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-Dec | Oct-Dec | Change1 | Full Year | Full Year | Change1 |
| 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 sales | 22.7% | 23.7% | 22.7% | 23.5% | ||
| Total costs excluding depreciation | -120.7 | -127.6 | -5.7% | -401.9 | -519.3 | -21.4% |
| Total costs excluding depreciation and change costs | -98.7 | -116.8 | -15.8% | -379.9 | -488.2 | -20.9% |
| 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 sales | -1.2% | 1.2% | 2.7% | 1.0% | ||
| Adjusted EBITDA2 | 16.0 | 17.8 | -14.5% | 75.4 | 53.3 | 46.4% |
| as a percentage of net sales | 3.2% | 3.1% | 3.8% | 2.3% | ||
| Operating profit (EBIT) | -22.1 | -2.1 | 23.5 | 0.0 | ||
| Cash-flow from operating activities | 74.2 | -6.6 | 125.5 | -14.9 | ||
| Net investments in intangible assets | -7.2 | -6.9 | -29.8 | -36.2 | ||
| Earnings per share, SEK | -0.48 | 0.03 | 0.27 | -0.24 | ||
| Cash-flow from operating activities per share, SEK | 1.75 | -0.15 | 2.95 | -0.35 | ||
| Return on equity (12 months) (%) | 2.3 | -1.9 | 2.3 | -1.9 | ||
| 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: https://www.tradedoubler.com/en/about/investors/reports-and-media/presentations/
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.