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.
Change %2Jan-Jun
Change %2Full Year
Net sales411490-21%8561,018-20%2,001
Gross profit91114-25%192233-22%455
Gross margin (%)22%23%22%23%23%
Total costs excl. depreciation and change related costs-87-94-11%-176-195-12%-380
EBITDA adjusted for change related costs420-85%1639-64%75
EBITDA-margin (%) adjusted for change related costs1%4%2%4%4%
Total costs excl. depreciation-99-942%-189-195-6%-402
Operating profit (EBIT)-1415-73024
Net investments in fixed assets-3-9-7-18-32
Cash-flow from operating activities-4317-11922126
Liquid assets incl financial investments, at period’s end380167380167506
Net cash1, at period’s end135167135167262
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.“


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: https://www.tradedoubler.com/en/about/investors/reports-and-media/presentations/


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

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