Quarterly Report • Nov 3, 2009
Quarterly Report
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| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Full year | |
|---|---|---|---|---|---|
| SEK 000s | 2009 | 2008 | 2009 | 2008 | 2008 |
| Rev enue | 710 694 | 788 527 | 2 288 952 | 2 642 457 | 3 456 696 |
| Gross profit | 143 375 | 180 805 | 517 635 | 552 052 | 747 085 |
| Operating profit | -185 855 | 47 985 | -125 661 | 141 185 | 149 941 |
| Profit before tax | -224 920 | 46 934 | -150 482 | 125 460 | 128 976 |
| Net profit | -237 071 | 34 745 | -183 745 | 90 725 | 94 404 |
"The result for the third quarter is weaker than expected, partly as a result of lower sales as the company is affected by a weakened advertising climate, and also due to significant non-recurring costs. We are continuing the effort to improve our processes and financial reporting as well as lowering our costs. We are also working on strengthening our sales offering. The integration of td Search is starting to show result in the European markets. Despite a weak result in the third quarter, TradeDoubler maintains a very strong position and all our regions are generating a positive operating profit. We are the market leader in performance-based digital marketing in all European markets except Germany. With our broad market offering, our expertise and our market position, combined with the planned capital injection that will create further competitive advantages, I see great opportunities to continue to develop the company and its offerings going forward"
Örjan Frid, President and CEO
Europe's leading partner within performance-based digital marketing
TradeDoubler AB (publ), Sveavägen 20, SE-111 57 Stockholm, Sweden Telephone +46 8 40 50 800, [email protected], www.tradedoubler.com, Corp. reg. no. 556575-7423. Registered offices in Stockholm Municipality. TradeDoubler Q3 2009 - 1 (12)
Consolidated revenue for the third quarter amounted to SEK 710.7 (788.5) million, a decline of 9.9 per cent compared to the same quarter in 2008.
Gross profit amounted to SEK 143.4 (180.8) million, a decline by 20.7 per cent compared to the same quarter in 2008. The gross margin amounted to 20.2 (22.9) per cent. Gross profit adjusted for non-recurring items and exchange rate differences amounted to SEK 158.3 (180.8) million, a decline of 12.4 per cent compared to the same quarter 2008. The adjusted gross margin amounted to 22.3 (22.9) per cent.
During the third quarter 2009, a project was initiated to enhance quality and automation of the reconciliation procedure between the Enterprise Resource Planning (ERP) system and the general ledger. In connection with this project reconciliation differences were identified that resulted in non-recurring items of SEK 16.1 million affecting the gross profit in the third quarter 2009.
Depreciation amounted to SEK -9.4 (-8.6) million, of which SEK -6.1 (-5.4) million related to intangible assets and SEK -3.3 (-3.2) million to tangible assets.
The remaining accrual for cost savings was SEK 2.0 million as of September 30 2009.
Operating profit amounted to SEK -185.9 (48.0) million. EBIT-margin amounted to -26.2 (6.1) per cent and the EBIT/GP margin was -129.6 (26.5) per cent. Operating profit excluding non-recurring items and exchange rate differences amounted SEK 24.8 (29.3) million, a decline by 15.2 per cent compared to the third quarter 2008. The adjusted operating margin amounted to 3.5 (3.7) per cent.
Non-recurring items and exchange rate differences that affected operating profit amounted to SEK -210.7 million during the third quarter 2009. Non-recurring items include a goodwill write-down relating to the 2007 acquisition of the IMW Group in the UK of SEK -152.4 million, provisions for unutilized office space in London amounting to SEK -30 million, adjustments regarding reconciliation differences between the Enterprise Resource Planning (ERP) system and the general ledger of SEK -16.1 million, bad debt of SEK -7 million and other items of SEK -8.5 million.
Exchange rate differences, i.e. effects of recalculating the results from foreign operations with updated exchange rates, affected operating profit positively by SEK 3.3 million.
Europe's leading partner within performance-based digital marketing
TradeDoubler AB (publ), Sveavägen 20, SE-111 57 Stockholm, Sweden Telephone +46 8 40 50 800, [email protected], www.tradedoubler.com, Corp. reg. no. 556575-7423. Registered offices in Stockholm Municipality. TradeDoubler Q3 2009 - 2 (12)
The operating profit for the third quarter 2008 amounted to SEK 48.0 million. To allow comparisons with the third quarter 2009, the gross profit for the third quarter 2008 should be adjusted for the reversal of an earlier provision of SEK 18.7 million made and communicated in the third quarter 2008 relating to outstanding employee stock option programmes. The comparable operating result for the third quarter 2008 amounted to SEK 29.3 million.
| Jul-Sep | ||
|---|---|---|
| SEK 000s | 2009 | |
| Rev enue | 710 694 | |
| Gross profit | 143 375 | |
| Adjusted gross profit | 158 339 | |
| Operating profit | -185 855 | |
| Adjusted operating profit | 24 839 | |
| Profit before tax | -224 920 | |
| Net profit | -237 071 |
TradeDoubler's policy is to only hedge against currency fluctuations relating to confirmed cash flows from a third party. Of the Group's gross profit currency exposure during the quarter EUR accounted for 58.5 per cent and GBP for 26.2 per cent.
Compared to the same quarter 2008, the differences in currency fluctuation had a positive effect of SEK 8.1 million on consolidated gross profit and a negative effect on costs by SEK 4.8 million. The net effect on operating profit was an increase of SEK 3.3 million.
