TradeDoubler

Quarterly Report • Aug 3, 2011

Interim report

January-June 2011

Growth in the core business

(Numerical data in brackets refers to the corresponding period in 2010 unless otherwise stated).

INTERIM PERIOD, JANUARY - JUNE 2011

• Gross profit increased to SEK 323.9 M (322.6), and adjusted for changes in exchange rates, gross profit increased by 9%.
• Operating profit (EBIT) more than doubled to SEK 53.7 M (25.6). Adjusted for changes in exchange rates, operating profit increased by 224%.
• Cash flow from operating activities was SEK 12.5 M (-103.8).
• Earnings per share amounted to SEK 0.91 (0.70).
• The continued success of the core business in Network which was significant in local currencies more than compensated for weakness in Technology and Search.

THE SECOND QUARTER, APRIL -JUNE 2011

• Gross profit fell to SEK 157.2 M (158.8), and adjusted for changes in exchange rates, gross profit increased by 6%.
• Operating profit (EBIT) increased by 112% to SEK 20.2 M (9.5). Adjusted for changes in exchange rates, operating profit increased by 212%.
• Cash flow from operating activities was SEK -30.7 M (-24.4).
• Earnings per share amounted to SEK 0.48 (0.63).

PRESENTATION OF THE INTERIM REPORT

The interim report is presented at a press and analyst conference on 3 August at 10.00 a.m. in TradeDoubler's premises at Sveavägen 20, Stockholm.

The presentation may also be followed via a webcast using the link: http://www.tradedoubler.com/cp-sv/investors/

Key ratios

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Full year
MSEK	2011	2010	2011	2010	2010
Net sales	694,4	660,9	1 443,8	1 370,1	2 840,1
Gross profit	157,2	158,8	323,9	322,6	658,4
Operating profit	20,2	9,5	53,7	25,6	82,5
Net profit	20,3	26,9	39,0	30,0	61,3
Cash-flow from operating activ ities	-30,7	-24,4	12,5	-103,8	-5,8
Earnings per share, SEK	0,48	0,63	0,91	0,70	1,44
Cash-flow per share, SEK	-0,91	-0,59	0,00	-7,20	-5,01
Operating profit/Gross profit, %	12,8	6,0	16,6	7,9	12,5
Return on equity (12 months), %	13,3	-44,8	13,3	-44,8	12,3

CEO's comments on the first half-year 2011

Growth in the core business

Urban Gillström, President and CEO

TradeDoubler's core business, Network, continued to develop strongly during the second quarter of the year and the group doubled its operating profit compared with the corresponding period of last year. The improvement was explained by continued good sales growth and the completed structural changes.

Sales increased during the second quarter by 13 percent in local currencies compared with the equivalent period of last year. All in all, the total market continues to grow, but with significant differences between various business segments, countries and service areas.

Despite the weak market conditions in Southern Europe, the market for Internet advertising also continued to grow there. However, we still faced challenges with our sales in Spain and could note that the market growth in France and Italy was lower than in the first quarter of the year. In particular, it was clear that the travel segment in Southern Europe was adversely affected by the weaker market conditions.

The market developed more positively in Northern and Central Europe, particularly in Germany where the increase in Internet advertising impacted our sales positively. The UK also continued to perform strongly, while in North East Europe, we continued to see strong sales within Affiliate, but noted a negative development within Campaigns.

Consolidated gross profit rose by 6 per cent in local currencies. Gross profit in the core business Network increased by 7 per cent, while in Technology it decreased by 4 per cent and gross profit in Search remained at the same level as the previous year.

Within Network, I am delighted about Affiliate's success, where the business volume developed well, both globally and locally. At the same time, I have identified a number of necessary improvement measures within Campaigns. We are now increasing our efforts to establish new clients and new programmes and to recruit new publishers.

Technology faced certain challenges during the quarter, but is following the plan for improvement that we established last year. Search showed a stabilisation during the quarter in a tough market environment and continued its improvements.

We are continuing to invest in new products and in improved support systems in order to boost sales, improve productivity and ensure cost efficiency and scalable profitable growth.

We are currently in a very outward-focused phase in the day-today operations, directed towards developing new business and on strengthening our relationships with advertisers, media agencies, and publishers.

Urban Gillström, President and CEO

MARKET DEVELOPMENT

Market growth in TradeDoubler's core segment Network continued during the second quarter. However, the growth rate varied sharply between different geographical markets and between Affiliate and Campaigns.

TradeDoubler's revenue within Network was 13 per cent higher in local currencies during the second quarter 2011 compared with the corresponding quarter of 2010. This was higher than the estimated market growth of 10 per cent in TradeDoubler's addressable market.

Geographical differences

Market growth was positive in the South East and South West market units compared with the previous year but was lower than in the first quarter. The financial situation pressed the propensity to consume even more than previously and impacted negatively on advertisers' overall advertising budgets, both offline and online. Important vertical market segments, not least Travel, displayed significantly lower growth.

