The fourth quarter October – December 2019
Net sales amounted to SEK 333 M (310) an increase of 7% or 4% adjusted for changes in exchange rates compared to the same period last year.
Gross profit adjusted for change related items was SEK 72 M (68), an increase of 6% or 2% adjusted for changes in exchange rates. Gross margin adjusted for change related items was 21.6% (21.9).
Operating costs excluding depreciation and change related items were SEK 56 M (54), an increase of 3%. Implementing IFRS 16 has decreased the operating costs with SEK 4 M compared to the same period last year.
EBITDA amounted to SEK 13 M (14). Adjusted for change related items, EBITDA was SEK 16 M (14).
Capitalised expenses for product development were SEK 6 M (5).
Cash flow from operating activities was SEK 34 M (8) and the sum of cash and interest-bearing financial assets was SEK 48 M (44) at the end of 2019. Net cash in the fourth quarter increased by SEK 26 M to SEK -86 M.
Earnings per share, before and after dilution were SEK 0.09 (0.10).
Tradedoubler AB have appointed Mangold Fondkommission AB as liquidity guarantor for Tradedoublers share. The purpose of the liquidity guarantee is to improve the liquidity of the share and reduce the difference between the buying and selling price. The assignment will start on February 7, 2020.
The full year 2019
Net sales amounted to SEK 1,209 M (1,173), which was an increase of 3% or 0% adjusted for changes in exchange rates compared to last year.
Gross profit adjusted for change related items was SEK 264 M (264). Gross margin adjusted for change related items was 21.9% (22.5).
Operating costs excluding depreciation and change related items were SEK 212 M (222), a decrease of 4%.
EBITDA amounted to SEK 45 M (39). Adjusted for change related items, EBITDA was SEK 52 M (42).
Capitalised expenses for product development were SEK 22 M (18).
Cash flow from operating activities was SEK 9 M (-3).
Earnings per share, before and after dilution were SEK -0.26 (0.34).
The Board proposes that no dividend should be declared for 2019, no dividend was declared for 2018.
As of 1 January 2019, the company applies IFRS 16 regarding the group’s leasing agreements. The new standard has impacted EBITDA for 2019 by SEK 16 M, net profit by -0.4 M, cash flow from operating activities by SEK 15 M and cash flow from financing activities by SEK -15 M. The effect on the closing balance sheet amounted to SEK 32 M. Figures for 2018 have not been restated.
In the third quarter Tradedoubler finalized an arms-length re-negotiation regarding its current loan agreement with the Company’s principal owner Reworld Media S.A. The Company has increased its current facility with Reworld Media S.A from SEK 40 M to a total of SEK 138 M (EUR 13.45 M) in order to repay the Company’s SEK 71 M loan to a Swedish credit institution. The facility with Reworld Media S.A. is on market terms, and the majority of the facility has a maturity in 2026 with an interest rate less than half of the previous loan with the Swedish credit institution.
CEO Matthias Stadelmeyer’s comments
“Tradedoubler’s results in the fourth quarter of 2019 improved compared to Q2 and Q3 again. The improvement is directly linked to a return of budgets from clients, verticals and markets that have been slower over spring and summer.
The margin of the business is on similar levels as before, still we see a gradual slow decline over time which is linked to a competitive market and some larger clients with lower rates growing more than the rest of the business.
Costs are stable and on the expected level.
The restructure of loans in Q3 results in lower interest rates and with that an improved net result and cash flow in the fourth quarter.
The company and our business develop according to our plans and we continue on our mission to continuously improve our business by creating growth for our clients and partners.”.
Matthias Stadelmeyer, President and CEO, telephone +46 8 405 08 00
Viktor Wågström, CFO, telephone +46 8 405 08 00
This information is information that Tradedoubler AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CET on 6 February 2020. Numerical data in brackets refers to the corresponding periods in 2018 unless otherwise stated. Rounding off differences may arise.