Quarterly Report • May 3, 2013
Quarterly Report
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The monthly cost run rate for operating costs before depreciation and amortisation during Q1 stood on average at SEK 33.5 M, below the lower end of our guidance in the year-end report 2012, of SEK 35-37 M. Tradedoubler anticipates that the costs during the remainder of 2013 will continue at approximately the same level as during the first quarter. For more information regarding outlook see page 8 in the report.
| Jan-Mar | Jan-Mar | Full year | ||
|---|---|---|---|---|
| FINANCIAL OVERVIEW, SEK M | 2013 | 2012 | Change %1 | 2012 |
| Net sales | 527.9 | 640.2 | -13.9% | 2,307.7 |
| Gross profit | 119.5 | 146.4 | -15.0% | 541.5 |
| as a percentage of net sales | 22.6% | 22.9% | 23.5% | |
| Total costs excluding depreciation | -100.4 | -128.3 | -19.5% | -519.3 |
| average per month | -33.5 | -42.8 | -43.3 | |
| EBITDA | 19.1 | 18.1 | 20.7% | 22.2 |
| as a percentage of net sales | 3.6% | 2.8% | 1.0% | |
| Adjusted EBITDA2 | 19.1 | 23.5 | -9.9% | 53.3 |
| as a percentage of net sales | 3.6% | 3.7% | 2.3% | |
| Operating profit (EBIT) | 14.9 | 12.6 | 44.2% | 0.0 |
| Cash-flow from operating activities | 4.8 | -9.0 | -14.9 | |
| Net investments in intangible assets | -8.2 | -8.1 | -36.2 | |
| Earnings per share, SEK | 0.3 | 0.2 | -0.2 | |
| Cash-flow from operating activities per share, SEK | 0.1 | -0.2 | -0.4 | |
| Return on equity (12 months) (%) | -1.5 | 14.7 | -1.9 |
1Per cent changes are adjusted for changes in exchange rates
2Adjusted for change-related costs in 2012
PRESENTATION
This interim report will be presented at a press and analyst conference on 3 May 2013 at 10.00 a.m. CET in Tradedoubler's premises at Sveavägen 20. The presentation may also be followed via a webcast using the link:
http://financials.tradedoubler.com/en-gb/investorrelations
Tradedoubler discloses the information provided herein pursuant to the Swedish Securities Markets Act. The information was released for publication on 3 May 2013 at 08.00 a.m. CET.
The Group's numbers in this interim report are recognised excluding discontinued operations unless otherwise stated. Numerical data in brackets refers to the corresponding period in 2012 unless otherwise stated. Rounding off differences may arise.
Tradedoubler is a leading international performance marketing and technology company which generated more than €3.5bn incremental revenue for its clients in 2012 through e- and mcommerce.
Tradedoubler is the pioneer of performance marketing in Europe, launched in 1999, and works on the basis that its advertiser clients only pay for a successful result - such as a sale or lead.
A large part of the success is based on Tradedoubler's deep understanding of the increasingly 'connected' consumer and the company´s advanced Performance Marketing Technology platform that generates incremental revenues for its clients.
Tradedoubler works with some of the most renowned companies in the world – from Expedia, Dell, and The Body Shop to Tesco, Disney, British Airways, American Express and Telefónica.
Tradedoubler has a dual-stream revenue model and generates revenue by:
A large portion of Tradedoubler's revenue is performancebased. And the activities which determine the remuneration are CPM (cost-per-thousands impressions), CPC (cost-per-click), CPL (cost-per-lead) and CPA (cost-per-action). Which one or combination of these activities forms the basis for the remuneration is decided on a case-by-case-basis. CPA and CPC are the most common. Tradedoubler's system tracks the
| CONTENT | PAGE | FINANCIAL CALENDAR | |
|---|---|---|---|
| This is Tradedoubler | 3 | AGM | May 7, 2013 |
| CEO Comment | 4 | Interim report January-June 2013 | July 26, 2013 |
| Market development | 5 | Interim report January-September 2013 | October 30, 2013 |
| Product development | 5 | Year-end report 2013 | February 6, 2014 |
| The Group's results | 5 | ||
| Consolidated financial statements | 1010 |
customer activities generated by a certain advert in order to calculate the remuneration.
Tradedoublers goal is to return to profitable growth by becoming the best performing international performance marketing network. Sustainable competitive advantage is based on the following key building blocks:
Prioritise key clients in key markets: Increase time spent on value adding activities. An international account management team is responsible for serving large international clients. Ongoing program to ensure increased customer satisfaction.
Improved Service offering: Tradedoubler targets three main areas in its product developement: mobile, billing/payment and automation. The goal is to increase the functionality of the technology platform and to ensure alignment between clients, product and markets.
Best affiliate network: Quality of networks matters more than size and Tradedoubler focuses on relevant publishers in major markets and prioritized verticals.
Cost control: Rigorous cost management is essential and investments are chanelled into areas where they will create the most value.
As of January 1, 2013, Tradedoubler is organized into six new market units: DACH, East, France & Benelux, Nordics, South and UK & Ireland. For more information see page 8.
The performance marketing segment is developing according to plan and we are beginning to realise the commercial benefits of the successful realignment of our business. On the other hand, the campaign segment, which only accounts for a small part of our revenues, and is not part of our core strategy, as predicted continues to weaken at an accelerating speed.
Our Q1 net sales of SEK 527.9 M were 13.9 per cent down year-on-
year (y/y), adjusted for changes in exchange rates. The decline is explained by a significant volume-drop in the non-strategic campaigns business, as well as the loss of some major clients within the performance marketing segment early 2012. However, compared to the decline in sales in Q4, it represents a relative improvement.
