Earnings Release • Oct 30, 2013
Earnings Release
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The outlook given in the second quarter 2013 interim report suggested that the company was expected to return to net sales growth in line with the market during the second half of 2013. The company now sees that this is not a likely outcome. The efforts to return to profitable growth are intensified. For more information regarding outlook, see page 9 in the report.
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Full year | |||
|---|---|---|---|---|---|---|---|
| FINANCIAL OVERVIEW, SEK M | 2013 | 2012 | Change %1 | 2013 | 2012 | Change %1 | 2012 |
| Net sales | 478.8 | 526.1 | -9.6% | 1,497.0 | 1,740.0 | -11.3% | 2,307.7 |
| Gross profit | 107.2 | 119.7 | -11.7% | 340.6 | 406.9 | -14.0% | 541.5 |
| as a percentage of net sales | 22.4% | 22.8% | 22.8% | 23.4% | 23.5% | ||
| Total costs excluding depreciation | -86.6 | -122.9 | -29.4% | -281.2 | -391.6 | -26.7% | -519.3 |
| average per month | -28.9 | -41.0 | -31.2 | -43.5 | -43.3 | ||
| EBITDA | 20.6 | -3.1 | - | 59.4 | 15.2 | 372.6% | 22.2 |
| as a percentage of net sales | 4.3% | -0.6% | 4.0% | 0.9% | 1.0% | ||
| Adjusted EBITDA2 | 20.6 | 2.2 | 427.0% | 59.4 | 35.5 | 81.1% | 53.3 |
| as a percentage of net sales | 4.3% | 0.4% | 4.0% | 2.0% | 2.3% | ||
| Operating profit (EBIT) | 15.5 | -7.8 | - | 45.7 | 2.1 | - | 0.0 |
| Cash-flow from operating activities | 29.4 | 13.4 | 51.3 | -8.3 | -14.9 | ||
| Net investments in intangible assets | -6.3 | -8.9 | -22.7 | -29.3 | -36.2 | ||
| Earnings per share, SEK | 0.30 | -0.25 | 0.75 | -0.26 | -0.24 | ||
| Cash-flow from operating activities per share, SEK | 0.69 | 0.31 | 1.21 | -0.20 | -0.35 | ||
| Return on equity (12 months) (%) | 6.5 | 4.9 | 6.5 | 4.9 | -1.9 |
1Per cent changes are adjusted for changes in exchange rates
2Adjusted for change-related costs in 2012
This interim report will be presented at a teleconference on the 30th of October 2013 at 10.00 a.m. CET. To attend the presentation, please dial (SE) +46 8 519 993 52, (UK) +44 207 660 20 79 or (US) +1 855 716 15 98. The presentation may also be followed via webcast using the link: http://financials.tradedoubler.com/engb/investorrelations
Tradedoubler discloses the information provided herein pursuant to the Swedish Securities Markets Act. The information was released for publication on 30th of October 2013 at 08.00 a.m. CET.
The Group's numbers in this interim report are recognised excluding discontinued operations unless otherwise stated. Numerical data in brackets refers to the corresponding period in 2012 unless otherwise stated. Rounding off differences may arise.
Tradedoubler is a leading international performance marketing and technology company which generated more than €3.5bn incremental revenue for its clients in 2012 through e- and mcommerce.
Tradedoubler is the pioneer of performance marketing in Europe, launched in 1999, and works on the basis that its advertiser clients only pay for a successful result - such as a sale or lead.
A large part of the success is based on Tradedoubler's deep understanding of the increasingly 'connected' consumer and the company´s advanced Performance Marketing Technology platform that generates incremental revenues for its clients.
Tradedoubler works with some of the most renowned companies in the world – from Expedia, Dell, and The Body Shop to Tesco, Disney, British Airways, American Express and Telefónica.
Tradedoubler has a dual-stream revenue model and generates revenue by:
A large portion of Tradedoubler's revenue is performancebased. And the activities which determine the remuneration are CPM (cost-per-thousands impressions), CPC (cost-per-click), CPL (cost-per-lead) and CPA (cost-per-action). Which one or combination of these activities forms the basis for the remuneration is decided on a case-by-case-basis. CPA and CPC
are the most common. Tradedoubler's system tracks the customer activities generated by a certain advert in order to calculate the remuneration.
Tradedoubler's goal is to return to profitable growth by becoming the best performing international performance marketing network. Sustainable competitive advantage is based on the following key building blocks:
Prioritise key clients in key markets: Increase time spent on value adding activities. An international account management team is responsible for serving large international clients. Ongoing program to ensure increased customer satisfaction.
Improved service offering: Tradedoubler targets three main areas in its product development: mobile, billing/payment and automation. The goal is to increase the functionality of the technology platform and to ensure alignment between clients, product and markets.
Best affiliate network: Quality of networks matters more than size and Tradedoubler focuses on relevant publishers in major markets and prioritized verticals.
Cost control: Rigorous cost management is essential and investments are channelled into areas where they will create the most value.
Tradedoubler is organized into six market units: DACH, East, France & Benelux, Nordics, South and UK & Ireland.
| This is Tradedoubler | 3 | Year-end report 2013 | February 6, 2014 |
|---|---|---|---|
| CEO Comment | 4 | Interim report January-March 2014 | May 6, 2014 |
| Market development | 5 | Interim report January-June 2014 | July 25, 2014 |
| Product development | 5 | Interim report January-September 2014 | October 29, 2014 |
| The Group's results | 6 | Year-end report 2014 | February 6, 2015 |
| Consolidated income statement | 1110 |
Our third quarter performance confirms that we have created a firm foundation for profitability through the efficiency measures we have implemented. We are encouraged by the fact that our EBITDA delivery continues to show positive performance. The sales development however is disappointing.
The weak sales development in the third quarter shows that our return to growth is taking longer than anticipated. There is still
underlying market growth and the key market indicators remain positive, suggesting that growth will continue for the foreseeable future. In this context we recognise that the major reason for not achieving growth is that our increased sales efforts have not yet paid off. With the benefit of hindsight we were overly optimistic about the time it would take to embed these significant structural changes. Our revenue growth has been delayed by long lead-times necessary to implement and grow new contracts. We have also experienced longer than anticipated corporate client sales cycles.
Looking at the income statement our net sales of SEK 478.8 M in the third quarter were down 9.6 per cent y/y, adjusted for changes in exchange rates. Revenues continued to be impacted by the anticipated volume-drop in the non-strategic CPM based campaign business. The speed of development of the performance marketing segment has been disappointing and there are two main issues affecting revenue for the period. In France where the e-mail channel has been a significant source of traffic, revenue suffered from a change in working practices of large e-mail service providers, reducing our ability to drive traffic through e-mail. In addition, a major pan-European client paused their programmes early in the quarter due to a number of business challenges unrelated to Tradedoubler. The revenue shortfall in France is expected to be compensated by other traffic sources moving forward.
