2010-07-27
TRADEDOUBLER AB (PUBL) INTERIM REPORT JANUARY-JUNE 2010
The comparison of the gross profit during both the first half-year and the second quarter 2010 with corresponding periods last year is made considerably more difficult by the dissolution of reserves that took place during the second quarter 2009 and also by the reconciliation differences reported during the third quarter 2009 and which partly related to the first half-year 2009.
January-June 2010
- Net sales amounted to SEK 1,370 M (1,578) which was a decrease of 13%.
- Gross profit decreased by 14% to SEK 323 M (374) and the gross margin amounted to 23.5 (23.7) per cent.
- Operating profit (EBIT) totalled SEK 26 M (60) and the operating margin was 1.9 (3.8) per cent. Operating profit was impacted negatively by changes in foreign exchange rates of SEK -11 M compared with the first half-year 2009. The remaining change was partly due to non-recurring items, and also to increased costs.
- Profit after tax totalled SEK 30 M (53).
- Earnings per share amounted to SEK 0.70 (1.87).
- The cash flow from operating activities was SEK -104 M (11). The difference compared with the first half-year 2009 was largely due to changes in working capital and a lower profit before tax. The fully subscribed rights issue which was carried out during December 2009, has enabled repayment of all of the Company's loans.
- Urban Gillström took over as new President and CEO of TradeDoubler in February 2010 and Erik Skånsberg took over as new CFO in May 2010.
- Two new board members were elected at the annual general meeting on May 6; Martina King and Simon Turner, both resident in the UK. Other members were re-elected apart from Lars Stugemo who declined re-election.
April-June 2010
- Net sales amounted to SEK 661 M (734) which was a decrease of 10%.
- Gross profit decreased by 15% to SEK 159 M (187) and the gross margin amounted to 24.0 (25.5) per cent.
- Operating profit (EBIT) totalled SEK 10 M (33) and the operating margin was 1.4 (4.6) per cent. Operating profit was impacted negatively by changes in foreign exchange rates of SEK -6 M compared with the second quarter 2009. The remaining change was partly due to non-recurring items, and also to increased costs.
- Profit after tax totalled SEK 27 M (33).
- Earnings per share amounted to SEK 0.63 (1.17).
- The cash flow from operating activities was SEK -24 M (-39) and the improvement was primarily due to lower taxes paid.
CEO's comments
"Business is now showing a positive trend in local currencies on all key markets. Both our core business Affiliate and the advertising climate continued to improve during the second quarter.
Since taking over as President and CEO several measures have been taken to boost sales. Today, we have more front-line sales people, which I expect to deliver positive results going forward. To strengthen our competitiveness we have placed a clearer focus on product development and the marketing companies have been given empowerment to enable TradeDoubler to act more rapidly towards the customer. At the same time, the operational follow up has been strengthened in order to maintain effective control over the operations, but especially in order to ensure greater sales focus. The costs increased slightly during the second quarter as a consequence of our future-oriented improvement measures within sales and marketing among other areas, however, we are seeing sequential results of the cost-cutting measures. We will continue to accelerate and apply the brakes simultaneously.
In order to clarify the Group's long-term direction and boost efficiency the management, together with practically all key people in the Group, developed an operational excellence programme addressing strategy, structure and processes. This programme shall be presented and implemented in the autumn. The work has convinced me that TradeDoubler has great potential on a market displaying good growth. We are on the right track, but a lot of work remains in order for us to reach our potential. We have to continue increasing sales, reducing costs and improving the cash flow, at the same time as we implement necessary improvement programmes. I look forward to the future with confidence."
Urban Gillström, President and CEO
Presentation of interim report
A meeting with analysts and the media has been arranged on 27 July at 10 a.m. in TradeDoubler's premises at Sveavägen 20, Stockholm. The presentation may also be followed via telephone: +46 (0)8 535 264 39 or UK +44 (0)20 7138 0824.
The presentation material will be published concurrently with the quarterly report on: www.tradedoubler.com/ir
Contact information:
Urban Gillström, President and CEO
Erik Skånsberg, CFO
Tel. 08-405 08 00
ir@tradedoubler.com