The market in France was more positive, even though the market was not as optimistic here either as during the two previous quarters. On comparison with the same period last year, we should also take account of the upswing in online advertising brought about by the legalisation of internet gambling in France. Travel sales were pressed by the political turbulence in many popular tourist countries in North Africa.

Market growth in the UK and Ireland was roughly the same as in the first quarter. The macroeconomic effects of the national budgetary cuts that have been announced and price conscious consumers are driving the growth of group buy and coupon sites. These now represent a significant portion of TradeDoubler's market.

Germany functions as an economic locomotive in Central Europe with very robust GNP growth which is driving up consumption and advertising budgets throughout the region. Market growth was thus strong, even though not quite as strong as during the first quarter. This was also clear in Austria and in the Netherlands, while the picture was more mixed in Switzerland and Belgium.

In North East Europe, all markets showed high growth, although not quite as high as in the first quarter. The Nordic region had favourable market conditions in the travel industry while several retail segments showed lower growth than in the previous quarter. Poland continued to show high growth and Lithuania recovered from the lowest point of last year.

Trends

Most of TradeDoubler's markets showed signs of higher degrees of maturity in terms of the breadth and depth of competition. Advertising clients have strengthened their competence in the area and so have intermediaries such as media agencies. However, TradeDoubler's margins have still not been systematically affected by the degree of maturity in any individual market. In the longer term, continuous pressure on profitability is anticipated to drive consolidation of the market, which may be expected to offer advantages to performancebased networks which have a strong local position and international reach.

Another more important factor for the group's profitability is the business mix – the relative division between the long-term Affiliate business and the short-term Campaigns business. TradeDoubler's strong position within the Affiliate business in most markets impacted negatively on the gross margin in Network.

Yet a factor which affects development of the gross margin is the relative importance of international business – services to large clients in many geographical regions. The company successfully increased its international portfolio during the second quarter with a negative effect on the gross margin but with large volume which more than compensated for this in absolute terms.

A new EU directive became effective during the second quarter which regulates the use of cookies. The directive means that websites which use cookies must advise what these cookies are used for and also secure consent from website visitors to use cookies. Several countries introduced new legislation in this area, but as this is usually more general, it is not possible at present to analyse the effects in detail.

THE GROUP'S RESULTS

Consolidated net sales increased during the first half-year to SEK 1,443.8 M, which represented a rise of 14 per cent adjusted for changes in exchange rates. During the second quarter, net sales amounted to SEK 694.4 M, an increase of 13 per cent adjusted for changes in exchange rates.

Gross profit was unchanged in principle during the first half-year at SEK 323.9 M. Adjusted for changes in exchange rates, the increase was 9 percent. During the second quarter, gross profit amounted to SEK 157.2 M, which represented an increase of 6 per cent adjusted for changes in exchange rates.

Network continued to develop strongly during the first half-year and increased its gross profit to SEK 281.2 M, a rise of 12 per cent adjusted for changes in exchange rates. Currency-adjusted, Technology and Search declined by 10 and 9 per cent respectively.

Operating costs during the first half-year fell to SEK 253.4 M, a decrease of 4 per cent adjusted for changes in exchange rates. The decrease was mainly a result of the focus on cost control.

Operating profit improved during the first half-year to SEK 53.7 M, an increase of 224 per cent adjusted for changes in exchange rates. Profitability improved during the first half-year and the operating/gross profit margin increased to 16.6 (7.9) per cent. During the second quarter, operating profit was SEK 20.2 M, an increase of 212 per cent adjusted for changes in exchange rates.

Financial income and expenses during the first half-year amounted to SEK -6.6 M (9.1), which was explained by the negative effect of changes in exchange rates which affected the valuation of intra-group transactions. At the end of the six-month period, the group had no interest-bearing loans (0.0).

Profit after tax during the first half-year was SEK 39.0, an increase of 38 per cent adjusted for changes in exchange rates. During the second quarter, profit after tax amounted to SEK 20.3 M, a drop of 13.1 per cent adjusted for changes in exchange rate.

Segments

MSEK	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Full year
Gross profit (GP)	2011	2010	2011	2010	2010
Network	135,9	135,1	281,2	271,4	561,6
Technology	13,7	15,3	25,6	30,8	58,4
Search	7,6	8,4	17,0	20,4	38,5
Total	157,2	158,8	323,9	322,6	658,4
Operating profit (EBIT)
Network	21,7	11,2	54,3	24,7	78,4
Technology	4,9	7,1	10,7	14,5	27,8
Search	-6,5	-8,8	-11,2	-13,7	-23,7
Total	20,2	9,5	53,7	25,6	82,5
Operating profit/Gross profit, %
Network	16,0	8,3	19,3	9,1	14,0
Technology	36,0	46,3	41,6	47,1	47,6
Search	neg	neg	neg	neg	neg

