Summary of Interim Report for 1 January - 30 September 2014: 104M visits (+30% YoY)

Following information was previously published in Swedish. This is a summary of the Swedish report.

203 Web Group's Interim Report for 1 January – 30 September 2014 is now published and available at www.203webgroup.com under Investor - Financial Reports.


SUMMARY OF Q3 2014 (2013)
* Net Turnover: 11,258 KSEK (11,400)
* Operating Profit/Loss (EBITDA): -1,027 KSEK (654)  
* Operating Margin (EBITDA): n/a (0.06 %)
* Earnings After Tax: - 2,374 KSEK (- 589)
* Earning per share: -0.14 SEK (-0.04)

SUMMARY OF Q1-Q3 2014 (2013)
* Net Turnover:  35,835 KSEK (35,032)
* Operating Profit/Loss (EBITDA):  -6,499 KSEK (4,364)  
* Operating Margin (EBITDA):  n/a (12.46 %)
* Earnings After Tax:  -9,690 KSEK (860)
* Earning per share: - 0.59 SEK (0.06)

Significant events

During the period
* 104 million visitors: best ever quarter in terms of traffic.
* New trading venue: Nasdaq OMX First North Premier.
* Jonas Söderqvist new CEO of 203 Web Group. At the same time, Andreas Friis became Chairman and CFO Robert Zettervall took up the position of Deputy CEO.
* myTaste focuses on markets with the possibility of the biggest revenues, reduces staff by 17 people.

After the period
* myTaste’s app for iPhone launched on the Swedish market in November, hits the top spot in the App Store’s list of the most frequently downloaded food and drink apps just a week later.
* Acquisition of Spanish wine store Bodegashop.com agreed in October.
* Board of Directors proposes convertible share issue to strengthen financial position.
* Decreased traffic in Q4 after the last algorithm update from Google. Previously announced deadline for achieving our traffic and member objectives have been extended. Estimated traffic for November is 23 million visitors.

CEO Jonas Söderqvist comments:

With 104 million visitors in Q3, we are proud to present the strongest quarter ever in terms of traffic.

In a very short space of time, myTaste has succeeded in becoming one of the world’s biggest culinary websites. From solely focusing on increasing traffic and members, we have sharpened our focus on revenues during the autumn. In line with this, we have decided to place our resources in the countries where we see revenues being generated in the short term. This has involved 17 people leaving myTaste, mainly from support and administration. One consequence of this is that the Asian and African countries are no longer being offered support in local languages. In the future we will be focusing entirely on the European countries plus Brazil and the US, while the remaining countries will only be offered support in English. The fact that we have seen the biggest growth thus far in these areas and are able to build up local sales and increase revenues in the smallest amount of time, has been instrumental in our decision.

After the latest update from Google, we have seen that organic search engine traffic at myTaste has decreased in all countries apart from two, in which we have been running a new live version of the platform for some time. Traffic increased in these two countries in connection with the update, which is positive as this allows us to identify with certainty the measures required to restore traffic to the remaining countries. The aim is for the new version of the platform to be launched globally in Q4 and to already be able to see the results of this in Q1. For this reason we have decided to extend the previously announced deadline for achieving our traffic objectives.

The first version of the myTaste iPhone app was launched in Sweden at the end of November and within the space of a week, it had climbed to first place in its category. This is an extremely positive development and it will be exciting to follow its launch in the other countries in the future. With a large number of users downloading our app, we are reducing our dependency on Google and becoming less sensitive to any future updates.

It is also pleasing that 203 Creative has regained its profitability after the programme of measures initiated during the summer. Shopello is continuing to grow and the number of affiliated stores is increasing. 203 Brands continues to be stable and the mobile versions launched have had a positive effect on both visitor behaviour and sales. 203 Brands’ acquisition of Möbler.se and its agreement to acquire Bodegashop.com fit into the portfolio extremely well as there are clear synergies with the other brands and fellow subsidiary Shopello.

In order to strengthen our financial position, the Board of Directors has proposed a convertible share issue that will prioritise existing shareholders. The plan is that, combined with greater focus on revenues for myTaste, this share issue will bring the Group into profit.

Jonas Söderqvist, CEO
203 Web Group AB (publ)
jonas.soderqvist@203webgroup.se
46 732 512 203 

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203 Web Group AB (publ) is a publicly traded Swedish media group operating sites in 50 countries.