Tradedoubler interim report January - June 2016

Expanding offering with strategic investments

THE SECOND QUARTER APRIL - JUNE 2016

• Net sales amounted to SEK 322 M (414). Net sales excluding change related items were SEK 322 M (419), a decrease of 23%.
• Gross profit excluding change related items was SEK 71 M (84), a decrease of 15% or 13% adjusted for changes in exchange rates. Gross margin excluding change related items increased to 22% (20).
• Operating costs excluding depreciation and change related items were SEK 72 M (90), a decrease of 19%.
• EBITDA amounted to SEK -2 M (-13). Excluding change related items, EBITDA was SEK -2 M (-6).
• Capitalised expenses for product development were SEK 8 M (8).
• Cash flow from operating activities was SEK -76 M (-32) and the sum of cash and interest-bearing financial assets was SEK 227 M (323) at the end of the second quarter. Net cash in the second quarter decreased by SEK 96 M to SEK -21 M.
• Earnings per share, before and after dilution were SEK –0.26 (-0.52).
• Tradedoubler expands to Asia with the opening of an office in Singapore.
• In June Tradedoubler announced a minority investment in the video company DynAdmic.

THE INTERIM PERIOD JANUARY – JUNE 2016

• Net sales amounted to SEK 694 M (846). Net sales excluding change related items were SEK 694 M (851), a decrease of 18%.
• Gross profit excluding change related items was SEK 151 M (173), a decrease of 12% or 10% adjusted for changes in exchange rates. Gross margin excluding change related items increased to 22% (20).
• Operating costs excluding depreciation and change related items were SEK 157 M (176), a decrease of 10%.
• EBITDA amounted to SEK -8 M (-17). Excluding change related items, EBITDA was SEK -6 M (-3).
• Capitalised expenses for product development were SEK 18 M (20).
• Cash flow from operating activities was SEK -89 M (-30).
• Earnings per share, before and after dilution were SEK –0.66 (-0.76).
• In January 2016, Reworld Media S.A. increased its ownership in Tradedoubler from 17.8% to 29.95%.
• Tomas Ljunglöf, CFO of Tradedoubler resigned in December 2015 and left the company after the Annual General Meeting on 3 May. Viktor Wågström, previous Head of group accounting, will be interim CFO until a permanent CFO is appointed.

CEO MATTHIAS STADELMEYER’S COMMENTS

“The underlying gross profit trend in Q2 (excluding previously communicated losses) is in line with recent quarters. These year-on-year losses will start to phase out from Q3 as they are the result of client losses during 2014 and the first half of 2015. Throughout the first half of this year we have placed an increased focus on efficiencies and this has resulted in a reduction in costs and an improved EBITDA.

We have rolled out our full service programmatic solution, TD ENGAGE, in the UK and Germany and are already seeing encouraging results and interest from clients.  We will roll out TD ENGAGE in all other markets during Q3.

During the first half of 2016 we took a minority share in DynAdmic, a company specialising in targeted contextual video, and we also took a minority share in R-Advertising, an affiliate marketing company.  These strategic investments allow us to expand the scope of our customer-focused digital marketing offering.

In June we opened an office in Singapore to capitalise on the many opportunities that we see in the developing South East Asian e-commerce market. We are already having positive conversations and first signatures with both existing and new clients about working with them in the region.

During the second quarter we enhanced our market-leading tracking solution with the launch of Cross Device tracking in the UK, Germany and France and we will roll this out in other markets during Q3. In Q3 2015 we launched Cookieless tracking which is already delivering measurable results. We estimate that Cross Device will have an even greater impact on revenue generation as it significantly improves the sophistication and accuracy of our tracking.

We have ambitious plans to expand our offering: we will continue to develop new technologies that enhance our capabilities; we will seek out further strategic partnerships and acquisitions that extend our client-focused offering and will open new offices where we see the opportunity to develop our business. 

The positive developments during the first half of 2016 and our ambitious future plans mean that we are continuing to make good progress with bringing Tradedoubler back to profitable growth.”

Stockholm – 30 August 2016

Matthias Stadelmeyer

Contact information
Matthias Stadelmeyer, President and CEO, telephone +46 8 405 08 00
Viktor Wågström, interim CFO, telephone +46 8 405 08 00
E-mail: ir@tradedoubler.com

Other information
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 30 August 2016. Numerical data in brackets refers to the corresponding periods in 2015 unless otherwise stated. Rounding off differences may arise.