Network

MSEK	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Full year
Gross profit (GP)	2011	2010	2011	2010	2010
Market Unit Central	31,2	29,0	63,5	57,6	120,3
Market Unit France	23,0	24,7	50,8	51,4	106,0
Market Unit North East	30,6	31,7	62,1	60,8	125,6
Market Unit North West	26,3	23,7	54,5	50,0	106,3
Market Unit South East	15,5	14,7	32,0	28,3	57,1
Market Unit South West	9,3	11,3	18,3	23,3	46,3
Total	135,9	135,1	281,2	271,4	561,6
Operating profit (EBIT)
Market Unit Central	5,0	-0,1	11,0	0,4	7,6
Market Unit France	6,5	5,0	18,6	11,8	27,7
Market Unit North East	1,4	0,8	3,7	-1,1	5,4

Total	21,7	11,2	54,3	24,7	78,4
Market Unit South West	1,6	2,1	3,1	4,5	9,5
Market Unit South East	6,4	4,2	14,2	8,0	16,5
Market Unit North West	0,8	-0,8	3,7	1,0	11,7

Operating profit/Gross profit, %

Market Unit Central	16,0	-0,4	17,4	0,8	6,3
Market Unit France	28,5	20,4	36,6	23,0	26,1
Market Unit North East	4,4	2,5	6,0	-1,8	4,3
Market Unit North West	3,1	-3,2	6,8	2,1	11,0
Market Unit South East	41,4	28,5	44,2	28,3	29,0
Market Unit South West	17,0	18,3	16,8	19,3	20,6

NETWORK

Sales to existing clients developed positively, both as a result of deeper client relationships, particularly with international clients and by virtue of new products. Larger customer contracts create the potential for higher productivity, which is partly offset, however, by the fact that such clients have a stronger negotiating position by virtue of their size. A maturing market and certain price competition from new players also results in pressure on margins. Business volume from downloadable material and discount sites continued to grow while the travel industry was held back by the weak economic climate.

Gross profit during the first half-year increased by 12 per cent in local currencies to SEK 281.2 M. Gross profit increased in all market units apart from South West and France.

The service areas Affiliate and Campaigns, which accounted for 80 and 20 per cent respectively of gross profit during the first half-year within Network, both developed positively. Relatively speaking, Affiliate developed stronger due to a more competitive market position. During the second quarter, gross profit was SEK 135.9 M, a rise of 7 per cent adjusted for changes in exchange rates.

Operating profit (EBIT) during the first half-year strengthened to SEK 54.3 M, a rise of 219 per cent adjusted for changes in exchange rates. Increases were also noted here in all market units besides South West. The improvement in North West was particularly strong. Central and South East also developed strongly. During the second quarter, operating profit was SEK 21.7 M, an increase of 155 per cent adjusted for changes in exchange rates.

The largest market unit Central improved its gross profit during the second quarter to SEK 31.2 M, an increase of 12 per cent adjusted for changes in exchange rates. The rise was mainly explained by a strong development in Germany and Switzerland which are benefitting from well-established client relationships. We saw growth across the board with increased revenue from both Affiliate and Campaigns. Operating profit in the unit improved to SEK 5.0 M (-0.1).

Gross profit in the second largest unit North East, improved during the second quarter by 1 per cent, adjusted for changes in exchange rates, to SEK 30.6 M and operating profit improved to SEK 1.4 M (0.8). All in all, revenue from Affiliate services increased, primarily generated from the existing client base while revenues from Campaigns decreased. Strong competition and some bottlenecks adversely affected certain markets in the unit.

Weaker market conditions in the travel and retail segments meant that the strong development during the first quarter in unit France slowed, and the unit achieved a gross profit for the second quarter of SEK 23.0 M which adjusted for changes in exchange rates, was unchanged. Services within Affiliate increased. Operating profit improved to SEK 6.5 M (5.0).

Unit North West reported a gross profit during the second quarter of SEK 26.3 M, a rise of 23 per cent adjusted for changes in exchange rates, and an operating profit of SEK 0.8 M (-0.8), which represented a continued improvement. After having been adversely affected by a large number of public holidays in April, the unit gradually improved its gross profit during the period.

Unit South East strengthened its gross profit during the second quarter to SEK 15.5 M, an increase of 13 per cent adjusted for changes in exchange rates. Operating profit improved to SEK 6.4 M (4.2). The unit continued to win market share.

Gross profit in the unit South West amounted to SEK 9.3 M during the second quarter, a decline of 12 per cent adjusted for changes in exchange rates. The unit was pressed by the weak economic situation in Spain and Portugal and thereby lower activity within Campaigns. The reduced business volume also affected profitability and operating profit decreased to SEK 1.6 M (2.1).

EBIT Network (SEK M)

TECHNOLOGY

The business segment Technology was negatively impacted by individual customer movements. Costs remained under control.

Gross profit during the first half-year decreased by 10 per cent in local currencies to SEK 25.6. France, which is the segment's largest market, developed well with an increase of 11 per cent while the second largest market, Germany, saw a slight decrease. Sales in Poland developed strongly. During the second quarter, gross profit decreased to SEK 13.7 M, a decline of 4 per cent adjusted for changes in exchange rates.

Operating profit (EBIT) during the first half-year fell by 17 per cent adjusted for changes in exchange rates to SEK 10.7 M. Impairment of trade receivables of SEK 1.5 M during the first quarter was charged to results. During the second quarter, operating profit fell to SEK 4.9 M, a decline of 24 per cent adjusted for changes in exchange rates.