Looking to the P&L, EBITDA in Q1 was SEK 19.1 M, an increase of 20.7 per cent versus the same period last year adjusted for changes in exchange rates. Excluding change related costs from Q1 2012 the EBITDA was a decrease of 9.9 per cent. Both of these show that we mitigated the decline in revenues through the increasingly effective control we now have over our operational costs following the measures we detailed and implemented during Q3 and Q4 2012. We still have a negative overhang on sales from previous client losses. But, given the key strategic measures we have undertaken since mid-2012, the trend regarding larger clients has turned clearly in a positive direction when it comes to signed contracts.
The average monthly operating cost run-rate, excluding depreciation and amortization, during Q1 stood at SEK 33.5 M, below the lower end of our guidance in the year-end report 2012 of SEK 35-37 M. We anticipate the costs during the remainder of 2013 will continue at approximately the same level as during the first quarter.
The revenues resulting from our recent sales successes will flow into our results following programme implementation. To further accelerate our sales activity I have recently appointed a new VP of Sales, Matthias Stadelmeyer who will be based in
Munich, Germany. He will drive a common sales approach and go-to-market strategy across all markets leveraging our combined network and technology solution, which provides us with a clear advantage over our competitors.
The leadership position we have established in mobile continued in Q1 as we further drove this segment of our network traffic with just under 11 M mobile sales transactions completed, a y/y increase of 107%, significantly ahead of any of our major competitors.
The new members of our group management team are now well integrated in the business and working closely together to drive our Performance Marketing agenda and business forward. Changes of the scale we undertook during 2012 often require a period of stabilisation during which the organisation adapts, but I'm pleased that the wider Tradedoubler team has rapidly embraced the changes and is working to deliver the improvements in customer service and operational efficiency we targeted at the outset.
We are continuing the process of administrative and support task migration from the in-country teams to our centralised multi-lingual support centre. This allows our account teams to spend more time optimising and improving the performance of client campaigns and the success of our publishers.
The quarter has seen the successful launch of a number of products, which have significantly enhanced the openness and functionality of our technology platform. The product team have taken steps to ensure that all development is closely aligned with our customers' needs and driving our product roadmap.
To conclude, we follow our plan to return to profitable growth in line with the market during the second half of the year.
Rob Wilson President and CEO
While the challenging economic climate in most of Western Europe continues to put consumer spending under pressure, ecommerce is forecast to increase by an average of 11 per cent a year from €225bn in 2012 to €336bn by 2016.
A total of three quarters of the e-commerce in Europe occurs in three countries: the UK, Germany and France. While the growth in online retail in these markets will continue, this is likely to be at a lower rate as these markets reach maturity. Southern European consumers have traditionally been more reluctant to purchase online, however while remaining relatively small in terms of e-commerce revenue, these will be the fastest-growing markets in terms of percentage growth over the next 4-5 years.
Online advertising expenditure can also affect the performance of Tradedoubler. Internet advertising in Western Europe is forecast to continue to grow and to take an increasing share of total ad spend. ZenithOptimedia, the media services agency, forecasts that online ad spend in Western Europe will increase from €18.6bn in 2012 to around €23.5 bn by 2015 – average annual growth of around eight per cent. The combination of increased e-commerce and online advertising spend implies continued healthy growth in performance marketing, despite the pressure on margins as the sector matures. We expect the performance marketing segment to grow by 3-7 per cent annually over the next few years.
During the first quarter Tradedoubler implemented new software within product feeds and voucher codes based on the open platform that was launched during last year. The publisher and 3rd party integration towards our technical platform has hereby been significantly simplified and the latest offers from our advertisers can be presented in an efficient way. Furthermore it also means that advertisers can use the functionality to push unlimited amounts of data into the system in real-time.
A new Communication Centre release has been launched during the quarter which brings improved functionality to the publisher interface. It will make it easier for publishers to keep track of their activities in the network within current programmes and improve the communication about new affiliate programmes.
We are continuously developing the tracking capabilities within our network to maintain and improve our technology leadership in this area. During the quarter we released new software to improve the tracking validation process for our customers.
Major product releases planned for the second quarter 2013:
A more efficient payment process will enable faster and more frequent payments to our publishers. This will also lead to a more efficient prepayment-flow for our advertisers.
The Mobile App Tracking project will further improve the apptracking features we offer. Within mobile we see an increasing trend of in-app purchases, which in turn creates a demand for clients to track these types of events. As such we will continuously develop our industry-leading tracking platform.
During the quarter the development of the self-serve capabilities of our website will also provide our publishers with improved visibility and searchability of our entire advertiser's program base. This will be particularly beneficial to our smaller publishers that tend to self-manage their programmes.
Consolidated net sales during the first quarter 2013 amounted to SEK 527.9 M (640.2), a decline of 13.9 per cent adjusted for changes in exchange rates. The decline is explained by a signficant volume drop in the non-strategic campaigns business as well as the loss of some major clients within the performance marketing segment early 2012. Gross profit was SEK 119.5 M (146.4), a fall of 15.0 per cent adjusted for changes in exchange rates and the gross margin decreased to 22.6 (22.9) per cent.
Operating costs during the quarter amounted to SEK 100.4 M (128.3), a decrease of 19.5 per cent adjusted for changes in exchange rates. The first quarter 2012 was affected with change related costs amounting to SEK 5.4 M. Cost efficiency measures that was put in place during the third and fourth quarter 2012 have significantly reduced the cost base.
Operating profit before depreciation and amortization (EBITDA) amounted to SEK 19.1 M (18.1). Adjusted for change related costs EBITDA amounted to SEK 19.1 M (23.5), a decrease of 9.9 per cent adjusted for changes in exchange rates.
Depreciation, amortisation and impairment losses amounted to SEK 4.1 M (5.4) during the quarter.
Operating profit (EBIT) amounted to SEK 14.9 M (12.6), an increase of 44.2 per cent adjusted for changes in exchange rates.
