Quarterly Report • May 3, 2012
Quarterly Report
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(Numerical data in brackets refers to the corresponding period in 2011 unless otherwise stated).
The interim report will be presented at a press and analyst conference on 3 May at 10.00 a.m. in TradeDoubler's premises at Sveavägen 20. The presentation may also be followed via a webcast using the link: http://financials.tradedoubler.com/.
| Jan-Mar | Jan-Mar | Full year | |
|---|---|---|---|
| MSEK | 2012 | 2011 | 2011 |
| Net sales | 640,2 | 652,6 | 2 612,7 |
| Gross profit | 146,4 | 157,3 | 626,5 |
| Operating profit | 12,6 | 34,8 | 127,1 |
| Net profit | 10,1 | 20,0 | 92,2 |
| Cash-flow from operating activ ities |
-9,0 | 41,8 | 123,6 |
| Earnings per share, SEK | 0,24 | 0,47 | 2,16 |
| Cash-flow per share, SEK | -0,50 | 0,88 | 1,60 |
| Operating profit/Gross profit (%) | 8,6 | 22,1 | 20,3 |
| Return on equity (12 months) (%) | 14,7 | 16,5 | 16,8 |
CEO's comments on the first quarter of 2012
We had a challenging start to 2012 to say the least, especially compared to the very strong start to 2011. After a satisfactory Christmas trade, the start of the year was weaker than we anticipated. The negative economic and political climate, especially in Southern Europe is having an effect on consumption. This particularly affected our market units France and South East, which combined accounted for 2/3 of the fall in gross profit.
Business with our key customer group of international brands developed in a stable manner during the first quarter and we continued to win important new deals, and to develop our existing base. In this case, we meet both demands for advanced solutions, and for efficient uniform delivery in a large number of countries. The large transaction volumes with corresponding lower margins point to the importance of scale and cost efficiency.
In line with our strategy, we initiated comprehensive new projects during the previous quarter in order to raise costefficiency and strengthen competitiveness. Among other things, the work involves automation and centralization of processes, not least by raising productivity in the deliveries to clients, improving working methods and enhancing financial and production systems. This is a project which means that we are in a period of relatively high project costs and investments. However, we are convinced that these are necessary measures in order to be able to deliver Europe's best advertising network in the longer term.
We continued to raise the tempo of our product development work. We released new functionality within several areas during the quarter which has been received positively, thus strengthening our competitiveness. The work on securing mobile revenue flows and on assisting our clients with generating better business is continuing at a fast pace. We released mobile affiliate programmes, tracking of transactions on mobile sites, in apps, and new functionality that is capable of tracking downloaded apps as well as optimising and measuring efficiency.
In addition, we are building up operations in new markets for us, such as in Latin America and in Russia. This is occupying several of our employees and also implies other costs, which is a necessary investment for the future. Many of these markets offer tremendous opportunities in the longer term, especially Brazil where consumers already today spend USD 10 billion via the Internet. The launch of our large client in Brazil exceeded expectations and we are now gradually increasing our presence in Brazil in a cost-efficient manner in line with increasing business.
In conclusion, despite the challenging start to 2012 with unsatisfactory earnings during the quarter, I am pleased that we saw a very good development of our business within Technology, continued high transaction activity with both existing and new clients, and that we have already initiated several measures for improving future earnings.
Urban Gillström President and CEO
After a strong Christmas trade, 2012 started off weaker in TradeDoubler's core Affiliate business. The economic downturn and political instability are leading to caution among advertisers and consumers, particularly in Southern Europe and France.
In Affiliate, competition is becoming more intense. However, online marketing continues to be an effective way to drive business on the Internet. Every euro spent in Affiliate generates 19 euro in sales, on average, according to a current survey [Baromètre Affiliation Bilan 2011 – CPA].
In Campaigns, a structural shift is occurring that will alter the competitive picture. New phenomena and actors are offering an increased degree of automation, which combined with dynamic pricing via "ad exchanges" changes the conditions in the market.
The potential for growth in European e-commerce is still good, particularly in Southern and Eastern Europe where the proportion of consumers who shop via the Internet is lower than in Northern Europe.
TradeDoubler's most important segment is the travel sector, where the Internet is one of the most important channels. For a number of years, the sector has grown faster than the economy as a whole with a rising share of bookings via Internet. In 2012, the trade organisation World Travel & Tourism Council (WTTC) predicts that the European travel and tourism sector will only grow by 0.3 percent. The online part is expected to continue to gain ground.
The rapid spread of mobile devices has repercussions for ecommerce. Consumers act a bit differently on such devices than in traditional e-commerce, and behaviour also differs between smartphones and tablets. The most common activity is to compare prices, which can easily be done in a shop, for example. It is also believed that consumers prefer to shop from tablets than from mobiles. Naturally, it is important for e-tailers to be part of this development and TradeDoubler sees a strong interest in adapting marketing activities to mobile devices. This interest is estimated to be particularly important for "medium considered purchases" such as in Fashion & Accessories, Computer Software and Entertainment. E-tailers that have the Internet as the only channel are considered to lead the development in adaptation to mobile devices.