EBIT Technology (SEK M)

SEARCH

The market climate continued to be tough with hard competition which is pressing margins. The segment continued to focus on stemming the sales decline in the UK, cutting operational costs and boosting international growth.

Gross profit was unchanged in local currency during the second quarter, which resulted in a decline in gross profit of 9 per cent during the first half-year to SEK 17.0 M. Some signs of improvements may be discerned in the business, although staff turnover was still high. Operations outside the UK grew. France and Sweden, which are both important markets, developed very strongly with rises in local currency of 80 and 182 per cent respectively during the first half-year.

Operating profit (EBIT) during the first half-year improved slightly to SEK -11.2 M (-13.7). Operating profit was SEK -6.5 M (-8.8) during the second quarter. Bad debts losses in Germany reduced operating profit by SEK 1.1 M.

EBIT Search (SEK M)

SEASONAL VARIATIONS

TradeDoubler's operations, particularly within Network and Search, fluctuate with the development of e-commerce. Ecommerce is in a phase of underlying positive growth which, however, shows variations during the year. The highest level of activity is before Christmas which implies that the fourth quarter is normally the strongest for TradeDoubler.

THE PARENT COMPANY

The parent company's net sales amounted to SEK 92.6 M (60.4) during the first half-year. Revenue primarily consisted of licensing revenue and remuneration from subsidiaries for centrally performed services. The higher net sales are primarily due to increased licensing revenue. Profit after tax amounted to SEK 22.0 M (1.6).

The parent company's receivables from subsidiaries amounted to SEK 302.5 M (311.2) at the end of the half-year period, of which there were no (0.0) non-current receivables. The parent company's liabilities to subsidiaries amounted to SEK 132.8 M (133.0) of which there were no (0.0) non-current liabilities. Cash and cash equivalents amounted to SEK 50.2 M (-0.7).

CASH FLOW AND FINANCIAL POSITION

The cash flow from operating activities during the first half-year amounted to SEK 12.5 M (-103.8), after a change in working capital of SEK -42.5 M (-117.1). The change in working capital was partly seasonal but the improvement should also be seen in the light of the fact that the comparative period was strongly affected by a normalisation of cash flows after the completed rights issue during last year. The cash flow from operating activities before changes in working capital during the first halfyear amounted to SEK 55.0 M (13.3). The cash flow from operating activities during the second quarter was -30.7 (-24.4) MSEK.

Cash and cash equivalents amounted to SEK 214.3 M (121.5) at the end of the period. The group had no interesting-bearing loans (0.0).

Consolidated shareholders' equity amounted to SEK 551.1 M (503.4). Since the start of the year, shareholders' equity has increased by SEK 34.3 M, on account of comprehensive income for the first half-year.

The return on equity for the latest rolling 12-month period was 13.3 (-44.8) per cent and amounted to 12.3 per cent during the full year 2010.

TRANSACTIONS WITH RELATED PARTIES

No transactions between TradeDoubler and related parties significantly impacting the company's financial position results have taken place.

EMPLOYEES

At the end of the second quarter, TradeDoubler's had the equivalent of 535 (589) full-time employees/full-time equivalents (FTEs), which includes full-time, temporary and contract employees.

The average number of full-time equivalents was 541 (593) during the period. The average number of full-time equivalents was 567 during the full year 2010.

RISKS AND UNCERTAINTIES

TradeDoubler divides risks into market-related risks, operational risks, financial risks and legal risks. These risks are described in the annual report for 2010, see the following link: http://financials.tradedoubler.com/sv/Verksamheten/Risker-ochosakerhetsfaktorer/. It is assessed that no significant risks or uncertainties have arisen.

ACCOUNTING POLICIES

This interim report is prepared in accordance with the Swedish Annual Accounts Act and IAS 34, Interim Financial Reporting. For information on the accounting policies applied, see the 2010 Annual Report. The accounting policies and methods of calculation are unchanged, compared with the 2010 annual report. The group has changed its segment reporting from January 2011 in accordance with the new operational follow-up which is applied internally, compared to 2010.

THE SHARE

The total number of shares at the end of the period amounted to 42,807,449 shares (of which 130,000 shares in own custody). The average number of outstanding shares during the interim period was 42,677,449.

Earnings per share after full dilution amounted to SEK 0.91 (0.70). Equity per share amounted to SEK 12.50 (11.50). At the end of the interim period, the share price was SEK 40.50, which was lower than the price at year-end which was SEK 49.50 but higher than one year ago when it was SEK 30.00.

ENGLISH VERSION

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.

PRESENTATION OF THE INTERIM REPORT

The interim report is presented at a press and analyst conference on 3 August at 10.00 a.m. in TradeDoubler's premises at Sveavägen 20, Stockholm.

The presentation may also be followed via webcast using the link: http://www.tradedoubler.com/cp-sv/investors/

	and by telephone using code 4255337:
Sweden:	+46 (0)8 5853 6965
UK	+44 (0)20 7138 0827
US:	+1 718 354 1358

The presentation material will be published concurrently with the interim report on: www.tradedoubler.com/ir.

