TradeDoubler Falls as Competition Saps Earnings: Stockholm Mover
TradeDoubler AB (TRAD), a Swedish online marketing and advertising services company, fell the most in three months in Stockholm after the company reported a third- quarter operating loss due to declining sales volumes.
The share fell as much as 7.2 percent, the most since July 27, and was down 4 percent to 12 kronor as of 3:05 p.m. in the Swedish capital.
TradeDoubler reported a loss before interest and tax of 7.8 million kronor ($1.2 million) compared with a profit of 31.1 million kronor a year earlier, the Stockholm-based company said today in a statement. Sales declined 20 percent to 526.1 million kronor as a result of increased competition in Northern Europe, the company said.
“There is no doubt that the competitive pressure is significant in the larger, more mature markets such as Germany, the Netherlands, Sweden and the U.K.,” Chief Executive Officer Rob Wilson said in a statement. “However, in Southern Europe, we are competing well despite continuing weak market conditions.”
Wilson replaced Urban Gillstrom as CEO on Aug. 1.
TradeDoubler said the underlying markets for e-commerce and online advertising in Europe are growing by over 10 percent a year, creating a basis for growth in performance marketing. The company is expected to return to expansion “in line with the market” during the second half of next year, it said.
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