The corresponding comparison to the second quarter 2009 was a negative effect of SEK 5.7 million on consolidated gross profit and a positive effect on costs by SEK 4.2 million. The net effect on operating profit was a decrease of SEK 1.5 million.
Consolidated net financial items amounted to SEK -39.1 (-1.1) million, and consisting mainly of unrealized exchange rate losses for liabilities and receivables in other currencies, SEK -35.5 (1.6) million. Net interest amounted to SEK -3.6 (-2.7) million. Thus, profit before tax amounted to -224.9 (46.9) million. Net profit amounted to SEK -237.1 (34.7) million, resulting in a net margin of -33.4 (4.4) per cent. Net profit was affected negatively by SEK 13.5 million due to a write-down of deferred tax assets in relation to the IMW Group in the UK.
Consolidated revenue for the period January – September 2009 amounted to SEK 2 289.0 (2 642.5) million, a decline of 13.4 per cent compared to the same period in 2008. Gross profit amounted to SEK 517.6
(552.1) million, a decline of 6.2 per cent compared to the same period 2008. The gross margin amounted to 22.6 (20.9) per cent. Operating profit amounted to SEK -125.7 (141.2 million). EBIT-margin amounted to -5.5 (5.3) per cent. EBIT/GP margin was thus -24.3 (25.6) per cent.
| Earnings per region | Adjustments for non-recurring items and exchange rate differences |
||||||
|---|---|---|---|---|---|---|---|
| SEK 000s | Jul-Sep | Jul-Sep | Q3 vs Q3 | Jan-Sep | Jan-Sep | Full year | Jul-Sep |
| Gross profit (GP) | 2009 | 2008 | % | 2009 | 2008 | 2008 | 2009 |
| Central Europe | 31 600 | 35 924 | -12.0 | 106 794 | 99 384 | 134 516 | 34 979 |
| Northern and Eastern Europe + Japan | 17 562 | 25 372 | -30.8 | 69 423 | 75 484 | 97 270 | 19 439 |
| UK and Ireland | 33 810 | 58 411 | -42.1 | 121 248 | 187 934 | 251 483 | 38 192 |
| Southern Europe | 60 403 | 61 098 | -1.1 | 220 170 | 189 250 | 263 816 | 65 728 |
| Total | 143 375 | 180 805 | -20.7 | 517 635 | 552 052 | 747 085 | 158 339 |
| Operating profit (EBIT) | |||||||
| Central Europe | 15 422 | 21 518 | -28.3 | 60 635 | 56 284 | 76 408 | 18 801 |
| Northern and Eastern Europe + Japan | 5 763 | 14 237 | -59.5 | 33 767 | 37 426 | 43 597 | 7 641 |
| UK and Ireland | -168 517 | 25 939 | n/a | -121 809 | 89 496 | 122 180 | 18 265 |
| Southern Europe | 37 728 | 38 313 | -1.5 | 146 884 | 123 116 | 174 122 | 43 054 |
| Parent Company and eliminations | -76 251 | -52 022 | 46.6 | -245 139 | -165 137 | -266 366 | -62 921 |
| Total | -185 855 | 47 985 | n/a | -125 661 | 141 185 | 149 941 | 24 839 |
Regional development adjusted for non-recurring items and exchange rate differences in the third quarter
TradeDoubler's operations in Central Europe continue to develop according to plan. The German business is continuing to perform well and is increasing its market share. Denmark turned a corner and is performing better. Austria and Switzerland continue to deliver stable results. The adjusted EBIT/GP margin in Central Europe was 53.7 (59.9) per cent.
In Northern and Eastern Europe as well as in Japan the transaction volumes are increasing, but the average 'customer basket' is decreasing, resulting in a negative impact on gross profit. The Swedish market performed somewhat worse than expected and was negatively affected by cost of provisions for bad debts.
Russia continues to perform according to plan with regards to both gross profit and operating profit, but has to date only made a marginal contribution to the region's overall result. The adjusted EBIT/GP margin was 39.3 (56.1) per cent.
UK and Ireland showed a weak market development. Renegotiation of existing customer contracts has resulted in lower margins. At the same time, however, new customer contracts have been won, such as Vodafone and Aer Lingus. Transaction volumes are increasing, but the average 'customer basket' is
Europe's leading partner within performance-based digital marketing
TradeDoubler AB (publ), Sveavägen 20, SE-111 57 Stockholm, Sweden Telephone +46 8 40 50 800, [email protected], www.tradedoubler.com, Corp. reg. no. 556575-7423. Registered offices in Stockholm Municipality. TradeDoubler Q3 2009 - 3 (12)
decreasing, with a resulting negative effect on gross profit. The UK business is under new management since October 2009 and the integration of the former TSW and TradeDoubler is beginning to deliver results. Operating profit amounted to SEK -168.5 million and was affected by non-recurring items of SEK 182.4 million.
Due to weaker results and a more conservative view of the future performance, a goodwill write-down of SEK 152.4 million for the IMW Group in the UK, which was acquired in 2007, was made following an impairment test. Furthermore, a provision for unutilized office space in London, amounting to SEK 30 million, was made.
The change of book value of intangible assets in relation to the goodwill write-down including currency differences amounted to SEK -141.5 million. The opening balance for intangible assets relating to goodwill for the IMW Group as of January 1, 2009 amounted to SEK 532.0 million and the closing balance amounted as of September 30, 2009 to SEK 390.5 million. The EBIT/GP margin adjusted for non-recurring items was 47.8 (44.4) per cent.