The gross margin declined 0.4 percentage points y/y to 22.4 per cent, mainly due to the business mix that shifted from campaigns to performance marketing. Looking at profitability in the third quarter, we saw a continued improvement, EBITDA was SEK 20.6 M, compared to the SEK -3.1 M achieved during the corresponding quarter last year. Excluding change related costs in the third quarter 2012, EBITDA grew by SEK 18.4 M. The factor driving the improvement was reduced operating costs which declined by 29 per cent y/y. The decline of 8 per cent q/q, was mainly due to seasonality.
Looking to the remainder of the year, we will continue to make progress with our sales activity. We are encouraged that the market continues to demonstrate growth but acknowledge the on-going softer demand in Southern Europe as a result of macro-economic conditions. We are confident that our business is positioned to take advantage of this generally positive trend moving forward.
We are constantly vigilant on our cost structure to ensure that our revenues and costs are in phase. We are intensifying our efforts to deliver profitable growth.
Rob Wilson President and CEO
While the challenging economic climate in most of Western Europe continues to put consumer spending under pressure, ecommerce is forecast to increase by an average of 11 per cent a year from €196bn in 2012 to €297bn by 20161 . According to Forrester, a total of three quarters of retail e-commerce in Western Europe occurs in three countries: the UK, Germany and France. While the growth in online retail in these markets will continue, this is likely to be at a lower rate as these markets reach maturity. Southern European consumers have traditionally been more reluctant to purchase online, however while remaining relatively small in e-commerce revenue terms, these will be the fastest-growing markets over the next four to five years.
Internet advertising in Western Europe is forecast to continue to grow and to take an increasing share of total ad spend. ZenithOptimedia, the media services agency, forecasts that online ad spend in Western Europe will increase from €17.0bn in 2012 to around €21.1bn by 2015 – average annual growth of around seven per cent2 . Online currently accounts for 23 per cent of total advertising expenditure and this is forecast to increase to 29 per cent by 2015.
The mobile channel represents a growing opportunity as both consumer mobile commerce and mobile advertising expenditure start to become increasingly significant. Forrester predicts that m-commerce in EU73 will rise from an estimated €2.7bn in 2012 to €19.2bn in 2017, an average annual growth rate of 48 per cent4 . While the majority of this spend will be in retail (€11.1bn), travel will also account for a significant proportion (€5.9bn).
Mobile advertising expenditure is also seeing high double digit growth and is the fastest growing segment within internet advertising expenditure. According to eMarketer, Western European mobile ad spend will grow from its 2012 level of €1.3bn to €9.2bn by 20165 , an annual average growth rate of 64 per cent. The UK will continue to be the lead market, taking a 44 per cent share of European mobile ad spend in 2013 and still accounting for 40 per cent by 2016. UK mobile ad spend is forecast to exceed €1.2bn during 2013, representing 90 per cent growth compared to 2012.
This combination of increased online and mobile commerce and digital advertising spend implies continued healthy growth in performance marketing, despite the pressure on margins as the sector matures. We expect the performance marketing segment to grow by 3-7 per cent annually over the next few years.
Tradedoubler released further enhancements to its App tracking functionality during the third quarter. This underlines the developing importance of mobile commerce and that Tradedoubler is well positioned to take full advantage through its comprehensive suite of mobile performance marketing solutions which accurately track and deliver sales through websites, mobile-enabled websites and mobile phone Apps.
The advertiser tools set was broadened with the launch of further voucher functionality that both provides advertisers full control over their use and ensures publishers are accurately rewarded for the use of exclusive vouchers. Additionally this product delivers increased opportunities for establishing and accurately measuring on-line to off-line promotions.
A new integrated billing solution was launched in the third quarter, which offers significant business and operational efficiency improvements.
During the fourth quarter development will focus on major enhancements to payment, sales tracking and reporting processes. The product team will continue to drive an ongoing agenda which ensures customers can grasp the growing opportunities in mobile, that they gain increased actionable insights which in turn drive ROI, and that further automation delivers greater operational efficiency.
1 eMarketer June 2013. Includes travel, digital downloads and event tickets purchased via any digital channel. Excludes gambling.
2 ZenithOptimedia Advertising Expenditure Forecasts September 2013 3
EU7; France, Germany, Italy, Netherlands, Spain, Sweden, UK 4
Forrester Research Mobile Commerce Forecast 2012-2017 (EU7) 5
eMarketer Comparative Estimates Mobile Advertising June 2013
Consolidated net sales during the interim period amounted to SEK 1,497.0 M (1,740.0), a decline of 11.3 per cent adjusted for changes in exchange rates. Consolidated net sales during the third quarter amounted to SEK 478.8 M (526.1), a decline of 9.6 per cent adjusted for changes in exchange rates. Excluding the market unit France & Benelux the positive development within the performance marketing segment continued. France was significantly impacted by changes in the working practices of large e-mail providers which reduced the traffic from those sources significantly. Net sales was also affected by the pause of all programs for a major pan-European client early in the quarter, which had a negative impact on all markets. The consolidated net sales are continuously affected by the significant drop in the non-strategic campaigns business.
Gross profit during the interim period amounted to SEK 340.6 M (406.9), a decline of 14.0 per cent adjusted for changes in exchange rates. Gross profit during the quarter was SEK 107.2 M (119.7), a fall of 11.7 per cent adjusted for changes in exchange rates.
The gross margin during the interim period decreased to 22.8 per cent from 23.4 per cent during the same period of last year. The gross margin was 22.4 per cent during the quarter compared to 22.8 per cent during the same quarter last year.
Operating costs during the interim period amounted to SEK 281.2 M (391.6), a decrease of 26.7 per cent adjusted for changes in exchange rates. In 2012 the operating costs were affected by change related costs amounting to SEK 20.2 M. Operating costs during the quarter amounted to SEK 86.6 M (122.9), corresponding to an average of SEK 28.9 M per month, and a decrease of 29.4 per cent adjusted for changes in exchange rates. The third quarter 2012 was affected by change related costs amounting to SEK 5.3 M. The efficiency measures that were put in place during the third and fourth quarter 2012 as well as a continuous focus on cost efficiency have significantly reduced the cost base.
Operating profit before depreciation and amortisation (EBITDA) during the interim period amounted to SEK 59.4 M (15.2). Adjusted for change related costs EBITDA amounted to SEK 59.4 M (35.5), an increase of 81.1 per cent adjusted for changes in exchange rates. During the quarter, EBITDA amounted to SEK 20.6 M (-3.1). Adjusted for change related costs EBITDA amounted to SEK 20.6 M (2.2), an increase of SEK 18.4 M.
Anticipated and confirmed bad debt affected EBITDA in the interim period by SEK -5.0 M (-7.5) and by SEK -1.3 M (-2.7) in the third quarter.
