Tradedoubler has released the findings of its interim report, covering January to March 2015, which shows an 11% dip in net sales once adjusted for changes in exchange rates.

The performance marketing network reported earnings of SEK 432 million (£34 million), down from SEK 445 million (£36 million) in 2014, with half of this decline attributed to lower revenues from two pan-European customers.

In the same period for 2014, revenue decreased by 19% year on year, which was pinned to the departure of two pan-European customers along with a below-average performance in France.

In an ironic twist, one of the company’s biggest updates during Q1 2015 came from France, as French media company Reworld Media S.A upped its stake in Tradedoubler to 19.1%, giving way to its status as the company’s largest shareholder.

Q1 also brought news of Tradedoubler’s acquisition of German ad tech firm Adnologies, along with the closure of its base in Oslo and finalisation of a re-structure in the Nordics.

Across the board

The company’s interim report shows gross profit excluding change-related items hitting SEK 89 million (£7 million), indicating a 19% dip once adjusted for changes in exchange rates. 

In the same circumstances, gross margin dropped only slightly to 20.7%, down from 22.7%. 

Key to a pick-up in revenue will be Tradedoubler’s ability to translate its performance in certain markets to others, or to simply make more from the markets in which it thrives. 

Britain, for example, remains a crucial area for Tradedoubler, as revenue generated from its UK activity rose for the third quarter in a row. The company also saw Q1 growth in its homeland of Sweden for the very first time. 

“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,” commented CEO Matthias Stadelmeyer. 

Looking ahead

In comments after the report was announced, Stadelmeyer also touched on some of the work that went into a 10% drop year on year in operating costs, and a lean towards its priority of generating results through industry-leading technology.

“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.”

Tradedoubler ended 2014 with annual revenue of SEK 1,753 million (£138 million). Gross profit came in at SEK 379 million (£30 million), which showed a decline on the SEK 455 million (£36 million) from 2013.