Tradedoubler Year-end report January

Strengthened foundations for profitable growth, but disappointing Q4 sales
The fourth quarter October–December 2013

  · Net sales amounted to SEK 504.3 M (567.7), a decrease of 12.0 per cent
adjusted for changes in exchange rates. The volume drop in the non-strategic
campaigns business continued as anticipated during the fourth quarter. Net sales
within the performance marketing segment decreased by 8 per cent, which is the
same y/y trend as in the third quarter.
  · Gross profit amounted to SEK 114.7 M (134.6).
  · During the quarter a restructuring programme was announced. The change
measures are expected to reduce operating costs by SEK 55 M annually with full
impact from the second half of 2014. The programme has affected total costs with
SEK 32.0 M, of which operating costs with SEK 22.0 M and depreciation and
amortization with SEK 10.0 M.
  · EBITDA adjusted for change related costs was SEK 16.0 M (17.8). EBITDA
including change related costs amounted to SEK -6.0 M (6.9). Total costs
excluding depreciation and change related costs were reduced by SEK 18.1 M, or
15.8 per cent adjusted for changes in exchange rates, compared to the same
period last year.
  · Earnings per share, before and after dilution, amounted to SEK -0.5 (0.0).
  · A corporate bond loan with a nominal value of SEK 250 M was issued in
December. Proceeds of SEK 244.6 M after transaction costs were received before
the end of the reporting period.

The full year 2013

  · Net sales amounted to SEK 2,001.3 M (2,307.7), a decrease of 11.5 per cent
adjusted for changes in exchange rates.
  · Gross profit amounted to SEK 455.3 M (541.5).
  · EBITDA adjusted for change related costs increased by 46.4 per cent to SEK
75.4 M (53.3). EBITDA including change related costs amounted to SEK 53.4 M
(22.2), an increase of SEK 31.2 M.
  · Earnings per share, before and after dilution, amounted to SEK 0.3 (-0.2).
  · The Board proposes a dividend of SEK 0.25 (0.0) per share.

Long term financial targets

  · The Board’s long term financial targets are to grow net sales in excess of 5
per cent annually in local currency and deliver an EBITDA/Gross profit-ratio in
excess of 20 per cent over a business cycle.

FINANCIAL OVERVIEW, SEK M     Oct     Oct  Change1     Full  Full Year  Change1
                             -Dec    -Dec              Year
                             2013    2012              2013       2012
Net sales                   504.3   567.7   -12.0%  2,001.3    2,307.7   -11.5%
Gross profit                114.7   134.6   -15.6%    455.3      541.5   -14.4%
as a percentage of net      22.7%   23.7%             22.7%      23.5%
sales
Total costs excluding      -120.7  -127.6    -5.7%   -401.9     -519.3   -21.4%
depreciation
Total costs excluding       -98.7  -116.8   -15.8%   -379.9     -488.2   -20.9%
depreciation and change
costs
average per month           -32.9   -38.9             -31.7      -40.7
EBITDA                       -6.0     6.9  -175.9%     53.4       22.2   161.3%
as a percentage of net      -1.2%    1.2%              2.7%       1.0%
sales
Adjusted EBITDA2             16.0    17.8   -14.5%     75.4       53.3    46.4%
as a percentage of net       3.2%    3.1%              3.8%       2.3%
sales
Operating profit (EBIT)     -22.1    -2.1              23.5        0.0
Cash-flow from operating     74.2    -6.6             125.5      -14.9
activities
Net investments in           -7.2    -6.9             -29.8      -36.2
intangible assets
Earnings per share, SEK     -0.48    0.03              0.27      -0.24
Cash-flow from operating     1.75   -0.15              2.95      -0.35
activities per share, SEK
Return on equity (12          2.3    -1.9               2.3       -1.9
months) (%)
1. Per cent changes are
adjusted for changes in
exchange rates
2. Adjusted for change
-related costs

Presentation

This year-end report will be presented at a teleconference on the 6th of
February 2014 at 10.00 a.m. CET. To follow the presentation, please dial (SE)
+46 8 505 564 81, (UK) +44 207 660 20 77 or (US) +1 877 788 90 23. The
presentation may also be followed via webcast using the link:
http://financials.tradedoubler.com/en-gb/investorrelations

Other

Tradedoubler discloses the information provided herein pursuant to the Swedish
Securities Markets Act. The information was released for publication on 6th of
February 2014 at 08.00 a.m. CET.
The Group’s numbers in this year-end report are recognised excluding
discontinued operations unless otherwise stated. Numerical data in brackets
refers to the corresponding period in 2012 unless otherwise stated. Rounding off
differences may arise.
Tradedoubler Year-end report January–December 2013

Attachments