Depreciation, amortisation and impairment losses amounted to SEK 13.7 M (13.1) during the interim period. During the quarter depreciation, amortisation and impairment losses amounted to SEK 5.1 M (4.6).
Operating profit (EBIT) amounted to SEK 45.7 M (2.1) during the interim period. During the quarter EBIT amounted to SEK 15.5 M (-7.8), an increase of SEK 23.3 M.
Financial income and expenses amounted to SEK 0.1 M (1.4) during the interim period. During the quarter, financial income and expenses amounted to SEK 1.1 M (2.2), driven mainly by exchange rate effects of SEK 0.8 M (2.2). The Group had no interest-bearing loans at the end of the quarter (0.0).
Profit after tax for continuing operations amounted to SEK 31.8 M (-11.3) during the interim period. Tax affected profit by SEK -13.9 M (-14.8). During the quarter, profit after tax for continuing operations amounted to SEK 12.5 M (-10.6). Tax affected profit by SEK -4.0 M (-5.0).
Net sales during the interim period amounted to SEK 1,452.1 M (1,692.0) which was a decline of 11.5 per cent adjusted for changes in exchange rates. During the third quarter, net sales amounted to SEK 464.0 M (511.9) which was a decline of 9.9 per cent adjusted for changes in exchange rates.
Excluding the market unit France & Benelux the performance marketing segment showed a continued positive development trend during the quarter. In France net sales were negatively impacted by a significant reduction within the e-mail channel which was an important traffic source. Also a large pan-European client paused their programs during the quarter due to business challenges unrelated to Tradedoubler. Growth in net sales has also been delayed by long lead-times to implement and grow new contracts. Including France & Benelux, the performance marketing segment, which accounts for approximately 90 per cent of Network net sales, declined by approximately 8 per cent adjusted for exchange rates compared to the same period last year. The campaign segment shows a continued decline but the rate has decreased from approximately 30 per cent in the second quarter to approximately 24 per cent in the third quarter.
EBITDA during the interim period amounted to SEK 133.0 M (145.0), a decrease of 6.1 per cent adjusted for changes in exchange rates. During the third quarter, EBITDA amounted to SEK 41.3 M (34.8), an increase of 13.7 per cent adjusted for changes in exchange rates.
During the third quarter the EBITDA-margin increased y/y in all markets except in France & Benelux which showed a slight decline. The decline in France & Benelux is due to the loss in net sales described above.
Net sales during the interim period amounted to SEK 44.9 M (48.0) which was a decline of 4.4 per cent adjusted for changes in exchange rates. During the third quarter, net sales amounted to SEK 14.9 M (14.2), an increase of 2.7 per cent adjusted for changes in exchange rates. The operational challenges reported on in the second quarter 2013 interim report are being addressed.
EBITDA during the interim period amounted to SEK 33.5 M (31.5), an increase of 8.8 per cent adjusted for changes in exchange rates. During the third quarter, EBITDA amounted to SEK 11.7 M (9.2), which was an increase of 24.5 per cent adjusted for changes in exchange rates.
Costs for group management and support functions during the interim period amounted to SEK 107.1 M (161.2), a reduction of 33.0 per cent adjusted for changes in exchange rates. During the third quarter, costs for group management and support functions amounted to SEK 32.4 M (47.1), a reduction of 31.2 per cent adjusted for changes in exchange rates. Change related costs during the interim period in 2012 described on page 6 were primarily attributed to group management and support functions.
| SEK M | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Full year |
|---|---|---|---|---|---|
| Net Sales | 2013 | 2012 | 2013 | 2012 | 2012 |
| DACH | 67.7 | 71.7 | 217.8 | 243.2 | 327.1 |
| East | 24.5 | 22.5 | 76.7 | 73.0 | 103.0 |
| France & Benelux | 109.7 | 131.2 | 379.9 | 435.1 | 584.2 |
| Nordics | 68.1 | 70.6 | 208.4 | 236.1 | 317.8 |
| South | 70.0 | 71.0 | 200.1 | 233.5 | 304.7 |
| UK & Ireland | 123.9 | 144.9 | 369.3 | 471.1 | 606.9 |
| Total Network | 464.0 | 511.9 | 1,452.1 | 1,692.0 | 2,243.7 |
| Technology | 14.9 | 14.2 | 44.9 | 48.0 | 64.0 |
| Total Net Sales | 478.8 | 526.1 | 1,497.0 | 1,740.0 | 2,307.7 |
| EBITDA | |||||
| DACH | 7.9 | 6.7 | 26.0 | 27.5 | 35.8 |
| East | 1.7 | 0.5 | 5.1 | 2.9 | 3.4 |
| France & Benelux | 8.2 | 9.9 | 35.1 | 36.3 | 47.9 |
| Nordics | 7.4 | 7.6 | 21.5 | 23.9 | 31.6 |
| South | 7.5 | 7.6 | 22.5 | 31.4 | 40.1 |
| UK & Ireland | 8.6 | 2.6 | 23.0 | 23.0 | 30.9 |
| Total Network | 41.3 | 34.8 | 133.0 | 145.0 | 189.6 |
| Technology | 11.7 | 9.2 | 33.5 | 31.5 | 42.0 |
| Group mgmt & support functions | -32.4 | -47.1 | -107.1 | -161.2 | -209.5 |
| Total EBITDA | 20.6 | -3.1 | 59.4 | 15.2 | 22.2 |
| EBITDA/Net sales, % | |||||
| DACH | 11.6 | 9.3 | 11.9 | 11.3 | 10.9 |
| East | 7.0 | 2.0 | 6.6 | 4.0 | 3.3 |
| France & Benelux | 7.4 | 7.6 | 9.2 | 8.3 | 8.2 |
| France & Benelux 7.4 7.6 9.2 8.3 8.2 Nordics 10.9 10.8 10.3 10.1 9.9 South 10.7 10.7 11.2 13.5 13.1 UK & Ireland 7.0 1.8 6.2 4.9 5.1 Total Network 8.9 6.8 9.2 8.6 8.5 Technology 78.4 64.4 74.5 65.5 65.7 Total EBITDA Margin 4.3 -0.6 4.0 0.9 1.0 |
|||
|---|---|---|---|
Tradedoubler's operations, particularly within Network, fluctuate with the development of e-commerce and online advertising. Although these areas are showing positive underlying growth, there are fluctuations during the year particularly within e-commerce. The highest level of activity is before Christmas, which implies that the fourth quarter is normally the strongest for Tradedoubler.
Cash flow from operating activities before changes in working capital amounted to SEK 17.8 M (-9.1) during the third quarter. The positive development in cash flow from operating activities was mainly due to higher earnings, driven by a lower cost-base.
Changes in working capital amounted to SEK 11.6 M (22.5). A favourable change in publisher debt more than compensated a negative change in accounts receivable and prepayments. Cash flow from operating activities, after changes in working capital, amounted to SEK 29.4 M (13.4).
