Quarterly Report • Sep 3, 2007
Quarterly Report
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A significant strategic acquisition within search engine marketing was made on July 25th by cash payment of approximately 770 MSEK.
TradeDoubler is a Pan-European digital marketing company offering a range of performance-based marketing solutions. TradeDoubler's products and services provide companies with the tools and expertise to drive results online whether they are looking to generate sales or drive brand awareness. Headquartered in Sweden, the company boasts a unique European reach with local offices in 15 countries across Europe and a presence in a further three countries. With a breadth of expertise across multiple industry sectors and a network of more than 118,000 website publishers TradeDoubler helps deliver online results for over 1,200 advertisers across Europe including a mix of local and international companies such as Apple Store, Dell, Telia Sonera, eBay and Kelkoo. Please visit www.tradedoubler.com for further information.
This document contains certain forward-looking statements relating to the business, financial performance and results of the Company and the industry in which it operates. These statements are based on the Company's current plans, estimates and projections, as well as its expectations of external conditions and events. In particular the words "expect", "anticipate", "estimate", "may", "should", "believe" and similar expressions are intended to identify forward-looking statements. Forwardlooking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forwardlooking statements. These include, but are not limited to: the level of client acceptance of existing and new and upgraded products and services; the growth of overall market demand for the Company's products ; the Company's ability to sustain and effectively manage its recent rapid growth; the Company's relationship with third party suppliers, and its ability to accurately forecast the volume and timing of sales. Additional factors could cause future results to differ materially from those in the forward-looking statements.
Historically the company increases its cost base during the first half of the year. The first half of 2007 saw an increase on these historical levels of investment. In the second quarter of 2007, TradeDoubler added a number of staff to its businesses across Europe in order to secure future growth. With the resources now in place, the focus going forward will be on delivering the full potential of all TradeDoubler's assets. The main investments for the year have now been completed.
With the strategically important acquisition of IMW, TradeDoubler enters a new market segment opening up for the further expansion of the group.
According to recently released figures from comScore, the average European internet user now spends approximately 24 hours a month online. With more than 40 percent of the total European population online, increased broadband adoption has meant that European internet users are now spending more time online than their US counterparts.
Whilst advertising spend has been disproportionately low compared to the amount of media time consumers spend online, the gap is continuing to narrow as advertisers shift increasing portions of budget towards online.
Recently released figures from Forrester Research predict that online adspend will double by 2012 to reach €16 billion and will increase its share of total European adspend from 9 percent today to 18 percent in 2012. The internet is expected to be the fastest growing global ad medium over the coming years, driving overall advertising growth at a time when certain offline channels are either stagnant or in decline across some European markets.
TradeDoubler's wealth of experience and expertise within digital advertising can greatly assist advertisers who are looking to invest more budget towards online
and to optimise their spend on this channel as well as helping them stay abreast of developments within such a rapidly evolving industry.
As internet users continue to increase the amount of time spent online, they are becoming more confident online shoppers and spend more money on online transactions. Internet users are also becoming more demanding of their online experience and are far more receptive to online advertising if the advertising message is relevant to them. TradeDoubler's recently released contextual advertising functionality provides advertisers with the opportunity to place automated advertising alongside website content that is related to the products or services that they are advertising, thereby increasing the likelihood that internet users will be interested in the products or services on offer.
From an advertiser's perspective, increased broadband adoption offers the opportunity to more actively engage with their audiences. Advancements in rich media and functionality such as video streaming enable advertisers to offer an improved online customer experience and target their audiences more effectively.
Search activity undoubtedly remains the dominant online marketing channel with affiliate marketing often the second port of call for online advertisers. As marketing directors demand more accountability from digital advertising suppliers, performance based marketing has moved further into the spotlight.
As competition and consolidation across the industry increase, TradeDoubler has sought to strengthen and expand its offering on both a product and geographic level. TradeDoubler's performance based product portfolio now accommodates a full range of advertiser requirements. Using TradeDoubler's affiliate and campaign products, td pull, td Reach and td Push, advertisers are able to reach a wide range of internet users as well as smaller niche target groups, generate brand awareness and drive direct response in the form of clicks, leads or sales. The acquisition of The IMW Group will enable TradeDoubler to expand its offering in to the rapidly growing, dominant search engine marketing channel.
