Tradedoubler year-end report January - December 2016
Improved financial performance
THE FOURTH QUARTER OCTOBER - DECEMBER 2016
- Net sales amounted to SEK 346 M (400). Net sales excluding change related items were SEK 343 M (400), a decrease of 14%.
- Gross profit excluding change related items was SEK 78 M (85), a decrease of 8% or 8% adjusted for changes in exchange rates. Gross margin excluding change related items increased to 22.7% (21.2).
- Operating costs excluding depreciation and change related items were SEK 65 M (90), a decrease of 28%.
- EBITDA amounted to SEK -2 M (-17). Excluding change related items, EBITDA was SEK 13 M (-6).
- Capitalised expenses for product development were SEK 9 M (16).
- Cash flow from operating activities was SEK 20 M (56) and the sum of cash and interest-bearing financial assets was SEK 210 M (347) at the end of the fourth quarter. Net cash in the fourth quarter increased by SEK 40 M to SEK 16 M.
- Earnings per share, before and after dilution were SEK –0.38 (-3.33).
- In October Viktor Wågström was appointed CFO permanently.
- During November and December Tradedoubler repurchased own bonds for SEK 27.9 M which nominal value amounted to a total of SEK 54 M.
- In December 2016 Tradedoubler decided to restructure its service organisation and move all services and support to the local offices in the markets. As a consequence of that the local teams in the markets will be strengthened and the central service hub in Telford, UK will be closed.
- In December remaining shares of the French affiliate marketing company R-Advertising were acquired.
THE FULL YEAR 2016
- Net sales amounted to SEK 1,344 M (1,624). Net sales excluding change related items were SEK 1,339 M (1,629), a decrease of 18%.
- Gross profit excluding change related items was SEK 297 M (336), a decrease of 12% or 10% adjusted for changes in exchange rates. Gross margin excluding change related items increased to 22.2% (20.7).
- Operating costs excluding depreciation and change related items were SEK 286 M (348), a decrease of 18%.
- EBITDA amounted to SEK -6 M (-36). Excluding change related items, EBITDA was SEK 11 M (-11).
- Capitalised expenses for product development were SEK 36 M (44).
- Cash flow from operating activities was SEK -64 M (19).
- Earnings per share, before and after dilution were SEK -1.18 (-4.48).
- In January 2016, Reworld Media S.A. increased its ownership in Tradedoubler from 17.8% to 29.95%.
- Tradedoubler expands to Asia with the opening of an office in Singapore.
- In June Tradedoubler announced a minority investment in the video company DynAdmic.
- In July 2016 Tradedoubler purchased a minority share in the French affiliate marketing company R-Advertising and in December the remaining shares in the company were acquired.
- The board proposes that no dividend should be declared for 2016. No dividend was declared for 2015.
CEO MATTHIAS STADELMEYER’S COMMENTS
“In Q4 Tradedoubler had an improved financial performance with a positive trend in the underlying business and a significantly improved cost base.
The increase of the Gross Profit margin reflects this positive trend and a shift in the balance of the product mix. The newly established product TD ENGAGE has a higher margin than the traditional TD CONVERT business.
Efficiency measures that were initiated during the year decreased the cost base of the company significantly and led to a positive EBITDA result for Q4 and the financial year 2016 excluding change related items.
The good progress we made during 2016 will help us to realise our ambitious plans for 2017. We will continue to develop our targeting capabilities based on data which includes developments to further strengthen our tracking and machine-learning capabilities. During 2017 we will as well release new interfaces of our platform for our clients and partners.
These measures will strengthen our core products TD CONVERT and TD CONNECT as well as our new product TD ENGAGE and help us to expand our offering further to address a broader digital market and establish our presence in new growth regions outside Europe.”
Matthias Stadelmeyer, President and CEO, telephone +46 8 405 08 00
Viktor Wågström, CFO, telephone +46 8 405 08 00
This information is information that Tradedoubler AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CET on 2 February 2017. Numerical data in brackets refers to the corresponding periods in 2015 unless otherwise stated. Rounding off differences may arise.