Tradedoubler year-end report January - December 2017
THE FOURTH QUARTER OCTOBER – DECEMBER 2017
- Net sales amounted to SEK 295 M (346). Net sales adjusted for change related items were SEK 295 M (343), which was a decrease of 14%.
- Gross profit adjusted for change related items was SEK 66 M (78), a decrease of 16% or 16% adjusted for changes in exchange rates. Gross margin adjusted for change related items was 22.2% (22.7).
- Operating costs excluding depreciation and change related items were SEK 61 M (65), a decrease of 7%.
- EBITDA amounted to SEK 6 M (-2). Adjusted for change related items, EBITDA was SEK 5 M (13).
- Capitalised expenses for product development were SEK 4 M (9).
- Cash flow from operating activities was SEK 10 M (20) and the sum of cash and interest-bearing financial assets was SEK 69 M (210) at the end of the fourth quarter. Net cash in the fourth quarter increased by SEK 8 M to SEK -64 M.
- Earnings per share, before and after dilution were SEK -0.22 (-0.38).
- In November François Pacot was appointed Chief Technology Officer.
THE FULL YEAR 2017
- Net sales amounted to SEK 1,173 M (1,344). Net sales excluding change related items were SEK 1,173 M (1,339), which was a decrease of 12%.
- Gross profit excluding change related items was SEK 260 M (297), a decrease of 12% or 13% adjusted for changes in exchange rates. Gross margin excluding change related items was 22.2% (22.2).
- Operating costs excluding depreciation and change related items were SEK 239 M (286), a decrease of 17%.
- EBITDA amounted to SEK 23 M (-6). Excluding change related items, EBITDA was SEK 22 M (11).
- Capitalised expenses for product development were SEK 18 M (36).
- Cash flow from operating activities was SEK -74 M (-64).
- Earnings per share, before and after dilution were SEK -0.23 (-1.18).
- In February and May Tradedoubler repurchased total SEK 62 M of the nominal value of its own bond.
- In July Tradedoubler acquired the Swedish technology company Metapic.
- The Board proposes that no dividend should be declared for 2017. No dividend was declared for 2016.
CEO MATTHIAS STADELMEYER’S COMMENTS
“During 2017 Tradedoubler focused on profitability and financial independency on which we made progress. The work carried out includes a repositioning of the company, restructures of management and operations, investments into our technology platform and an improved cost and capital structure.
Tradedoubler offers performance marketing solutions for advertisers and publishers who want to grow their business. The main part of this offering is our unique network of connections and market leading technology platform. These are complemented by our programmatic functionalities and business intelligence technology. Instead of offering different products we create solutions that drive results tailored to our clients’ needs. This adapted positioning ensures that Tradedoubler focuses on its core business building on almost two decades of know-how and experience.
In Q4 revenue and GP declined by 14% and 16% respectively which is a weaker year-on-year comparison than in Q3 and is mainly explained by the seasonality of formerly lost business. For the full year of 2017 the GP decline was 12%.
GP margin in Q4 was 22.2% which is lower than in Q3 due to seasonality as well. While the margin varies slightly based on the seasonality of our clients and the client mix it is overall stable.
Operational costs decreased by 7% which still reflects the improvements we made in the management and service structure of the company. The effect in the year-on-year comparison becomes smaller as we have finalized some of the larger improvement projects already in 2016.
EBITDA excluding change related items therefore was SEK 5 M compared to SEK 13 M last year. Including change related items it was SEK 6 M which is an improvement to the SEK -2 M in Q4 2016.
For the full year 2017 EBITDA was SEK 23 M. Excluding change related items it was SEK 22 M.
Capitalized expenses in Q4 were SEK 4 M which is in line with previous quarters and significantly lower than last year.
In the coming quarters we will focus on further improvements of our business to realise our plans for 2018."
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 6 February 2018. Numerical data in brackets refers to the corresponding periods in 2016 unless otherwise stated. Rounding off differences may arise.