Strong start of 2011
(Numerical data in brackets refers to the corresponding period in 2010 unless otherwise stated).
· Net sales increased by 6% to SEK 749.4 M (709.2). Adjusted for changes in exchange rates the rise was 16%.
· Gross profit increased by 2% to SEK 166.7 M (163.9). Adjusted for changes in exchange rates, the rise was 11%.
· Operating profit (EBIT) increased by 109% to SEK 33.6 M (16.0). Adjusted for changes in exchange rates, the increase was 231%.
· Network developed strongly and increased the operating profit by 141% to SEK 32.6 M (13.5). Adjusted for changes in exchange rates, the increase was 283%.
· The cash flow from operating activities was SEK 43.3 M (-79.3).
· Earnings per share amounted to SEK 0.44 (0.07).
· TradeDoubler continued to strengthen its market position.
· Elaine Safier was appointed as Chief Commercial Officer and Leif Eliasson was appointed as Market Unit Leader North East.
Strong improvement in earnings
TradeDoubler began the year strongly and more than doubled its operating profit compared with the first quarter last year. Network accounted for the major part of the group’s operating profit.
Stronger market position
The continued favourable sales trend had a positive impact on the gross profit, which increased by 11 per cent adjusted for changes in exchange rates.
My assessment is that TradeDoubler is continuing to strengthen its market position through an improved offer and greater market presence.
Cost control in a sharpened organisation
The improved profitability is also due to continued cost control in a sharpened organisation.
Six market units were established during the quarter which means that we have advanced our positions closer to customers and partners. Consequently, we now have a stronger local business which is quicker, more empowered, creating more customer value, and providing a better platform for geographical expansion.
It pleases me to see our strong performance in most market units and countries, particularly in North West (UK), in Central (Germany), in France and South East (Italy). North East developed well, while the development in South West was challenging on account of a tough market climate in Spain and organizational changes.
Boost from new products
Our new products within targeting and our mobile offer are appreciated and requested by clients, and also deliver significant customer benefit and immediate results for our clients. This is a contributory factor to the higher profitability.
Established business units Search and Technology
The new stand-alone business units Search and Technology were established during the quarter. In Search, we have continued to execute the plan launched during the autumn aimed at stemming the sales decline in the UK, cutting operational costs, and boosting the international growth. For the most part, this has gone better than planned, but a very tough market climate has continued to prevail in the UK. Search performed very well in the rest of Europe during the first quarter.
Technology developed according to plan and we now have a stable business with a clear plan for achieving profitable growth. Some write-offs and adjustments with negative effects on earnings were charged during the quarter.
New management in place
We completed the recruitment of a number of new members of the group management at the beginning of the year. Consequently, we have broadened and strengthened TradeDoubler’s management team and at the same time, a number of existing managers have been given increased responsibility for market units or business units. In the second quarter, we are fully operative in the new more efficient business-, market- and organisational structure, with the management in place.
Urban Gillström, President and CEO
Presentation of interim report
A meeting with analysts and the media has been arranged on 4 May at 10 a.m. in TradeDoubler’s premises at Sveavägen 20, Stockholm. The presentation may also be followed via webcast through the link:
and by telephone:
Sweden: [+ 46 8 5051 3641]
UK [+44 20 7138 0824]
US: [+1 212 444 0481]
The presentation material will be published concurrently with the interim report on: www.tradedoubler.com/ir.
Urban Gillström, President and CEO, telephone +46 (0)70 785 76 00
Erik Skånsberg, CFO, telephone +46 (0)70 264 70 35