At the end of the quarter, TradeDoubler released new functionality for transactions on mobile devices. This enables mobile affiliate programmes, tracking of transactions on mobile sites, in apps, and new functionality that is capable of tracking downloaded apps as well as optimising and measuring efficiency. The release of the new technology has been received positively by clients by way of introduction.
TradeDoubler also introduced AdCodes which makes it possible for publishers to set aside a special area on their website for automated dynamic adverts from TradeDoubler. TradeDoubler then continually fills this space with new optimised content. The service was introduced in selected markets during the first quarter and is now being gradually introduced in further markets.
The next release is voucher codes, which are being introduced together with a new way to make tools available to external developers who are at the cutting edge technologically. Voucher codes are a powerful way to get consumers to execute purchases when they visit certain websites, for example for price comparisons.
Consolidated net sales during the first quarter amounted to SEK 640.2 M (652.6) MSEK, a decline of 2 per cent adjusted for changes in exchange rates. Gross profit was SEK 146.4 M (157.3), a fall of 7 per cent adjusted for changes in exchange rates and the gross margin decreased to 22.9 (24.1) per cent.
For Network, gross profit amounted to SEK 132.1 (145.4), a fall of 10 per cent adjusted for changes in exchange rates. Gross profit for Technology rose to SEK 14.3 M (11.9), an increase of 22 per cent adjusted for changes in exchange rates.
Operating costs including depreciation for the first quarter amounted to SEK 133.7 M (122.5), an increase of 9 per cent adjusted for changes in exchange rates. The group is carrying out comprehensive change management efforts aimed at boosting cost efficiency, which imply a higher cost level in the current phase. The work covers both system and business development. The sales organisation has also been strengthened.
Operating profit (EBIT) amounted to SEK 12.6 M (34.8), a decrease of 64 per cent adjusted for changes in exchange rates. Essentially, the fall was equally due to the decline in gross profit and higher costs. The operating/gross profit margin fell to 8.6 (22.1) per cent.
Financial income and expenses amounted to SEK 0.3 M (-8.9). The Group had no interest-bearing loans at the end of the quarter (0.0).
Profit after tax was SEK 10.1 M (20.0), a decrease of 50 per cent adjusted for changes in exchange rates. The tax rate was 21.8 (22.6) per cent.
Gross profit during the first quarter amounted to SEK 132.1 M (145.4), a decline of 10 per cent, adjusted for changes in exchange rates. Gross profit fell in all market units. The largest declines were in the units France and South East which combined accounted for two thirds of the fall. In Central, the performance in the Netherlands also contributed to reducing the gross profit. Measures are being taken here to reverse the negative development.
Operating profit (EBIT) during the first quarter amounted to SEK 5.0 M (29.3), a decrease of 82 per cent adjusted for changes in exchange rates. Operating profit weakened in all market units.
The largest market unit, Central, achieved a gross profit of SEK 31.5 M (32.3) during the first quarter, a fall of 4 per cent adjusted for changes in exchange rates. The market unit is growing within Affiliate where both international and local clients
released new programmes. The concentration on the Computers & Electronics segment has had a positive effect. Switzerland continued to show the strongest growth in the region. Some time ago, an action plan was also initiated to reverse the weak development in the Netherlands.
Operating profit amounted to SEK 1.4 M (5.3). The two largest markets in the unit, Germany and Switzerland increased their contribution to the unit's results.
Activity in France continued to be inhibited by the uncertain economic climate. Consumption is also affected by political uncertainty ahead of the presidential election. Gross profit during the first quarter amounted to SEK 23.5 M (27.9), a fall of 16 per cent adjusted for changes in exchange rates, while operating profit amounted to SEK 5.4 M (11.6). The unit saw declines during the quarter, particularly within Campaigns. The deterioration in operating profit was partly explained by a higher proportion Affiliate, where the margins are lower than in Campaigns.
Gross profit in the second largest unit, North East, amounted to SEK 30.0 M (31.5) during the quarter, a fall of 5 per cent adjusted for changes in exchange rates. Operating profit amounted to SEK -6.0 M (1.5). Profitability was adversely affected by a shift in the product mix towards an increased proportion Affiliate where the margins are lower. However, profitability within Affiliate improved in all markets in the unit. The Affiliate business grew, while Campaigns decreased. In the largest market, Sweden, gross profit increased after the new management initiated a series of activities during the latter half of 2011. Several new clients were secured during the quarter. The Polish market continued its rapid growth, while the other Nordic countries reduced their operations.
The North West unit reported a lower gross profit during the first quarter of SEK 26.0 M (28.2), a fall of 10 per cent adjusted for changes in exchange rates, and operating profit of SEK 1.4 M (2.2). The unit has a high proportion of large international clients and is thus subject to some price pressure.