The Group's largest region, Southern Europe, continues to perform well. The Italian market is delivering good results in all product areas. Spain is developing positively, despite a generally weak market. Growth in France was weaker than previously. The renegotiation of existing contracts is squeezing margins somewhat,
while at the same time new customer sales are developing well. The region has the Group's highest adjusted EBIT/GP margin at 65.5 per cent (62.7).
Parent company costs and eliminations during the third quarter 2009 consist of salary related costs of SEK -37.7 (-44.2) million, costs for IT and telecom of SEK -6.1 (-7.6) million, other costs of SEK -23.8 (6.5) and depreciation of SEK -8.7 (-6.7) million. To enable a year on year comparison, other costs should be adjusted for costs relating to employee stock option programs of SEK 18.7 million. Adjusted other costs for the third quarter 2008 thus amounts to SEK -12.2 million and adjusted parent company costs and eliminations to SEK -70.7 million.
Cash flow from operating activities before changes in working capital amounted to SEK -19.7 (31.2) million for the quarter. The change in working capital for the quarter was SEK -33.5 (71.4) million. Cash flow from operating activities amounted to SEK -53.2 (102.6) million and as earlier in the year, the Group's cash flow was affected by longer payment periods from customers, increased accounts payables and payments of provisional taxes.
Net investments in intangible assets amounted to SEK 0.0 (1.7) million. Net investments in tangible assets during the quarter amounted to SEK 1.4 (0.5) million and related mainly to office equipment and network and server equipment.
The Group's cash flow from financing activities amounted to SEK 20.0 (-71.1) million and consisted of amortization of loans of SEK -10 million and a bridge loan of SEK 30 million. The SEK -34.9 (29.2) million reduction in liquidity during the quarter is mainly due to changes in working capital and tax payments. During the period January-September 2009, loans were net amortized by SEK 39.3 million.
On September 30, 2009 cash and cash equivalents amounted to SEK 40.5 (82.6) million.
The Group's net debt amounted to SEK 207.5 (242.2) million as of September 30, 2009.
The Board of Directors continually evaluates that conditions prevail for continued operations. As a consequence of the need for financing, the Company's debt facilities were expanded by a bridge loan of SEK 30 million during September 2009. One condition for this bridge financing is that the company's long-term financing is resolved no later than January
Europe's leading partner within performance-based digital marketing
TradeDoubler AB (publ), Sveavägen 20, SE-111 57 Stockholm, Sweden Telephone +46 8 40 50 800, [email protected], www.tradedoubler.com, Corp. reg. no. 556575-7423. Registered offices in Stockholm Municipality. TradeDoubler Q3 2009 - 4 (12)
31, 2010. Moreover, the Company has renegotiated the terms of conditions of this loan agreement.
The planned rights issue is expected to solve the Company's long financial requirements. See below headline "Events after the end of the period".
TradeDoubler's advertisers are primarily found in the travel, retail and finance sectors. At the end of the quarter, the company had 1 711 (1 730) advertisers. The number of active publishers amounted to 130 618 (128 589). TradeDoubler actively recruits new publishers. Quality, a high conversion rate and clear return requirements on traffic are prioritized above brand and ad hoc-based advertising.
The 25 largest advertisers generated 30.1 (29.8) per cent of the quarter's gross profit. The company's 25 largest publishers accounted for 16.1 (16.4) per cent of the company's gross profit in the quarter.
Forecasts for investments in internet marketing and Ecommerce show a continued long-term growth. In addition the demand for cost-effective and measurable marketing activities increases in an economic down-turn which corresponds very well to TradeDoubler's offering.
TradeDoubler is a leading player with presence in 18 European countries and Japan. The combination of geographical presence, long experience, cutting edge competence and a broad product portfolio create strong prerequisites for continued development of markets as well as services.
At the end of the period TradeDoubler had 580 (638) employees. 38.6 (36.0) per cent were women. During the quarter, the average number of employees was 578 (642).
Efforts in respect of strategic priorities are continuing:
The focus on improvement of cost control is continuing throughout the Group. As previously communicated, reductions in work force have been implemented. At the end of the quarter the Group employed 580 (638) people, compared to 582 at the end of the second quarter 2009.
TradeDoubler and TSW in the UK and France have now been fully integrated. Simon Burgess was appointed as
TradeDoubler is continuing its integrated sales model by offering the complete product portfolio that exists within the Group, i.e. search, campaign/display and affiliate. Several countries are offering this, with good results. Among other things, TradeDoubler has won integrated contracts for companies such as ICA, Silvan and Magasin.
With the planned rights issue TradeDoubler increases its financial flexibility. The improved financial position enhances competitiveness, enables further geographical expansion and increases the confidence in TradeDoubler among clients and suppliers.
On September 30, 2009 TradeDoubler had a share capital of SEK 11.4 million distributed among 28 581 633 shares, each with a par value of SEK 0.40. The average number of shares after dilution was 28 581 633 during the quarter, resulting in a result per share after dilution of SEK -8.29 (1.22).
The Parent Company's total revenue during the quarter declined by 32.5 per cent to SEK 56.0 (83.0) million. Sales consist primarily of licence revenue from subsidiaries. Earnings after tax for the quarter amounted to SEK 18.1 (43.8) million. The Parent Company had an average of 81 (83) employees during the period. The Parent Company's receivables on Group companies amounted to SEK 1 019.0 (643.7) million and include financing related to the acquisition of the IMW Group. The Parent Company's liabilities to Group companies amounted to SEK 515.6 (75.3) million.
Transactions between companies within the TradeDoubler Group consist primarily of license fees and delivery of central services. Transactions with related parties are priced on commercial terms.