Financial income and expenses amounted to SEK 2.7 M (0.3). The Group had no interest-bearing loans at the end of the quarter.
Profit after tax for continuing operations amounted to SEK 12.0 M (10.1). Tax affected profit by SEK -5.6 (-2,8). Tax was affected by SEK -0.7 M (1.0) related to previous periods.
Net sales during the period amounted to SEK 512.8 M (623.9) which was a decline of 14.2 per cent adjusted for changes in exchange rates. The decline in net sales was mainly explained by falling volumes in the campaign segment, which declined by approximately 30 per cent adjusted for changes in exchange rates. The performance marketing segment declined by approximately 11 per cent adjusted for changes in exchange rates which was in line with our expectations and represented a relative improvement compared to the fourth quarter 2012. In market unit South sales were adversely affected by clients reducing their activity due to the weak economic climate.
EBITDA amounted to SEK 46.4 M (59.2), a decrease of 18.2 per cent adjusted for changes in exchange rates. EBITDA was affected by provisions for anticipated bad debt of SEK -3.0 M (0.1), mainly attributed to UK & Ireland amounting to SEK -1.9 M (0.0). The EBITDA-margin increased in France & Benelux, DACH as well as East. East delivered a higher margin despite costs for the closing of the Russian office.
Net sales during the period amounted to SEK 15.1 M (16.3) which was a decline of 3.7 per cent adjusted for changes in exchange rates.
During the first quarter Technology has been transitioning its sales organisation to be incorporated in the market units. The responsibility for sales of the unit's products has been transferred to the local sales teams which is expected to make a positive contribution to the Group's total sales in the longer term.
EBITDA for Technology amounted to SEK 10.2 M (10.1) which was an increase of 5.4 per cent adjusted for changes in exchange rates. EBITDA was affected by provisions for anticipated bad debt amounting to approximately SEK -0.5 M (0.0).
Costs for group management and support functions amounted to SEK 37.6 M (51.2), a reduction of 25.8 per cent adjusted for changes in exchange rates. Change related costs during the first quarter 2012 described on page 5 were primarily attributed to group management and support functions.
| SEK M | Jan-Mar | Jan-Mar | Full year |
|---|---|---|---|
| Net Sales | 2013 | 2012 | 2012 |
| DACH | 77.8 | 92.7 | 327.1 |
| East | 25.9 | 26.0 | 103.0 |
| France & Benelux | 149.0 | 164.5 | 584.2 |
| Nordics | 71.7 | 83.6 | 317.8 |
| South | 62.8 | 83.1 | 304.7 |
| UK & Ireland | 125.5 | 174.0 | 606.9 |
| Total Network | 512.8 | 623.9 | 2,243.7 |
| Technology | 15.1 | 16.3 | 64.0 |
| Total Net Sales | 527.9 | 640.2 | 2,307.7 |
| DACH | 9.9 | 11.6 | 35.8 |
|---|---|---|---|
| East | 1.7 | 0.9 | 3.4 |
| France & Benelux | 15.6 | 15.2 | 47.9 |
| Nordics | 6.4 | 7.7 | 31.6 |
| South | 7.1 | 11.4 | 40.1 |
| UK & Ireland | 5.7 | 12.4 | 30.9 |
| Total Network | 46.4 | 59.2 | 189.6 |
| Technology | 10.2 | 10.1 | 42.0 |
| Group mgmt & support functions | -37.6 | -51.2 | -209.5 |
| Total EBITDA | 19.1 | 18.1 | 22.2 |
Tradedoubler's operations, particularly within Network, fluctuate with the development of e-commerce and online advertising. Although these areas are showing positive underlying growth, there are fluctuations during the year particularly within e-commerce. The highest level of activity is before Christmas, which implies that the fourth quarter is normally the strongest for Tradedoubler.
Cash flow from operating activities before changes in working capital amounted to SEK 15.4 M (11.6) during the quarter. The positive development in cash flow from operating activities was due to higher earnings, mainly driven by a lower cost-base.
Changes in working capital amounted to SEK -10.6 M (-20.6). A favorable change in accounts receivable was offset by a negative change in primarily accounts payable, publisher debt and prepayments. Cash flow from operating activities amounted to SEK 4.8 M (-9.0), after changes in working capital.
Net investments in intangible assets amounted to SEK -8.2 M (-8.1) of which SEK -1.9 M (0.0) relates to capitalised expenses for own personnel. These investments mainly consist of improvements to production and business systems as well as product development.
Cash flow from continuing operations during the quarter amounted to SEK -4.2 M (-21.5).
Cash and cash equivalents at the end of the quarter amounted to SEK 150.3 M (268.2) after being affected by translation
differences of SEK -10.0 M (-1.0). At the same time the Group had no interest-bearing loans (0.0).
Consolidated shareholders' equity amounted to SEK 482.1 M (587.6) at end of the quarter. The return on equity for the rolling 12 months period was -1.5 per cent (14.7).
The parent company's net sales amounted to SEK 31.4 M (32.2) during the first quarter 2013. Revenue primarily consisted of remuneration from subsidiaries in terms of licensing revenue and remuneration for centrally performed services.
Operating profit (EBIT) amounted to SEK 2.0 M (-15.0), mainly due to the lower cost base. Financial income and expenses amounted to SEK 6.9 M (1.0).
Profit after tax amounted to SEK 7.6 M (-10.1).
The parent company's receivables from group companies amounted to SEK 101.6 M (176.1), 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 159.9 M (94.2), of which none (0.0) were non-current. Cash and cash equivalents amounted to SEK 30.2 M (30.7).
Deferred tax receivables amounted to SEK 23.6 M (3.0) at the end of the quarter. The deferred tax receivables are related to carry-forwards of SEK 9.6 M and deferred tax receivables related to previous Group loans of SEK 14.0 M. For more information, see notes to the consolidated financial statements, note C2 Critical estimates and judgements in the Annual Report 2012.
