 2019. It is planned to reduce continuing investments considerably in this field.The organizational changes will significantly reduce the company’s investment needs and operating costs, which will have a positive impact on Valitor‘s financial results as well as Arion Bank‘s. Valitor remains a financially strong international payment solutions company, offering diverse services in the field of acquiring, issuing and gateway services.Valitor is categorized in the Bank’s accounts as an entity held for sale and the ongoing sales process will continue.For further information please contact Theodór Friðbertsson, Head of Investor Relations,  ir@arionbanki.is, tel. +354 444 6760.This is information that Arion Bank hf. is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact persons set out above.