Cash flow from operating activities during the interim period amounted to SEK 51.3 M (-8.3) after changes in working capital of SEK -3.2 M (-28.1).
Net investments in intangible assets during the quarter amounted to SEK -6.3 M (-8.9) of which SEK -1.0 M (0.0) relates to capitalised expenses for own personnel. These investments mainly consist of improvements to production and business systems as well as product development. The third quarter saw a reduction in net investments which mainly is attributed to the lower pace during the summer.
Cash flow from continuing operations during the quarter amounted to SEK 22.6 M (2.8), and to SEK 21.0 M (-105.1) during the interim period. The interim period 2013 was affected by a
repurchase of own shares for a total amount of SEK 6.1 M. A dividend of SEK 64.0 M was paid during the interim period last year.
Cash and cash equivalents at the end of the quarter amounted to SEK 186.3 M (173.3) after being affected by translation differences of SEK 0.9 M (-12.4) during the interim period. At the same time the Group had no interest-bearing loans (0.0).
Consolidated shareholders' equity amounted to SEK 513.1 M (497.7) at end of the quarter. The return on equity for the rolling 12 months period was 6.5 per cent (4.9).
The parent company's net sales amounted to SEK 40.7 M (18.3) during the third quarter and to SEK 108.2 M (95.5) during the interim period. Revenue primarily consisted of licensing revenue and remuneration from subsidiaries for centrally performed services.
Operating profit (EBIT) amounted to SEK 11.9 M (-20.7) during the quarter and to SEK 19.2 M (-42.2) during the interim period. The improvement was due to the lower cost base.
Financial income and expenses amounted to SEK 15.1 M (2.6) during the quarter and to SEK 36.7 M (5.0) during the interim period. The interim period is mainly affected by dividends from subsidiaries of SEK 35.2 M (2.4).
Profit after tax amounted to SEK 24.0 M (-8.2) during the quarter and to SEK 51.3 M (-18.4) during the interim period.
The parent company's receivables from group companies amounted to SEK 117.5 M (111.6), at the end of the quarter, of which none (0.0) were non-current. The parent company's liabilities to group companies amounted to SEK 154.5 M (129.3), of which none (0.0) were non-current. Cash and cash equivalents amounted to SEK 54.2 M (26.2).
Deferred tax receivables amounted to SEK 20.2 M (24.2) at the end of the quarter. The deferred tax receivables are related to carry-forwards of SEK 6.2 M and deferred tax receivables related to previous Group loans of SEK 14.0 M. For more information, see notes to the consolidated financial statements, note C2 Critical estimates and judgements in the Annual Report 2012.
During the fourth quarter of 2011, Tradedoubler sold its Search operations and has subsequently reported this as a discontinued operation.
During the interim period, the discontinued operations affected the Group's results by SEK 0.0 M (0.0).
The result from discontinued operations for the interim period has not affected the Group's cash flow. For more information regarding discontinued operations, see page 19.
No transactions between Tradedoubler and related parties impacting the company's financial position and results have taken place, aside from remuneration to board and senior executives.
At the end of the interim period, Tradedoubler's staff corresponded to 455 (489) full-time equivalents (FTE), which includes full-time, temporary and contract employees. During the interim period Tradedoubler has included paid interns on longer contracts in the FTE-statistics. Without these the number of FTE at the end of the period would be 448.
Tradedoubler divides risks into market-related risks, operational risks, financial risks and legal risks. These risks are described on pages 19-21 of the 2012 Annual Report.
No significant risks and uncertainty factors are considered to have arisen since the latest submitted annual report.
For information regarding critical estimates and judgements in the financial statements see note C2 in the 2012 Annual Report.
No critical estimates or judgements are considered to have arisen since the latest submitted annual report.
Tradedoubler had an extraordinary general meeting in the third quarter, in which it was resolved to elect three new board members. It was noted that two board members, including the chairman of the board, declined re-election. Thus, following the extraordinary general meeting the Board of Directors consist of the following six persons:
Peter Larsson (Chairman), Thomas Bill, Martin Henricson Caroline Sundewall, Lars Sveder and Simon Turner.
No significant events have occurred after the end of the reporting period.
The outlook given in the second quarter 2013 interim report suggested that the company was expected to return to net sales growth in line with the market during the second half of 2013. The company now sees that this is not a likely outcome. The efforts to return to profitable growth are intensified.
The monthly cost run rate for operating costs before depreciation and amortisation during the third quarter stood on average at SEK 28.9 M. Tradedoubler anticipates that these costs will be approximately SEK 32 M per month during the fourth quarter 2013. The q/q increase is due to seasonality.
The Annual General Meeting 2014 will be held on 6 May 2014 at Tradedoubler's premises on Birger Jarlsgatan 57 A, Stockholm.
In accordance with the resolution of the Annual General Meeting 2013, a Nomination Committee has been appointed consisting of representatives of the three largest shareholders at the end of August and other shareholding information which is available at that point in time, as well as the Chairman of the Board. The owner representatives are Thomas Bill representing Monterro AB, (Chairman of the Nomination Committee), Henrik Kvick representing Henrik Kvick AB and Johan Strandberg representing SEB.
Shareholders wishing to present proposals to the Nomination Committee for the 2014 Annual General Meeting can, at the latest the 18th of March 2014, submit them to the Nomination Committee's secretary Carol Spendilow (Tradedoubler's General Counsel) by e-mail: [email protected].
Information about the work of the nomination committee may be found on Tradedoubler's home page www.tradedoubler.com.
This interim report is prepared in accordance with IAS 34, Interim Financial Reporting and the Swedish Annual Accounts Act.
As from January 1, 2013 Tradedoubler has changed the classification in the income statements where costs closer related to product development and administration costs have been reclassified from sales cost to development and administration costs respectively. It is the belief of Tradedoubler that the reclassification gives a more accurate picture of the operating expenses. Changes have been made in the consolidated income statement with corresponding changes in the income statement for the parent company. Comparative periods have been changed.
As from January 1, 2013 Tradedoubler applies a new segment reporting. The segments consist of the six market units within Network and the business unit Technology that continues to be reported as a separate segment. Comparative periods have been restated in accordance with the new segments.
The extent and nature of financial assets and liabilities are essentially the same as at December 31, 2012. Similar to what was the case at the end of 2012, the carrying values are the same as the fair values.
Except for the changes stated above the accounting policies and methods of calculation are unchanged, compared with the 2012 Annual Report. None of the new or changed standards that have been in effect from 2013 have had any impact on the financial statements, they will primarily affect the presentation of the financial statements.
For information on the accounting policies applied, see the 2012 Annual Report.
The total number of shares at the end of the interim period amounted to 42,807,449 of which 475,000 were in own custody. The average number of outstanding shares during the interim period was 42,553,548.
Earnings per share for continuing operations amounted to SEK 0.30 (-0.25) during the third quarter and SEK 0.75 (-0.26) during the interim period. Equity per share amounted to SEK 12.1 (11.7) at the end of the period.