Whilst Travel and Finance advertisers have been amongst the most successful adopters of online advertising, TradeDoubler's td Talk product which was launched this year has widened the scope of online advertising to accommodate advertisers who are looking to sell more complex products which require a phone conversation to complete a sale.
The ability of the internet to accurately track return on investment on advertising spend underpins the performance based marketing model. TradeDoubler's td Toolbox product offers our advertisers a highly reliable, scalable independent
tracking solution to measure, optimise and analyse all their online advertising activity; helping them to cost effectively increase their online sales.
Continuing the changes initiated earlier in the year and moving further to optimise and align the efficiencies of the TradeDoubler product range to clients' needs, TradeDoubler's product development continues to strengthen.
Within the td Pull area, the focus has been on improving usability, flexibility of linking and increased transparency for publishers. We estimate that the changes we have made will make TradeDoubler a more attractive proposition for publishers, when choosing which affiliate networks to work with. Reporting has been improved, resulting in an even greater ability to account precisely for when a publisher will get paid for a specific sale or lead generated. The advertiser link generators have been revamped to make it easier for publishers to retrieve appropriate creative and also to gain full visibility on the kind of creative freedom advertisers give them. In addition the product now allows trusted publishers to get immediate approval from advertisers, allowing faster uptake of advertiser programmes among key publishers. With an increased number of languages allowed per product feed, TradeDoubler now serves multi-lingual shopping directories, in markets such as Belgium and Switzerland. In a move to increase efficiency within the client service area for advertisers, a beta test of automated client specific reporting is underway. This feature, which allows staff to focus even more on value generating activities, has been well received by advertisers.
For the td Push and Reach products, there have been a number of product development initiatives which are also targeted towards increasing internal efficiencies. Our estimates show that we are able to increase efficiencies significantly. We have built up and expanded our capabilities to handle "lead capture" campaigns which are typically designed to capture data of consumers or businesses, to be used by the advertiser, with explicit consent, for direct and sales marketing purposes. This represents a fast growing segment of the market and with the adapted functionality TradeDoubler is well positioned to profit from this growth.
The td Toolbox product now has more functionality that relates to ad serving. The opportunities going forward, particularly given the extent of consolidation within the industry, are significant. In addition TradeDoubler has focussed on further enhancing the private network functionality that allows advertisers to build their own network of publishers. The focus has primarily been related to facilitating the migration of internal solutions to the td Toolbox.
td Talk has seen many improvements over the last three months. With the commercial launch of the click to call functionality, a user is allowed to feed a telephone number to an input field and, at the click of a button, be connected to the advertiser's call centre. This functionality will greatly improve the
continued roll out of this product. The advertiser can now verify sales generated from calls through additional functionality which enables advertisers to have calls monitored and recorded in order to ensure quality,. This new functionality has been developed in response to requests from key clients.
TradeDoubler's revenues continued to increase during the second quarter 2007 and amounted to 512,6 (400,9) MSEK, an increase of 27,9 percent, compared to the second quarter of the preceding year. Transaction revenues accounted for 481,9 (372,6) MSEK of total revenues and other revenues accounted for 30,7 (28,3) MSEK. Other revenues mainly consist of start-up and monthly fees and consulting revenues.
TradeDoubler's gross profit in the second quarter amounted to 143,0 (114,0) MSEK, an increase of 25,4 percent, compared to the second quarter of the preceding year. The share of revenue attributable to transactions was 112,3 (85,7) MSEK, while other revenues contributed 30,7 (28,3) MSEK.
The gross margin during the second quarter was 27,9 (28,4) percent, an increase from 26,8 percent in the first quarter of the year. The positive trend, quarter on quarter stems from a focus on higher margin customers and products. The transaction margin during the second quarter 2007 was 23,3 (23,0) percent, an increase from 22,2 percent in the first quarter of 2007.