As the business has performed below expectations in combination with a tight debt amortisation schedule, the financial position has become increasingly constrained during the autumn of 2009.
The Board of Directors will within short propose a rights
Europe's leading partner within performance-based digital marketing
TradeDoubler AB (publ), Sveavägen 20, SE-111 57 Stockholm, Sweden Telephone +46 8 40 50 800, [email protected], www.tradedoubler.com, Corp. reg. no. 556575-7423. Registered offices in Stockholm Municipality. TradeDoubler Q3 2009 - 5 (12)
issue with preferential rights for existing shareholders amounting to SEK 350 million. Three of the largest shareholders, Alecta, the Fourth Swedish National Pension Fund and AMF have each declared their intention to subscribe for at least their pro rata share, in total equivalent to just above 30 percent. The ambition is that the rights issue will be completed before the end of January 2010. SEB Enskilda has been appointed as financial advisor and Hannes Snellman as legal advisor in relation to the planned rights issue.
After the end of the period, TradeDoubler rebranded The Search Works (TSW) as td Search in the UK and France.
This interim report has been reviewed by the company's auditors Ernst & Young AB.
TradeDoubler divides risks into market-related risks, operational and financial risks. These risks, together with sensitivity analysis are described in detail in the 2008 Annual Report, pages 42-43. As an addition to the Annual Report descriptions in respect of operational risks the following risks are added: the internal guidelines and control of TradeDoubler's operations and processes including the financial reporting, IT security risks in the Group's systems and actual value of intangible assets. As an addition to financial risks, the Group's cash position and financing, the fulfillment of the planned SEK 350 million rights issue and client's payment times, are added.
Apart from these risks, no other significant risks or uncertainties are deemed to have arisen.
Several of the risks stated, among them the internal guidelines and control, actual value of intangible assets and the Group's cash position and financing, have materialized during the third quarter 2009.
The Board of Directors has initiated a process to strengthen the internal guidelines and control of TradeDoubler's operations and processes including financial reporting. This project has resulted in nonrecurring costs relating to reconciliation differences between the Enterprise Resource Planning (ERP) system and the general ledger. The Board of Directors and the management have made the assessment that the reconciliation differences are substantially reflected in the interim report for the period January to September 2009. However, it cannot be ruled out that the ongoing project could incur further non-recurring items and costs for additional investigational work on the result going forward.
A write-down of goodwill of SEK 152.4 million has been made due to weaker performance and a more conservative view on the future development of IMW Group in the UK, acquired in 2007. In connection with the write-down of goodwill, a write-down of SEK 13.5 million in respect of deferred tax assets was done relating to the IMW Group in the UK.
A condition for TradeDoubler's existing financing is that long term financing is secured by the company at the latest 31 January, 2010. The Board of Directors have decided to within short propose a SEK 350 million rights issue with the ambition of completion before the end of January 2010.
TradeDoubler applies the International Financial Reporting Standards ("IFRS") as adopted by the EU. This interim report was prepared in accordance with the Swedish Annual Accounts Act and IAS 34 Interim Financial Reporting. A number of amendments of existing standards, new interpretations and a new standard (IFRS 8) took effect on January 1, 2009. As far as TradeDoubler is concerned, only IFRS 8 Operating Segments and the amendments to IAS 1 Preparation of Financial Statements were deemed relevant. The application of IFRS 8 did not result in any changes in the Group's reporting segments, and the accounting principles applied to segment reporting thus agree with those described in the 2008 Annual Report. The amendment of IAS 1 resulted in a change in how financial statements are presented. In accordance with IAS 1, TradeDoubler elected to present the Group's comprehensive income divided into two reports, an income statement and a statement of other comprehensive income. During the first quarter of 2009, TradeDoubler reviewed its lending to subsidiaries and thus established that portions of this lending were to be considered net investments in accordance with IAS 21 item 15. Currency effects of these net investments are recognized in equity.
In other respects, the same accounting principles and calculation methods were applied as in the most recent annual report.
As an effect of a weaker performance in the UK an impairment test was made in September 2009. The test resulted in a goodwill write-down of SEK152.4 million due to a weaker performance and a more conservative view of the future development of the IMW Group in the UK which was acquired in 2007.
This report was prepared in both a Swedish and an English version. In cases of variation between the two, the Swedish version shall apply.
The Annual General Meeting on 6 May 2009 adopted principles for appointing a new Nomination Committee. The Committee shall be composed of representatives from the three largest shareholders (by number of votes) wishing to appoint a representative as well as the chairman of the Board of Directors. The basis for appointment is the shareholder statistics available on 30 June 2009 including other shareholder information available to the company at this time.
A new Nomination Committee has been appointed and consists of Ramsay Brufer (chairman), representing Alecta, Jan Andersson, representing Swedbank Robur Fonder, Annika Andersson, representing the Fourth Swedish National Pension Fund, and Mats Sundström, chairman of the Board of Directors.
The Annual General Meeting will be held at 17.00 CET May 6, 2010 at TradeDoubler's office Sveavägen 20 in Stockholm. The Annual Report for 2009 will be published April 20 on TradeDoubler's website and will be on hand at TradeDoubler's head office in Stockholm. In addition, printed versions will be distributed by post to shareholders approximately two weeks before the Annual General Meeting upon request.
This information is such that TradeDoubler must publish it pursuant to the Securities Market Act. The information was published on November 3, 2009 at 08:00 CET.
A meeting for analysts and the media will be held at 10:00 CET on November 3 in TradeDoubler's offices at Sveavägen 20, Stockholm. Registration is done by emailing [email protected]. The presentation can also be followed by telephone.