The share price closed at SEK 21.00 on the final trading day in September, 2013, which was higher than at the end of September, 2012, when the share price was SEK 14.00. At yearend, the share closed at SEK 12.50.
This interim report will be presented at a teleconference on the 30th of October 2013 at 10.00 a.m. CET. The presentation will be held in English and may be followed via webcast on the website:
http://financials.tradedoubler.com/en-gb/investorrelations
and by telephone:
| Sweden: | +46 8 519 993 52 |
|---|---|
| UK: | +44 207 660 20 79 |
| US: | +1 855 716 15 98 |
The presentation material will be published concurrently with the interim report.
Year-end report 2013 6 February 2014
Rob Wilson, President and CEO, telephone +44 (0) 7500 667 587 Jonas Ragnarsson, CFO, telephone +46 8 405 08 00 E-mail: [email protected]
Both an English version and a Swedish version of this report have been prepared. In the event of a difference between the two reports, the Swedish version shall prevail.
This interim report has been reviewed by the company's auditor Ernst & Young AB.
Stockholm, 30 October 2013
Rob Wilson President and CEO
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Full year | |
|---|---|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2013 | 2012 | 2012 |
| Net Sales | 478,835 | 526,115 | 1,497,016 | 1,739,981 | 2,307,718 |
| Cost of goods sold | -371,637 | -406,399 | -1,156,398 | -1,333,089 | -1,766,240 |
| Gross profit | 107,198 | 119,715 | 340,618 | 406,892 | 541,478 |
| Selling expenses | -54,015 | -69,853 | -176,423 | -228,902 | -304,447 |
| Administrative expenses | -28,857 | -41,522 | -90,331 | -132,671 | -178,127 |
| Development expenses | -8,863 | -16,101 | -28,209 | -43,194 | -58,903 |
| Operating profit | 15,463 | -7,760 | 45,655 | 2,125 | 1 |
| Net financial items | 1,074 | 2,223 | 61 | 1,409 | 317 |
| Profit before tax | 16,537 | -5,537 | 45,716 | 3,533 | 317 |
| Tax | -4,011 | -5,041 | -13,931 | -14,840 | -10,475 |
| Net profit for continuing operations | 12,525 | -10,577 | 31,785 | -11,307 | -10,158 |
| Net profit for discontinued operations | - | - | - | - | 2,192 |
| Total net profit | 12,525 | -10,577 | 31,785 | -11,307 | -7,965 |
All earnings accrue to the parent company's shareholders.
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Full year | |
|---|---|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2013 | 2012 | 2012 |
| Profit for the period, after tax | 12,525 | -10,577 | 31,785 | -11,307 | -7,965 |
| Other comprehensive income | |||||
| Items that subsequently will be reversed in the income statement | |||||
| Translation difference, net after tax | -2,991 | -14,017 | -1,123 | -7,786 | -20,480 |
| Total comprehensive income for the period, after tax | 9,534 | -24,595 | 30,662 | -19,093 | -28,445 |
| Comprehensive income attributable to: | |||||
| Parent company shareholders | 9,534 | -24,595 | 30,662 | -19,093 | -28,445 |
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Full year | |
|---|---|---|---|---|---|
| SEK | 2013 | 2012 | 2013 | 2012 | 2012 |
| Earnings per share for continuing operations | 0.30 | -0.25 | 0.75 | -0.26 | -0.24 |
| Total earnings per share (including discontinued operations) | 0.30 | -0.25 | 0.75 | -0.26 | -0.19 |
| Number of Shares | |||||
| Weighted average | 42,332,449 | 42,677,449 | 42,553,548 | 42,677,449 | 42,677,449 |
The earnings per share above apply before and after dilution.
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Full year | |
|---|---|---|---|---|---|
| 2013 | 2012 | 2013 | 2012 | 2012 | |
| Gross profit (GP) / revenue (%) | 22.4 | 22.8 | 22.8 | 23.4 | 23.5 |
| EBITDA / revenue (%) | 4.3 | -0.6 | 4.0 | 0.9 | 1.0 |
| EBITDA / gross profit (GP) (%) | 19.2 | -2.6 | 17.4 | 3.7 | 4.1 |
| Equity/assets ratio (%) | 44.0 | 41.4 | 44.0 | 41.4 | 41.0 |
| Return on equity (12 months) (%) | 6.5 | 4.9 | 6.5 | 4.9 | -1.9 |
| Average number of employees | 455 | 489 | 466 | 490 | 487 |
| Return on Capital Employed (12 months) (%) | 8.8 | 7.9 | 8.8 | 7.9 | 0.2 |
| Cash-flow from operating activities per share, SEK | 0.69 | 0.31 | 1.21 | -0.20 | -0.35 |
| Equity per share, SEK | 12.1 | 11.7 | 12.1 | 11.7 | 11.4 |
| Stock price at the end of the period, SEK | 21.0 | 14.0 | 21.0 | 14.0 | 12.5 |
| 30 Sep | 30 Sep | 31 Dec | |
|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2012 |
| Assets | |||
| Non-current assets | |||
| Intangible fixed assets | 420,936 | 423,595 | 408,364 |
| Tangible fixed assets | 6,557 | 9,984 | 10,117 |
| Other non-current receivables | 4,288 | 3,611 | 3,647 |
| Deferred tax assets | 31,829 | 37,725 | 36,007 |
| Total non-current assets | 463,609 | 474,914 | 458,135 |
| Accounts receivable | 478,297 | 518,326 | 519,268 |
| Tax assets | 9,675 | 7,111 | 11,819 |
| Other current receivables | 29,490 | 28,110 | 36,408 |
| Cash & cash equivalents | 186,303 | 173,288 | 164,445 |
| Total current assets | 703,766 | 726,835 | 731,939 |
| Total assets | 1,167,375 | 1,201,749 | 1,190,074 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 513,107 | 497,734 | 488,382 |
| Deferred tax liabilities | 4,597 | 6,752 | 4,597 |
| Other provisions | 845 | 990 | 1,013 |
| Total long-term liabilities | 5,441 | 7,743 | 5,609 |
| Accounts payable | 18,037 | 16,740 | 20,642 |
| Current liabilities to publishers | 415,759 | 423,693 | 402,514 |
| Tax liabilities | 8,441 | 9,427 | 6,112 |
| Other current liabilities | 206,589 | 246,411 | 266,815 |
| Total current liabilities | 648,826 | 696,272 | 696,083 |
| Total shareholder´s equity and liabilities | 1,167,375 | 1,201,749 | 1,190,074 |
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Full year | |
|---|---|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2013 | 2012 | 2012 |
| Opening balance | 503,439 | 522,329 | 488,382 | 580,843 | 580,843 |
| Total comprehensive income for the period, continuing operations | 9,534 | -24,595 | 30,662 | -19,093 | -30,637 |
| Total comprehensive income for the period, discontinued operations* | - | - | - | - | 2,192 |
| Equity-settled share-based payments | 134 | - | 134 | - | - |
| Repurchase of shares | - | - | -6,071 | - | - |
| Dividend | - | - | - | -64,016 | -64,016 |
| Closing balance | 513,107 | 497,734 | 513,107 | 497,734 | 488,382 |
All capital accrues to the parent company's shareholders.