The revenue growth is due to continued recruitment of advertisers combined with an increasing number of transactions. On June 30, the number of active advertisers (clients) was 1 404 (1 145), and there were 114 651 (114 977) active publishers in TradeDoubler's network.
The Group's revenues increased by 29,0 percent in the period to 1 033,8 (801,3) MSEK.
Transaction revenues accounted for 972,3 (746,0) MSEK of total revenues, and other revenues were 61,5 (55,3) MSEK.
The gross profit for the period increased by 27,9 percent and amounted to 282,7 (221,1) MSEK. The amount attributable to transactions was 221,2 (165,8) MSEK, and other revenues were 61,5 (55,3) MSEK.
The gross margin for the period amounted to 27,3 (27,6) percent.
| Revenue by revenue source | |||||||
|---|---|---|---|---|---|---|---|
| SEKm | Apr-Jun 2007 |
Apr-Jun 2006 |
Change (%) |
Jan-Jun 2007 |
Jan-Jun 2006 |
Change (%) |
Jan-Dec 2006 |
| Transaction revenues | 481,9 | 372,6 | 29,3% | 972,3 | 746,0 | 30,3% | 1 629,8 |
| Other revenues | 30,7 | 28,3 | 8,5% | 61,5 | 55,3 | 11,2% | 114,3 |
| Total | 512,6 | 400,9 | 27,9% | 1 033,8 | 801,3 | 29,0% | 1 744,1 |
| Gross profit by revenue source | |||||||
|---|---|---|---|---|---|---|---|
| SEKm | Apr-Jun 2007 |
Apr-Jun 2006 |
Change (%) |
Jan-Jun 2007 |
Jan-Jun 2006 |
Change (%) |
Jan-Dec 2006 |
| Transaction revenues | 112,3 | 85,7 | 31,0% | 221,2 | 165,8 | 33,4% | 366,0 |
| Other revenues | 30,7 | 28,3 | 8,5% | 61,5 | 55,3 | 11,2% | 114,3 |
| Total | 143,0 | 114,0 | 25,4% | 282,7 | 221,1 | 27,9% | 480,3 |
All geographic markets continued to show growth during the second quarter 2007. In the UK, revenues increased by 28,4 (37,0) percent compared to the second quarter of the preceding year. In France and Germany the increases were 19,5 (83,3) percent and 16,1 (68,8) percent respectively. In France, growth in the second quarter was primarily due to campaign activities both with existing and new clients.
The rest of Europe excluding the Nordic region saw revenues increase by 40,1 (89,1) percent, compared to the second quarter in the preceding year.
The Nordic market grew by 23,3 (45,0) percent compared to the second quarter of the preceding year. During the second quarter 2007, 93,6 (91,0) percent of the company's revenues were generated outside of Sweden.
All geographic markets continued to grow. In the UK, revenues for the period increased by 29,2 (53,5) percent, compared to the corresponding period of the preceding year. In France and Germany the increases were 15,0 (104,4) percent and 36,9 (65,5) percent, respectively. Across the rest of Europe excluding the Nordic region, revenues increased by 43,6 (106,3) percent, compared to the corresponding period of the preceding year. The Nordic market grew by 21,8 (61,6) percent, compared to the corresponding period in the preceding year. During the first six months 2007, 93,2 (90,9) percent of the company's revenues were generated outside of Sweden.
