Growth in the core business

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

January - June 2011 

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

April - June 2011

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

CEO's comments

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

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

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

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

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

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

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

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

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

Urban Gillström, President and CEO

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

Or by telephone:

Sweden:                                          + 46 8 5853 6965
UK:                                                 + 44 20 7138 0827
US:                                                 + 1 718 354 1358

Confirmation Code: 4255337

The presentation material will be published concurrently with the Q2 report on: www.tradedoubler.com/ir

Contact information:
Urban Gillström, President and CEO, telephone +46 (0)707-85 76 00
Erik Skånsberg, CFO, telephone +46 (0)702-64 70 35
ir@tradedoubler.com