FINANCIAL INFORMATION

Interim report Jan-Sep 2011 2 November 2011 Year-end report 2011 7 February 2012

CONTACT INFORMATION

Urban Gillström, President and CEO, tel. +46 (0)70 785 76 00 Erik Skånsberg, CFO, tel. +46 (0)70 264 70 35 Via e-mail: ir@tradedoubler.com

REVIEW

This interim report has not been examined by the company's auditor Ernst & Young AB.

THE BOARD'S DECLARATION

The Board of Directors and the CEO declare that the interim report for the period January-June 2011 provides a true and fair overview of the Company's and the Group's operations, their financial position and performance as well as describing material risks and uncertainties facing the Company and other companies in the Group.

Stockholm, 3 August 2011

Mats Sundström Kristofer Arwin Chairman Board member

Heléne Vibbleus Bergquist Martin Henricson Board member Board member

Board member Board member

Martina King Caroline Sundewall

Simon Turner Urban Gillström Board member President and CEO

Consolidated income statement

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Full year
SEK 000s	2011	2010	2011	2010	2010
Net Sales	694 439	660 897	1 443 812	1 370 073	2 840 070
Cost of goods sold	-537 240	-502 119	-1 119 953	-1 047 425	-2 181 653
Gross profit	157 199	158 777	323 858	322 648	658 416
Selling expenses	-90 758	-95 416	-184 759	-190 009	-369 163
Administrativ e expenses	-35 591	-43 452	-64 384	-86 433	-168 780
Dev elopment expenses	-10 665	-10 392	-20 965	-20 652	-37 945
Operating profit	20 185	9 517	53 750	25 554	82 528
Net financial items	2 415	16 476	-6 623	9 101	-11 186
Profit before tax	22 600	25 993	47 127	34 656	71 342
Tax	-2 254	954	-8 140	-4 672	-10 007
Net profit	20 346	26 947	38 987	29 984	61 334
Profit after tax attributable to:
Equity holders of the Parent Company	20 346	26 947	38 987	29 984	61 334

Consolidated statement of comprehensive income

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Full year
SEK 000s	2011	2010	2011	2010	2010
Profit for the period, after tax	20 346	26 947	38 987	29 984	61 334
Other comprehensive income
Exchange-rate differences	-95	3 000	-11 318	-7 540	-25 543
Total comprehensive income for the period, after tax	20 251	29 947	27 670	22 444	35 791
Comprehensiv e income attributable to
Parent company shareholders	20 251	29 947	27 670	22 444	35 791

Earnings per share

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Full year
SEK	2011	2010	2011	2010	2010
Profit per share	0,48	0,63	0,91	0,70	1,44
Profit per share after dilution	0,48	0,63	0,91	0,70	1,44
Number of Shares
Weighted av erage before dilution	42 677 449	42 677 449	42 677 449	42 644 081	42 660 902
Weighted av erage after dilution	42 677 449	42 677 449	42 677 449	42 644 081	42 660 902

Key ratios - Group

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Full year
	2011	2010	2011	2010	2010
Gross profit (GP) / rev enue (%)	22,6	24,0	22,4	23,5	23,2
Operating profit (EBIT ) / rev enue (%)	2,9	1,4	3,7	1,9	2,9
Operating profit (EBIT) / gross profit (GP) (%)	12,8	6,0	16,6	7,9	12,5
Net profit/gross profit (GP) (%)	12,9	17,0	12,0	9,3	9,3
Equity/assets ratio (%)	40,9	36,8	35,8	36,8	36,5
Return on equity (%)	13,3	-44,8	13,3	-44,8	12,3
Av erage number of employees	541	587	543	593	567
Return on Capital Employed (%)	3,8	1,9	10,2	5,3	16,7
Cash-flow per share, SEK	-0,9	-0,6	0,0	-7,2	-5,0
Equity per share, SEK	12,7	11,5	12,5	11,5	11,7
Stock price at the end of the period	40,5	30,0	40,5	30,0	49,5

Consolidated statement of financial position

	30 Jun	30 Jun	31 Dec
SEK 000s	2011	2010	2010
Assets
Intangible fixed assets	405 883	475 058	423 123
Tangible fixed assets	14 857	19 002	15 772
Financial fixed assets	2 725	2 197	2 182
Deferred tax assets	29 945	27 985	27 700
Total fixed assets	453 410	524 242	468 777
Accounts receiv ables	604 856	638 226	685 862
Tax assets	20 148	47 374	22 293
Other current receiv ables	56 002	36 647	29 049
Cash & cash equiv alents	214 260	121 469	209 744
Total current assets	895 266	843 716	946 948
Total assets	1 348 676	1 367 958	1 415 725
Shareholders' equity and liabilities
Shareholders' equity	551 122	503 437	516 784
Deferred tax liabilities	10 346	15 578	17 899
Other prov isions	1 074	1 474	1 027
Total long-term liabilities	11 420	17 052	18 926
Accounts payable	48 979	72 718	47 398
Current liabilities to publishers	402 551	403 435	447 242
Tax liabilities	-2 380	2 669	2 505
Other current liabilities	336 985	368 646	382 869
Total current liabilities	786 134	847 468	880 015
Total shareholder´s equity and liabilities	1 348 676	1 367 958	1 415 725

