Strong close to 2010
(Numerical data in brackets refers to the corresponding period in 2009 unless otherwise stated).
January – December 2010
· Net sales decreased by 6% to SEK 2,840 M (3,014).
· Gross profit decreased by 5% to SEK 658.4 M (690.0). Adjusted for changes in foreign exchange rates, gross profit increased by 3%.
· Operating profit (EBIT) amounted to SEK 82.5 M (-105.1). Adjusted for changes in foreign exchange rates and non-recurring costs of SEK -180.3 M for 2009, operation profit increased by SEK 12.3 M.
· The cash flow from operating activities was SEK -5.8 M (64.7), which was mainly due to changes in working capital at the start of the year.
· Profit after tax amounted to SEK 61.3 M (-178.5).
· Earnings per share amounted to SEK 1.44 (-5.31).
· The number of full-time employees/FTEs totalled 525 (579) as of 30 December 2010.
· The Board proposes that no dividend should be declared for 2010.
October – December 2010
· Net sales increased by 6% to SEK 772.1 M (725.4).
· Gross profit increased by 5% to SEK 181.1 M (172.3). Adjusted for changes in foreign exchange rates, the increase was 12%.
· Operating profit (EBIT) rose by 56% to SEK 32.2 M (20.6). Adjusted for changes in foreign exchange rates, the increase was 76%.
· The cash flow from operating activities was SEK 77.6 M (107.2), which was mainly due to net profit for the period, a tax refund and changes in working capital.
· Profit after tax amounted to SEK 20.0 M (5.3).
· Earnings per share amounted to SEK 0.47 (0.16).
CEO’s comments
“We had a strong close to 2010. The market for our core business Network (Affiliate and Campaign) continued to improve during the fourth quarter. Furthermore, TradeDoubler developed better than the market as a whole – a result of the focus we have achieved through a new strategy and a refined organisation. We saw substantial transaction increases in TradeDoubler’s network, particularly as a result of the sharp rise in online Christmas shopping. The currency-adjusted gross profit in Network increased by over 20 per cent, which was partly counterbalanced by declines in Technology and Search. At the same time, the new strategy means that we have faced higher costs in the short-term, first and foremost, relating to the introduction of a new organisation. We have limited the fall in sales in England within Search, reduced the costs and continued to strengthen the sales growth in our focus markets. Within Technology, we have continued to focus the business in order to ensure continued profitable growth. The efforts carried out early in the year within product development have already resulted in new product releases during the fourth quarter. We have advanced our position in many markets during the year and won several important business deals as a result of greater sales focus as well as the improved market situation.
We have implemented several measures aimed at improving efficiency, while at the same time, we have continued to be careful in assuming new costs. All in all, TradeDoubler is well-equipped for 2011. We are continuing the work in relation to our strategic pillars “One world-class performance-based network”, “One cost-efficient company” and “One sales- and results-driven corporate culture”. We have launched our new business structure, market structure and organisation and are working hard in line with our goal of growing faster than the market with scalable profitability.”
Urban Gillström, President and CEO
Presentation of year-end report
A meeting with analysts and the media has been arranged on 8 February at 10 a.m. in TradeDoubler’s premises at Sveavägen 20, Stockholm.
The presentation may also be followed via webcast through the link: https://www.tradedoubler.com/cp-sv/investors/
Or 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 year-end report on: www.tradedoubler.com/ir.
Contact information:
Urban Gillström, President and CEO, telephone +46 (0)707-85 76 00
Erik Skånsberg, CFO, telephone +46 (0)702-64 70 35
ir@tradedoubler.com