TRADEDOUBLER AB (PUBL) INTERIM REPORT JANUARY-SEPTEMBER 2010
Network Increased sales for Network in the third quarter
(Numerical data in brackets refers to the corresponding period in 2009 unless otherwise stated.)
January - September 2010
· Net sales decreased by 10% to SEK 2,068 M (2,289). In local currencies, net sales declined by 2%.
· Gross profit decreased by 8% to SEK 477.3 M (517.6).
· Operating profit (EBIT) amounted to SEK 50.3 M (-125.7).
· The cash flow from operating activities was SEK -83.4 M (-42.5), which was mainly due to changes in working capital after the rights issue.
· Profit after tax amounted to SEK 41.3 M (-183.7).
· Earnings per share amounted to SEK 0.97 (-6.43).
· The number of employees (full-time equivalents) amounted to 534 (580) as of 30 September.
· Net sales decreased by 2% to SEK 697.9 M (710.7). In local currencies, net sales increased by 6%.
· Gross profit increased by 8% to SEK 154.7 M (143.4).
· Operating profit (EBIT) amounted to SEK 24.8 M (-185.9).
· The cash flow from operating activities was SEK 21.5 M (-53.2), which was due to better earnings, a tax refund and changes in working capital.
· Profit after tax amounted to SEK 11.3 M (-237.1).
· Earnings per share amounted to SEK 0.26 (-8.29).
· The number of employees (full-time equivalents) decreased by 53 during the quarter.
"We see a continued improvement in sales within the core business Network (Affiliate and Campaign) due to the company's focus on this area and a continued favourable advertising climate. In our largest region, Southern Europe, the gross profit rose by 14 per cent in local currency during the quarter. The gross profit in Northern and Eastern Europe also improved. The service area Search in the UK was marked by a continued decline. Overall improvement measures taken are gradually having an impact on the Group. The work on boosting sales through strong product development has resulted in improved tracking and targeting with immediate effects for our customers. At the same time, a long-term investment in mobile and social media has been initiated. We have increased our efforts with the local companies and have seen clear results from better operational follow-up and strong internal control.
We continued to focus on costs and cash flow during the quarter. The number of employees has been reduced by holding back on recruitment, which has resulted in lower personnel costs. The work is now continuing to boost sales and maintain cost control, while at the same time, executing strategic and necessary long-term changes.
In October, we presented a new strategic focus, whose pillars are "One performance-based world-class network", "One cost-efficient company", and "One sales and results-driven corporate culture". In line with this strategy, improvements are now being made to the business structure, market structure and organisation. The goal is to grow faster than the market with scalable profitability. "
Urban Gillström, President and CEO
Presentation of interim report
A meeting with analysts and the media has been arranged on 3 November at 11 a.m. in TradeDoubler's premises at Sveavägen 20, Stockholm.
The presentation may also be followed via telephone:
Sweden: +46 (0)8 - 5352 6440
UK +44 20 7138 0824
US: +1 212 444 0481
The presentation material will be published concurrently with the quarterly report on: www.tradedoubler.com/ir
Urban Gillström, President and CEO, telephone +46 (0)70-785 76 00
Erik Skånsberg, CFO, telephone +46 (0)70-264 70 35