Tradedoubler Interim Report January - June 2019

The second quarter April – June 2019

• Net sales amounted to SEK 289 M (283), an increase of 2% or 0% adjusted for changes in exchange rates.
• Gross profit was SEK 65 M (66), a decrease of 1% or a decrease of 4% adjusted for changes in exchange rates. Gross margin was 22.5% (23.2).
• Operating costs excluding depreciation and change related items were SEK 56 M (58), a decrease of 4% or 6% adjusted for changes in exchange rates.
• EBITDA amounted to SEK 7 M (6). Adjusted for change related items, EBITDA was SEK 9 M (8).
• Activated expenses for product development were SEK 5 M (5).
• Cash flow from operating activities was SEK 16 M (9) and the sum of cash and interest-bearing financial assets was SEK 39 M (53) at the end of the second quarter. Net cash in the second quarter increased by SEK 6 M to SEK -71 M.
• Earnings per share, before and after dilution were SEK -0.16 (0.29). The decrease in earnings per share compared with the previous year is explained by the profit made last year when repurchasing own bonds below nominal value.

The interim period January – June 2019

• Net sales amounted to SEK 596 M (570), an increase of 4% or 1% adjusted for changes in exchange rates.
• Gross profit was SEK 131 M (131), a change of 0% or a decrease of 3% adjusted for changes in exchange rates. Gross margin was 22.0% (22.9).
• Operating costs excluding depreciation and change related items were SEK 108 M (116), a decrease of 6% or 9% adjusted for changes in exchange rates.
• EBITDA amounted to SEK 20 M (14). Adjusted for change related items, EBITDA was SEK 23 M (15).
• Activated expenses for product development were SEK 10 M (8).
• Cash flow from operating activities was SEK 11 M (-9).
• Earnings per share, before and after dilution were SEK -0.21 (0.21).
• As of 1 January 2019, the company applies IFRS 16 regarding the group’s leasing agreements. The restatement has impacted EBITDA for the period by SEK 8 M, net profit by -0.3 M, cash flow from operating activities by SEK 7 M and cash flow from financing activities by SEK -7 M. The effect on the opening balance sheet amounted to SEK 46 M. Comparative figures have not been restated.

CEO Matthias Stadelmeyer’s comments

“Tradedoubler´s results in the second quarter 2019 are slightly lower than expected, but still in line with the overall trend of recent quarters.

Generally, we faced a slowdown in the business in Q2 across some clients and markets where clients have spent smaller budgets than usual. Reasons for this slow down are mainly individually on client side, but we saw as well a cool down in some industries in some markets like for example in fashion in the Nordics.

The increase of our margin in Q2 compared to Q1 is linked to seasonality, in the year-on-year comparison the margin dropped from 23.2 per cent to 22.5 per cent due to changes in the client portfolio and linked changes in the product mix.

Costs are on the same level as recent quarters but lower than last year which results in similar EBITDA and EBITDA margin levels.

The perception or our new interfaces in the markets and by clients and partners is very positive and we see good adaption rates of new functionalities that are constantly added to our client’s accounts. These help our clients and partners to connect and work efficiently, it helps Tradedoubler as well with its positioning and perception in the market.

Despite the slight slowdown in Q2 we develop according to our plans and we continue on our mission to continuously improve our business by creating growth for our clients and partners.”

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 18 July 2019. Numerical data in brackets refers to the corresponding periods in 2018 unless otherwise stated. Rounding off differences may arise.