Adtraction Group Ab · OMXSTO:ADTR
Adtraction Group Ab — Q4 2024 Earnings Presentation
58 slides from Adtraction Group Ab's earnings presentation, Feb 21, 2025
Slide 1: Financial Hearings Audiocast Q4
Financial Hearings Audiocast Q4
Slide 2: We help brands grow and partners increase sales online
We help brands grow and partners increase sales online 2007 Founded 2014 First international office (Finland) 2021 Listed on Nasdaq First North
Slide 3: The short story Q4 and 2024
The short story Q4 and 2024 Weak market, negative growth for Adtraction (Nordics) Adtraction remains profitable Strong cashflows Dividend of SEK 2 per share Acquisition of Adrecord on October 1 Divestment of Klara Lån still impacts GP growth Focus, back to growth - growth currently expected Q2 2025
Slide 4: The short story Q4 and 2024
The short story Q4 and 2024 Weak market, negative growth for Adtraction (Nordics) Adtraction remains profitable Strong cashflows Dividend of SEK 2 per share Acquisition of Adrecord on October 1 Divestment of Klara Lån still impacts GP growth Focus, back to growth - growth currently expected Q2 2025
Slide 5: The short story Q4 and 2024
The short story Q4 and 2024 Weak market, negative growth for Adtraction (Nordics) Adtraction remains profitable Strong cashflows Dividend of SEK 2 per share Acquisition of Adrecord on October 1 Divestment of Klara Lån still impacts GP growth Focus, back to growth - growth currently expected Q2 2025
Slide 6: The short story Q4 and 2024
The short story Q4 and 2024 Weak market, negative growth for Adtraction (Nordics) Adtraction remains profitable Strong cashflows Dividend of SEK 2 per share Acquisition of Adrecord on October 1 Divestment of Klara Lån still impacts GP growth Focus, back to growth - growth currently expected Q2 2025
Slide 7: The short story Q4 and 2024
The short story Q4 and 2024 Weak market, negative growth for Adtraction (Nordics) Adtraction remains profitable Strong cashflows Dividend of SEK 2 per share Acquisition of Adrecord on October 1 Divestment of Klara Lån still impacts GP growth Focus, back to growth - growth currently expected Q2 2025
Slide 8: The short story Q4 and 2024
The short story Q4 and 2024 Weak market, negative growth for Adtraction (Nordics) Adtraction remains profitable Strong cashflows Dividend of SEK 2 per share Acquisition of Adrecord on October 1 Divestment of Klara Lån still impacts GP growth Focus, back to growth - growth currently expected Q2 2025
Slide 9: The short story Q4 and 2024
The short story Q4 and 2024 Weak market, negative growth for Adtraction (Nordics) Adtraction remains profitable Strong cashflows Dividend of SEK 2 per share Acquisition of Adrecord on October 1 Divestment of Klara Lån still impacts GP growth Focus, back to growth - growth currently expected Q2 20255
Slide 10: Growth, Profitability, Cashflows
Growth Profitability Cashflows
Slide 11: Q4 Growth rates
Q4 Growth rates Q4 Sales 344,3 MSEK, -8% Gross profit 65,8 MSEK, -8% Profitability Q4 EBITA of SEK 18,4 MSEK, -28% growth Margin of 5,3% Cash Flow from operations SEK 30,5 million Dividend SEK 2, to be paid in 2 tranches
Slide 12: Q4 Growth rates
Q4 Growth rates Q4 Sales 344,3 MSEK, -8% Gross profit 65,8 MSEK, -8% Profitability Q4 EBITA of SEK 18,4 MSEK, -28% growth Margin of 5,3% Cash Flow from operations SEK 30,5 million Dividend SEK 2, to be paid in 2 tranches
Slide 13: Q4 Growth rates
