Tradedoubler Interim Report January – September 2019

The third quarter July – September 2019

• Net sales amounted to SEK 280 M (292), a decrease of 4% or 6% adjusted for changes in exchange rates.
• Gross profit was SEK 62 M (65), a decrease of 5% or a decrease of 7% adjusted for changes in exchange rates. Gross margin was 22.0% (22.3).
• Operating costs excluding depreciation and change related items were SEK 48 M (52), a decrease of 7% or 9% adjusted for changes in exchange rates.
• EBITDA amounted to SEK 12 M (12). Adjusted for change related items, EBITDA was SEK 13 M (13).
• Activated expenses for product development were SEK 5 M (5).
• Cash flow from operating activities was SEK -37 M (-2) and the sum of cash and interest-bearing financial assets was SEK 25 M (47) at the end of the third quarter. Net cash in the third quarter decreased by SEK - 42M (8) to SEK -113 M (-69).
• Earnings per share, before and after dilution were SEK -0.14 (0.03).

The interim period January – September 2019

• Net sales amounted to SEK 876 M (863), an increase of 2% or a decrease by 1% adjusted for changes in exchange rates.
• Gross profit was SEK 193 M (196), a decrease of 2% or 4% adjusted for changes in exchange rates. Gross margin was 22.0% (22.7).
• Operating costs excluding depreciation and change related items were SEK 157 M (168), a decrease of 7% or 9% adjusted for changes in exchange rates.
• EBITDA amounted to SEK 32 M (25). Adjusted for change related items, EBITDA was SEK 36 M (28).
• Activated expenses for product development were SEK 16 M (13).
• Cash flow from operating activities was SEK -25 M (-11).
• Earnings per share, before and after dilution were SEK -0.35 (0.24).
• 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 12 M, net profit by -0.6 M, cash flow from operating activities by SEK 11 M and cash flow from financing activities by SEK -11 M. The effect on the opening balance sheet amounted to SEK 46 M. Comparative figures have not been restated.
• In the third quarter Tradedoubler finalized an arms-length re-negotiation regarding its current loan agreement with the Company’s principal owner Reworld Media S.A. The Company has increased its current facility with Reworld Media S.A from SEK 40 M to a total of SEK 138 M (EUR 13.45 M) in order to repay the Company’s SEK 71 M loan to a Swedish credit institution. The facility with Reworld Media S.A. is on market terms, and the majority of the facility has a maturity in 2026 with an interest rate less than half of the previous loan with the Swedish credit institution.

CEO Matthias Stadelmeyer’s comments

“Tradedoubler’s results in the third quarter of 2019 are similar to Q2. The slow-down that we face across some clients and markets continued over summer and results have therefore been lower than expected in Q3 as well. While these reduced spendings across some clients, markets and categories have an impact on our numbers at the moment, we do not see them as a wider structural challenge. 

Margins are on similar levels as in recent quarters and like last year, the smaller deviations are due to seasonality and smaller changes in the product mix.

Costs have been slightly lower and adapted to the cool down of our business, but in general costs are on the same level as in recent quarters and like last year as well.

Despite the slight slowdown in spring and summer we generally 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 7 November 2019. Numerical data in brackets refers to the corresponding periods in 2018 unless otherwise stated. Rounding off differences may arise.