The South East unit reached a gross profit during the first quarter of SEK 12.5 M (16.6), a fall of 25 per cent adjusted for changes in exchange rates. Meanwhile, operating profit amounted to SEK 1.8 M (7.5). An increasingly weak macroeconomic climate is having a negative impact on activity in the unit. The deterioration was mainly explained by a substantially lower proportion of Campaigns than during the first quarter of last year. The price pressure on these products has also increased with lower margins as a consequence.
Gross profit for the first quarter in the South West unit amounted to SEK 8.6 M (9.0), a fall of 4 per cent adjusted for changes in exchange rates. Within Affiliate, successful work on sales and client relationships continued to show results, despite market conditions that are still very weak. The operations within Campaigns developed negatively. Operating profit amounted to SEK 0.9 M (1.3).
| MSEK | Jan-Mar | Jan-Mar | Full year |
|---|---|---|---|
| Gross profit (GP) | 2012 | 2011 | 2011 |
| Market Unit Central | 31,5 | 32,3 | 131,4 |
| Market Unit France | 23,5 | 27,9 | 99,7 |
| Market Unit North East | 30,0 | 31,5 | 127,8 |
| Market Unit North West | 26,0 | 28,2 | 112,4 |
| Market Unit South East | 12,5 | 16,6 | 63,1 |
| Market Unit South West | 8,6 | 9,0 | 36,3 |
| Total Network | 132,1 | 145,4 | 570,6 |
| Business Unit Technology | 14,3 | 11,9 | 55,9 |
| Total gross profit | 146,4 | 157,3 | 626,5 |
| Operating profit (EBIT) | |||
| Market Unit Central | 1,4 | 5,3 | 19,7 |
| Market Unit France | 5,4 | 11,6 | 34,6 |
| Market Unit North East | -6,0 | 1,5 | 4,1 |
| Market Unit North West | 1,4 | 2,2 | 12,2 |
| Market Unit South East | 1,8 | 7,5 | 25,6 |
| Market Unit South West | 0,9 | 1,3 | 6,0 |
| Total Network | 5,0 | 29,3 | 102,2 |
| Business Unit Technology | 7,6 | 5,5 | 24,8 |
| Total EBIT | 12,6 | 34,8 | 127,1 |
| Operating profit/Gross profit, % | |||
| Market Unit Central | 4,4 | 16,4 | 15,0 |
| Market Unit France | 23,1 | 41,7 | 34,7 |
| Market Unit North East | neg | 4,8 | 3,2 |
| Market Unit North West | 5,3 | 7,7 | 10,9 |
| Market Unit South East | 14,8 | 45,3 | 40,6 |
Market Unit South West 10,9 13,9 16,6 Business Unit Technology 53,4 46,1 44,4
Gross profit amounted during the first quarter to SEK 14.3 M (11.9), an increase of 22 per cent adjusted for changes in exchange rates. Operating profit (EBIT) for the first quarter amounted to SEK 7.6 M (5.5). Provisions for customer losses of SEK 1.5m are included in the figures for last year.
The unit secured several new clients during the quarter and sales activities were high. The cost level was stable and employee turnover was low.
New technology, so-called "container tags" where purchases are tracked for a longer time, were introduced to several clients at the start of the year, which contributed to the result.
TradeDoubler's operations, particularly within Network, fluctuate with the development of e-commerce and online advertising. Although these areas are showing positive underlying growth, there are fluctuations during the year particularly within e-commerce. The highest level of activity is before Christmas, which implies that the fourth quarter is normally the strongest for TradeDoubler.
The parent company's net sales amounted to SEK 32.2 M (54.2) during the first quarter. Revenue primarily consisted of licensing revenue and remuneration from subsidiaries for centrally performed services. The lower net sales are primarily due to lower licensing revenue.
Financial income and expenses amounted to SEK 1.0 M (3.7). Profit after tax amounted to SEK -10.1 M (10.5), mainly due to the lower net sales.
The parent company's receivables from group companies amounted to SEK 176.1 M (289.0) at the end of the quarter, of which none (0.0) were non-current. The parent company's
liabilities to group companies amounted to SEK 94.2 M (127.0) of which none (0.0) were non-current. Cash and cash equivalents amounted to SEK 30.7 M (61.2).
Cash flow from operating activities during the quarter amounted to SEK -9.0 M (41.8), after a change in working capital of SEK - 20.6 M (11.3).
The negative change in the working capital was due to lower sales than in the fourth quarter of 2011, as well as to temporarily high outstanding customer receivables as a result of the sale of the Search operations in late 2011.
Cash flow from operating activities before changes in working capital amounted to SEK 11.6 M (30.5) during the quarter.
The work on the company's strategic initiatives has continued, which affected the net investments in intangible assets which increased to SEK 8.1 M (2.2). These investments mainly consist of improvements to production and financial systems.
Cash and cash equivalents at the end of the quarter amounted to SEK 268.2 M (245.6). The Group had no interest-bearing loans (0.0).
Consolidated shareholders' equity amounted to SEK 587.6 M (530.9) at end of the quarter. For the last 12-month period, the return on equity amounted to 14.7 (16.5) per cent.
No transactions between TradeDoubler and related parties impacting the company's financial position and results have taken place, aside from remuneration to senior executives.