*See disclosure regarding discontinued operations, page 19.
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Full year | |
|---|---|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2013 | 2012 | 2012 |
| Operating activities | |||||
| Profit before tax | 16,537 | -5,537 | 45,716 | 3,533 | 317 |
| Adjustments for items not included in cash flow | 4,861 | 3,815 | 14,356 | 26,957 | 49,825 |
| Income taxes paid | -3,563 | -7,355 | -5,547 | -10,725 | -15,106 |
| Cash flow from operating activities before changes in working | |||||
| capital | 17,835 | -9,077 | 54,525 | 19,765 | 35,036 |
| Changes in working capital | 11,571 | 22,516 | -3,212 | -28,110 | -49,980 |
| Cash flow from operating activities | 29,406 | 13,439 | 51,313 | -8,345 | -14,944 |
| Investing activities | |||||
| Net investments in intangible assets | -6,330 | -8,912 | -22,671 | -29,295 | -36,220 |
| Net investments in tangible assets | -112 | -1,690 | -979 | -3,175 | -4,721 |
| Net investments in financial assets | -323 | -27 | -636 | -251 | -209 |
| Cash flow from investing activities | -6,765 | -10,629 | -24,286 | -32,721 | -41,150 |
| Financing activities | |||||
| Repurchase of own shares | - | - | -6,071 | - | - |
| Dividend paid to parent company's shareholders | - | - | - | -64,016 | -64,016 |
| Cash flow from financing activities | - | - | -6,071 | -64,016 | -64,016 |
| Cash flow for the period from continuing operations | 22,641 | 2,810 | 20,956 | -105,082 | -120,110 |
| Cash flow for the period | 22,641 | 2,810 | 20,956 | -105,082 | -120,110 |
| Cash and cash equivalents | |||||
| On the opening date | 166,592 | 179,352 | 164,445 | 290,745 | 290,745 |
| Translation difference in cash and cash equivalents | -2,930 | -8,874 | 902 | -12,375 | -6,189 |
| Cash and cash equivalens on the closing date | 186,303 | 173,288 | 186,303 | 173,288 | 164,445 |
| Adjustments for non-cash items | |||||
| Depreciation | 5,090 | 4,002 | 13,723 | 11,258 | 20,324 |
| Other | -229 | -187 | 633 | 15,699 | 29,501 |
| Total non-cash items | 4,861 | 3,815 | 14,356 | 26,957 | 49,825 |
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Full year | |
|---|---|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2013 | 2012 | 2012 |
| Net Sales | 40,714 | 18,319 | 108,236 | 95,487 | 128,906 |
| Cost of goods sold | -71 | -2,291 | -274 | -6,074 | -8,636 |
| Gross profit | 40,642 | 16,028 | 107,962 | 89,413 | 120,270 |
| Selling expenses | -339 | -1,432 | -885 | -1,749 | -2,105 |
| Administrative expenses | -22,702 | -24,775 | -68,261 | -96,749 | -127,848 |
| Development expenses | -5,669 | -10,542 | -19,607 | -33,152 | -46,625 |
| Operating profit | 11,932 | -20,721 | 19,209 | -42,238 | -56,308 |
| Net financial items | 15,110 | 2,629 | 36,742 | 5,018 | -999 |
| Profit before tax | 27,042 | -18,092 | 55,951 | -37,221 | -57,306 |
| Tax | -3,016 | 9,884 | -4,631 | 18,858 | 19,230 |
| Net profit | 24,025 | -8,208 | 51,320 | -18,363 | -38,076 |
| 30 Sep | 30 Sep | 31 dec | |
|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2012 |
| Assets | |||
| Intangible fixed assets | 68,135 | 50,151 | 54,438 |
| Tangible fixed assets | 1,309 | 4,137 | 3,458 |
| Financial fixed assets | 198,322 | 207,323 | 198,105 |
| Deffered tax assets | 20,191 | 24,215 | 24,802 |
| Total fixed assets | 287,956 | 285,825 | 280,802 |
| Accounts receivable | 3,646 | 3,012 | 2,846 |
| Receivables from Group companies | 117,524 | 111,608 | 121,053 |
| Tax assets | 1,482 | 3,731 | 2,407 |
| Other current receivables | 10,531 | 7,873 | 9,450 |
| Cash & cash equivalents | 54,224 | 26,221 | 57,094 |
| Total current assets | 187,406 | 152,444 | 192,849 |
| Total assets | 475,362 | 438,269 | 473,651 |
| Shareholders' equity and liabilities | |||
| Shareholders equity | 217,489 | 191,818 | 172,105 |
| Accounts payable | 6,689 | 11,481 | 12,150 |
| Liabilities to Group companies | 154,533 | 129,289 | 191,076 |
| Other liabilities | 96,652 | 105,681 | 98,319 |
| Total current liabilities | 257,873 | 246,451 | 301,546 |
| Total shareholder´s equity and liabilities | 475,362 | 438,269 | 473,651 |
| 30 Sep | 30 Sep | 31 Dec | |
|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2012 |
| Group | |||
| Pledged assets | none | none | none |
| Rent deposits | 4,288 | 3,611 | 3,647 |
| Contingent liabilities | none | none | none |
| Parent company | |||
| Pledged assets | none | none | none |
| Contingent liabilities | 2,087 | 5,523 | 2,259 |
| Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | |
|---|---|---|---|---|---|---|---|---|
| SEK 000s | 2013 | 2013 | 2013 | 2012 | 2012 | 2012 | 2012 | 2011 |
| Net Sales | 478,835 | 490,318 | 527,863 | 567,738 | 526,115 | 573,660 | 640,206 | 701,455 |
| Cost of goods sold | -371,637 | -376,367 | -408,395 | -433,151 | -406,399 | -432,873 | -493,816 | -534,213 |
| Gross profit | 107,198 | 113,951 | 119,468 | 134,587 | 119,715 | 140,786 | 146,390 | 167,241 |
| Total costs | -91,735 | -98,674 | -104,553 | -136,711 | -127,475 | -143,549 | -133,739 | -128,505 |
| Operating profit | 15,463 | 15,277 | 14,915 | -2,124 | -7,760 | -2,763 | 12,651 | 38,737 |
| Net financial items | 1,074 | -3,700 | 2,687 | -1,092 | 2,223 | -1,088 | 273 | -888 |
| Profit before tax | 16,537 | 11,577 | 17,602 | -3,216 | -5,537 | -3,852 | 12,924 | 37,849 |
| Tax | -4,011 | -4,348 | -5,571 | 4,365 | -5,041 | -6,988 | -2,811 | 405 |
| Net profit | 12,525 | 7,229 | 12,031 | 1,149 | -10,577 | -10,839 | 10,111 | 38,254 |
| 30 Sep | 30 Jun | 31 Mar | 31 Dec | 30 Sep | 30 Jun | 31 Mar | 31 Dec | |
|---|---|---|---|---|---|---|---|---|
| SEK 000s | 2013 | 2013 | 2013 | 2012 | 2012 | 2012 | 2012 | 2011 |
| Assets | ||||||||
| Intangible fixed assets | 420,936 | 420,267 | 400,799 | 408,364 | 423,595 | 427,356 | 406,048 | 404,054 |