Call +46 (0)8 5051 3791 or +44 (0)20 7806 1968. Presentation material will be published simultaneously with the interim report and made available on the Investors section of TradeDoubler's website.
Year-end report 2009 – February 9, 2010 2009 Annual Report – April 20, 2010 Interim report Jan-March 2010 – May 6, 2010 Annual General Meeting – May 6, 2010 Interim report Jan-June 2010 – July 27, 2010 Interim report Jan-Sep 2010 – November 3, 2010
Örjan Frid, President and CEO Tel. +46 8 405 08 00 [email protected]
Thord Norberg, CFO Tel. +46 8 405 08 27 [email protected]
TradeDoubler AB (publ), Sveavägen 20, SE-111 57 Stockholm, Sweden. Telephone +46 8 405 08 00. [email protected], www.tradedoubler.com Corp. reg. no. 556575-7423 Registered offices in Stockholm Municipality
On behalf of the Board of Directors
Stockholm, November 3, 2009 Örjan Frid President and CEO
Auditor's Review Report on condensed interim financial statements prepared in accordance with IAS 34 and Chapter 9 of the Swedish Annual Accounts Act (SFS 1995:1554)
We have performed a review of the condensed interim financial statements for TradeDoubler AB at 30 September 2009 and the nine-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of these Interim financial statements in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express an opinion on the condensed interim financial statements based on our review.
We have conducted our review in accordance with the Standard on Review Engagements, SÖG 2410, "Review of Interim Financial Statements Performed by the Independent Auditor of the Entity", issued by the Swedish Federation of Authorized Public Accountants. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different purpose and a substantially less scope than an audit conducted in accordance with the Standards on Auditing in Sweden (RS) and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain such a level of assurance that would make us aware of all significant matters that might be identified in an audit. Accordingly, an opinion based on a review does not constitute the same level of assurance as an opinion based on an audit.
Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material aspects, for the group in accordance with IAS 34 and the Swedish Annual Accounts Act and for the parent company in accordance with the Swedish Annual Accounts Act.
Stockholm November 3, 2009
Ernst & Young AB
Att: Thomas Forslund Box 7350 SE-103 99 Stockholm
Europe's leading partner within performance-based digital marketing
TradeDoubler AB (publ), Sveavägen 20, SE-111 57 Stockholm, Sweden Telephone +46 8 40 50 800, [email protected], www.tradedoubler.com, Corp. reg. no. 556575-7423. Registered offices in Stockholm Municipality. TradeDoubler Q3 2009 - 7 (12)
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Full year | |
|---|---|---|---|---|---|
| SEK 000s | 2009 | 2008 | 2009 | 2008 | 2008 |
| Rev enue | 710 694 | 788 527 | 2 288 952 | 2 642 457 | 3 456 696 |
| Cost of goods sold | -567 319 | -607 722 | -1 771 318 | -2 090 405 | -2 709 611 |
| Gross profit | 143 375 | 180 805 | 517 635 | 552 052 | 747 085 |
| Selling expenses | -89 171 | -98 309 | -280 539 | -292 870 | -420 315 |
| Administrativ e expenses | -78 764 | -21 626 | -178 245 | -78 986 | -122 278 |
| Dev elopment expenses | -8 895 | -12 885 | -32 112 | -39 011 | -54 551 |
| Goodwill write-down | -152 400 | - | -152 400 | - | - |
| Operating profit | -185 855 | 47 985 | -125 661 | 141 185 | 149 941 |
| Net financial items | -39 066 | -1 051 | -24 820 | -15 725 | -20 965 |
| Profit before tax | -224 920 | 46 934 | -150 482 | 125 460 | 128 976 |
| Tax | -12 151 | -12 189 | -33 263 | -34 735 | -34 572 |
| Net profit | -237 071 | 34 745 | -183 745 | 90 725 | 94 404 |
| Profit after tax attributable to: | |||||
| Equity holders of the Parent Company | -237 071 | 34 745 | -183 745 | 90 725 | 94 404 |
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Full year | |
|---|---|---|---|---|---|
| SEK 000s | 2009 | 2008 | 2009 | 2008 | 2008 |
| Profit for the period, after tax | -237 071 | 34 745 | -183 745 | 90 725 | 94 404 |
| Other comprehensive income | |||||
| Exchange-rate differences | -26 083 | 6 805 | 26 227 | -30 668 | -62 550 |
| Total comprehensive income for the period, after tax | -263 154 | 41 550 | -157 518 | 60 057 | 31 854 |
| Comprehensive income attributable to | |||||
| Parent company shareholders | -263 154 | 41 550 | -157 518 | 60 057 | 31 854 |
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Full year | |