At the end of the quarter, TradeDoubler's staff corresponded to 491 (551) full-time equivalents/FTEs, which includes full-time, temporary and contract employees. The number of full-time equivalents decreased by 60 due to the discontinuation of Search and outsourcing of parts of the IT operations in December 2011.
TradeDoubler divides risks into market-related risks, operational risks, financial risks and legal risks. These risks are described on page 15 of the 2011 Annual Report.
It is assessed that no significant risks or uncertainties have arisen other than greater uncertainty regarding the future economic trend in Europe.
CFO Erik Skånsberg will leave TradeDoubler in August 2012. The process to recruit a successor has been initiated.
By starting operations in Brazil, the group entered Latin America for the first time. TradeDoubler aims to generate business both for local and international customers and to recruit an attractive publisher base.
No significant events have occurred after the end of the reporting period.
This interim report is prepared in accordance with IAS 34, Interim Financial Reporting and the Swedish Annual Accounts Act. The accounting policies and methods of calculation are otherwise unchanged, compared with the 2011 Annual Report. For information on the accounting policies applied, see the 2011 Annual Report.
The total number of shares at the end of the period amounted to 42,807,449 of which 130,000 were in own custody. The average number of outstanding shares during the interim period was 42,677,449.
Earnings per share during the first quarter amounted to SEK 0.24 (0.47). Equity per share at the end of the quarter amounted to SEK 13.70 (12.40).
The share price closed at SEK 31.10 on the final trading day in March, 2012, which was lower than at the end of March, 2011, when the share price was SEK 46.80. At year-end, the share closed at SEK 27.30.
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.
The interim report is presented at a press and analyst conference on 3 May at 10.00 a.m. in TradeDoubler's premises at Sveavägen 20, Stockholm.
The presentation may be followed via webcast on the home page: http://financials.tradedoubler.com/, and by telephone:
| Sweden | +46 8 5055 9812 |
|---|---|
| UK | +44 20 7750 9950 |
| US | +1 866 676 5870 |
The presentation material will be published concurrently with the interim report.
| Interim report January-June 2012 | 27 July 2012 |
|---|---|
| Interim report January-September 2012 | 31 October 2012 |
| Year-end report 2012 | 6 February 2013 |
The annual general meeting will be held on 8 May at 5 p.m. in TradeDoubler's premises at Sveavägen 20 in Stockholm.
Urban Gillström, President and CEO, telephone +46 70 785 76 00 Erik Skånsberg, CFO, telephone +46 70 264 70 35 E-mail: [email protected]
This year-end report has not been subject to review by the company's auditor Ernst & Young AB.
Stockholm, 3 May 2012
President and CEO
| Jan-Mar | Jan-Mar | Full year | |
|---|---|---|---|
| SEK 000s | 2012 | 2011 | 2011 |
| Net Sales | 640 206 | 652 561 | 2 612 701 |
| Cost of goods sold | -493 816 | -495 280 | -1 986 163 |
| Gross profit | 146 390 | 157 281 | 626 539 |
| Selling expenses | -97 008 | -90 662 | -335 928 |
| Administrativ e expenses |
-26 925 | -21 494 | -120 840 |
| Dev elopment expenses |
-9 810 | -10 300 | -42 711 |
| Operating profit | 12 648 | 34 826 | 127 060 |
| Net financial items | 273 | -8 929 | -12 693 |
| Profit before tax | 12 921 | 25 897 | 114 367 |
| Tax | -2 811 | -5 886 | -22 201 |
| Net profit for continued operations | 10 109 | 20 012 | 92 166 |
| Net profit for discontinued operations | - | -1 371 | -143 069 |
| Total net profit | 10 109 | 18 641 | -50 904 |
All earnings accrue to the parent company's shareholders.
| Jan-Mar | Jan-Mar | Full year | |
|---|---|---|---|
| SEK 000s | 2012 | 2011 | 2011 |
| Profit for the period, after tax, for continued operations | 10 109 | 20 012 | 92 166 |
| Other comprehensive income | |||
| Translation difference, net after tax | -3 398 | 4 121 | 20 748 |
| Total comprehensive income for the period, after tax | 6 711 | 24 133 | 112 914 |
| Comprehensive income attributable to | |||
| Parent company shareholders | 6 711 | 24 133 | 112 914 |
| Jan-Mar | Jan-Mar | Full year | |
|---|---|---|---|
| SEK | 2012 | 2011 | 2011 |
| Profit per share for continued operations | 0,24 | 0,47 | 2,16 |
| Number of Shares | |||
| Weighted av erage |
42 677 449 | 42 677 449 | 42 677 449 |
The earnings per share above apply before and after dilution.
