Full Year Report 2009

January - December 2009

·          Net sales amounted to SEK 3,014 M (3,457).

·          Gross profit (GP) was SEK 690 M (747) and the gross margin amounted to 22.9 (21.6) percent. Gross profit was positively impacted by changes in foreign exchange rates of SEK 37 M compared with the previous year.

·          Operating profit (EBIT) totaled SEK -105 M (150) and the operating margin was -3.5 (4.3) percent. Operating profit was positively impacted by changes in foreign exchange rates of SEK 20 M compared with 2008.

·          Impairment of goodwill of SEK 150 M was carried out, in respect of IMW Group in the UK which was acquired in 2007, due to a weak result and a more conservative assessment of the future development. Non-recurring items amounted to SEK -180 (0) M in total.

·          Operating profit, adjusted for non-recurring items, amounted to SEK 75 M (150). The decline was mainly attributable to lower gross profit, primarily due to lower sales in the UK. 

·          Profit after tax totaled SEK -178 M (94).

·          Earnings per share before/after dilution totaled SEK -5.29 (2.80).

·          The cash flow from operating activities amounted to SEK 65 M (218).

·          A rights issue of SEK 356 M was carried out in December with preferential rights for existing shareholders, which was fully subscribed.

·          The Board of Directors proposes to the Annual General Meeting a dividend of SEK 0.0 (0.0) per share.

October- December 2009

·          Net sales amounted to SEK 725 M (814).

·          Gross profit (GP) was SEK 172 M (195) and the gross margin amounted to 23.7 (24.0) percent. Gross profit was negatively impacted by changes in foreign exchange rates of SEK -3 M compared with the fourth quarter of the previous year.

·          Operating profit (EBIT) totaled SEK 21 M (9) and the operating margin was 2.8 (1.1) percent. Operating profit was negatively impacted by changes in foreign exchange rates of SEK -3 M compared with the corresponding period in 2008. The improvement was due to lower overhead costs which were counterbalanced by lower gross profit. 

·          Profit after tax amounted to MSEK 5 (4).

·          Earnings per share before/after dilution totaled SEK 0.16 (0.11).

·          The cash flow from operating activities amounted to SEK 107 M (88).

CEO's comments

The result for the final quarter of the year was stable and without surprises. My assessment is that we shall maintain our market shares within our main business Affiliate. The decline in sales and gross profit is due to general price pressure and lower demand, mainly owing to the fact that the advertising climate continues to be weak. The integration of td Search and the work on strengthening the sales offering is starting to deliver results. We see an improvement in the UK. TradeDoubler has a customer offering and geographical coverage that is unrivalled by any competitor. Overhead costs were reduced significantly during Q4 2009 compared with the preceding year, owing to cost-saving measures, but gross profit declined at the same rate as previous quarters. The Company is prepared for cost-effective growth, following the fundamental improvements carried out during 2009. Our goal is to attract new customers and to sell more to existing customers and thereby capture market share. This shall happen through continued development of the offering and sales model. The successful rights issue grants us new possibilities and means that we can seize business opportunities, including geographical expansion, on the changing and expanding market for internet marketing.

Örjan Frid, President and CEO

Analyst meeting and conference call:

For more information, please contact:
Örjan Frid, President and CEO, Phone:  + 46 8 - 405 08 00
orjan.frid@tradedoubler.com

Thord Norberg, CFO, Phone: + 46 8 - 405 08 00,
thord.norberg@tradedoubler.com