|---|---|---|---|---|---|
| SEK | 2009 | 2008 | 2009 | 2008 | 2008 |
| Profit per share | -8.29 | 1.22 | -6.43 | 3.18 | 3.31 |
| Profit per share after dilution | -8.29 | 1.22 | -6.43 | 3.18 | 3.31 |
| Number of Shares | |||||
| Weighted av erage before dilution | 28 581 633 | 28 497 839 | 28 581 633 | 28 547 330 | 28 532 275 |
| Weighted av erage after dilution | 28 581 633 | 28 497 839 | 28 581 633 | 28 547 330 | 28 532 275 |
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Full year | |
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | 2008 | |
| Gross profit (GP) / rev enue (%) | 20.2 | 22.9 | 22.6 | 20.9 | 21.6 |
| Operating profit (EBIT ) / rev enue (%) | -26.2 | 6.1 | -5.5 | 5.3 | 4.3 |
| Operating profit (EBIT) / gross profit (GP) (%) | -129.6 | 26.5 | -24.3 | 25.6 | 20.1 |
| Net profit/gross profit (GP) (%) | -165.4 | 19.2 | -35.5 | 16.4 | 12.6 |
| Equity/assets ratio (%) | 10.5 | 20.2 | 10.5 | 20.2 | 18.8 |
| Return on equity (%) | -79.4 | 44.1 | -79.4 | 44.1 | 28.9 |
| Av erage number of employees | 578 | 642 | 595 | 619 | 624 |
| Margin td Affiliate + td Campaign | |||||
| (Transaction margin) (%) * | 21.1 | 21.5 | 21.2 | 21.7 | 21.9 |
| Margin td Search (Search margin) (%) * | 9.9 | 9.8 | 9.1 | 7.2 | 7.6 |
* Transaction margin calculated without fixed and setup fees for all periods (not valid for Search margin)
| 30 Sep | 30 Sep | 31 Dec | |
|---|---|---|---|
| SEK 000s | 2009 | 2008 | 2008 |
| Assets | |||
| Intangible fixed assets | 474 221 | 691 894 | 631 657 |
| Tangible fixed assets | 23 762 | 20 437 | 22 675 |
| Financial fixed assets | 3 652 | 967 | 1 475 |
| Deferred tax assets | 46 488 | 55 679 | 45 829 |
| Total fixed assets | 548 123 | 768 977 | 701 636 |
| Accounts receiv ables | 650 708 | 671 836 | 673 948 |
| Tax assets | 4 011 | ||
| Other current receiv ables | 37 816 | 54 571 | 42 312 |
| Cash & cash equiv alents | 40 505 | 82 605 | 133 389 |
| Total current assets | 733 040 | 809 012 | 849 650 |
| Total assets | 1 281 163 | 1 577 989 | 1 551 286 |
| Shareholders' equity | 134 396 | 319 312 | 291 914 |
|---|---|---|---|
| Subordinated loan | 50 000 | - | - |
| Deferred tax liabilities | 19 840 | 19 995 | 17 232 |
| Other prov isions | - | 44 | - |
| Total long-term liabilities | 69 840 | 20 039 | 17 232 |
| Current interest-bearing liabilities | 197 961 | 324 769 | 286 827 |
| Current liabilities to publishers | 374 249 | 343 279 | 396 707 |
| Tax liabilities | - | 34 818 | 24 497 |
| Accounts payable | 86 381 | 229 123 | 186 698 |
| Other current liabilities | 418 336 | 306 648 | 347 411 |
| Total current liabilities | 1 076 928 | 1 238 638 | 1 242 140 |
| Total shareholder´s equity and liabilities | 1 281 163 | 1 577 989 | 1 551 286 |
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Full year | |
|---|---|---|---|---|---|
| SEK 000s | 2009 | 2008 | 2009 | 2008 | 2008 |
| Opening balance | 397 550 | 300 165 | 291 914 | 361 308 | 361 308 |
| Comprehensiv e income for the period | -263 154 | 41 550 | -157 518 | 60 057 | 31 854 |
| Share-related compensation settled | |||||
| with equity instruments | - | -18 694 | - | -12 433 | -11 628 |
| Repurchase of shares | - | -3 758 | - | -11 070 | -11 070 |
| New share issues | - | 49 | - | 49 | 49 |
| Div idend | - | - | - | -78 599 | -78 599 |
| Total shareholders equity | 134 396 | 319 312 | 134 396 | 319 312 | 291 914 |
There are no minority interests in the shareholders' equity
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Full year | |
|---|---|---|---|---|---|
| SEK 000s | 2009 | 2008 | 2009 | 2008 | 2008 |
| Operating activities | |||||
| Profit before tax | -224 921 | 46 935 | -150 482 | 125 460 | 128 976 |
| Adjustments for items not included in cash flow | 223 411 | -10 117 | 242 731 | 12 916 | 21 699 |
| Income taxes paid | -18 216 | -5 605 | -63 666 | -52 127 | -48 786 |
| Cash flow from operating activities before changes in | |||||
| working capital | -19 726 | 31 213 | 28 583 | 86 249 | 101 889 |
| Cash flow from changes in working capital | |||||
| Changes in working capital | -33 467 | 71 384 | -71 085 | 43 931 | 116 090 |
| Cash flow from operating activities | -53 193 | 102 597 | -42 502 | 130 180 | 217 979 |
| Investing activities Net inv estments in intangible assets |
- | -1 700 | - | -9 286 | -10 106 |
| Net inv estments in tangible assets | -1 379 | -517 | -10 913 | -8 498 | -13 555 |
| Net inv estments in financial assets | -325 | - | -2 334 | - | - |