| Jan-Mar Jan-Mar |
Full year | ||
|---|---|---|---|
| 2012 | 2011 | 2011 | |
| Gross profit (GP) / rev enue (%) |
22,9 | 24,1 | 24,0 |
| Operating profit (EBIT ) / rev enue (%) |
2,0 | 5,3 | 4,9 |
| Operating profit (EBIT) / gross profit (GP) (%) | 8,6 | 22,1 | 20,3 |
| Net profit/gross profit (GP) (%) | 6,9 | 12,7 | 14,7 |
| Equity/assets ratio (%) | 42,5 | 38,2 | 40,4 |
| Return on equity (12 months) (%) | 14,7 | 16,5 | 16,8 |
| Av erage number of employees |
493 | 545 | 544 |
| Return on Capital Employed (12 months) (%) | 19,0 | 21,4 | 23,4 |
| Cash-flow per share, SEK | -0,5 | 0,9 | 1,7 |
| Equity per share, SEK | 13,7 | 12,4 | 12,9 |
| Stock price at the end of the period, SEK | 31,1 | 46,8 | 27,3 |
| 31 Mar | 31 Mar | 31 Dec | |
|---|---|---|---|
| SEK 000s | 2012 | 2011 | 2011 |
| Assets | |||
| Intangible fixed assets | 406 048 | 406 738 | 404 054 |
| Tangible fixed assets | 10 294 | 15 417 | 10 968 |
| Financial fixed assets | 3 747 | 2 233 | 3 549 |
| Deferred tax assets | 24 540 | 27 910 | 21 111 |
| Total fixed assets | 444 629 | 452 299 | 439 683 |
| Accounts receiv ables |
610 880 | 636 740 | 642 432 |
| Tax assets | 23 169 | 17 604 | 28 632 |
| Other current receiv ables |
34 763 | 36 668 | 35 149 |
| Cash & cash equiv alents |
268 222 | 245 633 | 290 745 |
| Total current assets | 937 034 | 936 645 | 996 957 |
| Total assets | 1 381 663 | 1 388 944 | 1 436 640 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 587 636 | 530 870 | 580 843 |
| Deferred tax liabilities | 7 534 | 11 222 | 7 625 |
| Other prov isions |
1 042 | 976 | 1 044 |
| Total long-term liabilities | 8 576 | 12 199 | 8 669 |
| Accounts payable | 17 057 | 51 567 | 29 407 |
| Current liabilities to publishers | 466 182 | 425 629 | 498 346 |
| Tax liabilities | 6 626 | - | 9 251 |
| Other current liabilities | 295 586 | 368 679 | 310 124 |
| Total current liabilities | 785 451 | 845 875 | 847 128 |
| Total shareholder´s equity and liabilities | 1 381 663 | 1 388 944 | 1 436 640 |
| Jan-Mar | Jan-Mar | Full year | |
|---|---|---|---|
| SEK 000s | 2012 | 2011 | 2011 |
| Opening balance | 580 843 | 516 784 | 516 784 |
| Total comprehensiv e income for the period |
6 711 | 24 133 | 112 914 |
| Total comprehensiv e income for the period, discontinued* |
- | -10 047 | -49 046 |
| Equity-settled share-based payments | 82 | - | 191 |
| Closing balance | 587 636 | 530 870 | 580 843 |
All capital accrues to the parent company's shareholders.
*See disclosure regarding discontinued operation, page 18
| Jan-Mar | Jan-Mar | Full year | |
|---|---|---|---|
| SEK 000s | 2012 | 2011 | 2011 |
| Operating activities | |||
| Profit before tax | 12 921 | 25 897 | 114 366 |
| Adjustments for items not included in cash flow | 1 769 | 8 108 | 16 099 |
| Income taxes paid | -3 079 | -3 552 | -14 463 |
| Cash flow from operating activities before changes in working | 11 611 | 30 453 | 116 002 |
| capital | |||
| Changes in working capital | -20 648 | 11 346 | 7 626 |
| Cash flow from operating activities | -9 037 | 41 799 | 123 628 |
| Investing activities | |||
| Net inv estments in intangible assets |
-8 141 | -2 220 | -25 828 |
| Net inv estments in tangible assets |
-663 | -1 804 | -3 877 |
| Net inv estments in financial assets |
-3 692 | -410 | -1 394 |
| Net inv estments in stocks and subsidiaries |
- | - | -24 421 |
| Cash flow from investing activities | -12 496 | -4 434 | -55 520 |
| Financing activities | |||
| Cash flow from financing activities | - | - | - |
| Cash flow for the period from continuing operations | -21 533 | 37 365 | 68 108 |
| Cash flow from discontinued operations | |||
| Cash flow from operating activ ities |
- | 1 433 | 3 903 |
| Cash flow from inv esting activ ities |
- | - | -51 |
| Cash flow from financing activ ities |
- | - | - |
| Cash flow for the period from discontinued operations | - | 1 433 | 3 852 |
| Cash flow for the period | -21 533 | 38 798 | 71 960 |
| Cash and cash equivalents On the opening date |
290 745 | 209 744 | 209 744 |
| Translation difference in cash and cash equiv alents |
-990 | -2 909 | 9 041 |
| Cash and cash equivalens on the closing date | 268 222 | 245 633 | 290 745 |
| Adjustments for non-cash items | |||
| Depreciation | 4 851 | 3 666 | 16 777 |
| Other | -3 082 | 4 442 | -678 |
| Total non-cash items | 1 769 | 8 108 | 16 099 |
* Attributable to discontinued operations.
