Information on results for the third quarter 2009 and financing of
the company
(Thomson Reuters ONE) - * TradeDoubler will report a lower than expected result for the third quarter 2009 as a result of lower revenue and non-recurring costs. On a preliminary basis net revenue for the quarter amounted to SEK 710.7 million (788.5) and gross profit amounted to SEK 143.4 million (180.8). On a preliminary basis, the operating loss, including a goodwill write down, amounted to SEK -185.9 million (48.0). Before non-recurring items, goodwill write down and exchange rate differences, the operating profit amounted on a preliminary basis to SEK 24.9 million (18.9). * As an effect of a weak development and a more conservative view of the future development, the goodwill value, relating to the 2007 acquisition of the IMW Group in the UK, has been written down by SEK 152.4 million following an impairment test. * The Board of Directors has initiated a process to strengthen the internal guidelines and control of the operations and processes including financial reporting. The process is headed by the newly recruited CFO Mr Thord Norberg. As a result of this process costs for non-recurring items relating to adjustments regarding reconciliation differences between the Enterprise Resource Planning (ERP) system and the general ledger as well as other non-recurring items totalling SEK 24.6 million have been recorded. Non-recurring items also include provisions for unutilized office space in London amounting to SEK 30 million and bad debt of SEK 7 million. * To strengthen the financial position and enable continued growth efforts such as geographical expansion, the Board of Directors will within short propose a rights issue with preferential rights for existing shareholders amounting to around SEK 350 million. Three of the largest shareholders, Alecta, the Fourth Swedish National Pension Fund and AMF have each declared their intention to subscribe for at least their pro rata share, in total equivalent to just above 30 percent.The reason for this information being released ahead of the resultsfor the period January - September 2009, due on November 3, 2009, isthat net revenue and operating profit is believed to differ from themarket expectations, even though TradeDoubler has not providedforecasts. The Board of Directors has therefore decided to releaseprovisional results for the third quarter as shown below. The finalreport for January - September 2009, which will be reviewed by theCompany's auditor, will be published on November 3 at 08:00 CET.Today, Monday October 26, at 10:00 CET, a press- and analyst meetingwill be held at TradeDoubler's offices at Sveavägen 20, Stockholm.For further information and invitation, please see below and on thecompany's homepage.The operating results for the seasonally weak third quarter 2009 wereto a certain extent negatively affected by lower gross profit ofabout seven percent and positive exchange rate differences of SEK 3.3million, but primarily by non-recurring items of SEK 61.6 million anda goodwill write down of SEK 152.4 million.Costs for non-recurring items relate to provisions for unutilizedoffice space in London of SEK 30 million and bad debt of SEK 7million. The costs cover adjustments for reconciliation differencesbetween the Enterprise Resource Planning (ERP) system and the generalledger as well as other items amounting to a total of SEK 24.6million.As an effect of a weak development and a more conservative view ofthe future development, the goodwill value, relating to the 2007acquisition of the IMW Group in the UK, has been written down by SEK152.4 million following an impairment test.Gross profit, excluding non-recurring items is around seven percentlower than in the same quarter last year and has been affected by thecontinuing economic recession, primarily in the UK. A number ofmeasures have been taken since the beginning of the year to reducethe company's costs. Thus far, the cost base in the third quarter,after adjustments for exchange rate differences and non-recurringitems, has been reduced by 27 percent compared to the fourth quarter2008, and by 18 percent compared to the third quarter 2008. Theongoing efforts to reduce costs will continue."Despite a weak third quarter, TradeDoubler's market position remainsvery strong. We are the market leader within performance-baseddigital marketing in all European markets except Germany. We havearound 1,700 customers, the 25 largest of which account for around 30percent of our revenue. With our broad market offering and with theplanned equity injection we are well positioned to pursue furtherexpansion," says ÿrjan Frid, President and CEO.Internal guidelines and controlThe Board of Directors has initiated a process to strengthen theinternal guidelines and control of the operations and processesincluding financial reporting. The process is headed by the new CFOMr Thord Norberg, hired in August 2009, who reports the progress tothe Audit Committee on a regular basis.The Board of Directors has given the Company's external auditor,Ernst & Young, appointed at the Annual General Meeting 2009, theassignment to review the report for the period January - September2009.Financial positionAs the business has developed below expectations in combination witha tight debt amortisation schedule, the financial position has becomeincreasingly constrained during the autumn. During September 2009,external debt financing has been increased by a bridge loan of SEK 30million conditional upon that the company's long-term financing beresolved by no later than 31 January 2010.The Board of Directors will within short propose a rights issue withpreferential rights for existing shareholders amounting to around SEK350 million. Three of the largest shareholders, Alecta, the FourthSwedish National Pension Fund and AMF have each declared theirintention to subscribe for at least their pro rata share, in totalequivalent to just above 30 percent. The ambition is that the rightsissue will be completed before the end of January 2010. SEB Enskildahas been appointed as financial advisor and Hannes Snellman as legaladvisor in relation to the on the planned rights issue.The Company has earlier communicated the following regarding thefinancial position: In the 2008 Annual Report it is stated that"TradeDoubler intends to amortize its external loans during 2009. TheGroup's cash flow will primarily be utilized for this purpose tominimize interest expense." In the first quarter report 2009 it isstated that "During the period, available credit facilities withbanks were reduced by SEK 80.0 million to SEK 207.5 million, while atthe same time, the company raised a subordinated loan in an amount ofSEK 50.0 million. The subordinated loan extends for three years andensures that the Group has access to the necessary funding for theforeseeable future."For further information contact:ÿrjan Frid, President and CEO, tel.+46-8-405 08 00,orjan.frid(at)tradedoubler.comThord Norberg, CFO, tel.+46-8-405 08 27,thord.norberg(at)tradedoubler.comAbout TradeDoublerTradeDoubler is an international digital marketing company offering arange of performance-based marketing solutions. TradeDoubler'sproducts and services provide companies with the tools and expertiseto drive results online whether they are looking to generate sales,leads or traffic or drive brand awareness. Headquartered inStockholm, Sweden, the company boasts a unique global reach spanning19 countries in Europe and Japan. With a breadth of expertise acrossmultiple industry sectors and a network of more than 128,000 websitepublishers, TradeDoubler helps deliver results for over 1,700advertisers around the world. TradeDoubler supplies 32 billionimpressions, reaches 149 million unique visitors and generates 10million leads every month and provides access to more than 76 percent of the European online audience. Advertisers include AppleStore, Dell, Telia Sonera and Kelkoo. Please visitwww.tradedoubler.com for further information.Invitation to press and analyst press meeting at 10:00 CET on October26Due to the provisional results for the period January - September2009 are being released ahead of scheduled date, TradeDoubler's(publ) will hold a press- and analyst meeting today at 10:00 CET atTradeDoubler's office 7th floor at Sveavägen 20, Stockholm.President and CEO ÿrjan Frid and CFO Thord Norberg will give theircomments and answer questions.The presentation will be held in English.To participate through telephone, please call the following numbers:SWE + 46 (0)8 5051 3794UK +44 (0)20 7806 1967http://hugin.info/136251/R/1349966/325549.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 26.10.2009 - 08:24 Uhr
Sprache: Deutsch
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