A quarter of change
The second quarter april – june 2014
· Net sales were SEK 411 M (490), a decrease of 16% and 21% adjusted for
changes in exchange rates. More than half of the decline referred to lower
revenues from two pan-European customers, a decline in France largely related to
reductions in the e-mail channel, reductions in non-core business and declines
in markets where offices recently were closed.
· Gross margin amounted to 22.1% (23.2). Gross profit was SEK 91 M (114), a
decrease of 20% and 25% adjusted for changes in exchange rates.
· The gross profit in Q2 decreased by SEK 10 M compared to Q1 2014.
Approximately half of the decline referred to the above mentioned pan-European
customers. Other significant factors included seasonal effects and a decline in
non-core business.
· Operating cost, excluding change related items, was SEK 87 M (94), a
reduction of 8% and 11% adjusted for changes in exchange rates. The reduction
was primarily attributed to the restructuring programme announced at the end of
2013. Staff at end of Q2 2014 was 378 (462).
· EBITDA, excl. change related costs, was SEK 4 M (20).
· Change related costs was SEK 12 M (0) and included tax related items of SEK
6 M referring to offices closures, and dismissals of the former CEO and Chief
Strategy Officer.
· Earnings per share, before and after dilution, was SEK -0.37 (0.17).
· Cash flow from operating activities was SEK -43 M (17) and was affected by
increases in working capital of SEK 37 M.
The interim period january - june 2014
· Net sales were SEK 856 M (1,018), a decrease of 16% and 20% adjusted for
changes in exchange rates.
· Gross margin amounted to 22.4% (22.9) . Gross profit was SEK 192 M (233), a
decrease of 18% and 22% adjusted for changes in exchange rates.
· Operating cost, excluding change related items, was SEK 176 M (195). Change
related costs were SEK 12 M (0) and EBITDA amounted to SEK 3 M (39). EBITDA
adjusted for change related costs was SEK 16 M (39).
· Cash flow from operating activities amounted to SEK -119 M (22) and was
affected by a normalisation of working capital and other changes in working
capital.
· Earnings per share, before and after dilution, amounted to SEK ‑0.28 (0.45).
· Tomas Ljunglöf was appointed CFO in Q1. During Q2 CEO Rob Wilson and Chief
Strategy Officer Andrew Buckman left Tradedoubler. Matthias Stadelmeyer was
appointed acting CEO and Chief Revenue Officer Richard Julin resigned.
Significant events after the period
· Tradedoubler sold its subsidiary in Lithuania and the impact on earnings is
assessed to be immaterial.
FINANCIAL OVERVIEW, Apr Apr Change Jan Jan Change Full
SEK M -Jun -Jun %2 -Jun -Jun %2 Year
2014 2013 2014 2013 2013
Net sales 411 490 -21% 856 1,018 -20% 2,001
Gross profit 91 114 -25% 192 233 -22% 455
Gross margin (%) 22% 23% 22% 23% 23%
Total costs excl. -87 -94 -11% -176 -195 -12% -380
depreciation and
change related
costs
EBITDA adjusted for 4 20 -85% 16 39 -64% 75
change related
costs
EBITDA-margin (%) 1% 4% 2% 4% 4%
adjusted for change
related costs
Total costs excl. -99 -94 2% -189 -195 -6% -402
depreciation
EBITDA -9 20 3 39 -92% 53
Operating profit -14 15 -7 30 24
(EBIT)
Net investments in -3 -9 -7 -18 -32
fixed assets
Cash-flow from -43 17 -119 22 126
operating
activities
Liquid assets incl 380 167 380 167 506
financial
investments, at
period's end
Net cash1, at 135 167 135 167 262
period's end
1. Current
investment and
liquid assets
excluding interest
-bearing
liabilities
2. Per cent changes
are adjusted for
changes in exchange
rates
Acting CEO Matthias Stadelmeyer’s comments on the second quarter 2014
“Net sales have continued to decrease and have resulted in lower market share in
the second quarter. Underlying gross profit declined in line with the trend from
the previous quarter. The restructure launched at the end of last year is
progressing according to plan and is still expected to reduce costs by SEK 55 M
on an annual basis, with full impact from the second half of 2014.
We are focusing on generating profitable revenues and increasing operational
efficiency. As mentioned in the previous interim report, several projects are
running in parallel with the overall objective of improving operational
performance, freeing up time for increased client facing activities and
streamlining internal processes. We are also reviewing the company’s strategy. I
see substantial potential for improvements and I am content with the progress
that has been made so far. Nevertheless it will take time until we see the
financial impact of these efforts.
Our solid financial position, active owners and dedicated personnel as well as
our strong product offering and large pan-European network of advertisers and
publishers give us a good foundation to take advantage of an interesting and
rapidly changing European market for performance marketing.“
Presentation
This interim report will be presented at a teleconference on the 25th of July
2014 at 10.00 a.m. CET. To follow the presentation, please dial (SE) +46
8 519 990 30, (UK) +44 207 660 20 77 or (US) +1 855 753 22 34. 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 the 25th
of July 2014 at 08.00 a.m. CET. Numerical data in brackets refers to the
corresponding periods in 2013 unless otherwise stated. Rounding off differences
may arise.
In addition, Tradedoubler has changed the date for the release of the interim
report January – September 2014 to 7 November 2014
Interim report January – June 2014
| Source: TradeDoubler AB
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