| Other fixed assets | 42,673 | 45,682 | 47,132 | 49,771 | 51,320 | 42,277 | 38,581 | 35,629 |
| Current receivables | 517,463 | 503,181 | 513,257 | 567,494 | 553,547 | 622,317 | 668,812 | 706,213 |
| Cash & cash equivalents | 186,303 | 166,592 | 150,302 | 164,445 | 173,288 | 179,352 | 268,222 | 290,745 |
| Total assets | 1,167,375 | 1,135,723 | 1,111,490 | 1,190,074 | 1,201,749 | 1,271,302 | 1,381,663 | 1,436,640 |
| Shareholders' equity and liabilities | ||||||||
| Shareholders' equity | 513,107 | 503,439 | 482,052 | 488,382 | 497,734 | 522,329 | 587,636 | 580,843 |
| Long-term non-interest bearing debt | 5,441 | 5,605 | 5,568 | 5,609 | 7,743 | 8,479 | 8,576 | 8,669 |
| Current non-interest bearing debt | 648,826 | 626,680 | 623,870 | 696,083 | 696,272 | 740,494 | 785,451 | 847,128 |
| Total shareholder´s equity and | ||||||||
| liabilities | 1,167,375 | 1,135,723 | 1,111,490 | 1,190,074 | 1,201,749 | 1,271,302 | 1,381,663 | 1,436,640 |
| Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | |
|---|---|---|---|---|---|---|---|---|
| SEK 000s | 2013 | 2013 | 2013 | 2012 | 2012 | 2012 | 2012 | 2011 |
| Operating activities | ||||||||
| Profit before tax | 16,537 | 11,577 | 17,602 | -3,216 | -5,537 | -3,851 | 12,921 | 37,849 |
| Adjustments for items not included in | ||||||||
| cash flow | 4,861 | 7,145 | 2,349 | 22,867 | 3,815 | 21,373 | 1,769 | -5,473 |
| Tax paid | -3,563 | 2,612 | -4,594 | -4,381 | -7,355 | -291 | -3,079 | 8,283 |
| Cash flow from changes in working capital |
11,571 | -4,180 | -10,603 | -21,870 | 22,515 | -29,978 | -20,648 | 27,263 |
| Cash flow from operating activities | 29,406 | 17,153 | 4,754 | -6,600 | 13,438 | -12,747 | -9,037 | 67,922 |
| Cash flow from investing activities | -6,765 | -8,617 | -8,904 | -8,428 | -10,629 | -9,596 | -12,496 | -33,739 |
| Cash flow from financing activities | - | -6,071 | - | - | - | -64,016 | - | - |
| Cash flow from continuing | 22,641 | 2,465 | -4,150 | -15,028 | 2,809 | -86,359 | -21,533 | 34,183 |
| operations | ||||||||
| Cash flow from discontinued operations |
- | - | - | - | - | - | - | -2,058 |
| Cash flow for the period | 22,641 | 2,465 | -4,150 | -15,028 | 2,809 | -86,359 | -21,533 | 32,125 |
| Cash and cash equivalents | ||||||||
| On the opening date | 166,592 | 150,302 | 164,445 | 173,287 | 179,352 | 268,222 | 290,745 | 261,636 |
| Translation difference | -2,930 | 13,825 | -9,993 | 6,187 | -8,873 | -2,511 | -990 | -3,016 |
| Cash and cash equivalens on the | ||||||||
| closing date | 186,303 | 166,592 | 150,302 | 164,445 | 173,287 | 179,352 | 268,222 | 290,745 |
| Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | |
|---|---|---|---|---|---|---|---|---|
| 2013 | 2013 | 2013 | 2012 | 2012 | 2012 | 2012 | 2011 | |
| Gross profit (GP) / revenue (%) | 22.4 | 23.2 | 22.6 | 23.7 | 22.8 | 24.5 | 22.9 | 23.8 |
| EBITDA / revenue (%) | 4.3 | 4.0 | 3.6 | 1.2 | -0.6 | 0.0 | 2.8 | 6.2 |
| EBITDA / gross profit (GP) (%) | 19.2 | 17.4 | 15.9 | 5.2 | -2.6 | 0.2 | 12.4 | 25.9 |
| Equity/assets ratio (%) | 44.0 | 44.3 | 43.4 | 41.0 | 41.4 | 41.1 | 42.5 | 40.4 |
| Return on equity last 12 months (%) | 6.5 | 1.9 | -1.5 | -1.9 | 4.9 | 10.7 | 14.7 | 16.8 |
| Average number of employees | 455 | 470 | 472 | 479 | 489 | 487 | 493 | 536 |
| Return on Capital Employed last 12 months (%) |
8.8 | 4.1 | 0.6 | 0.2 | 7.9 | 15.2 | 19.0 | 23.4 |
| Cash-flow from operating activities per share, SEK |
0.69 | 0.40 | 0.11 | -0.15 | 0.31 | -0.30 | -0.21 | 1.59 |
| Equity per share, SEK | 12.1 | 11.9 | 11.3 | 11.4 | 11.7 | 12.2 | 13.8 | 13.6 |
| Stock price at the end of the period, SEK |
21.0 | 17.1 | 15.0 | 12.5 | 14.0 | 16.9 | 31.1 | 27.3 |
| Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | |
|---|---|---|---|---|---|---|---|---|
| SEK M | 2013 | 2013 | 2013 | 2012 | 2012 | 2012 | 2012 | 2011 |
| DACH | ||||||||
| Net sales | 67.7 | 72.2 | 77.8 | 83.8 | 71.7 | 78.8 | 92.7 | 101.9 |
| EBITDA | 7.9 | 8.2 | 9.9 | 8.3 | 6.7 | 9.2 | 11.6 | 14.3 |
| East | ||||||||
| Net sales | 24.5 | 26.3 | 25.9 | 30.0 | 22.5 | 24.5 | 26.0 | 25.5 |
| EBITDA | 1.7 | 1.6 | 1.7 | 0.6 | 0.5 | 1.5 | 0.9 | 1.9 |
| France & Benelux | ||||||||
| Net sales | 109.7 | 121.2 | 149.0 | 149.1 | 131.2 | 139.4 | 164.5 | 179.4 |
| EBITDA | 8.2 | 11.3 | 15.6 | 11.6 | 9.9 | 11.2 | 15.2 | 15.4 |
| Nordics | ||||||||
| Net sales | 68.1 | 68.6 | 71.7 | 81.7 | 70.6 | 81.9 | 83.6 | 93.4 |
| EBITDA | 7.4 | 7.6 | 6.4 | 7.7 | 7.6 | 8.6 | 7.7 | 10.1 |
| South | ||||||||
| Net sales | 70.0 | 67.2 | 62.8 | 71.2 | 71.0 | 79.5 | 83.1 | 90.4 |
| EBITDA | 7.5 | 7.8 | 7.1 | 8.6 | 7.6 | 12.4 | 11.4 | 13.4 |
| UK & Ireland | ||||||||
| Net sales | 123.9 | 119.9 | 125.5 | 135.8 | 144.9 | 152.2 | 174.0 | 194.0 |
| EBITDA | 8.6 | 8.7 | 5.7 | 7.9 | 2.6 | 8.0 | 12.4 | 14.5 |
| Technology | ||||||||
| Net sales | 14.9 | 14.9 | 15.1 | 16.0 | 14.2 | 17.5 | 16.3 | 16.8 |
| EBITDA | 11.7 | 11.6 | 10.2 | 10.6 | 9.2 | 12.2 | 10.1 | 10.8 |
| Group management & support functions | ||||||||
| Net sales | - | - | - | - | - | - | - | - |
| EBITDA | -32.4 | -37.1 | -37.6 | -48.3 | -47.1 | -62.9 | -51.2 | -37.0 |
| Total | ||||||||
| Net sales | 478.8 | 490.3 | 527.9 | 567.7 | 526.1 | 573.7 | 640.2 | 701.5 |
| EBITDA | 20.6 | 19.8 | 19.1 | 6.9 | -3.1 | 0.3 | 18.1 | 43.3 |
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Full year | |
|---|---|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2013 | 2012 | 2012 |
| Net Sales | - | - | - | - | -290 |
| Cost of goods sold | - | - | - | - | 4,914 |
| Gross profit | - | - | - | - | 4,624 |
| Total costs | - | - | - | - | -2,419 |
| Operating profit | - | - | - | - | 2,205 |
| Net financial items | - | - | - | - | 2 9 |
