Tradedoubler interim report January – June 2017

Continued progress

THE SECOND QUARTER APRIL – JUNE 2017

• Net sales amounted to SEK 285 M (322). Net sales adjusted for change related items were SEK 285 M (322), which was a decrease of 12%.
• Gross profit adjusted for change related items was SEK 62 M (71), a decrease of 12% or 15% adjusted for changes in exchange rates. Gross margin adjusted for change related items was 21.9% (22.0).
• Operating costs excluding depreciation and change related items were SEK 60 M (72), a decrease of 18%.
• EBITDA amounted to SEK -1 M (-2). Adjusted for change related items, EBITDA was SEK 3 M (-2).
• Capitalised expenses for product development were SEK 5 M (8).
• Cash flow from operating activities was SEK -25 M (-76) and the sum of cash and interest-bearing financial assets was SEK 98 M (227) at the end of the second quarter. Net cash in the second quarter decreased by SEK 17 M to SEK -35 M.
• Earnings per share, before and after dilution were SEK 0.04 (-0.26).
• In May Tradedoubler repurchased SEK 61 M of the nominal value of its own bond.

THE INTERIM PERIOD JANUARY – JUNE 2017

• Net sales amounted to SEK 620 M (694). Net sales excluding change related items were SEK 620 M (694), which was a decrease of 11%.
• Gross profit excluding change related items was SEK 134 M (151), a decrease of 11% or 12% adjusted for changes in exchange rates. Gross margin excluding change related items was 21.7% (21.8).
• Operating costs excluding depreciation and change related items were SEK 124 M (157), a decrease of 21%.
• EBITDA amounted to SEK 6 M (-8). Excluding change related items, EBITDA was SEK 11 M (-6).
• Capitalised expenses for product development were SEK 10 M (18).
• Cash flow from operating activities was SEK -55 M (-89).
• Earnings per share, before and after dilution were SEK 0 (-0.66).

CEO MATTHIAS STADELMEYER’S COMMENTS

“In Q2 we continued the progress to lead Tradedoubler to profitability and financial independency. While gross profit decreased on a similar level as in Q1, EBITDA and net profit improved significantly compared to the same period last year.

The revenue and GP trend in Q2 is similar to Q1 and is linked to the loss of larger clients in the UK in the beginning of 2016 and the active closure of unprofitable programs in the second half of 2016. The trend in the underlying business continues to improve with positive year over year comparisons. The effect of this trend can be seen in the results of the different regions. For the reasons mentioned above the UK declined significantly compared to the same period last year while all other regions show stable results.

The gross margin is stable at 21.9%, the slight increase compared to Q1 is linked to seasonal effects.

Operational costs decreased by 18% compared to Q2 last year which is a similar level as in Q1 and reflects improvements in the management and service structure in the company. While we continue the efforts to improve the efficiency of the business we have now finalised all current larger improvement projects.

Cash flow in the interim period was impacted by changes in working capital of SEK -51 M which is mainly explained by reduced prepayment amounts from customers when changing to other payment terms.

Net profit in Q2 improved significantly to SEK 2 M. This result is influenced by the repurchase of SEK 61 M of the nominal value of our own bond.

In Q2 we launched a beta version of a new publisher interface across all markets. The new interface improves the usage of our systems and makes it easier for publishers to sign up to the network and connect to programs. The interface will be finalised based on the feedback from the audiences we are working with in the coming months.

In July we acquired the Swedish technology company Metapic (metapic.se). Metapic provides tools for influencers to create and post collages and links recommending products for advertisers being paid on CPC. It will help us to increase our business with influencers and publishers across all markets and strengthen our network.

In the coming quarters we will make further progress to improve our business continuously to realise our plans for 2017."

Contact information   
Matthias Stadelmeyer, President and CEO, telephone +46 8 405 08 00   
Viktor Wågström, 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 2017. Numerical data in brackets refers to the corresponding periods in 2016 unless otherwise stated. Rounding off differences may arise.

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