| United Kingdom | |||||||
|---|---|---|---|---|---|---|---|
| SEKm | Apr-Jun | Apr-Jun | Change | Jan-Jun | Jan-Jun | Change | Jan-Dec |
| 2007 | 2006 | (%) | 2007 | 2006 | (%) | 2006 | |
| Revenue | 209,7 | 163,3 | 28,4% | 430,7 | 333,3 | 29,2% | 728,8 |
| Gross profit | 53,2 | 42,0 | 26,7% | 108,2 | 86,0 | 25,9% | 185,6 |
| Rest of Europe | |||||||
| SEKm | Apr-Jun 2007 |
Apr-Jun 2006 |
Change (%) |
Jan-Jun 2007 |
Jan-Jun 2006 |
Change (%) |
Jan-Dec 2006 |
| France | 79,2 | 66,3 | 19,5% | 160,1 | 139,3 | 15,0% | 297,2 |
| Germany | 31,7 | 27,3 | 16,1% | 66,1 | 48,3 | 36,9% | 118,2 |
| Rest of Europe excl the Nordic region | 120,5 | 86,0 | 40,1% | 233,3 | 162,5 | 43,6% | 354,9 |
| Total revenue | 231,4 | 179,6 | 28,8% | 459,5 | 350,1 | 31,3% | 770,3 |
| Gross profit | 65,2 | 51,0 | 27,8% | 126,4 | 95,0 | 33,1% | 210,0 |
| Nordic region | |||||||
| SEKm | Apr-Jun 2007 |
Apr-Jun 2006 |
Change (%) |
Jan-Jun 2007 |
Jan-Jun 2006 |
Change (%) |
Jan-Dec 2006 |
| Nordic region | 71,5 | 58,0 | 23,3% | 143,6 | 117,9 | 21,8% | 245,0 |
| Total revenue | 71,5 | 58,0 | 23,3% | 143,6 | 117,9 | 21,8% | 245,0 |
| Gross profit | 24,6 | 21,0 | 17,1% | 48,0 | 40,1 | 19,8% | 84,7 |
Operating profit (EBIT) for the second quarter amounted to 40,3 (45,3) MSEK, corresponding to an operating margin of 7,9 (11,3) percent.
Earnings in the second quarter of 2007 were negatively affected by costs relating to all existing warrant schemes. In the second quarter these costs increased the selling expenses by -7,6 (+3,3) MSEK.
Adjusted for expenses attributable to the share based compensation, the operating margin was 9,3 (10,5) percent of revenues and 33,5 (36,9) percent of gross profit.
The cost base is primarily affected by the build-up of sales related staff and only a limited number of staff will be added to the company for the remainder of the year.
One time expenses in the second quarter amounted to 1,8 (1,0) MSEK and are primarily related to one time staff cost in the sales organization and transaction costs.
Profit after tax for the period amounted to 30,6 (33,7) MSEK.
Operating profit (EBIT) during the period amounted to 81,0 (82,0) MSEK corresponding to an operating margin of 7,8 (10,2) percent.
Earnings during the period have been negatively affected by costs relating to the existing warrant schemes. For the period, these costs increased the selling expenses by 15,2 (0,0) MSEK.
Adjusted for expenses attributable to this share based compensation, the operating margin for the period was 9,3 (10,2) percent of revenues and 34,0 (37,1) percent of gross profit.
One time expenses in the period amounted to 3,8 (3,0) MSEK.
Profit after tax for the period amounted to 58,6 (54,4) MSEK.
The average number of shares after dilution amounted to 28 544 803 resulting in earnings per share of 1,07 (1,18) SEK for the second quarter. The earnings per share for the period amount to 2,05 (1,91) SEK.
Cash and cash equivalents at June 30, 2007 amounted to 392,3 (312,8) MSEK. Cash and cash equivalents at year end 2006 amounted to 433,1 MSEK. The Group does not have any long-term loans or bank credit.
Cash flow from operations before changes in working capital during the second quarter was 49,6 (45,0) MSEK. The increase in cash flow is driven by the growth in gross profit. The change in working capital for the second quarter was 13,0 (-23,9 ) MSEK and was due mainly to a decrease in accounts receivables in relation to short term debts to affiliates. The change in working capital for the reporting period was 9,0 (31,7) MSEK.
Investments during the second quarter in tangible assets amounted to 2,0 (2,3) MSEK and related primarily to investments in computer equipment. For the reporting period, investments in tangible assets amounted to 4,3 (3,3) MSEK.
Cash flow for the second quarter amounted to -79,6 (19,1) MSEK. Cash flow for the period amounted to -46,1 (99,7) MSEK. During the period, cash flow was negatively affected by a dividend paid to the shareholders of 140,1 (0,0) MSEK.