Q4 Growth rates Q4 Sales 344,3 MSEK, -8% Gross profit 65,8 MSEK, -8% Profitability Q4 EBITA of SEK 18,4 MSEK, -28% growth Margin of 5,3% Cash Flow from operations SEK 30,5 million Dividend SEK 2, to be paid in 2 tranches
Slide 14: Q4 Growth rates
Q4 Growth rates Q4 Sales 344,3 MSEK, -8% Gross profit 65,8 MSEK, -8% Profitability Q4 EBITA of SEK 18,4 MSEK, -28% growth Margin of 5,3% Cash Flow from operations SEK 30,5 million Dividend SEK 2, to be paid in 2 tranches
Slide 15: 2024
2024
Slide 16: A bigger picture, sales
A bigger picture, sales 1 600 000 @ «SEK 1.400 000 1200 000 1000 000 800 000 600 000 400 000 200 000 f [ oS SO a a 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 ADTRACTION Expect more
Slide 17: Long term gross profit (MSEK)
Long term gross profit (MSEK) GP Klara Lån (divested Q2-Q4 2023)
Slide 18: 2024 Financials
2024 Financials Net sales Gross profit EBITA Operating CF 1 203 MSEK 231 MSEK 51 MSEK 52 MSEK
Slide 19: 2024 Financials
2024 Financials Net sales Gross profit EBITA Operating CF 1 203 MSEK 231 MSEK 51 MSEK 52 MSEK
Slide 20: 2024 Financials
2024 Financials Net sales Gross profit EBITA Operating CF 1 203 MSEK 231 MSEK 51 MSEK 52 MSEK
Slide 21: 2024 Financials
2024 Financials Net sales Gross profit EBITA Operating CF 1 203 MSEK 231 MSEK 51 MSEK 52 MSEK
Slide 22: Many brands rely too heavily on the big platforms
Many brands rely too heavily on the big platforms
Slide 23: Partner marketing is needed
Partner marketing needed (2.) ADTRACTION Expect more
Slide 24: Adtraction: Expect more
(2.) ADTRACTION Expect more 60%
Slide 25: Example of traffic sources
Example of traffic sources Google is a monopolist, 90% market share Behaves like monopolist; pricing, closed accounts & verticals
Slide 26: Reduce risk, spend more on partner marketing
Reduce risk, spend more on partner marketing
Slide 27: Privacy
(2.) ADTRACTION Expect more Privacy
Slide 28: Facebook/Meta (lack of) privacy
Facebook/Meta (lack of) privacy
Slide 29: Partner marketing is complex and optimisation is needed
Partner marketing is complex and optimisation is needed
Slide 30: Adtraction is needed
Adtraction is need (2.) ADTRACTION Expect more
Slide 31: Why partner marketing?
Why partner marketing? Pay only for sales Expand your reach
Slide 32: Three things to consider
Three things to consider Optimisation Quality Distribution
Slide 33: Why Adtraction?
Why Adtraction? Active partnership management Quality partners Local presence, European reach
Slide 34: Why Adtraction?
Why Adtraction? Active partnership management Quality partners Local presence, European reach
Slide 35: Why Adtraction?
Why Adtraction? Active partnership management Quality partners Local presence, European reach
Slide 36: Adrecord
a0recaro
Slide 37: Financial goals
Financial goals Net sales growth > 20% EBITA margin goal > 7% Dividend 30-60%
Slide 38: Sales growth
Sales growth 60% 50% 49% 40% 45% 30% 33% 20% 10% 0% ZZ -10% -20% 2018 2019 2020 2021 2022 2023 2024 ADTRACTION Expect more
Slide 39: Negative gross profit growth in Q4
Negative gross profit growth in Q4 M&A, +5% Divestment, -5% Geographical expansion Growth in existing markets, -8%
Slide 40: Number of employees
Number of employees 150 127 126 125 123° 122 118 112 100 75 7 il ail 2008 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q123 Q223 Q323 Q423 Q124 Q224 Q324 Q4.24 a ADTRACTION Expect more
Slide 41: Cost base per quarter
Cost base per quarter Restructuring cost of SEK 2,7 million in Q4, Adrecord SEK 2 million
Slide 42: EBITA margin
