Positive signs in net sales and good progress in product development
The second quarter April - June 2015
· Net sales amounted to SEK 414 M (411). Excluding change related items net
sales were SEK 419 M (411), an increase of 2% or a decrease of 4% adjusted for
changes in FX rates.
· Gross profit excluding change related items was SEK 84 M (91), a decrease of
8% or 13% adjusted for changes in FX rates.
· Gross margin excluding change related items was 19.9% (22.1%). The decrease
was mainly due to price pressure within affiliate.
· Operating costs, excluding depreciation and change related items, were SEK
90 M (87). This was an increase of 3% or a decrease of 2% adjusted for FX
changes mainly related to fewer staff. Full time equivalents at end of Q2 were
355 (378).
· EBITDA amounted to SEK -13 M (-9). Excluding change related items EBITDA was
SEK -6 M (4).
· Capitalised expenses increased to SEK 8 M (3), due to hiring of more
developers in line with the strategy.
· Earnings per share, before and after dilution, were SEK -0.52 (-0.37).
· Cash flow from operating activities was SEK -32 M (-43) and net cash
decreased by SEK 42 M during the second quarter to SEK 77 M. The sum of cash and
interest-bearing financial assets was SEK 323 M (380) at the end of the second
quarter.
· Bertil Lundell who was appointed as CTO in January 2015 left, as earlier
communicated, the company in June.
· As previously communicated, renegotiations with one major international
client have a negative impact on revenue in 2015.
The Interim period January - June 2015
· Net sales were SEK 846 M (856). Net Sales excluding change related items
were SEK 851 M (856), a decrease of 1% or 8% adjusted for changes in exchange
rates.
· Gross profit excluding change related items was SEK 173 M (192), a decrease
of 10% or 16% adjusted for changes in exchange rates. Gross margin excluding
change related items amounted to 20.3% (22.4)
· Operating costs, excluding depreciation and change related items, were SEK
176 M (176). This was a decrease of 0% or 6% adjusted for changes in exchange
rates.
· EBITDA amounted to SEK -17 M (3). EBITDA adjusted for change related costs
was SEK -3 M (16).
· Cash flow from operating activities amounted to SEK -30 M (-119).
· Earnings per share, before and after dilution, amounted to SEK -0.76 (
-0.28).
· Tradedoubler finalised its Nordic regional structure and closed its office
in Norway with limited one off costs.
· The German technology company Adnologies was acquired to support the new
corporate strategy. The impact from Adnologies upon the results year to date
were limited.
· French media company Reworld Media S.A. acquired 19.1 per cent of
Tradedoubler’s share mainly from Monterro 1A AB and thus became the largest
shareholder in the company.
FINANCIAL Apr Apr Jan Jan Change Full year 2014
OVERVIEW, SEK M -Jun -Jun -Jun -Jun %
2015 2014 2015 2014
Net sales 419 411 851 856 -1% 1 743
excluding change
related items
Gross profit 84 91 173 192 -10% 379
excluding change
related items
Gross margin 19,9% 22,1% 20,3% 22,4% 21,7%
(%)
Operating costs -90 -87 -176 -176 0% -339
excl. depr. and
change related
costs
EBITDA excluding -6 4 -3 16 -118% 39
change related
items
EBITDA-margin -1,4% 0,9% -0,3% 1,8% 2,3%
(%)
Change related -7 -12 -14 -12 -20
items 1)
EBITDA -13 -9 -17 3 -609% 20
Impairment 0 0 0 0 -60
goodwill
Operating profit -19 -14 -29 -7 -63
(EBIT)
Net investments -8 -3 -23 -7 -17
in non-financial
fixed assets
(Capitalized
expense)
Cash-flow from -32 -43 -30 -119 -110
operating
activities
Liquid assets 323 380 323 380 372
incl financial
investments, at
period's end
Net cash 2), at 77 135 77 135 126
period's end
1) Change
related items
during Q2
2015 that
impacted net
sales
related to an
adjustment for
errors in
recurring
invoicing to
one large
customer since
mid
2013. Change
related costs
are
mainly related
to severance
payments.
2) Current
investment and
liquid
assets less
interest-bearing
liabilities.
CEO MATTHIAS STADELMEYER’S COMMENTS ON THE SECOND QUARTER OF 2015
“The underlying gross profit development during the second quarter was in line
with the year-on-year trend of previous quarter. However, the development within
different markets varies considerably due to specific market reasons and our own
performance. We see good results and year-on-year revenue growth in the United
Kingdom, Germany, Spain, Sweden and Poland while especially France is more
challenging. Total operating costs increased compared to the first quarter 2015
due to higher product development costs in line with the strategy. Capitalised
product development expenditure was on the same level as in the previous
quarter.
During the second quarter we made good further progress with the realisation of
our new offerings. We are currently running test campaigns in selected markets
using integrated Tradedoubler and Adnologies technology and are seeing
encouraging results. In September, we will have a beta product to further test
and develop together with selected clients.
While we continue to roll out ADAPT, our market-leading business intelligence
tool, we are adding new functionalities and are in the process of incorporating
data relating to online user journeys. This is a major step forward and enables
clients to have great insights into how their consumers interact with
performance channels.
We have more exciting launches planned during the second half of 2015 focusing
on new solutions that deliver data-driven insights and functionalities that help
us to create smarter performance marketing results for our clients.
With these new offerings we are extending our addressable market considerably
and we are now in the process of strengthening our commercial teams in the
markets to ensure that we will be able to take full advantage of the market
potential”
Presentation
This interim report will be presented at a teleconference on the 23th of July
2015 at 10.00 a.m. CET. To follow the presentation, please dial (SE) +46
8 566 426 90, (UK) +44 203 428 14 33 or (US) +1 855 831 59 45. 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 23th
of July 2015 at 08.00 a.m. CET. Numerical data in brackets refers to the
corresponding periods in 2014 unless otherwise stated. Rounding off differences
may arise.
Tradedoubler interim report January – June 2015
| Source: TradeDoubler AB
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