Tradedoubler takes performance marketing to a new level

The third quarter July – september 2014

  • Net sales were SEK 424 M (479), a decrease of 11% or 18% adjusted for changes in FX rates. More than half of the decline referred to lower revenues from two pan-European customers and reductions in non-core business.
  • Gross profit, excl. change related items, was SEK 91 M (107), a decrease of 15% or 21% adjusted for changes in FX rates. Gross margin, excl. change related items, amounted to 21.4% (22.4).
  • Operating costs excl. depreciation and change related items, were SEK 79 M (87), a reduction of 9% or 15% adjusted for changes in FX rates — mainly an effect of the restructure announced at the end of 2013. Staff at end of Q3 2014 was 360 (455).
  • EBITDA, excl. change related items, was SEK 12 M (21).
  • Earnings per share, before and after dilution, were SEK 0.12 (0.30).
  • Cash flow from operating activities was SEK 30 M (29), almost entirely due to a decrease in working capital.

The interim period January – September 2014

  • Net sales were SEK 1,280 M (1,497), a decrease of 14% or 19% adjusted for changes in FX rates.
  • Excluding change related items, gross margin was 22.1% (22.8) and gross profit amounted to SEK 283 M (341), a decrease of 17% or 21% adjusted for changes in FX rates.
  • Operating costs excl. depreciation and change related items, were SEK 255 M (281). Change related items were SEK -6.3 M (0) and EBITDA, excl. these, was SEK 28 M (59).
  • Cash flow from operating activities was SEK -88 M (51) and affected by normalisation of working capital in Q1 after a temporary positive working capital change in Q4 2013.
  • Earnings per share, before and after dilution, amounted to SEK ‑0.15 (0.75).
  • Matthias Stadelmeyer was appointed permanent CEO. A new CFO, Tomas Ljunglöf, was recruited externally. Also, the Chief Strategy Officer, Chief Revenue Officer and CTO left the company.

Significant events after the period

  • A new company strategy was launched in conjunction with this report. For further information, see next page.
  • Current renegotiations with one major international client will have a negative impact on revenue in 2015.
FINANCIAL OVERVIEW, SEK MJul-Sep 2014Jul-Sep 2013Change %2Jan-Sep 2014Jan-Sep 2013Change %2Full Year 2013
Net sales424479-18%1 2801 497-19%2 001
Gross profit excluding change related items91107-21%283341-21%455
Gross margin (%)21,4%22,4%22,1%22,8%22,7%
Operating costs excl. depr. and change related costs-79-87-15%-255-281-13%-380
EBITDA excluding change related items1221-48%2859-58%75
EBITDA-margin (%)2,9%4,3%2,2%4,0%3,8%
Change related items³6-6-22
Operating profit (EBIT)131554624
Net investments in non-financial fixed assets-3-6-11-24-31
Cash-flow from operating activities3029-8851126
Liquid assets incl financial investments, at period’s end410186410186506
Net cash1, at period’s end165186165186262
1. Current investment and liquid assets less interest-bearing liabilities
2. Per cent changes are adjusted for changes in exchange rates
3. Change related items during Q3 2014 relates to a one-off cost of SEK 2 M and a positive one-time adjustment of the publisher debt of SEK 8 M

CEO Matthias Stadelmeyer’s comments on the third quarter 2014

“Underlying gross profit in our core business developed in line with the trend from recent quarters. Adjusted for FX changes and one-offs, operating costs year-to-date were SEK 38 M lower than last year and have compensated for slightly more than half of the total gross profit decline. As previously communicated, the annual cost reduction relating to the restructure at year-end 2013, with full impact from the second half of 2014, is expected to be SEK 55 M. However, the new strategy launched today implies significant expenditures to enhance the core offerings in affiliate and technology as well as build new functionalities. As an initial and immediate step 25 additional developers are being recruited.

We are continuously focusing on improving profitability and stabilising revenue through operational efficiency. I see substantial potential for improvements and I am content with the progress we are making. Nevertheless it will take time until we see the financial impact of these efforts. Our strategic objective is to take performance marketing to a new level. We will open our platform to use multiple high quality traffic sources to create smarter results for our clients based upon in-depth insights into online consumer behaviour enabled by data-driven analysis.

We start a challenging, yet exciting journey. Our solid financial position, active owners, dedicated personnel and new strategy give us a strong foundation to address a substantially larger part of the total European performance marketing arena.”


This interim report will be presented at a teleconference on the 7th of November 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) +1 855 269 26 06. The presentation may also be followed via webcast using the link:


Tradedoubler discloses the information provided herein pursuant to the Swedish Securities Markets Act. The information was released for publication on the 7th of November 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.

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