Q2 Interim report January - June 2017
Second quarter
- Net sales amounted to SEK 28.5 (23.7) million
- Profit before depreciation amounted to SEK 2.3 (-5.3) million
- Operating profit amounted to SEK -2.8 (-10.2) million
- Profit before tax amounted to SEK -5.5 (-11.0) million
- Earnings per share before dilutions amounted to SEK -0.15 (-0.37)
- Term sheet signed with Link Mobility for acquisition of Vianett AS
First six months
- Net sales amounted to SEK 57.6 (47.2) million
- Profit before depreciation amounted to SEK 4.3 (-8.5) million
- Operating profit amounted to SEK -5.7 (-18.1) million
- Profit before tax amounted to SEK -11.3 (-20.4) million
- Earnings per share before dilutions amounted to SEK -0.33 (-0.67)
CEO statement
Cash-rich and more focused
- creates conditions for growth
The sale of ViaNett to Link Mobility has re-drawn our map and opened new doors. With a pile of cash, we get the opportunity to take our experience from Norwegian customers into the world and execute our global strategy in a market that is growing ever faster.
Q2 outcome
Sales for the second quarter amounted to SEK 28.5 million, which is an increase of SEK 4.8 million compared to the same period last year. EBITDA amounted to SEK 2.3 million, which is a significant improvement compared to the corresponding period in 2016 when EBITDA amounted to SEK -5.3 million.
This is the third quarter in a row that we have delivered positive results and it is the effect of the turn-around carried out during 2016.
Sales of ViaNett
When Link Mobility first contacted us, we had mixed feelings about a sale of ViaNett. Still there was no doubt to finalize the deal.
After the sale, we got a well-stocked cash box and we can therefore expand globally in a more aggressive way.
At the same time, we get a more focused business.
Switching up
There is a radical change on the advertising market mainly due to that the amount of available and communicated data is currently increasing explosively.
This opens for insight driven market products where the selection of giant data volumes takes place quickly and the decision bases get a completely different precision than ever before.
In this segment, TargetEveryone sees its future and where we will compete for the billions of dollars still going to traditional marketing accounts.
TargetEveryone has successfully built up the Norwegian market in recent years. We have signed contract with one of the largest operators in the world, Telenor, and we have established a network of partners in the advertising and media industry.
These are resellers for TargetEveryone and with their help, we have doubled our revenue in the first half year.
During the quarter, we have hired a country manager for Sweden and also signed a contract with a very attractive partner in Portugal. Previously, we have partners in Holland, the US and the Caribbean.
We now take our knowledge from the Norwegian market into the world and establish ourselves as an international player.
During the fall, we will present several interesting business and collaborations where a breakthrough in Africa is high on the agenda. This investment is possible as we now have cash available.
Forecast 2017
The sale of ViaNett will affect our existing forecast for 2017.
We will reduce our revenues and increase our capital gains. Exactly how this will affect our business, we do not know right now, but we expect to publish new figures for the whole of 2017 within a couple of weeks and also present a more aggressive strategy for the future.
Finally, I would like to take this opportunity to thank all employees and colleagues who have worked hard and contributed to our result. Thanks! Without your efforts, we had not reached this far.
STOCKHOLM, AUGUST 2017
BJØRN FORSLUND, CEO
Upcoming reports
Interim Report January - September 2017
14 November, 2017
Year End Report - 2017
13 February, 2018
For complete report see attached document
Stockholm August 2017
Bjørn Forslund CEO
For further information contact:
Bjørn Forslund, CEO,
+47 484-83-838,
bjorn@targeteveryone.com
Jan Benjaminson, CFO,
+46 70-666-93-88,
jan@targeteveryone.com
Certified Adviser:
Mangold Fondkommission AB (556585-1267)
Box 55 691
102 15 Stockholm
Telephone: +46 8 503 015 50
www.mangold.se
About TargetEveryone
TargetEveryone helps companies at a strategic level to establish an effective digital 1 to 1 marketing in a cost-effective manner. The service is offered as a cloud service, where activation of customers occurs instantaneously and no installation required on the client side. TargetEveryone has over 2,000 customers in more than 100 countries and strong growth as marketing expenses are being transferred from traditional media to digital media. Customers include CLX, Link Mobility, Nespresso, Norwegian, Vita, Circle K and Biltema.