During the fourth quarter of 2011, Tradedoubler sold its Search operations and has subsequently reported this as a discontinued operation.
During the first quarter 2013, the discontinued operations affected the Group's results by SEK 0.0 M (0.0).
The result from discontinued operations for the quarter has not affected the Group's cash flow. For more information regarding discontinued operations, see page 19.
No transactions between Tradedoubler and related parties impacting the company's financial position and results have taken place, aside from remuneration to board and senior executives.
At the end of the first quarter, Tradedoubler's staff corresponded to 476 (491) full-time equivalents (FTEs), which includes full-time, temporary and contract employees. During the first quarter 2013 Tradedoubler has included paid interns on longer contracts in the FTE-statistics. Without these the number of FTEs at the end of the first quarter would be 453.
Tradedoubler divides risks into market-related risks, operational risks, financial risks and legal risks. These risks are described on pages 19-21 of the 2012 Annual Report.
No significant risks and uncertainty factors are considered to have arisen since the latest submitted annual report.
For information regarding critical estimates and judgements in the financial statements see note C2 in the 2012 Annual Report.
No critical estimates or judgements are considered to have arisen since the latest submitted annual report.
Andrew Buckman was appointed COO (Chief Operating Officer), with effect from 1st of January 2013. Magnus Nyström was appointed CTO (Chief Technology Officer) after holding the position on a temporary basis during the autumn of 2012. From 1 st of January the group management team consists of these two persons plus CEO Rob Wilson and CFO Jonas Ragnarsson.
As from January 1, 2013, Tradedoubler has changed its segment reporting. The new organisational structure, which was presented in the year-end report of 2012, consists of six market units within the Network segment. Technology will continue to be reported as a separate segment.
The new market units are the following:
DACH: Austria, Germany, Switzerland East: Lithuania, Poland, Russia France & Benelux: Belgium, France, Netherlands Nordics: Denmark, Finland, Norway, Sweden South: Brazil, Italy, Portugal, Spain UK & Ireland: UK, Ireland
No significant events have occurred after the end of the reporting period.
The market in performance marketing is expected to continue to show growth during 2013. The company is expected to return to growth in line with the market during the second half of 2013.
The monthly cost run-rate for operating costs before depreciation and amortisation during Q1 stood on average at SEK 33.5 M. Tradedoubler anticipates that the costs during the remainder of 2013 will continue at approximately the same level as during the first quarter. These costs were estimated in the year-end report 2012 to be SEK 35-37 M per month during 2013.
This interim report is prepared in accordance with IAS 34, Interim Financial Reporting and the Swedish Annual Accounts Act.
During the first quarter Tradedoubler has changed the classification in the income statements where costs closer related to product development and administration costs have been reclassified from sales cost to development and administration costs respectively. It is the belief of Tradedoubler that the reclassification gives a more accurate picture of the operating expenses. Changes have been made in the consolidated income statement with corresponding changes in the income statement for the parent company. Comparative periods have been changed.
As from January 1, 2013 Tradedoubler applies a new segment reporting. The segments consist of the six market units within Network and the business unit Technology that continues to be reported as a separate segment. See page 8 for further information. Comparative periods have been restated in accordance with the new segments.
Except for the changes stated above the accounting policies and methods of calculation are unchanged, compared with the 2012 Annual Report.
For information on the accounting policies applied, see the 2012 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 for continuing operations amounted to SEK 0.3 (0.2). Equity per share amounted to SEK 11.3 (13.8) at the end of the quarter.
The share price closed at SEK 14.95 on the final trading day in March, 2013, which was lower than at the end of March, 2012, when the share price was SEK 31.10. At year-end, the share closed at SEK 12.50.
This interim report will be presented at a press and analyst conference on 3 May 2013 at 10:00 a.m. CET in Tradedoubler's premises at Sveavägen 20, Stockholm. The presentation may be followed via a webcast on the website:
http://financials.tradedoubler.com/en-gb/investorrelations, and by telephone:
| Sweden | +46 8 505 56478 |
|---|---|
| UK | +44 20 336 45371 |
| US | +1 877 6792993 |
The presentation material will be published concurrently with the interim report.
The Annual General Meeting 2013 will be held on 7 May 2013 at 5:00 p.m. CET in Tradedoubler's premises at Sveavägen 20 in Stockholm.
| Interim report January-June 2013 | 26 July 2013 |
|---|---|
| Interim report January-September 2013 | 30 October 2013 |
| Year-end report 2013 | 6 February 2014 |
Rob Wilson, President and CEO, telephone +44 (0) 7500 667 587 Jonas Ragnarsson, CFO, telephone +46 8 405 08 00 E-mail: [email protected]
Both an English version and a Swedish version of this report have been prepared. In the event of a difference between the two reports, the Swedish version shall prevail.
This interim report has not been subject to review by the company's auditor Ernst & Young AB.
