Release image

Year-End Report 2018:

14 FEBRUARY 2019

“Best quarter ever in Mytaste Group’s history”

myTaste AB (publ) Year-End Report for 2018 has now been made public and is available at https://mytastegroup.com/investors/financial-reports  

CEO Andereas Friis comments:

“With a record-breaking quarter behind us, we are one step closer of becoming the global market leader in performance-based marketing”

I am pleased to announce that, the fourth quarter of 2018 for Mytaste Group was very strong, which is a confirmation that our strategy for becoming a leader in performance-based marketing works. We have both streamlined and developed present business segments, and partly strengthened the company through acquisitions and thus prepared for an even stronger development ahead.

Growth in net sales was strong and amounted to 53 percent, of which organic growth accounted for 50 per cent. Adjusted EBITDA increased by 123 percent to KSEK 3,945 (1,771) and the adjusted EBITDA margin reinforced to 19 percent (13). The Group reports a positive result after tax and generates a positive cash flow for its operating activities. It is with pride I note, that development greatly exceeds our long-term financial objectives, that growth should increase by an average of 25 per cent per year. When we sum up 2018, we have had a growth of 61 percent.

During the quarter, we welcomed a new majority shareholder in Optimizer Invest. The deal is the largest investment so far for the investment company and for Mytaste Group, this means a significantly strengthened financial position. Combined with the fact that Optimizer Invest adds solid expertise in M&A and has a proven ability to build successful companies, it is clear that our cooperation has all the prerequisites to be very beneficial.

Acquisitions within the financial vertical

On January 18, after the end of the fourth quarter, Mytaste Group signed an agreement to acquire Lånakuten, lanakuten.com, which is a popular online-based comparison website for private loans. The acquisition strengthens our position in the market for performance-based marketing in finance. We believe that the market for private loans is growing and that Lånakuten has good opportunities to contribute to increased profitability for the Group. Not least since we already operate a number of services within the financial vertical, which enables significant synergy effects.

Mytaste Shopping

Strong organic growth in the segment for the fourth quarter is mainly due to Shopello’s success, included in segment Mytaste Shopping which had an 88 percent increase in growth, with a significant increase in EBITDA. We continue to see good opportunities for organic growth in the segment, even though the fourth quarter is the strongest seasonally.

Among the new contracts signed during the period, I want to emphasize that the Swedish evening newspaper Expressen has increased its cooperation with Mytaste Group, to now include performance-based marketing in Expressen’s on-line comparison service of odds and gambling, spel.expressen.se. Our objective during 2019, is to similarly help other publishers in Europe to generate significant revenue through our service Affilijet.

Mytaste Food & Beverage

The segment’s net sales for the period fell slightly, but at the same time, because of increased focus and efficiency enhancements, EBITDA for the period improved by 204 percent. The decrease in sales is mainly due to reduced traffic on the Group’s food sites

The work of developing Vinklubben proceeds. We will continue to launch new products in the coming quarter in order to strengthen our offering in performance-based marketing for wines that already are distributed through Systembolaget’s assortment.

Outlook

Mytaste Group is well positioned and one of the most experienced players in Europe in a young and growing market. Our strategy is to build a portfolio of world-class products in performance-based marketing, through continued strong organic growth combined with geographic expansion and an aggressive acquisition strategy.

As a result of our strong growth, the Board will revise Mytaste Group’s long-term financial targets in the coming quarters. The company will also investigate various financing options to support our continued acquisition strategy.

As part of the work of developing rapidly into a leading global group in performance-based marketing, we have decided to strengthen the organization with key competence with relevant experience. In the short term, this can increase the cost base of the company. However, we anticipate that it will accelerate the process of building a scalable organization that can manage the increasing growth and additional acquisitions.

I look forward to, together with our committed and skilled employees and with the support of the Board and shareholders, continue to create strong growth for our customers and thus also for Mytaste Group!

KEY FIGURES FOURTH QUARTER 2018 (2017)

• Net sales amounted to 20,752 KSEK (13,600)

• Adjusted operating profit (EBITDA) amounted to 3,945 KSEK (1,771)

• Adjusted operating profit margin (EBITDA %) amounted to 19 percent (13)

• Operating profit (EBITDA) amounted to 3,567 KSEK (283)

• Operating profit margin (EBITDA %) amounted to 17 percent (2)

• Earnings per share amounted to +0,02 SEK (-0,14)

SIGNIFICANT EVENTS THE FOURTH QUARTER 2018

• During the fourth quarter, revenues amounted to KSEK 20,752 (13,600), which corresponded to a 53 percent increase.