| Jan-Mar | Jan-Mar | Full year | |
|---|---|---|---|
| SEK 000s | 2012 | 2011 | 2011 |
| Net Sales | 32 161 | 54 210 | 193 554 |
| Cost of goods sold | -1 840 | -1 843 | -7 931 |
| Gross profit | 30 320 | 52 367 | 185 623 |
| Selling expenses | -1 034 | -1 719 | -6 010 |
| Administrativ e expenses |
-35 212 | -31 956 | -119 216 |
| Dev elopment expenses |
-9 122 | -8 047 | -32 140 |
| Operating profit | -15 048 | 10 645 | 28 257 |
| Net financial items | 978 | 3 708 | -363 513 |
| Profit before tax | -14 069 | 14 353 | -335 256 |
| Tax | 4 015 | -3 816 | -113 |
| Net profit | -10 054 | 10 537 | -335 369 |
| 31 Mar | 31 Mar | 31 Dec | |
|---|---|---|---|
| SEK 000s | 2012 | 2011 | 2011 |
| Assets | |||
| Intangible fixed assets | 31 715 | 5 839 | 26 601 |
| Fixed tangible assets | 4 865 | 10 141 | 5 520 |
| Financial fixed assets | 206 327 | 376 758 | 206 327 |
| Deffered tax assets | 3 015 | - | - |
| Total fixed assets | 245 922 | 392 738 | 238 449 |
| Accounts receiv ables |
2 628 | 3 133 | 6 339 |
| Receiv ables from Group companies |
176 094 | 289 038 | 157 307 |
| Tax assets | 9 216 | 7 695 | 7 191 |
| Other current receiv ables |
15 318 | 10 620 | 11 100 |
| Cash & cash equiv alents |
30 727 | 61 170 | 52 224 |
| Total current assets | 233 982 | 371 657 | 234 161 |
| Total assets | 479 904 | 764 395 | 472 610 |
| Shareholders' equity and liabilities | |||
| Shareholders equity | 264 143 | 521 424 | 274 198 |
| Accounts payable | 9 818 | 6 800 | 10 299 |
| Liabilities to Group companies | 94 202 | 127 028 | 71 119 |
| Other liabilities | 111 741 | 109 143 | 116 994 |
| Total current liabilities | 215 761 | 242 971 | 198 412 |
| Total shareholder´s equity and liabilities | 479 904 | 764 395 | 472 610 |
| 31 Mar | 31 Mar | 31 Dec | |
|---|---|---|---|
| SEK 000s | 2012 | 2011 | 2011 |
| Group | |||
| Pledged assets | none | none | none |
| Rent deposits | 3 549 | 2 231 | 3 549 |
| Contingent liabilities | none | none | none |
| Parent company | |||
| Pledged assets | none | none | none |
| Contingent liabilities | 6 939 | 130 284 | 6 939 |
| Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | |
|---|---|---|---|---|---|---|---|---|
| SEK 000s | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 |
| Net Sales | 640 206 | 701 455 | 653 926 | 604 760 | 652 561 | 679 448 | 605 250 | 578 322 |
| Cost of goods sold | -493 816 | -534 213 | -501 386 | -455 283 | -495 280 | -506 877 | -458 166 | -427 999 |
| Gross profit | 146 390 | 167 241 | 152 540 | 149 477 | 157 281 | 172 571 | 147 084 | 150 323 |
| Total costs | -133 742 | -128 505 | -121 280 | -127 239 | -122 455 | -138 816 | -122 537 | -136 290 |
| Operating profit | 12 648 | 38 737 | 31 260 | 22 237 | 34 826 | 33 755 | 24 547 | 14 033 |
| Net financial items | 273 | -888 | -4 970 | 2 094 | -8 929 | -4 133 | -14 191 | 13 242 |
| Profit before tax | 12 921 | 37 849 | 26 290 | 24 331 | 25 897 | 29 622 | 10 356 | 27 275 |
| Tax | -2 811 | 405 | -6 369 | -10 352 | -5 886 | -8 166 | 2 830 | 954 |
| Net profit | 10 109 | 38 254 | 19 921 | 13 979 | 20 012 | 21 455 | 13 187 | 28 229 |
| 31 mar | 31 dec | 30 sep | 30 jun | 31 mar | 31 dec | 30 sep | 30 jun | |
|---|---|---|---|---|---|---|---|---|
| SEK 000s | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 |
| Assets | ||||||||
| Intangible fixed assets | 406 048 | 404 054 | 428 644 | 405 883 | 406 738 | 423 123 | 431 530 | 475 058 |
| Other fixed assets | 38 581 | 35 629 | 47 854 | 47 527 | 45 560 | 45 654 | 52 356 | 49 184 |
| Current receiv ables |
668 812 | 706 213 | 717 459 | 681 006 | 691 012 | 737 204 | 698 827 | 722 247 |
| Cash & cash equiv alents |
268 222 | 290 745 | 261 636 | 214 260 | 245 633 | 209 744 | 136 212 | 121 469 |
| Total assets | 1 381 663 | 1 436 640 | 1 455 593 | 1 348 676 | 1 388 944 | 1 415 725 | 1 318 924 | 1 367 958 |
| Shareholders' equity and liabilities | ||||||||