Stockholm, 3 May 2013
Rob Wilson President and CEO
| Jan-Mar | Jan-Mar | Full year | |
|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2012 |
| Net Sales | 527,863 | 640,206 | 2,307,718 |
| Cost of goods sold | -408,395 | -493,816 | -1,766,240 |
| Gross profit | 119,468 | 146,390 | 541,478 |
| Selling expenses | -64,960 | -80,995 | -304,447 |
| Administrative expenses | -29,924 | -38,951 | -178,127 |
| Development expenses | -9,668 | -13,796 | -58,903 |
| Operating profit | 14,915 | 12,648 | 1 |
| Net financial items | 2,687 | 273 | 317 |
| Profit before tax | 17,602 | 12,921 | 317 |
| Tax | -5,571 | -2,811 | -10,475 |
| Net profit for continuing operations | 12,031 | 10,109 | -10,158 |
| Net profit for discontinued operations | - | - | 2,192 |
| Total net profit | 12,031 | 10,109 | -7,965 |
All earnings accrue to the parent company's shareholders.
| Jan-Mar | Jan-Mar | Full year | |
|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2012 |
| Profit for the period, after tax | 12,031 | 10,109 | -7,965 |
| Other comprehensive income | |||
| Items that subsequently will be reversed in the income statement | |||
| Translation difference, net after tax | -18,361 | -3,398 | -20,480 |
| Total comprehensive income for the period, after tax | -6,330 | 6,711 | -28,445 |
| Comprehensive income attributable to: | |||
| Parent company shareholders | -6,330 | 6,711 | -28,445 |
| Jan-Mar | Jan-Mar | Full year | |
|---|---|---|---|
| SEK | 2013 | 2012 | 2012 |
| Profit per share for continued operations | 0.3 | 0.2 | -0.2 |
| Total profit per share (including discontinued operations) | 0.3 | 0.2 | -0.2 |
| Number of Shares | |||
| Weighted average | 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 | |
|---|---|---|---|
| 2013 | 2012 | 2012 | |
| Gross profit (GP) / revenue (%) | 22.6 | 22.9 | 23.5 |
| EBITDA / revenue (%) | 3.6 | 2.8 | 1.0 |
| EBITDA / gross profit (GP) (%) | 15.9 | 12.4 | 4.1 |
| Equity/assets ratio (%) | 43.4 | 42.5 | 41.0 |
| Return on equity (12 months) (%) | -1.5 | 14.7 | -1.9 |
| Average number of employees | 472 | 493 | 487 |
| Return on Capital Employed (12 months) (%) | 0.6 | 19.0 | 0.2 |
| Cash-flow from operating activities per share, SEK | 0.1 | -0.2 | -0.4 |
| Equity per share, SEK | 11.3 | 13.8 | 11.4 |
| Stock price at the end of the period, SEK | 15.0 | 31.1 | 12.5 |
| 31 Mar | 31 Mar | 31 Dec | |
|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2012 |
| Assets | |||
| Non-current assets | |||
| Intangible fixed assets | 400,799 | 406,048 | 408,364 |
| Tangible fixed assets | 9,045 | 10,294 | 10,117 |
| Other non-current receivables | 3,547 | 3,747 | 3,647 |
| Deferred tax assets | 34,540 | 24,540 | 36,007 |
| Total non-current assets | 447,931 | 444,629 | 458,135 |
| Accounts receivables | 471,226 | 610,880 | 519,268 |
| Tax assets | 8,671 | 23,169 | 11,819 |
| Other current receivables | 33,360 | 34,763 | 36,408 |
| Cash & cash equivalents | 150,302 | 268,222 | 164,445 |
| Total current assets | 663,559 | 937,034 | 731,939 |
| Total assets | 1,111,490 | 1,381,663 | 1,190,074 |
| Shareholders' equity and liabilities | |||
| Shareholders' equity | 482,052 | 587,636 | 488,382 |
| Deferred tax liabilities | 4,597 | 7,534 | 4,597 |
| Other provisions | 971 | 1,042 | 1,013 |
| Total long-term liabilities | 5,568 | 8,576 | 5,609 |
| Accounts payable | 7,135 | 17,057 | 20,642 |
| Current liabilities to publishers | 377,891 | 466,182 | 402,514 |
| Tax liabilities | 2,944 | 6,626 | 6,112 |
| Other current liabilities | 235,900 | 295,586 | 266,815 |
| Total current liabilities | 623,870 | 785,451 | 696,083 |
| Total shareholder´s equity and liabilities | 1,111,490 | 1,381,663 | 1,190,074 |
| Jan-Mar | Jan-Mar | Full year | |
|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2012 |
| Opening balance | 488,382 | 580,843 | 580,843 |
| Total comprehensive income for the period, continued operations | -6,330 | 6,711 | -30,637 |
| Total comprehensive income for the period, discontinued operations* | - | - | 2,192 |
| Equity-settled share-based payments | - | 82 | - |
| Dividend | - | - | -64,016 |
| Closing balance | 482,052 | 587,636 | 488,382 |
All capital accrues to the parent company's shareholders.
*See disclosure regarding discontinued operations, page 18.
| Jan-Mar | Jan-Mar | Full year | |
|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2012 |
| Operating activities | |||
| Profit before tax | 17,602 | 12,921 | 317 |
| Adjustments for items not included in cash flow | 2,349 | 1,769 | 49,825 |
| Income taxes paid | -4,594 | -3,079 | -15,106 |
| Cash flow from operating activities before changes in working | |||
| capital | 15,357 | 11,611 | 35,036 |
| Changes in working capital | -10,603 | -20,648 | -49,980 |
| Cash flow from operating activities | 4,754 | -9,037 | -14,944 |
| Investing activities | |||
| Net investments in intangible assets | -8,160 | -8,141 | -36,220 |
| Net investments in tangible assets | -714 | -663 | -4,721 |
| Net investments in financial assets | -30 | -3,692 | -209 |
| Net investments in stocks and subsidiaries* | - | - | - |
| Cash flow from investing activities | -8,904 | -12,496 | -41,150 |
| Financing activities | |||
| Dividend paid to parent company's shareholders | - | - | -64,016 |
| Cash flow from financing activities | - | - | -64,016 |
| Cash flow for the period from continuing operations | -4,150 | -21,533 | -120,110 |
| Cash flow from discontinued operations | |||
| Cash flow from operating activities | - | - | - |
| Cash flow from investing activities | - | - | - |
| Cash flow from financing activities | - | - | - |
| Cash flow for the period from discontinued operations | - | - | - |
| Cash flow for the period | -4,150 | -21,533 | -120,110 |
| Cash and cash equivalents | |||
| On the opening date | 164,445 | 290,745 | 290,745 |
| Translation difference in cash and cash equivalents | -9,993 | -990 | -6,189 |
| Cash and cash equivalens on the closing date | 150,302 | 268,222 | 164,446 |
| Adjustments for non-cash items | |||
| Depreciation | 4,135 | 4,851 | 20,324 |
| Other | -1,786 | -3,082 | 29,501 |
| Total non-cash items | 2,349 | 1,769 | 49,825 |
* Attributable to discontinued operations.