Consolidated statement of changes in equity

	Apr-Jun	Apr-Jun	Full year
SEK 000s	2011	2010	2010
Opening balance	530 871	473 490	480 507
Comprehensiv e income for the period	20 251	29 947	35 791
New share issues	-	-	486
Total shareholders equity	551 122	503 437	516 784

Consolidated statement of cash flows

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Full year
SEK 000s	2011	2010	2011	2010	2010
Operating activities
Profit before tax	22 600	25 993	47 127	34 656	71 342
Adjustments for items not included in cash flow	11 635	6 579	22 597	16 470	30 000
Income taxes paid	-11 174	-10 887	-14 726	-37 814	-7 321
Cash flow from operating activities before changes in working
capital	23 061	21 685	54 998	13 312	94 021
Changes in working capital	-53 804	-46 108	-42 458	-117 076	-99 847
Cash flow from operating activities	-30 743	-24 423	12 540	-103 764	-5 826
Investing activities
Net inv estments in intangible assets	-6 148	-	-8 368	-1 051	-3 152
Net inv estments in tangible assets	-1 490	-752	-3 345	-3 042	-5 494
Net inv estments in financial assets	-306	-23	-716	-23	-39
Cash flow from investing activities	-7 944	-775	-12 429	-4 116	-8 685
Financing activities
New share issues	-	-	-	42 820	42 820
Amortisation	-	-	-	-242 065	-242 065
Cash flow from financing activities	-	-	-	-199 245	-199 245
Cash flow for the period	-38 687	-25 198	111	-307 125	-213 756
Cash and cash equiv alents
On the opening date	245 633	148 201	209 744	436 595	436 595
Translation difference in cash and cash equiv alents	7 314	-1 534	4 405	-8 001	-13 095
Cash and cash equivalens on the closing date	214 260	121 469	214 260	121 469	209 744
Adjustments for non-cash items
Depreciation	8 088	8 336	14 608	16 716	30 934
Other	3 547	-1 757	7 989	-246	-934
Total non-cash items	11 635	6 579	22 597	16 470	30 000

Income statement – Parent company

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Full year
SEK 000s	2011	2010	2011	2010	2010
Net Sales	38 365	16 160	92 575	60 404	151 554
Cost of goods sold	-1 943	-2 827	-3 786	-5 725	-11 336
Gross profit	36 422	13 332	88 789	54 679	140 218
Selling expenses	-2 259	-2 035	-3 979	-2 927	-8 941
Administrativ e expenses	-32 870	-37 076	-64 826	-73 281	-140 772
Dev elopment expenses	-8 305	-9 717	-16 352	-17 591	-31 708
Operating profit	-7 013	-35 496	3 632	-39 120	-41 203
Net financial items	16 043	7 656	19 751	40 671	49 418
Profit before tax	9 030	-27 840	23 383	1 551	8 215
Tax	2 389	6 587	-1 427	4	-2 424
Net profit	11 419	-21 253	21 956	1 555	5 791

Balance sheet – Parent company

	30 jun	30 jun	31 dec
SEK 000s	2011	2010	2010
Assets
Intangible fixed assets	11 480	2 560	3 785
Fixed tangible assets	9 579	11 806	10 735
Financial fixed assets	377 507	420 381	387 411
Deffered tax assets	-	661	-
Total fixed assets	398 565	435 408	401 931
Accounts receiv ables	3 579	2 600	3 633
Receiv ables from Group companies	302 486	311 160	301 098
Tax assets	16 783	40 706	4 435
Other current receiv ables	10 674	9 698	11 091
Cash & cash equiv alents	50 176	-713	41 888
Total current assets	383 698	363 452	362 144
Total assets	782 263	798 860	764 075
Shareholders' equity and liabilities
Shareholders equity	532 208	541 535	519 428
Deferred tax liability	-	-	-
Total long-term liabilities	-	-	-
Accounts payable	9 346	12 205	10 843
Liabilities to Group companies	132 775	133 037	121 941

Other liabilities 107 935 112 082 111 863 Total current liabilities 250 055 257 324 244 647 Total shareholder´s equity and liabilities 782 263 798 860 764 075

Pledged assets and contingent liabilities

	30 Jun	30 Jun	31 Dec
SEK 000s	2011	2010	2010
Group
Pledged assets	none	none	none
Rent deposits	2 722	2 194	2 179
Contingent liabilities	none	none	none
Parent company
Pledged assets	none	none	none
Contingent liabilities	111 468	162 677	137 472