| Cash flow from investing activities | -1 704 | -2 217 | -13 247 | -17 784 | -23 661 |
| Financing activities | |||||
| New share issues | - | 49 | - | 49 | 49 |
| Purchase own shares | - | -3 758 | - | -11 070 | -11 070 |
| External loan | 30 000 | - | 80 000 | 877 485 | 877 485 1 |
| Amortisation | -10 000 | -67 429 | -119 327 | -1 039 938 | -1 077 880 |
| Div idend paid to parent company's shareholders | - | - | - | -78 599 | -78 599 |
| Cash flow from financing activities | 20 000 | -71 138 | -39 327 | -252 073 | -290 015 |
| Cash flow for the period | -34 897 | 29 242 | -95 076 | -139 677 | -95 697 |
| Cash and cash equivalents | |||||
| On the opening date | 73 891 | 52 719 | 133 389 | 224 157 | 224 157 |
| Translation difference in cash and cash equiv alents | 1 511 | 644 | 2 192 | -1 875 | 4 929 |
| Cash and cash equivalens on the closing date | 40 505 | 82 605 | 40 505 | 82 605 | 133 389 |
| Adjustments for non-cash items | |||||
| Depreciation | 9 409 | 8 577 | 28 279 | 25 349 | 33 327 |
| Write-downs | 152 400 | 152 400 | |||
| Non-recurring items | 61 602 | 61 602 | |||
| Expenses related to share-related compensation | - | -18 694 | 450 | -12 433 | -11 628 |
| Total non-cash items | 223 411 | -10 117 | 242 731 | 12 916 | 21 699 |
1Including a short-term investment of SEK 477 million
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Full year | |
|---|---|---|---|---|---|
| SEK 000s | 2009 | 2008 | 2009 | 2008 | 2008 |
| Rev enue | 56 008 | 82 952 | 194 352 | 245 819 | 270 100 |
| Cost of goods sold | -3 357 | -2 595 | -9 630 | -7 113 | -10 246 |
| Gross profit | 52 651 | 80 357 | 184 722 | 238 705 | 259 854 |
| Selling expenses | -1 130 | -1 182 | -4 088 | -10 696 | -16 794 |
| Administrativ e expenses | -29 680 | -17 550 | -85 598 | -61 772 | -98 327 |
| Dev elopment expenses | -6 317 | -12 996 | -22 329 | -32 405 | -46 170 |
| Operating profit | 15 524 | 48 627 | 72 708 | 133 832 | 98 563 |
| Net financial items | 10 203 | 12 169 | 20 003 | -21 618 | -5 682 |
| Profit before tax | 25 726 | 60 797 | 92 711 | 112 214 | 92 881 |
| Tax | -7 617 | -16 979 | -23 565 | -31 501 | -25 292 |
| Net profit | 18 109 | 43 818 | 69 147 | 80 713 | 67 589 |
| Profit after tax attributable to: | |||||
| Equity holders of the Parent Company | 18 109 | 43 818 | 69 147 | 80 713 | 67 589 |
| 30 Sep | 30 Sep | 31 Dec | |
|---|---|---|---|
| SEK 000s | 2009 | 2008 | 2008 |
| Assets | |||
| Intangible fixed assets | - | - | - |
| Fixed tangible assets | 14 468 | 6 362 | 8 181 |
| Financial fixed assets | 52 189 | 49 690 | 53 323 |
| Deffered tax assets | - | - | - |
| Total fixed assets | 66 657 | 56 052 | 61 504 |
| Accounts receiv ables | 3 057 | 2 453 | 2 936 |
| Receiv ables from Group companies | 1 019 041 | 643 723 | 588 892 |
| Tax assets | 1 750 | - | - |
| Other current receiv ables | 8 526 | 1 445 | 11 924 |
| Cash & cash equiv alents | - | 6 965 | 2 612 |
| Total current assets | 1 032 373 | 654 587 | 606 364 |
| Total assets | 1 099 030 | 710 640 | 667 868 |
| Shareholders equity | 192 556 | 185 043 | 114 921 |
|---|---|---|---|
| Subordinated loan | 50 000 | - | - |
| Deferred tax liability | 5 621 | ||
| Total long-term liabilities | 55 621 | - | - |
| Current interest-bearing liabilities | 207 048 | 324 769 | 286 827 |
| Accounts payable | 7 990 | 7 705 | 15 070 |
| Liabilities to Group companies | 515 582 | 75 347 | 140 690 |
| Tax liabilities | - | 38 908 | 3 132 |
| Other liabilities | 120 233 | 78 867 | 107 227 |
| Total current liabilities | 850 854 | 525 596 | 552 947 |
| Total shareholder´s equity and liabilities | 1 099 030 | 710 640 | 667 868 |
| 30 Sep | 30 Sep | 31 Dec | |
|---|---|---|---|
| SEK 000s | 2009 | 2008 | 2008 |
| Group | |||
| Pledged assets * | 143 550 | 162 645 | 171 499 |
| Rent deposits | 3 652 | 967 | 1 475 |
| Contingent liabilities | - | - | - |
| Parent company | |||
| Pledged assets * | 23 565 | 4 095 | 4 537 |
| Rent deposits | - | 552 | 536 |
| Contingent liabilities | 30 662 | 24 042 | 13 440 |
*Pledged assets refers to shares in subsidiaries
| Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | |
|---|---|---|---|---|---|---|---|
| SEK 000s | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 |
| Rev enue | 710 694 | 734 036 | 844 222 | 814 239 | 788 527 | 866 910 | 987 020 |
| Cost of goods sold | -567 319 | -546 596 | -657 402 | -619 206 | -607 722 | -686 524 | -796 159 |
| Gross profit | 143 375 | 187 440 | 186 820 | 195 033 | 180 805 | 180 386 | 190 861 |