| Jan-Mar | Jan-Mar | Full year | |
|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2012 |
| Net Sales | 31,408 | 32,161 | 128,906 |
| Cost of goods sold | -107 | -1,840 | -8,636 |
| Gross profit | 31,301 | 30,320 | 120,270 |
| Selling expenses | -79 | -142 | -2,105 |
| Administrative expenses | -22,310 | -33,380 | -127,848 |
| Development expenses | -6,924 | -11,846 | -46,625 |
| Operating profit | 1,988 | -15,048 | -56,308 |
| Net financial items | 6,869 | 978 | -999 |
| Profit before tax | 8,857 | -14,069 | -57,306 |
| Tax | -1,243 | 4,015 | 19,230 |
| Net profit | 7,614 | -10,054 | -38,076 |
| 31 mar | 31 mar | 31 dec | |
|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2012 |
| Assets | |||
| Intangible fixed assets | 60,024 | 31,715 | 54,438 |
| Fixed tangible assets | 2,775 | 4,865 | 3,458 |
| Financial fixed assets | 198,105 | 206,327 | 198,105 |
| Deffered tax assets | 23,579 | 3,015 | 24,802 |
| Total fixed assets | 284,483 | 245,922 | 280,802 |
| Accounts receivables | 4,851 | 2,628 | 2,846 |
| Receivables from Group companies | 101,601 | 176,094 | 121,053 |
| Tax assets | 3,064 | 9,216 | 2,407 |
| Other current receivables | 9,598 | 15,318 | 9,450 |
| Cash & cash equivalents | 30,245 | 30,727 | 57,094 |
| Total current assets | 149,359 | 233,982 | 192,849 |
| Total assets | 433,843 | 479,904 | 473,651 |
| Shareholders' equity and liabilities | |||
| Shareholders equity | 179,719 | 264,143 | 172,105 |
| Accounts payable | 3,183 | 9,818 | 12,150 |
| Liabilities to Group companies | 159,864 | 94,202 | 191,076 |
| Other liabilities | 91,077 | 111,741 | 98,319 |
| Total current liabilities | 254,123 | 215,761 | 301,546 |
| Total shareholder´s equity and liabilities | 433,843 | 479,904 | 473,651 |
| 31 Mar | 31 Mar | 31 Dec | |
|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2012 |
| Group | |||
| Pledged assets | none | none | none |
| Rent deposits | 3,547 | 3,549 | 3,647 |
| Contingent liabilities | none | none | none |
| Parent company | |||
| Pledged assets | none | none | none |
| Contingent liabilities | 2,088 | 6,939 | 2,259 |
| Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | |
|---|---|---|---|---|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2012 | 2012 | 2012 | 2011 | 2011 | 2011 |
| Net Sales | 527,863 | 567,738 | 526,115 | 573,660 | 640,206 | 701,455 | 653,926 | 604,760 |
| Cost of goods sold | -408,395 | -433,151 | -406,399 | -432,873 | -493,816 | -534,213 | -501,386 | -455,283 |
| Gross profit | 119,468 | 134,587 | 119,715 | 140,786 | 146,390 | 167,241 | 152,540 | 149,477 |
| Total costs | -104,553 | -136,711 | -127,475 | -143,549 | -133,739 | -128,505 | -121,280 | -127,239 |
| Operating profit | 14,915 | -2,124 | -7,760 | -2,763 | 12,651 | 38,737 | 31,260 | 22,237 |
| Net financial items | 2,687 | -1,092 | 2,223 | -1,088 | 273 | -888 | -4,970 | 2,094 |
| Profit before tax | 17,602 | -3,216 | -5,537 | -3,852 | 12,924 | 37,849 | 26,290 | 24,331 |
| Tax | -5,571 | 4,365 | -5,041 | -6,988 | -2,811 | 405 | -6,369 | -10,352 |
| Net profit | 12,031 | 1,149 | -10,577 | -10,839 | 10,111 | 38,254 | 19,921 | 13,979 |
| 31 Mar | 31 Dec | 30 Sep | 30 Jun | 31 Mar | 31 Dec | 30 Sep | 30 Jun | |
|---|---|---|---|---|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2012 | 2012 | 2012 | 2011 | 2011 | 2011 |
| Assets | ||||||||
| Intangible fixed assets | 400,799 | 408,364 | 423,595 | 427,356 | 406,048 | 404,054 | 428,644 | 405,883 |
| Other fixed assets | 47,132 | 49,771 | 51,320 | 42,277 | 38,581 | 35,629 | 47,854 | 47,527 |
| Current receivables | 513,257 | 567,494 | 553,547 | 622,317 | 668,812 | 706,213 | 717,459 | 681,006 |
| Cash & cash equivalents | 150,302 | 164,445 | 173,288 | 179,352 | 268,222 | 290,745 | 261,636 | 214,260 |
| Total assets | 1,111,490 | 1,190,074 | 1,201,749 | 1,271,302 | 1,381,663 | 1,436,640 | 1,455,593 | 1,348,676 |
| Shareholders' equity and liabilities | ||||||||
| Shareholders' equity | 482,052 | 488,382 | 497,734 | 522,329 | 587,636 | 580,843 | 592,667 | 551,122 |
| Long-term non-interest bearing debt | 5,568 | 5,609 | 7,743 | 8,479 | 8,576 | 8,669 | 10,685 | 11,420 |
| Current non-interest bearing debt | 623,870 | 696,083 | 696,272 | 740,494 | 785,451 | 847,128 | 852,241 | 786,134 |
| Total shareholder´s equity and | ||||||||
| liabilities | 1,111,490 | 1,190,074 | 1,201,749 | 1,271,302 | 1,381,663 | 1,436,640 | 1,455,593 | 1,348,676 |
| Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | |
|---|---|---|---|---|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2012 | 2012 | 2012 | 2011 | 2011 | 2011 |
| Operating activities | ||||||||
| Profit before tax | 17,602 | -3,216 | -5,537 | -3,851 | 12,921 | 37,849 | 26,289 | 24,331 |