Quarterly summary

Consolidated income statement

	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep
SEK 000s	2011	2011	2010	2010	2010	2010	2009	2009
Net Sales	694 439	749 372	772 083	697 914	660 897	709 176	725 397	710 694
Cost of goods sold	-537 240	-582 713	-590 997	-543 231	-502 119	-545 306	-553 139	-567 319
Gross profit	157 199	166 659	181 085	154 683	158 777	163 870	172 258	143 375
Total costs	-137 014	-133 094	-148 911	-129 884	-149 260	-147 833	-151 673	-329 230
Operating profit	20 185	33 565	32 174	24 799	9 517	16 037	20 584	-185 855
Net financial items	2 415	-9 038	-3 948	-16 340	16 476	-7 374	2 868	-39 066
Profit before tax	22 600	24 527	28 227	8 459	25 993	8 663	23 452	-224 920
Tax	-2 254	-5 886	-8 166	2 830	954	-5 625	-18 200	-12 151
Net profit	20 346	18 641	20 060	11 290	26 947	3 037	5 252	-237 071

Consolidated statement of financial position

	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep
SEK 000s	2011	2011	2010	2010	2010	2010	2009	2009
Assets
Intangible fixed assets	405 883	406 738	423 123	431 530	475 058	450 749	477 276	474 221
Other fixed assets	47 527	45 560	45 654	52 356	49 184	50 760	52 776	73 902
Current receiv ables	681 006	691 012	737 204	698 827	722 247	685 758	758 930	692 535
Cash & cash equiv alents	214 260	245 633	209 744	136 212	121 469	148 201	436 596	40 505
Total assets	1 348 676	1 388 944	1 415 725	1 318 924	1 367 958	1 335 468	1 725 578	1 281 163
Shareholders' equity and liabilities
Shareholders' equity	551 122	530 870	516 784	500 409	503 437	473 490	480 507	134 396
Long-term interest bearing debt	-	-	-	-	-	-	50 000	50 000
Long-term non-interest bearing debt	11 420	12 199	18 926	20 399	17 052	17 649	23 862	19 840
Current interest bearing debt	-	-	-	-	-	-	192 065	197 961
Current non-interest bearing debt	786 134	845 875	880 015	798 117	847 468	844 328	979 144	878 966
Total shareholder´s equity and liabilities	1 348 676	1 388 944	1 415 725	1 318 924	1 367 958	1 335 468	1 725 578	1 281 163

Consolidated statement of cash flows

	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep
SEK 000s	2011	2011	2010	2010	2010	2010	2009	2009
Operating activities
Profit before tax	22 600	24 527	28 227	8 459	25 993	8 662	23 452	-224 921
Adjustments for items not included in cash flow	11 635	10 962	8 407	5 123	6 579	9 891	7 229	223 411
Tax paid	-11 174	-3 552	24 925	5 568	-10 887	-26 927	-13 223	-18 216
Cash flow from changes in working capital	-53 804	11 346	16 003	1 226	-46 108	-70 967	89 754	-33 467
Cash flow from operating activities	-30 743	43 283	77 562	20 376	-24 423	-79 341	107 212	-53 193
Cash flow from inv esting activ ities	-7 944	-4 485	-3 477	-1 092	-775	-3 341	-867	-1 704
Cash flow from financing activ ities	-	-	-	-	-	-199 245	295 377	20 000
Cash flow for the period	-38 687	38 798	74 085	19 284	-25 198	-281 927	401 722	-34 897
Cash and cash equiv alents
On the opening date	245 633	209 744	136 212	121 469	148 201	436 596	40 505	73 891
Translation difference	7 314	-2 909	-553	-4 541	-1 534	-6 468	-5 631	1 511
Cash and cash equivalens on the	214 260	245 633	209 744	136 212	121 469	148 201	436 596	40 505
closing date

Key ratios - Group

	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep
	2011	2011	2010	2010	2010	2010	2009	2009
Gross profit (GP) / rev enue (%)	22,6	22,2	23,5	22,2	24,0	23,1	23,7	20,2
Operating profit (EBIT ) / rev enue (%)	2,9	4,5	4,2	3,6	1,4	2,3	2,8	-26,2
Operating profit (EBIT) / gross profit (GP) (%)	12,8	20,1	17,8	16,0	6,0	9,8	11,9	-129,6
Net profit/gross profit (GP) (%)	12,9	11,2	11,1	7,3	17,0	1,9	3,0	-165,4
Equity/assets ratio (%)	40,9	38,2	36,5	37,9	36,8	35,5	27,8	10,5
Return on equity (%)	13,3	15,3	12,3	14,7	-44,8	-48,4	-46,2	-79,4
Av erage number of employees	541	545	534	534	587	588	569	578
Return on Capital Employed (%)	3,8	6,5	6,4	5,0	1,9	3,5	6,9	-69,9
Cash-flow per share, SEK	-0,9	0,9	1,7	0,5	-0,6	-6,6	12,0	-1,2
Equity per share, SEK	12,7	12,4	11,9	11,7	11,4	11,1	9,2	9,3
Stock price at the end of the period, SEK	40,5	46,8	49,5	35,0	30,0	39,7	46,8	59,3