During the period, a dividend was paid to the shareholders of 140,1 (0,0) MSEK. Most recently, senior management changes have included the appointment of, Andreas Bernström as COO, Ulrika Wahllöf as HR Director and Casper Seifert as CFO.
At June 30, 2007, TradeDoubler had 429 (295) employees of which 32 (37) percent are female. During the period, TradeDoubler recruited a further 78 (38) employees of which 42 (6) were recruited in the second quarter. Most new recruitment during the period took place in the local subsidiaries to strengthen sales and support functions and in product and technical development team.
The average number of employees in the second quarter was 412 (292) and in the period 392 (284). The majority of recruitment has now taken place and only a small number of employees will be added to the company for the remainder of the year.
TradeDoubler's operations involve the development of advanced software and services thereto associated. The business is expanding rapidly and internationally. In addition to customer and supplier relations, risks include, but are not limited to: the level of client acceptance of existing, new and upgraded products and services, the growth of overall market demand for the Company's products, the Company's relationship with third party suppliers and its ability to accurately forecast and manage the volume of sales in various currencies. Both the group and the parent company share these risks.
No significant transactions between the group companies or between the parent company have taken place in the period. Related parties with which the Group has transactions are described in the annual report for 2006, note 25.
The parent company's sales during the second quarter increased by 36,7 percent to 80,7 (59,1) MSEK. The sales consist primarily of license fees from subsidiaries. For the period the corresponding increase was 39,2 percent to 152,7 (109,7) MSEK.
Earnings after financial items for the second quarter amounted to 37,0 (26,4) MSEK and earnings after financial items for the period amounted to 66,2 (46,2) MSEK. Liquid assets at June 30, 2007 were 232,1 (101,8). Liquid assets at year end 2006 amounted to 159,6 MSEK.
Investments in fixed assets during the second quarter amounted to 1,2 (1,3) MSEK and during the period amounted to 1,8 (1,8) MSEK.
The average number of employees during the second quarter was 98 (75) and for the period 95 (74).
In the second quarter and during the period, a dividend was paid to the shareholders of 140,1 (0,0) MSEK.
TradeDoubler has purchased all shares of Interactive Marketing Works Ltd and its subsidiaries ('The IMW Group') for approximately 56 MGBP in cash and debt. The IMW Group's subsidiaries include The Search Works, which is the number one search engine marketing company in the UK and The Technology Works; a technology provider with a presence in Europe and Asia. The purchase is strategically important to the group and emphasises TradeDoubler's product and geographic expansion within the digital media market. The IMW Group will expand its operations throughout TradeDoubler's markets during 2008 and 2009. A separate press release has been issued containing further information about the acquisition. Acquisition sheets will be presented in the third quarter report.
After the closing of the period a new office was opened in Dublin further strengthening TradeDoubler's presence in Ireland.
During 2007 TradeDoubler has revised its strategy and as a result it has increased its commitment to invest in the continued growth in the company to secure its longer term potential. This has resulted in an increased cost base during the first half of 2007 and, after the period, the acquisition of the IMW Group. TradeDoubler continues to aim to grow the company at least in line with the underlying market growth.
| Third quarter results, 2007 | October 26th, 2007. |
|---|---|
Full year results 2007. January 31st, 2008.
There will be a telephone conference at 10:30 CET on 26 July, 2007 hosted by CEO William Cooper and CFO Casper Seifert who will present the results for the period. To participate in the conference call, please dial: +46-8-505 2 01 10
The report and the presentation will be published on the company website, www.tradedoubler.com prior to the start of the conference call. For local dial in numbers, please consult the TradeDoubler website.
The Board of Directors and the CEO have ensured that the interim report provides an accurate overview of the Parent Company's and the Group's operations, financial position and results, and that it describes the significant risks and uncertainties faced by the Parent Company and the companies in the Group.