| Adjustments for items not included in | ||||||||
| cash flow | 2,349 | 22,867 | 3,815 | 21,373 | 1,769 | -5,473 | 4,675 | 8,789 |
| Tax paid | -4,594 | -4,381 | -7,355 | -291 | -3,079 | 8,283 | -8,020 | -11,174 |
| Cash flow from changes in working capital |
-10,603 | -21,870 | 22,515 | -29,978 | -20,648 | 27,263 | 22,821 | -53,804 |
| Cash flow from operating activities | 4,754 | -6,600 | 13,438 | -12,747 | -9,037 | 67,922 | 45,765 | -31,858 |
| Cash flow from investing activities | -8,904 | -8,428 | -10,629 | -9,596 | -12,496 | -33,739 | -9,403 | -7,944 |
| Cash flow from financing activities | - | - | - | -64,016 | - | - | - | - |
| Cash flow from continuing | ||||||||
| operations | -4,150 | -15,028 | 2,809 | -86,359 | -21,533 | 34,183 | 36,362 | -39,802 |
| Cash flow from discontinued | ||||||||
| operations | - | - | - | - | - | -2,058 | 3,362 | 1,115 |
| Cash flow for the period | -4,150 | -15,028 | 2,809 | -86,359 | -21,533 | 32,125 | 39,724 | -38,687 |
| Cash and cash equivalents | ||||||||
| On the opening date | 164,445 | 173,287 | 179,352 | 268,222 | 290,745 | 261,636 | 214,260 | 245,633 |
| Translation difference | -9,993 | 6,187 | -8,873 | -2,511 | -990 | -3,016 | 7,653 | 7,314 |
| Cash and cash equivalens on the | ||||||||
| closing date | 150,302 | 164,445 | 173,287 | 179,352 | 268,222 | 290,745 | 261,636 | 214,260 |
| Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | |
|---|---|---|---|---|---|---|---|---|
| 2013 | 2012 | 2012 | 2012 | 2012 | 2011 | 2011 | 2011 | |
| Gross profit (GP) / revenue (%) | 22.6 | 23.7 | 22.8 | 24.5 | 22.9 | 23.8 | 23.3 | 24.7 |
| EBITDA / revenue (%) | 3.6 | 1.2 | -0.6 | 0.0 | 2.8 | 6.2 | 5.8 | 5.1 |
| EBITDA / gross profit (GP) (%) | 15.9 | 5.2 | -2.6 | 0.2 | 12.4 | 25.9 | 25.0 | 20.5 |
| Equity/assets ratio (%) | 43.4 | 41.0 | 41.4 | 41.1 | 42.5 | 40.4 | 40.7 | 40.9 |
| Return on equity last 12 months (%) | -1.5 | -1.9 | 4.9 | 10.7 | 14.7 | 16.8 | 13.8 | 13.2 |
| Average number of employees | 472 | 479 | 489 | 487 | 493 | 536 | 553 | 541 |
| Return on Capital Employed last 12 months (%) |
0.6 | 0.2 | 7.9 | 15.2 | 19.0 | 23.4 | 22.4 | 22.3 |
| Cash-flow from operating activities per share, SEK |
0.1 | -0.2 | 0.3 | -0.3 | -0.2 | 1.6 | 1.1 | -0.7 |
| Equity per share, SEK | 11.3 | 11.4 | 11.7 | 12.2 | 13.8 | 13.6 | 13.9 | 12.9 |
| Stock price at the end of the period, SEK |
15.0 | 12.5 | 14.0 | 16.9 | 31.1 | 27.3 | 23.0 | 40.5 |
| Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | |
|---|---|---|---|---|---|---|---|---|
| SEK M | 2013 | 2012 | 2012 | 2012 | 2012 | 2011 | 2011 | 2011 |
| DACH | ||||||||
| Net sales | 77.8 | 83.8 | 71.7 | 78.8 | 92.7 | 101.9 | 86.7 | 79.4 |
| EBITDA | 9.9 | 8.3 | 6.7 | 9.2 | 11.6 | 14.3 | 11.1 | 13.5 |
| East | ||||||||
| Net sales | 25.9 | 30.0 | 22.5 | 24.5 | 26.0 | 25.5 | 25.6 | 28.3 |
| EBITDA | 1.7 | 0.6 | 0.5 | 1.5 | 0.9 | 1.9 | 2.6 | 2.4 |
| France & Benelux | ||||||||
| Net sales | 149.0 | 149.1 | 131.2 | 139.4 | 164.5 | 179.4 | 168.0 | 155.0 |
| EBITDA | 15.6 | 11.6 | 9.9 | 11.2 | 15.2 | 15.4 | 15.4 | 15.4 |
| Nordics | ||||||||
| Net sales | 71.7 | 81.7 | 70.6 | 81.9 | 83.6 | 93.4 | 84.0 | 84.0 |
| EBITDA | 6.4 | 7.7 | 7.6 | 8.6 | 7.7 | 10.1 | 10.2 | 11.1 |
| South | ||||||||
| Net sales | 62.8 | 71.2 | 71.0 | 79.5 | 83.1 | 90.4 | 96.0 | 93.4 |
| EBITDA | 7.1 | 8.6 | 7.6 | 12.4 | 11.4 | 13.4 | 14.9 | 15.8 |
| UK & Ireland | ||||||||
| Net sales | 125.5 | 135.8 | 144.9 | 152.2 | 174.0 | 194.0 | 178.3 | 150.0 |
| EBITDA | 5.7 | 7.9 | 2.6 | 8.0 | 12.4 | 14.5 | 11.9 | 10.3 |
| Technology | ||||||||
| Net sales | 15.1 | 16.0 | 14.2 | 17.5 | 16.3 | 16.8 | 15.4 | 14.8 |
| EBITDA | 10.2 | 10.6 | 9.2 | 12.2 | 10.1 | 10.8 | 9.4 | 8.8 |
| Group management & support functions | ||||||||
| Net sales | - | - | - | - | - | - | - | - |
| EBITDA | -37.6 | -48.3 | -47.1 | -62.9 | -51.2 | -37.0 | -40.7 | -49.6 |
| Total | ||||||||
| Net sales | 527.9 | 567.7 | 526.1 | 573.7 | 640.2 | 701.5 | 653.9 | 604.8 |
| EBITDA | 19.1 | 6.9 | -3.1 | 0.3 | 18.1 | 43.3 | 34.8 | 27.8 |
| Jan-Mar | Jan-Mar | Full year | |
|---|---|---|---|
| SEK 000s | 2013 | 2012 | 2012 |
| Net Sales | - | - | -290 |
| Cost of goods sold | - | - | 4,914 |
| Gross profit | - | - | 4,624 |
| Total costs | - | - | -2,419 |
| Operating profit | - | - | 2,205 |
| Net financial items | - | - | 2 9 |
| Profit before tax | - | - | 2,234 |
| Tax | - | - | -42 |
| Net profit excl capital loss for the year for discontinued operations | - | - | 2,192 |
| Capital loss | - | - | - |
| Net profit for the year for discontinued operations | - | - | 2,192 |
| Other comprehensive income | |||
| Net profit from discontinued operations | - | - | 2,192 |