| Shareholders' equity | 587 636 | 580 843 | 592 667 | 551 122 | 530 870 | 516 784 | 500 409 | 503 437 |
| Long-term non-interest bearing | ||||||||
| debt | 8 576 | 8 669 | 10 685 | 11 420 | 12 199 | 18 926 | 20 399 | 17 052 |
| Current non-interest bearing debt | 785 451 | 847 128 | 852 241 | 786 134 | 845 875 | 880 015 | 798 117 | 847 468 |
| Total shareholder´s equity and liabilities |
1 381 663 | 1 436 640 | 1 455 593 | 1 348 676 | 1 388 944 | 1 415 725 | 1 318 924 | 1 367 958 |
| Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | |
|---|---|---|---|---|---|---|---|---|
| SEK 000s | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 |
| Operating activities | ||||||||
| Profit before tax | 12 921 | 37 849 | 26 289 | 24 331 | 25 897 | 29 610 | 10 356 | 27 275 |
| Adjustments for items not included | ||||||||
| in cash flow | 1 769 | -5 473 | 4 675 | 8 789 | 8 108 | 5 481 | 2 036 | 1 884 |
| Tax paid | -3 079 | 8 283 | -8 020 | -11 174 | -3 552 | 24 925 | 5 568 | -10 887 |
| Cash flow from changes in working capital |
-20 648 | 27 263 | 22 821 | -53 804 | 11 346 | 16 003 | 1 226 | -46 108 |
| Cash flow from operating activities | -9 037 | 67 922 | 45 765 | -31 858 | 41 799 | 76 019 | 19 186 | -27 836 |
| Cash flow from inv esting activ ities |
-12 496 | -33 739 | -9 403 | -7 944 | -4 434 | -3 477 | -1 092 | -775 |
| Cash flow from financing activ ities |
- | - | - | - | - | - | - | - |
| Cash flow from continued | -21 533 | 34 183 | 36 362 | -39 802 | 37 365 | 72 542 | 18 094 | -28 611 |
| operations | ||||||||
| Cash flow from discontinued | - | -2 058 | 3 362 | 1 115 | 1 433 | 1 543 | 1 190 | 3 413 |
| operations | ||||||||
| Cash flow for the period | -21 533 | 32 125 | 39 724 | -38 687 | 38 798 | 74 085 | 19 284 | -25 198 |
| Cash and cash equiv alents |
||||||||
| On the opening date | 290 745 | 261 636 | 214 260 | 245 633 | 209 744 | 136 212 | 121 469 | 148 201 |
| Translation difference | -990 | -3 016 | 7 653 | 7 314 | -2 909 | -553 | -4 541 | -1 534 |
| Cash and cash equivalens on the | 268 222 | 290 745 | 261 636 | 214 260 | 245 633 | 209 744 | 136 212 | 121 469 |
| closing date |
| Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | |
|---|---|---|---|---|---|---|---|---|
| 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 | |
| Gross profit (GP) / rev enue (%) |
22,9 | 23,8 | 23,3 | 24,7 | 24,1 | 25,4 | 24,3 | 26,0 |
| Operating profit (EBIT ) / rev enue (%) |
2,0 | 5,5 | 4,8 | 3,7 | 5,3 | 5,0 | 4,1 | 2,4 |
| Operating profit (EBIT) / gross profit (GP) (%) |
8,6 | 23,2 | 20,5 | 14,9 | 22,1 | 19,6 | 16,7 | 9,3 |
| Net profit/gross profit (GP) (%) | 6,9 | 22,9 | 13,1 | 9,4 | 12,7 | 12,4 | 9,0 | 18,8 |
| Equity/assets ratio (%) | 42,5 | 40,4 | 40,7 | 40,9 | 38,2 | 36,5 | 37,9 | 36,8 |
| Return on equity (12 months) (%) | 14,7 | 16,8 | 13,8 | 13,0 | 16,5 | 14,6 | 17,8 | -43,0 |
| Av erage number of employees |
493 | 536 | 553 | 541 | 545 | 534 | 551 | 587 |
| Return on Capital Employed (12 months) (%) |
19,0 | 23,4 | 22,4 | 22,1 | 21,4 | 18,8 | 24,5 | 4,4 |
| Cash-flow per share, SEK | -0,5 | 0,8 | 0,9 | -0,9 | 0,9 | 1,7 | 0,5 | -0,6 |
| Equity per share, SEK | 13,7 | 13,7 | 13,4 | 12,7 | 12,4 | 11,9 | 11,8 | 11,4 |
| Stock price at the end of the period, SEK |
31,1 | 27,3 | 23,0 | 40,5 | 46,8 | 49,5 | 35,0 | 30,0 |
| Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | |
|---|---|---|---|---|---|---|---|---|
| MSEK | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 |
| Market Unit Central | ||||||||
| Gross profit | 31,5 | 36,2 | 31,8 | 31,2 | 32,3 | 35,7 | 27,5 | 29,0 |
| Operating profit | 1,4 | 6,0 | 4,3 | 4,1 | 5,3 | 4,8 | 0,5 | -1,0 |
| Market Unit France | ||||||||
| Gross profit | 23,5 | 26,1 | 22,7 | 22,9 | 27,9 | 30,1 | 24,9 | 24,6 |
| Operating profit | 5,4 | 10,2 | 6,8 | 6,0 | 11,6 | 8,0 | 6,7 | 4,4 |