Stockholm, July 25th 2007
Kjell Duveblad Lars Lundquist
Chairman of the board Vice Chairman of the board
Elisabet Annell Kristofer Arwin
Felix Hagnö Martin Henricson
Rolf Lydahl Lars Stugemo
William Cooper President and CEO
For further information please contact
William Cooper, President and CEO +46-8-405 08 00 Casper Seifert, CFO +46-8-405 08 27
This Interim Report has not been subject to review by the company auditors.
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | |
|---|---|---|---|---|---|
| SEK 000s | 2007 | 2006 | 2007 | 2006 | 2006 |
| Revenue | 512 622 | 400 863 | 1 033 768 | 801 323 | 1 744 080 |
| Cost of services sold | -369 573 | -286 849 | -751 113 | -580 237 | -1 263 783 |
| Gross profit | 143 049 | 114 014 | 282 655 | 221 086 | 480 297 |
| Selling expenses | -74 349 | -45 847 | -142 252 | -92 813 | -200 110 |
| Administrative expenses | -21 915 | -18 623 | -46 372 | -37 710 | -72 041 |
| Development expenses | -6 4840 | -4 2510 | -12 9970 | -8 5420 | -18 080 |
| Operating profit | 40 301 | 45 293 | 81 034 | 82 021 | 190 066 |
| Net financial items | 2 504 | 1 068 | 4 987 | 2 014 | 8 134 |
| Profit before tax | 42 805 | 46 361 | 86 021 | 84 035 | 198 200 |
| Income tax expense | -12 217 23645 | -12 678 | -27 406364 | -29 636 | -57 814 |
| Net profit | 30 588 | 33 683 | 58 615 | 54 399 | 140 386 |
| Basic earnings per share (SEK) | 1,09 | 1,24 | 2,09 | 2,01 | 5,13 |
| Diluted earnings per share (SEK) | 1,07 | 1,18 | 2,05 | 1,91 | 4,93 |
| Average no of shares outstanding | 28 015 287 | 27 172 035 | 28 015 287 | 27 124 118 | 27 350 907 |
| Average no of shares outstanding after | |||||
| dilution (period end) | 28 544 803 | 28 588 773 | 28 545 657 | 28 540 151 | 28 479 075 |
| Total no of shares outstanding (period end) | 28 015 287 | 27 335 001 | 28 015 287 | 27 335 001 | 27 954 837 |
| Total no of shares outstanding after | |||||
| dilution (period end) | 29 345 583 | 28 588 773 | 29 345 583 | 28 588 773 | 28 588 773 |
| 30 Jun | 30 Jun | 31 Dec | |
|---|---|---|---|
| SEK 000s | 2007 | 2006 | 2006 |
| ASSETS | |||
| Fixed assets | |||
| Intangible fixed assets | 12 025 | 13 405 | 12 715 |
| Tangible fixed assets | 12 660 | 10 182 | 11 558 |
| Other long-term receivables | 803 | 803 | 803 |
| Deferred tax asset | 3 207 | 7 043 | 2 263 |
| Total fixed assets | 28 695 | 31 433 | 27 339 |
| Current assets | |||
| Accounts receivable | 374 770 | 277 446 | 417 514 |
| Prepaid expenses and accrued income | 7 989 | 3 896 | 6 453 |
| Other current receivables | 32 226 | 16 773 | 30 316 |
| Cash and cash equivalents | 392 326 | 312 790 | 433 082 |
| Total current assets | 807 311 | 610 905 | 887 365 |
| TOTAL ASSETS | 836 006 | 642 338 | 914 704 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||
| Shareholders' equity | 283 563 | 241 644 | 348 965 |
| Long-term liabilities | |||
| Deferred tax liability | - | 3 754 | 3 562 |
| Other provisions | 2 200 | 6 500 | - |
| 2 200 | 10 254 | 3 562 | |
| Current liabilities | |||
| Accounts payable | 5 926 | 11 065 | 12 662 |
| Publisher payable | 268 472 | 189 062 | 270 374 |
| Tax liability | 42 271 | 27 394 | 26 325 |
| Other current liabilities | 183 610 | 118 399 | 196 949 |
| Accrued expenses and deferred income | 39 464 | 36 020 | 45 367 |
| Other provisions | 10 500 | 8 500 | 10 500 |
| 550 243 | 390 440 | 562 177 | |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 836 006 | 642 338 | 914 704 |
