Tradedoubler interim report January – September 2015


First important product launches to support new positioning
The third quarter July - September 2015

  · Net sales amounted to SEK 378 M (424), a decrease of 11% or 16% adjusted for
changes in exchange rates.
  · Gross profit excluding change related items was SEK 79 M (91), a decrease of
13% or 17% adjusted for changes in FX rates.
  · Gross margin excluding change related items decreased to 20.9% (21.4%),
mainly due to price pressure within affiliate.
  · Operating costs, excluding depreciation and change related items, were SEK
82 M (79). This was an increase of 4% or 1% adjusted for changes in exchange
rates.
  · EBITDA amounted to SEK -3 M (18). Excluding change related items, EBITDA was
SEK -3 M (12).
  · Capitalised expenses increased to SEK 8 M (3), due to increased product
development in line with strategy.
  · Earnings per share, before and after dilution, were SEK -0.40 (0.12).
  · Cash flow from operating activities was SEK -7 M (30) and the sum of cash
and interest-bearing financial assets was SEK 310 M (410) at the end of the
period. Net cash decreased by SEK 13 M during the third quarter to SEK 64 M.
  · As previously communicated, the loss of a major international client is
having a negative impact on net sales in 2015. This is the first quarter during
which revenue and gross profit was significantly affected by the loss of this
client.
  · A new share issue of 3,120,000 C-shares, relating to a long-term incentive
program for management, was conducted in accordance with previous AGM decision.

The Interim period January - September 2015

  · Net sales were SEK 1,224 M (1,280). Net sales excluding change related items
amounted to SEK 1,229 M (1,280), a decrease of 4% or 10% adjusted for changes in
exchange rates.
  · Gross profit excluding change related items was SEK 252 M (283), a decrease
of 11% or 16% adjusted for changes in exchange rates. Gross margin excluding
change related items amounted to 20.5% (22.1).
  · Operating costs, excluding depreciation and change related items, were SEK
258 M (255). This was an increase of 1% or a decrease of 4% adjusted for changes
in exchange rates.
  · EBITDA amounted to SEK -20 M (21). EBITDA adjusted for change related items
was SEK -6 M (28).
  · Cash flow from operating activities amounted to SEK -37 M (-88).
  · Earnings per share, before and after dilution, were SEK -1.16 (-0.15).
  · 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 cash flow, as well as the
results were limited during the interim period.
  · 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.
  · Bertil Lundell, who was appointed as CTO in January 2015, left the company
in June.

FINANCIAL      Jul-Sep  Jul-Sep   Change  Jan-Sep  Jan-Sep   Change  Full year
OVERVIEW, SEK     2015     2014        %     2015     2014        %       2014
M
Net sales          378      424   -10,8%    1 229    1 280    -4,0%      1 743
excluding
change
related items
Gross profit        79       91   -13,1%      252      283   -11,0%        379
excluding
change
related items
Gross margin     20,9%    21,4%             20,5%    22,1%               21,7%
(%)
Operating          -82      -79     4,0%     -258     -255     1,0%       -339
costs excl.
depr. and
change
related costs
EBITDA              -3       12                -6       28  -121,0%         39
excluding
change
related items
EBITDA-margin    -0,8%     2,9%             -0,5%     2,2%                2,3%
(%)
Change               0        6               -14       -6                 -20
related items
1)
EBITDA              -3       18  -116,3%      -20       21  -190,9%         20
Impairment           0        0                 0        0                 -60
goodwill
Operating           -9       13               -38        5                 -63
profit (EBIT)
Net profit         -17        5               -49       -6                 -82
Net                 -8       -3               -28      -11                 -17
investments
in non
-financial
fixed assets
(Capitalised
development
expenses
during the
period)
Cash flow           -7       30               -37      -88                -110
from
operating
activities
Liquid assets      310      410               310      410                 372
incl
financial
investments,
at period's
end
Net cash 2),        64      165                64      165                 126
at period's
end

1) For more
information
regarding
change
related items
see page 7
2) Current
investment
and liquid
assets less
interest
-bearing
liabilities

CEO MATTHIAS STADELMEYER’S COMMENTS ON THE THIRD QUARTER OF 2015
“During the third quarter, gross profit in our core business Performance
marketing – excluding the effects of the loss of one larger international
customer – decreased roughly in line with the year-on-year trend of the previous
quarter. However, the development within different markets varied considerably
due to underlying market trends and our own performance. In the third quarter,
we saw good results particularly in Sweden and Poland, which both grew year-on
-year gross profit in local currency, while France and Switzerland were more
challenging.

We are making good progress with the development of new solutions that will
enable us to expand our addressable market. Our new performance marketing
solution has been running in Germany, Sweden, Spain and Italy since August and
has a dedicated group of 10 employees. At the end of October, 20 customers were
testing this beta product with encouraging initial results on click-through and
conversion rates. We are refining our offering as we roll it out and scale it
further with more clients and will launch a full commercial product during the
first half of 2016.

During the third quarter we launched Cookieless Tracking and in October User
Journey Reporting within ADAPT. Cookieless Tracking increases the accuracy and
reliability of our tracking, ensuring the best results for our clients. User
Journey Reporting is a groundbreaking new solution that enables our clients to
optimise their digital marketing activity and generate a higher ROI. No other
performance marketing company is currently able to deliver such detailed insight
into the online behaviour of customers.

These product launches will create smarter results for our clients and, together
with a strengthened sales force, improve results for Tradedoubler.”
Presentation
This interim report will be presented at a teleconference on the 12th of
November 2015 at 10.00 a.m. CET. To follow the presentation, please
dial (SE) +46 8 566 426 61, (UK) +44 203 428 14 10 or (US) +1 646 502 51 17. 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 12th
of November 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.

Attachments

11115435.pdf