Performance marketing network Tradedoubler has announced a 16% drop in net sales year on year amid a large-scale restructure of its operations.
An interim report from the Swedish firm reveals a heavy drop in revenue during Q1 2014, with overall sales reaching SEK 445 million. This slump is made even more severe when adjusted to reflect current exchange rates, equating to a year-on-year loss of 19%.
Tradedoubler attributes almost half of the drop in sales to a dip in revenue from two large pan-European customers along with a similar reduction in business from France. Meanwhile a reduction in non-core business and markets where offices were closed chipped away at the company’s accounts.
Gross profit has also dropped over the last year, reaching SEK 101 million to reflect a decline of 15% from Q1 2013, or 18% when compared with the latest exchange rates.
Although slight declines in revenue have told the story of Tradedoubler’s last year in finance, the company did manage to reduce its operating costs during the same period.
This decreased by SEK 11 million, with the improvement owed to a restructuring programme announced at the tail end of 2013. This included a significant reduction in staff, as Tradedoubler’s number of employed workers dropped from 476 down to 367.
As stated by the company’s acting CEO Matthias Stadelmeyer, a restructure is being conducted with a view to improving the company’s top-line developments and operational efficiency.
Speaking of the findings, he stated: “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.”
Stadelmeyer added that he is currently seeing “substantial potential” for further improvements across the company.
The figures come in light of the recent appointment of Stadelmeyer as Tradedoubler’s interim CEO who, as PerformanceIN reported back in April 22, took over from Rob Wilson after the latter’s induction in August 2012.
The company still plans on appointing a permanent CEO in the near future.