| Apr-Jun | Jan-Jun | Jan-Dec | |||
|---|---|---|---|---|---|
| SEK 000s | 2007 | 2006 | 2007 | 2006 | 2006 |
| Shareholders equity on opening date | 386 266 | 213 627 | 348 965 | 188 562 | 188 562 |
| Translation differences | 719 | -1 522 | 3 106 | -2 950 | -6 745 |
| Profit for the period | 30 588 | 33 683 | 58 615 | 54 399 | 140 386 |
| Share issues | - | - | - | 169 | 8 225 |
| Dividend | -140 076 | - | -140 076 | - | - |
| Share-based compensation adjusted by | |||||
| equity items | 6 066 | 732 | 12 953 | 1 464 | 2 928 |
| Tax effect on share option exercise 1) | - | - | - | - | 15 609 |
| Total shareholders' equity | |||||
| on closing date | 283 563 | 246 520 | 283 563 | 241 644 | 348 965 |
1) Tax deduction is admitted in the UK at share option
exercise based on calculated cost.
| Apr-Jun | Jan-Jun | Jan-Dec | ||||
|---|---|---|---|---|---|---|
| SEK 000s | 2007 | 2006 | 2007 | 2006 | 2006 | |
| Operating activities | ||||||
| Profit before tax | 42 804 | 46 361 | 86 021 | 84 035 | 198 201 | |
| Adjustments for non-cash items | 9 605 | -2 659 | 19 125 | -159 | 3 337 | |
| Income taxes paid | -2 850 | 1 323 | -15 899 | 695 | -4 903 | |
| Cash flows from operating activities | ||||||
| before changes in working capital | 49 559 | 45 025 | 89 247 | 84 571 | 196 635 | |
| Changes in working capital | 12 960 | -23 921 | 9 038 | 31 670 | 32 533 | |
| Cash flow from operating activities | 62 519 | 21 104 | 98 285 | 116 241 | 229 168 | |
| Investing activities | ||||||
| Net investment of subsidiary | - | 345 | - | -13 405 | -9 900 | |
| Net investment of tangible fixed assets | -2 035 | -2 303 | -4 273 | -3 321 | -7 301 | |
| Cash flow from investment activities | -2 035 | -1 958 | -4 273 | -16 726 | -17 201 | |
| Financing activities | ||||||
| New share issues | - | - | - | 169 | 8 225 | |
| Dividend | -140 076 | - | -140 076 | - | - | |
| Cash flow from financing activities | -140 076 | - | -140 076 | 169 | 8 225 | |
| CASH FLOW FOR THE PERIOD | -79 592 | 19 146 | -46 064 | 99 684 | 220 192 | |
| Cash and cash equivalents on opening date | 471 996 | 296 997 | 433 082 | 218 348 | 218 348 | |
| Translation difference in cash and cash equivalents | -78 | -3 353 | 5 308 | -5 242 | -5 458 | |
| Cash and cash equivalents on closing date | 392 326 | 312 790 | 392 326 | 312 790 | 433 082 | |
| Adjustment for non-cash items | ||||||
| Depreciation | 2 039 | 1 609 | 3 972 | 2 827 | 6 409 | |
| Non-recurring cost relating to the quotation | - | -1 000 | - | -2 950 | - | |
| Personnel expenses, including social security | ||||||
| expenses, attributable to share related programs | 7 566 | -3 268 | 15 153 | -36 | -3 072 | |
| Total non-cash items | 9 605 | -2 659 | 19 125 | -159 | 3 337 |
| Key data | |||||
|---|---|---|---|---|---|
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | |
| SEK 000s | 2007 | 2006 | 2007 | 2006 | 2006 |
| Operating margin (%) | 7,9 | 11,3 | 7,8 | 10,2 | 10,9 |
| EBITDA | 42 340 | 46 902 | 85 006 | 84 848 | 196 474 |
| EBITDA margin (%) | 8,3 | 12,0 | 8,2 | 11,0 | 11,4 |
| Equity ratio (%) | 33,9 | 37,6 | 33,9 | 37,6 | 38,0 |
| Return on equity (%) | 43,2 | 34,7 | 45,7 | 34,7 | 52,0 |
| Number of employees on closing date | 429 | 295 | 429 | 295 | 351 |
| Average number of employees | 412 | 292 | 392 | 284 | 308 |
Notes to the results of the group.