Segment

	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep	Apr-Jun	Jan-Mar	Oct-Dec	Jul-Sep*
MSEK	2011	2011	2010	2010	2010	2010	2009	2009
Market Unit Central
Gross profit	31,2	32,3	35,4	27,3	29,0	28,5	30,6	27,5
Operating profit	5,0	6,0	5,4	1,8	-0,1	0,6	-0,2	-3,9
Market Unit France
Gross profit	23,0	27,9	29,8	24,8	24,7	26,7	26,9	21,2
Operating profit	6,5	12,0	8,3	7,5	5,0	6,8	8,1	3,1
Market Unit North East
Gross profit	30,6	31,5	35,8	29,0	31,7	29,1	33,5	22,8
Operating profit	1,4	2,4	3,9	2,5	0,8	-1,9	1,9	-6,6
Market Unit North West
Gross profit	26,3	28,2	29,7	26,6	23,7	26,3	24,5	24,0
Operating profit	0,8	2,9	6,6	4,1	-0,8	1,8	3,6	3,7
Market Unit South East
Gross profit	15,5	16,6	15,4	13,3	14,7	13,6	11,8	10,9
Operating profit	6,4	7,7	4,2	4,3	4,2	3,8	1,6	1,0
Market Unit South West
Gross profit	9,3	9,0	10,9	12,1	11,3	12,0	12,7	12,6
Operating profit	1,6	1,5	1,4	3,6	2,1	2,4	1,2	1,3
Technology
Gross profit	13,7	11,9	14,2	13,2	15,3	15,5	17,6	14,5
Operating profit	4,9	5,7	6,6	6,6	7,1	7,4	9,7	5,3
Search
Gross profit	7,6	9,4	9,8	8,4	8,4	12,0	14,6	9,9
Operating profit	-6,5	-4,7	-4,2	-5,7	-8,8	-4,9	-5,4	-9,4

* Excluding non-recurring effects in the form of impairment of goodwill and provisions of SEK 180.3 M in total for unutilised office space in the UK.

Key ratio definitions

Share price/equity. The share price divided by equity per share.

Return on equity. Net profit 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.

EBITDA. EBITDA is profit before tax, net financial items and depreciation, amortisation and impairments.

EBITDA margin. EBITDA as a percentage of sales.

Net margin. Profit after tax as a percentage of sales.

Earnings per share. Net profit/loss for the year divided by the average number of shares.

Earnings per share after full dilution. Net profit/loss for the year divided by the average number of shares calculated after full dilution.

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 noncurrent non interest-bearing liabilities including deferred tax liabilities.

Glossary

Affiliate. (Means "connected" or "linked" in English) Used for a website which via adverts directs internet visitor traffic to the advertising company's website.

Affiliate network. A system where advertisers who want to boost their Internet sales are matched together with website owners who 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.

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 the 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.

Keyword publishers. Do not always have their own website but use search engines to initiate display of adverts and generate internet traffic for advertisers. This mainly takes place through purchase of keywords/search words via a search engine, which are then sent to the advertisers.

Performance-based Collective term for marketing activities on the Internet where publishers only get paid when a predetermined transaction is generated.

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.

TradeDoubler in brief

Business concept

TradeDoubler creates results by improving the clients digital marketing. This happens through our performance-based advertising network, our tools which help advertisers to make the most of their campaigns as well as our services within search engine marketing.

TradeDoubler operates on the growing and dynamic market for internet marketing. The measured results are crucial in this market for determining how campaigns are designed and how advertising rates are set. Digital marketing now has a greater reach than TV advertising in the case of many countries and target groups.

TradeDoubler has a presence in 18 countries in Europe and reaches about 75 per cent of European e-commerce consumers. The core business is to arrange adverts between advertisers and websites/publishers. This mainly takes place through TradeDoubler's affiliate network which is used by 1,900 advertisers and comprises 138,000 active publishers.

The core business is conducted in the segment Network which accounts for 85 per cent of the group's gross profit. The Technology unit licenses TradeDoubler's technology platform for internet marketing to major advertisers. The Search unit is active within search engine marketing.

BUSINESS MODEL

Tradedoubler's business model is based on the company:

• operating as an independent third party and arranging adverts and campaign space among advertisers, media agencies and websites/publishers
• helping advertisers to optimise their marketing via search engines
• supplying and refining an advanced technical advertising platform

The basis of the operations is that TradeDoubler arranges and optimises ads and campaign space between advertisers and publishers of websites. Through its knowledge of internet marketing, technology platforms for handling transactions and tracking visitors, advanced administrative system and affiliate network, TradeDoubler improves business for both advertisers and publishers. TradeDoubler is able to receive payment in relation to the result generated since the outcome is clearly measurable.

A large portion of TradeDoubler's revenue is performance-based. Remuneration from advertisers to publishers – and to TradeDoubler – is only payable when the visitor performs a certain activity, such as clicking on an ad or executing a purchase.

The activities which determine the remuneration are CPM (costper-thousands impressions), CPC (cost-per-click), CPL (cost-perlead) 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.

For more information on the business model, please refer to the 2010 Annual Report: http://financials.tradedoubler.com/en-GB/Operations/Welcome-to-TD/

TradeDoubler discloses the information provided herein pursuant to the Swedish Securities Markets Act. The information was submitted for publication on 3 August 2011 at 8.00 a.m. CET.