| Translation difference on equity net after tax | - | - | - |
| Exchange difference on increased net investment, net after tax | - | - | - |
| Reversal of exchange difference on increased net investment, net after tax | - | - | - |
| Reversal of translation difference on equity, net after tax | - | - | - |
| Total other comprehensive income from discontinued operations | - | - | 2,192 |
Discontinued operations refers to the operations in the Search market unit, which were divested during the fourth quarter of 2011.
Return on equity. Profit for the period as a percentage of average equity calculated as opening plus closing equity divided by two.
Return on capital employed. Operating profit plus interest income as a percentage of average capital employed calculated as opening plus closing capital employed divided by two.
Equity per share. Equity divided by the number of outstanding shares on the balance sheet date.
Earnings per share. Net profit for the period attributable to the parent company's shareholders divided by the average number of shares.
Earnings per share after full dilution. Net profit/loss for the period divided by the average number of shares calculated after full dilution.
Cash flow per share. Cash flow divided by the average number of outstanding shares.
Operating margin. Operating profit as a percentage of sales.
Equity/assets ratio. Equity as a percentage of the balance sheet total.
Capital employed. Total assets less current and non-current non interest-bearing liabilities including deferred tax liabilities.
AdCode. An ad display system which is used in order to optimise and display the best ad on a publisher's website.
Affiliate. Used for a website which via adverts directs Internet visitor traffic to the advertising company's website.
Affiliate network. A system where advertisers that want to boost their Internet sales are matched together with website owners that want to boost their advertising revenue by means of an affiliate programme.
Affiliate programme. An agreement where the advertiser pays a fee to the publisher in order to relay traffic to the advertiser's website.
App download tracking. Software that enables the advertiser to monitor and obtain statistics about when consumers download and install software from the advertiser and how they use the software afterwards.
Cost-per-action (CPA). Means that the advertisers pay a fee which either is based on the sales generated by the advertising or on the number of leads (principally registrations) generated by the advert.
Cost-per-click (CPC). This pricing model means that advertisers pay a fee based on the number of clicks or unique visitors generated by the advertising.
Cost-per-lead (CPL). Means that the advertisers pay a fee which is based on the number of leads (primarily registrations) generated by the advert.
Cost-per-thousand impressions (CPM). A pricing model where advertisers pay a fee based on the number of views of an advert.
E-mail publishers. Use e-mail to send out targeted offers to a list of recipients.
EBIT. Earnings before interest and tax.
EBITDA. Earnings before interest, tax, depreciation and amortization.
Full-time equivalent (FTE) or full-time employees. The total number of full-time and temporary as well as contract employees.
Performance-based. Collective term for marketing activities on the Internet where publishers only get paid when a predetermined transaction is generated.
Product feed. A distribution system where advertisers can upload their product databases in order to enable publishers to create content and ads on their websites.
Publisher. (Also called affiliate) Websites that agree on display of adverts and direct Internet visitor traffic to the Advertising company's website.
Trackability. The process and method for follow-up of website traffic, primarily through use of cookies.
Portals. Websites which act as a gateway to the Internet and offer broad content and large volumes of traffic. On the portal, there are several links, a search engine and other services, for instance, free e-mail or filters and blocking possibilities.
Search engine optimizing publishers. Own websites which use search engines, e.g. Google and Yahoo!, in combination with their own knowledge about the search engine and the advertiser in order to display the advertiser high up in the search results list. These publishers help to generate greater volumes.
Voucher code. Voucher codes that are created and easily distributed to consumers via a publisher's website. The consumer can then use the voucher code when purchasing a product/service from the advertiser.
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