Swedish performance marketing company Tradedoubler has reported narrowing losses in Q2 and expects what has been a prolonged year-on-year decline to fade out from Q3.
In an investment-focused second quarter, net sales decreased 23% on the previous year, down to SEK 322 million (£29 million). That marks a stark contrast from Q2 2015, where net sales saw an increase of 2% to SEK 419 million (£37 million).
A downward trend has been also reported between January and June 2016. It was here that net sales fell 18%, a big downturn from a decrease of 1% in the same period in 2015, and gross profit declined by 12% as compared to 10% last year.
The company’s CEO, Matthias Stadelmeyer, believes the readings are “in line” with recent quarters.
“These year-on-year losses will start to phase out from Q3 as they are the result of client losses during 2014 and the first half of 2015,” he declared, adding that during the first six months of 2016 Tradedoubler focused on efficiencies which in result brought reduced cost and improved EBITDA.
A growing business
Stadelmeyer highlights 2016 has been a busy one as the company invested in expanding its offering.
To capitalise on the opportunities in the local e-commerce market, Tradedoubler opened an office in Singapore and broadened its scope by taking minority shares in video company DynAdmic and affiliate marketing business R-Advertising.
In a wave of further enhancements, it rolled out its programmatic solution, TD ENGAGE, in Germany and the UK, and Cross Device tracking in the UK, France and Germany. Both technologies are set to be launched in other markets in the third quarter.
“In Q3 2015 we launched Cookieless tracking which is already delivering measurable results,” Stadelmeyer added.
“We estimate that Cross Device will have an even greater impact on revenue generation as it significantly improves the sophistication and accuracy of our tracking.”
Growth is Tradedoubler’s focus this year, with this resting on the development of new technologies, strategic partnerships and acquisitions as it moves into areas aside from affiliate marketing, where the company started out.
Much change also affects the partial ownership of Tradedoubler. In January 2016, Reworld Media S.A. increased its stake in the firm from 17.8% to 29.95%, but little has been said about the company’s intention for increasing involvement.
“The positive developments during the first half of 2016 and our ambitious future plans mean that we are continuing to make good progress with bringing Tradedoubler back to profitable growth,” Stadelmeyer concluded.