Tradedoubler Interim report January

Decreasing net sales, partly offset by lower costs
The first quarter January – March 2014

  · Net sales were SEK 445 M (528), a decrease of 16 per cent year on year, or
19 per cent adjusted for changes in exchange rates.
  · Almost half of the revenue decline versus Q1 2013 was due to the following
previously communicated factors; lower revenues from two large pan-European
customers, a decline in France largely related to market specific reductions in
the e-mail channel, reductions in non-core business and markets where offices
recently were closed.
  · Gross margin amounted to 22.7 (22.6) per cent and gross profit was SEK 101 M
(119), a decrease with 15 per cent. Adjusted for changes in exchange rates the
decrease was 18 per cent. The gross profit generation relating to the above
mentioned pan-European customers ceased during the latter part of the interim
period. Gross profit relating to them amounted to SEK 5 M during the quarter.
  · Operating cost decreased by SEK 11 M compared to the first quarter 2013 and
amounted to SEK 89 (100) M. The reduction was primarily a result of a
significant reduction of staff to 367 (476). The decrease was mainly attributed
to the restructuring programme announced at the end of last year.
  · EBITDA amounted to SEK 12 (19) M, lower costs compensated for more than half
of the gross profit decline.
  · Cash flow from operating activities was SEK -75 M (5). The development
during the quarter was due to a normalization of working capital.
  · Earnings per share, before and after dilution, amounted to SEK 0.10 (0.28).
  · Richard Julin was appointed to the new role Chief Revenue Officer and Tomas
Ljunglöf was appointed as new CFO.

Significant events after the balance sheet date

  · Matthias Stadelmeyer has been appointed acting President and CEO of
Tradedoubler while the recruitment process of a permanent CEO is ongoing. The
Board decided in April that Rob Wilson would leave his position as President and
CEO of Tradedoubler.

FINANCIAL OVERVIEW, SEK M                  Jan    Jan  Change   Fyll
                                          -Mar   -Mar      %2   year
                                          2014   2013           2013
Net sales                                  445    528    -19%  2,001
Gross profit                               101    119    -18%    455
Gross margin                             22.7%  22.6%          22.7%
Total costs excluding depreciation         -89   -100    -14%   -402
EBITDA                                      12     19    -42%     53
EBITDA margin                               3%     4%             3%
Operating profit (EBIT)                      7     15    -58%     24

Net investments in fixed assets             -4     -9            -32
Cash-flow from operating activities        -75      5            126
Liquid assets incl financial               429    150            506
investments, at period's end
Net cash1, at period's end                 184    150            262

1. Current investment and liquid assets
excluding interest-bearing liabilities
2. Per cent changes are adjusted for
changes in exchange rates

Acting CEO Matthias Stadelmeyer’s comments on the first quarter 2014

“Tradedoubler is showing a continued decrease in net sales in the first quarter,
while total market reported increasing revenues. The reduction in costs is
explained by the recent restructure of the company. The execution has gone
according to plan and is still expected to reduce operating costs by SEK 55 M on
an annual basis, with full impact from second half of 2014.

The company’s short term focus is to improve top-line developments and
operational efficiency. Several projects have already been initiated with the
aim to streamline internal processes, free up time for more client facing
activities and improving operational performance. I see a substantial potential
for further improvements.

I am proud of recently having been appointed acting CEO. Our solid financial
position, active owners and dedicated personnel as well as our strong product
offering and large pan European network of advertisers and publishers give us a
good foundation to increase market share and turn the negative revenue trend
around.”

Presentation

This interim report will be presented at a teleconference on the 6th of May 2014
at 10.00 a.m. CET. To follow the presentation, please dial (SE) +46 8 505 982
61, (UK) +44 207 660 20 79 or (US) +1 855 716 15 92. The presentation may also
be followed via webcast using the link:http://financials.tradedoubler.com/en
-gb/investorrelations

Other

Tradedoubler discloses the information provided herein pursuant to the Swedish
Securities Markets Act. The information was released for publication on 6th of
May 2014 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 2013 unless otherwise
stated. Rounding off differences may arise.
Tradedoubler Interim report January – March 2014

Attachments