| Profit before tax | - | - | - | - | 2,234 |
| Tax | - | - | - | - | -42 |
| Net profit excl capital loss for the year for discontinued operations | - | - | - | - | 2,192 |
| Capital loss | - | - | - | - | - |
| Net profit for the year for discontinued operations | - | - | - | - | 2,192 |
| Other comprehensive income | |||||
| Net profit from discontinued operations | - | - | - | - | 2,192 |
| Translation difference on equity net after tax | - | - | - | - | - |
| Exchange difference on increased net investment, net after tax | - | - | - | - | - |
| Reversal of exchange difference on increased net investment, net after tax | - | - | - | - | - |
| Reversal of translation difference on equity, net after tax | - | - | - | - | - |
| Total other comprehensive income from discontinued operations | - | - | - | - | 2,192 |
Discontinued operations refers to the operations in the Search market unit, which were divested during the fourth quarter of 2011.
Return on equity. Profit for the period as a percentage of average equity calculated as opening plus closing equity divided by two.
Return on capital employed. Operating profit plus interest income as a percentage of average capital employed calculated as opening plus closing capital employed divided by two.
Equity per share. Equity divided by the number of outstanding shares on the balance sheet date.
Earnings per share. Net profit for the period attributable to the parent company's shareholders divided by the average number of shares.
Earnings per share after full dilution. Net profit/loss for the period divided by the average number of shares calculated after full dilution.
Cash flow per share. Cash flow divided by the average number of outstanding shares.
Operating margin. Operating profit as a percentage of sales.
Equity/assets ratio. Equity as a percentage of the balance sheet total.
Capital employed. Total assets less current and non-current non interest-bearing liabilities including deferred tax liabilities.
AdCode. An ad display system which is used in order to optimise and display the best ad on a publisher's website.
Affiliate. Used for a website which via adverts directs Internet visitor traffic to the advertising company's website.
Affiliate network. A system where advertisers that want to boost their Internet sales are matched together with website owners that want to boost their advertising revenue by means of an affiliate programme.
Affiliate programme. An agreement where the advertiser pays a fee to the publisher in order to relay traffic to the advertiser's website.
App download tracking. Software that enables the advertiser to monitor and obtain statistics about when consumers download and install software from the advertiser and how they use the software afterwards.
Cost-per-action (CPA). Means that the advertisers pay a fee which either is based on the sales generated by the advertising or on the number of leads (principally registrations) generated by the advert.
Cost-per-click (CPC). This pricing model means that advertisers pay a fee based on the number of clicks or unique visitors generated by the advertising.
Cost-per-lead (CPL). Means that the advertisers pay a fee which is based on the number of leads (primarily registrations) generated by the advert.
Cost-per-thousand impressions (CPM). A pricing model where advertisers pay a fee based on the number of views of an advert.
E-mail publishers. Use e-mail to send out targeted offers to a list of recipients.
EBIT. Earnings before interest and tax.
EBITDA. Earnings before interest, tax, depreciation and amortisation.
Full-time equivalent (FTE) or full-time employees. The total number of full-time and temporary as well as contract employees.
Performance-based. Collective term for marketing activities on the Internet where publishers only get paid when a predetermined transaction is generated.
Product feed. A distribution system where advertisers can upload their product databases in order to enable publishers to create content and ads on their websites.
Publisher. (Also called affiliate) Websites that agree on display of adverts and direct Internet visitor traffic to the Advertising company's website.
Trackability. The process and method for follow-up of website traffic, primarily through use of cookies.
Portals. Websites which act as a gateway to the Internet and offer broad content and large volumes of traffic. On the portal, there are several links, a search engine and other services, for instance, free e-mail or filters and blocking possibilities.
Search engine optimizing publishers. Own websites which use search engines, e.g. Google and Yahoo!, in combination with their own knowledge about the search engine and the advertiser in order to display the advertiser high up in the search results list. These publishers help to generate greater volumes.
Voucher code. Voucher codes that are created and easily distributed to consumers via a publisher's website. The consumer can then use the voucher code when purchasing a product/service from the advertiser.
TradeDoubler AB, org. nr 556575-7423 Board of Directors and the Managing Director in TradeDoubler AB (publ)
We have reviewed the condensed interim report for TradeDoubler AB as at September 30, 2013 and for the nine months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We conducted our review in accordance with the Swedish Standard on Review Engagements, SÖG 2410 Review of Interim Reports Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material aspects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.
Stockholm, 30 October 2013
Ernst & Young AB
Thomas Forslund
Authorized Accountant
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