EBITA margin 8,0% 7,0% 6,0% 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% 2018 2019 2020 ADTRACTION Expect more 5,5% 5,2% 5,0% 4,7% 2021 42% 2024
Slide 43: Q4 2024
Q4 2024 ● -8% growth ● -8% growth ● EBITA decrease 28% ● Decrease to 0,93 ● -3% core bis ● EBITA margin 5,3% ● Stable gross margin ● Costs stable + Adrecord ● One off items 2,7 msek Net sales Gross profit EBITA Adj. net result/share -8%
Slide 44: Q4 2024
Q4 2024 ● -8% growth ● -8% growth ● EBITA decrease 28% ● Decrease to 0,93 ● -3% core bis ● EBITA margin 5,3% ● Stable gross margin ● Costs stable + Adrecord ● One off items 2,7 msek Net sales Gross profit EBITA Adj. net result/share -8%
Slide 45: Q4 2024
Q4 2024 ● -8% growth ● -8% growth ● EBITA decrease 28% ● Decrease to 0,93 ● -3% core bis ● EBITA margin 5,3% ● Stable gross margin ● Costs stable + Adrecord ● One off items 2,7 msek Net sales Gross profit EBITA Adj. net result/share -28%
Slide 46: Q4 2024
Q4 2024 ● -8% growth ● -8% growth ● EBITA decrease 28% ● Decrease to 0,93 ● -3% core bis ● EBITA margin 5,3% ● Stable gross margin ● Costs stable + Adrecord ● One off items 2,7 msek Net sales Gross profit EBITA Adj. net result/share -27%
Slide 47: Q4 2024 - Verticals
Q4 2024 - Verticals ● 0% growth ● -8% growth ● Klara lån divested ● 9% Adrecord ● Growth on 2/12 markets ● Growth on 7/12 markets E-commerce Finance Other 0%
Slide 48: Q4 2024 - Verticals
Q4 2024 - Verticals ● 0% growth ● -8% growth ● Klara lån divested ● 9% Adrecord ● Growth on 2/12 markets ● Growth on 7/12 markets E-commerce Finance Other -8%
Slide 49: Q4 2024 - Verticals
Q4 2024 - Verticals ● 0% growth ● -8% growth ● Klara lån divested ● 9% Adrecord ● Growth on 2/12 markets ● Growth on 7/12 markets E-commerce Finance Other -92%
Slide 50: Q4 2024 - Geographies
Q4 2024 - Geographies ● -11% growth ● 3% growth ● -5% core bis ● 3/8 markets grow ● 2/4 markets grow Nordics Europe -11%
Slide 51: Q4 2024 - Geographies
Q4 2024 - Geographies ● -11% growth ● 3% growth ● -5% core bis ● 3/8 markets grow ● 2/4 markets grow Nordics Europe 3%
Slide 52: Q4 2024 - Cashflow
Q4 2024 - Cashflow ● Strong quarter ● Working capital fluctuate ○ Process improvement Q3 ○ Work in progress for Q1
Slide 53: Q4 2024 - Cashflow
Q4 2024 - Cashflow ● Strong quarter Operating cashflow Investing activities ● Acquisition of Adrecord 30.5 MSEK (34.4) -23.7 MSEK (-2.6) Okt - Dec 2024 Okt - Dec 2024 ● Dividend Financing activities Total cashflow ● Strong net cash position -14.6 MSEK (0.0) -7.9 MSEK (31.8) Okt - Dec 2024 Okt - Dec 202
Slide 54: Klara Lån
Klara Lån EBITA Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Adtraction 9 367 14 665 23 867 25 842 10 387 Klara Lån 352 237 505 -281 225 Combined 9 719 14 902 24 372 25 561 10 612
Slide 55: New regulation - consumer credits SE
New regulation - consumer credits SE Already law ● January 2025, interest deduction, gradually phased out ● March 2025, interest rate cap 20%, cost cap Proposed law ● July 2025, everyone needs to be a bank (clearly a completely disproportionate measure)
Slide 56: M&A? Maybe not now
M&A? Maybe not now ● Few sellers on the back of 2024 numbers ● Multiple arbitrage? ● We expect more opportunities when the market recovers
Slide 57: What's happening now?
What’s happening now? Q1 and Q2 ● Q1 2024 the last quarter with Klara Lån numbers ● Adrecord migration in Q1 ● Broader advertiser portfolio and service offering ● Back to Growth is the main goal for 2025 ● Q1 growth in line with Q4 ● Back to growth in Q2
Slide 58: ADTRACTION Expect more
ADTRACTION Expect more