Adjusted EBITDA profit increased 123 percent and amounted to KSEK 3,945 (1,771), corresponding to an adjusted EBITDA margin of 19 percent (13). EBITDA increased by 1 160 percent and amounted to KSEK 3,567 (283).

• Mytaste Shopping increased its sales by 88 percent to KSEK 17,238 (9,162) and EBITDA amounted to KSEK 3,453 (77).

• Mytaste Food & Beverage increased its EBITDA by 204 percent and amounted to KSEK 1,912 (629).

• On November 7, 2018, it was announced that Mytaste Group is taking in a new principal shareholder - the investment company Optimizer Invest largest investment so far.

• The Group has entered into an agreement with Google to become a Comparison Shopping Services (CSS) Partner and market the ad format Google Shopping in Europe. Four new sales persons have been hired to process the markets in Norway, Germany, Switzerland, Austria, Italy, Poland. Mytaste Group is now active in 11 markets with CSS.

• In December, we welcomed Ulrika Jones as the new Group CFO. Ulrika has solid experience in both financial management, strategic work and within legal and has held senior roles at including Bambuser and Bisnode.

SIGNIFICANT EVENTS AFTER THE END OF THE FOURTH QUARTER 2018

• The outcome of the options subscribed in October 2017 where the utilization period ended on December 31, 2018 has added approximately SEK 3.5 million before issue costs to the company, which further increases our opportunities to make more acquisitions.

• Optimizer Invest subscribed for 6,862,745 shares and 5,084,746 warrants in a directed issue and MyTaste Group received MSEK 17.5. Upon full exercise of the warrants, this means that Mytaste Group will receive a total capital of approximately MSEK 32.5.

• On December 7, the Extraordinary General Meeting decided to elect André Lavold from Optimizer Invest as new ordinary Board member for the period until the end of the next Annual General Meeting.

• Mytaste Group acquired Lånakuten, (lanakuten.com), a popular online-based comparison service for personal loans. The total purchase price was MSEK 16, of which MSEK 10 was paid in cash and the rest in shares, 573,583 shares corresponding to MSEK 6 and to a share price of SEK 10.46. Lånakuten generated a profit of approximately MSEK 1.1, during Q4, 2018.

• Mytaste Group signed a new exclusive agreement with newspaper magazine Expressen for odds / games. This means that Mytaste Group now manages Expressen’s services in private economy, discount offers and odds / games.

• As a result of our even stronger growth, the Board will revise Mytaste Group’s long-term financial targets in the coming quarters.

• The Board of Directors has decided to investigate possible future financing alternatives to support Mytaste Group’s continued acquisition plans.

DIVIDEND

The Board of Directors proposes that no dividend will be paid for the financial year 2018. The reason is the acquisitions and investments made by MyTaste Group in 2018 and early 2019, in line with the company's strategy. The Board intends to continue to apply a growth-oriented strategy, including both organic growth and aggressive acquisition strategy.

CHANGE OF THE DATE FOR THE ANNUAL GENERAL MEETING

The board has decided to change the date of the annual general meeting to 13 May 2019. Mytaste Group’s financial calendar in its entirety available in the year-end report and at https://mytastegroup.com/investors/calendar.


This information is such information that myTaste AB (publ) is obliged to publish in accordance with the EU Market Abuse Regulation. The information was submitted, through the agency of the contact person below, for publication on 14 February, 2019 at. 8:30 a.m. CET.

Contact:

Fredrik Burvall
Chairman myTaste AB (publ)
fredrik@burvall.se
+46 (0) 70 927 96 32

Andereas Friis
CEO / Founder myTaste AB (publ)
andereas.friis@mytaste.com 
+46 (0) 739 944 670

Contact:

Fredrik Burvall
Chairman myTaste AB (publ)
fredrik@burvall.se
+46 (0) 70 927 96 32

Andereas Friis
CEO / Founder myTaste AB (publ)
andereas.friis@mytaste.com 
+46 (0) 739 944 670

About Mytaste Group

Mytaste Group is a digital media house that owns and operates a leading international advertising network as well as a number of digital products and services within performance-based marketing of e-commerce stores. Mytaste Group has two business areas: Mytaste Shopping and Mytaste Food & Beverage. The company is listed on Nasdaq First North Premier in Stockholm under the ticker "Taste".

Arctic Securities is the Company's Certified Adviser, telephone number: +46 8 44 68 60 87, e-mail: certifiedadviser@arctic.com.

Documents