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | |
|---|---|---|---|---|---|
| KSEK | 2007 | 2006 | 2007 | 2006 | 2006 |
| Revenue | 80 745 | 59 076 | 152 719 | 109 721 | 235 426 |
| Cost of services sold (publisher compensation) | -6 831 | -4 708 | -9 458 | -7 844 | -14 937 |
| Gross profit | 73 914 | 54 368 | 143 261 | 101 877 | 220 489 |
| Selling expenses | -7 992 | -5 104 | -16 689 | -9 148 | -18 333 |
| Administrative expenses | -22 719 | -18 562 | -47 664 | -37 953 | -74 837 |
| Development expenses | -6 492 | -4 291 | -13 005 | -8 543 | -18 080 |
| Operating profit | 36 711 | 26 411 | 65 903 | 46 233 | 109 239 |
| Finance income | 329 | 0 | 328 | 0 | 1 906 |
| Finance costs | - | -3 | - | -52 | -14 |
| Profit after financial items | 37 040 | 26 408 | 66 231 | 46 181 | 111 131 |
| Income tax expense | -7 892 | -6 668 | -15 783 | -13 335 | -26 670 |
| Net profit | 29 148 | 19 741 | 50 448 | 32 846 | 84 461 |
| 30 Jun | 30 Jun | 31 Dec | |
|---|---|---|---|
| SEK 000s | 2007 | 2006 | 2006 |
| ASSETS | |||
| Fixed assets | |||
| Property, plant and equipment | 6 481 | 6 020 | 6 639 |
| Investment in Group companies | 46 587 | 43 599 | 46 587 |
| Other securities held as fixed assets | 536 | 536 | 536 |
| Deferred tax asset | - | 1 834 | - |
| Total fixed assets | 53 604 | 51 989 | 53 762 |
| Current assets | |||
| Accounts receivable | 4 434 | 5 216 | 3 596 |
| Receivables from Group companies | 119 848 | 114 547 | 127 951 |
| Other current receivables | 6 353 | 756 | 1 085 |
| Prepaid expenses and accrued income | 2 413 | 1 989 | 3 550 |
| Cash and cash equivalents | 232 143 | 101 765 | 159 596 |
| Total current assets | 365 191 | 224 273 | 295 778 |
| TOTAL ASSETS | 418 795 | 276 262 | 349 540 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||
| Shareholders' equity | 166 364 | 196 322 | 255 993 |
| Current liabilities | |||
| Accounts payable | 6 182 | 6 154 | 5 486 |
| Liabilities to Group companies | 143 194 | 3 634 | 5 453 |
| Current tax | 40 620 | 13 335 | 24 837 |
| Other current liabilities | 45 838 | 39 674 | 43 025 |
| Accrued expenses and deferred income | 16 597 | 17 143 | 14 746 |
| 252 431 | 79 940 | 93 547 | |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 418 795 | 276 262 | 349 540 |
Notes to the results of the parent company.
vi. A dividend was distributed to shareholders on June 1 of 140,1 MSEK.
This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and RR 31 Consolidated Interim Financial Reporting. The accounting policies that have been applied are in agreement with the accounting policies that were used in the preparation of the company's latest annual report. A description of the accounting policies is included in note 1 of the annual report. New or revised IFRS standards or IFRIC interpretations, which came into force on 1 January 2006, have not had any effect on the group's results of operations or financial position.
This report has included the additional information required by the implementation of the EU Transparancy Directive to the Swedish law, from July 1, 2007.
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