Tradedoubler Interim Report January - September 2018
The third quarter July - September 2018
• Net sales amounted to SEK 292 M (258). Net sales adjusted for change related items were SEK 292 M (258), an increase of 14% or 5% adjusted for changes in exchange rates.
• Gross profit adjusted for change related items was SEK 65 M (60), an increase of 8% or 0% adjusted for changes in exchange rates. Gross margin adjusted for change related items was 22.3% (23.4).
• Operating costs excluding depreciation and change related items were SEK 52 M (54), a decrease of 3%.
• EBITDA amounted to SEK 12 M (10). Adjusted for change related items, EBITDA was SEK 13 M (7).
• Capitalised expenses for product development were SEK 5 M (5).
• Cash flow from operating activities was SEK -2 M (-29) and the sum of cash and interest-bearing financial assets was SEK 47 M (61) at the end of the third quarter. Net cash in the third quarter decreased by SEK 8 M to SEK -69 M.
• Earnings per share, before and after dilution were SEK 0.03 (0).
The interim period January - September 2018
• Net sales amounted to SEK 863 M (878). Net sales adjusted for change related items were SEK 863 M (878), which was a decrease of 2%.
• Gross profit adjusted for change related items was SEK 196 M (195), an increase of 1% or a decrease of 5% adjusted for changes in exchange rates. Gross margin adjusted for change related items was 22.7% (22.2).
• Operating costs excluding depreciation and change related items were SEK 168 M (178), a decrease of 6%.
• EBITDA amounted to SEK 25 M (17). Adjusted for change related items, EBITDA was SEK 28 M (17).
• Capitalised expenses for product development were SEK 13 M (15).
• Cash flow from operating activities was SEK -11 M (-84).
• Earnings per share, before and after dilution were SEK 0.24 (0).
• In March Tradedoubler announced a tender offer and a written procedure of its outstanding bonds due in 2018.
• The final result of the tender offer and written procedure was announced in April where the request received acceptance by 100 per cent. Approx. 96 per cent of the adjusted nominal amount participated in the written procedure and approx. 95 per cent of the adjusted nominal amount did also tender their bonds. Payment to the bondholders was made on May 16 2018.
• In May Tradedoubler signed a new financing agreement with a Swedish credit institution of SEK 71. In addition, the company entered into a loan agreement with its principal owner Reworld Media S.A for SEK 40 M. Tradedoubler also announced that conditions are examined for a preferential share issue in the nearer future. The conditions have now been examined and it is concluded not to do this now, however the company keeps the option open to act if needed in the future.
Important events after the balance sheet date
• On 10 October 2018 Tradedoubler received a letter of intent from its largest shareholder Reworld Media S.A concerning an indicative interest concerning a public takeover offer for the company’s shares.
CEO Matthias Stadelmeyer’s comments
“Tradedoubler’s results in the third quarter 2018 are on similar levels as in the second quarter with some further improvements on revenue and EBITDA. The results confirm the improved trend we see in our business.
The positive development of revenue with a currency adjusted increase of 5 per cent in Q3 compared to the same quarter last year is linked to additional business both from new and from existing clients. As the new business we won is from larger clients it has lower margins which is the reason for a lower effect on gross profit and a slightly decreased margin compared to last year.
Stable gross profit of SEK 65 M and lower operational costs of SEK 52 M result in an EBITDA of SEK 13 M. The improvement on costs is linked to previously taken measures to improve our way of working as well as to seasonality in Q3. The cost base we work on now in 2018 is generally on the level we expect it to be which is also the case for capitalised expenses.
As previously communicated we examined the conditions of implementing a preferential share issue. While we concluded not to do this now, we keep the option open to act if we think it is needed in the future.”
Matthias Stadelmeyer, President and CEO, telephone +46 8 405 08 00
Viktor Wågström, CFO, telephone +46 8 405 08 00
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 07.00 CET on 8 November 2018. Numerical data in brackets refers to the corresponding periods in 2017 unless otherwise stated. Rounding off differences may arise.