| Market Unit North East | ||||||||
| Gross profit | 30,0 | 34,3 | 31,4 | 30,6 | 31,5 | 36,0 | 29,2 | 31,6 |
| Operating profit | -6,0 | 0,4 | 1,9 | 0,3 | 1,5 | 3,2 | 1,1 | -0,3 |
| Market Unit North West | ||||||||
| Gross profit | 26,0 | 30,6 | 27,3 | 26,3 | 28,2 | 29,9 | 26,7 | 23,7 |
| Operating profit | 1,4 | 7,0 | 3,2 | -0,1 | 2,2 | 6,1 | 2,9 | -1,6 |
| Market Unit South East | ||||||||
| Gross profit | 12,5 | 16,0 | 15,0 | 15,5 | 16,6 | 15,5 | 13,4 | 14,7 |
| Operating profit | 1,8 | 6,2 | 5,8 | 6,1 | 7,5 | 4,0 | 3,9 | 3,9 |
| Market Unit South West | ||||||||
| Gross profit | 8,6 | 8,1 | 9,8 | 9,3 | 9,0 | 10,9 | 12,2 | 11,3 |
| Operating profit | 0,9 | 1,2 | 2,3 | 1,3 | 1,3 | 1,2 | 3,2 | 1,8 |
| Technology | ||||||||
| Gross profit | 14,3 | 15,9 | 14,5 | 13,7 | 11,9 | 14,4 | 13,3 | 15,3 |
| Operating profit | 7,6 | 7,8 | 6,9 | 4,6 | 5,5 | 6,5 | 6,3 | 6,9 |
| Total | ||||||||
| Gross profit | 146,4 | 167,2 | 152,5 | 149,5 | 157,3 | 172,6 | 147,1 | 150,3 |
| Operating profit (EBIT) | 12,6 | 38,7 | 31,3 | 22,2 | 34,8 | 33,8 | 24,5 | 14,0 |
| Jan-Mar | Full year | |
|---|---|---|
| SEK 000s | 2011 | 2011 |
| Net Sales | 96 811 | 343 990 |
| Cost of goods sold | -87 433 | -312 178 |
| Gross profit | 9 378 | 31 812 |
| Total costs | -10 639 | -39 536 |
| Operating profit | -1 261 | -7 724 |
| Net financial items | -110 | 270 |
| Profit before tax | -1 370 | -7 454 |
| Tax | - | 11 272 |
| Net profit excl capital loss for the year for discontinuing operations | -1 370 | 3 818 |
| Capital loss | - | -146 887 |
| Net profit for the year for discontinuing operations | -1 370 | -143 069 |
| Other comprehensive income | ||
| Net profit from discontinued operations | -1 370 | -143 069 |
| Translation difference on equity net after tax | -136 | 311 |
| Exchange difference on increased net inv estment, net after tax |
-8 541 | -8 130 |
| Rev ersal of exchange difference on increased net inv estment, net after tax |
- | 98 077 |
| Rev ersal of translation difference on equity, net after tax |
- | 3 765 |
| Total other comprehensive income from discontinued operations | -10 047 | -49 046 |
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.
Earnings per share. Net profit for the year attributable to the parent company's shareholders divided by the average number of shares.
Earnings per share after full dilution. Net profit/loss for the year divided by the average number of shares calculated after full dilution.
Cash flow per share Cash flow divided by the average number of outstanding shares.
Operating margin. Operating profit as a percentage of sales.
Equity/assets ratio. Equity as a percentage of the balance sheet total.
Capital employed. Total assets less current and noncurrent non interest-bearing liabilities including deferred tax liabilities.
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.
Full-time equivalents (FTE) or full-time employees The total number of full-time and temporary as well as contract employees.
Performance-based Collective term for marketing activities on the Internet where publishers only get paid when a predetermined transaction is generated.
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 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 consists of 1,900 advertisers and 138,000 active publishers.
The core business is conducted in the segment Network which accounts for 90 per cent of the group's gross profit. The Technology unit licenses TradeDoubler's technology platform for internet marketing to major advertisers.
TradeDoubler's business model is based on the company:
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.
TradeDoubler discloses the information provided herein pursuant to the Swedish Securities Markets Act. The information was submitted for publication on 3 May 2012 at 8.00 a.m. CET.
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