| Total costs | -329 230 | -153 951 | -160 116 | -186 276 | -132 820 | -139 687 | -138 362 |
| Operating profit | -185 855 | 33 489 | 26 704 | 8 757 | 47 985 | 40 699 | 52 500 |
| Net financial items | -39 066 | 13 386 | 859 | -5 240 | -1 051 | -11 765 | -2 908 |
| Profit before tax | -224 920 | 46 875 | 27 564 | 3 517 | 46 934 | 28 934 | 49 592 |
| Tax | -12 151 | -13 468 | -7 644 | 163 | -12 189 | -11 759 | -10 787 |
| Net profit | -237 071 | 33 407 | 19 920 | 3 680 | 34 745 | 17 175 | 38 805 |
| 30 Sep | 30 Jun | 31 Mar | 31 Dec | 30 Sep | 30 Jun | 31 Mar | |
|---|---|---|---|---|---|---|---|
| SEK 000s | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 |
| Assets | |||||||
| Intangible fixed assets | 474 221 | 706 120 | 657 664 | 631 657 | 691 894 | 678 807 | 664 460 |
| Other fixed assets | 73 902 | 93 105 | 77 383 | 69 979 | 77 083 | 68 095 | 66 730 |
| Current receiv ables | 692 535 | 710 668 | 737 552 | 716 261 | 726 407 | 846 749 | 884 240 |
| Cash & cash equiv alents | 40 505 | 73 891 | 151 088 | 133 389 | 82 605 | 52 719 | 188 653 |
| Total assets | 1 281 163 | 1 583 784 | 1 623 687 | 1 551 286 | 1 577 989 | 1 646 370 | 1 804 083 |
| Shareholders' equity and liabilities | |||||||
| Shareholders' equity | 134 396 | 397 550 | 333 907 | 291 914 | 319 312 | 300 166 | 339 905 |
| Long-term interest bearing debt | 50 000 | 50 000 | 50 000 | - | - | - | - |
| Long-term non-interest bearing debt | 19 840 | 16 268 | 16 578 | 17 232 | 20 039 | 28 286 | 29 613 |
| Current interest bearing debt | 197 961 | 177 500 | 207 500 | 286 827 | 324 769 | 392 198 | 362 500 |
| Current non-interest bearing debt | 878 966 | 942 466 | 1 015 702 | 955 312 | 913 869 | 925 720 | 1 072 065 |
| Total shareholder´s equity and liabilities | 1 281 163 | 1 583 784 | 1 623 687 | 1 551 286 | 1 577 989 | 1 646 370 | 1 804 083 |
| Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | |
|---|---|---|---|---|---|---|---|
| SEK 000s | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 |
| Operating activities | |||||||
| Profit before tax | -224 921 | 46 875 | 27 564 | 3 516 | 46 935 | 28 933 | 49 592 |
| Adjustments for items not included in cash flow | 223 411 | 9 489 | 9 831 | 8 783 | -10 117 | 9 784 | 13 249 |
| Tax paid | -18 216 | -47 774 | 2 324 | 3 341 | -5 605 | -29 069 | -17 453 |
| Cash flow from operating activities | -19 726 | 8 590 | 39 719 | 15 640 | 31 213 | 9 648 | 45 388 |
| Cash flow from changes in working capital | -33 467 | -47 953 | 10 335 | 72 159 | 71 384 | -80 324 | 52 871 |
| Cash flow from inv esting activ ities | -1 704 | -8 348 | -3 195 | -5 877 | -2 217 | -15 464 | -103 |
| Cash flow from financing activ ities | 20 000 | -30 000 | -29 327 | -37 942 | -71 138 | -56 213 | -124 722 |
| Cash flow for the period | -34 897 | -77 711 | 17 532 | 43 980 | 29 242 | -142 353 | -26 566 |
| Cash and cash equivalents | |||||||
| On the opening date | 73 891 | 151 088 | 133 389 | 82 605 | 52 719 | 188 653 | 224 157 |
| Translation difference | 1 511 | 514 | 167 | 6 804 | 644 | 6 419 | -8 938 |
| Cash and cash equivalens on the closing date | 40 505 | 73 891 | 151 088 | 133 389 | 82 605 | 52 719 | 188 653 |
| Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | |
|---|---|---|---|---|---|---|---|
| 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 | |
| Gross profit (GP) / rev enue (%) | 20.2 | 25.5 | 22.1 | 24.0 | 22.9 | 20.8 | 19.3 |
| Operating profit (EBIT ) / rev enue (%) | -26.2 | 4.6 | 3.2 | 1.1 | 6.1 | 4.7 | 5.3 |
| Operating profit (EBIT) / gross profit (GP) (%) | -129.6 | 17.9 | 14.3 | 4.5 | 26.5 | 22.6 | 27.5 |
| Net profit/gross profit (GP) (%) | -165.4 | 17.8 | 10.7 | 1.9 | 19.2 | 9.5 | 20.3 |
| Equity/assets ratio (%) | 10.5 | 25.1 | 20.6 | 18.8 | 20.2 | 18.2 | 21.4 |
| Return on equity (%) | -79.4 | 26.3 | 22.4 | 30.9 | 44.1 | 47.4 | 44.3 |
| Av erage number of employees | 578 | 589 | 618 | 640 | 642 | 631 | 587 |
| Margin td Affiliate + td Campaign | |||||||
| (Transaction margin) (%) * | 21.1 | 21.3 | 21.3 | 22.5 | 21.5 | 22.2 | 21.4 |
| Margin td Search (Search margin) (%) * | 9.9 | 8.5 | 9.0 | 10.1 | 9.8 | 6.2 | 6.5 |
* Transaction margin calculated without fixed and setup fees for all periods (not valid for Search margin)
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TradeDoubler AB (publ), Sveavägen 20, SE-111 57 Stockholm, Sweden Telephone +46 8 40 50 800, [email protected], www.tradedoubler.com, Corp. reg. no. 556575-7423. Registered offices in Stockholm Municipality.
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