Tradedoubler interim report January – March 2015

Tradedoubler is making good progress in realising its strategy
THE FIRST QUARTER JANUARY-MARCH 2015

  · Net sales amounted to SEK 432 M (445). Excluding change related items, net
sales were SEK 431 M (445), a decrease of 3% or 11% adjusted for changes in FX
rates. More than half of the decline related to lower revenues from two pan
-European customers and reductions in non-core business.
  · Gross profit excluding change related items was SEK 89 M (101), a decrease
of 12% or 19% adjusted for changes in FX rates.
  · Gross margin excluding change related items was 20.7% (22.7%). The decrease
is mainly due to price pressure within affiliate and also to a relatively large
reduction of revenue within non-core business, with higher margins than the
average for the Group.
  · Operating costs, excluding depreciation and change related items, were SEK
86 M (89), a decrease of 4% or 9% adjusted for changes in FX rates mainly
related to fewer staff. Full time equivalents at end of Q1 were 345 (367).
  · EBITDA amounted to SEK -4 M (12). Excluding change related items EBITDA,
were SEK 3 M (12).
  · Capitalised expenses were SEK 12 M (4), and the increase was mainly due to
the recent hiring of more developers in line with strategy.
  · Earnings per share, before and after dilution, were SEK -0.23 (0.10).
  · Cash flow from operating activities was SEK 2 M (-75) and net cash decreased
by SEK 7 M to SEK 119 M in the first quarter.
  · Bertil Lundell was appointed as CTO. He has a strong track record in senior
product development roles and is a member of the executive management team.
  · Tradedoubler finalised its Nordic regional structure and closed its office
in Norway with limited one off costs.
  · The German technology company Adnologies was acquired to support the new
corporate strategy. Acquisition investments and expenditures as well as the
impact upon the Q1 results were limited.
  · French media company Reworld Media S.A. acquired 19.1 per cent of
Tradedoubler’s share mainly from Monterro 1A AB and thus became the largest
shareholder in the company.
  · As previously communicated, renegotiations with one major international
client have a negative impact on revenue in 2015.

FINANCIAL OVERVIEW, SEK M             Jan    Jan    Change  Full year
                                      -Mar   -Mar   %1      2014
                                      2015   2014
Net sales excluding change related    431    445    -11%    1 743
items
Gross profit excluding change         89     101    -19%    379
related items
Gross margin (%)                      20,7%  22,7%          21,7%
Operating costs excl. depr. and       -86    -89    -10%    -339
change related costs
EBITDA excluding change related       3      12     -79%    39
items
EBITDA-margin (%)                     0,7%   2,7%           2,3%
Change related items2                 -7     0              -20
EBITDA                                -4     12     -124%   20
Impairment goodwill                   0      0              -60
Operating profit (EBIT)               -10    7              -63
Net investments in non-financial      -12    -4             -17
fixed assets (Capitalized expense)
Cash-flow from operating activities   2      -75            -110
Liquid assets incl financial          365    429            372
investments, at period's end
Net cash3, at period's end            119    184            126

1) Per cent changes are adjusted for
changes in exchange rates
2) Change related items during Q1
2015 relates mainly to costs for
closing down the Norwegian office,
office move costs for Tradedoubler
Ltd and costs related to the
aquisition of Adnologies including a
badwill of 0.8 M SEK that has
decreased net sales. For details
about the change related items in
the full year 2014, see information
in the annual report
3) Current investment and liquid
assets less interest-bearing
liabilities

CEO Matthias Stadelmeyer’s comments on the first quarter 2015

“We are making good progress with our strategy to become the leader in
generating smarter performance marketing results for our clients through
traffic, technology and expertise.

During the first quarter of 2015 we have continued to increase operational
efficiency to improve profitability and stabilise revenue. We are expanding our
offering through acquisitions and investments in our products and teams. The
purchase of the independent German technology company, Adnologies, is a
significant step forward in the realisation of our strategy and will provide us
with further business opportunities. As a result of our investments in product
development we launched Global Capabilities during the quarter with further
launches planned throughout the rest of 2015.

During Q1 we have seen revenue growth in two major markets, in the UK for the
third quarter in a row and for the first time in Sweden, although the underlying
gross profit in our core business developed in line with the declining trend
from recent quarters. Around half of the gross profit decline relates to non
-core business and the two large pan-European companies that left Tradedoubler
during 2014.”

Presentation

This interim report will be presented at a teleconference on the 5th of May 2015
at 10.00 a.m. CET. To follow the presentation, please dial (SE) +46 8 566 427
01, (UK) +44 203 428 14 06 or (US) +1 855 753 22 36. 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 the 5th
of May 2015 at 08.00 a.m. CET. Numerical data in brackets refers to the
corresponding periods in 2014 unless otherwise stated. Rounding off differences
may arise.