Half Year 2025 Adtraction Group AB Earnings Call Transcript
Key Points
- Adtraction Group AB (OSTO:ADTR) remains profitable with an operating profit of 9.4 million, consistent with the same quarter last year.
- The e-commerce vertical showed stability with an 8.6% growth, supported by both acquired and small organic growth.
- The company is actively exploring M&A opportunities to enhance growth and market presence.
- Adtraction Group AB (OSTO:ADTR) has implemented a new CRM system to improve sales processes and international cooperation.
- Traffic and conversions have remained stable and are growing, indicating effective tracking and partner engagement.
- Gross profit dropped by 2.6% in the second quarter, failing to meet growth expectations.
- The finance vertical experienced a significant negative growth of almost 18%, attributed to weak market conditions across Europe.
- Cash flow was lower for the quarter, influenced by seasonality and larger partner payments.
- The company anticipates a small negative growth in the third quarter, with continued challenges in the finance vertical.
- There are ongoing challenges with tracking gaps and discrepancies between different analytics tools, impacting transaction reporting.
Good morning and welcome to the presentation of Adtraction 2nd quarter results. You are listening to Andreas Hogstrom, our CFO, and my name is Simon Gustason. I'm the CEO and founder of Adtraction. If you have any questions, please, post them in the chat tool that you hopefully can see in front of you.
So let's get started with the performance, in the 2nd quarter. We are obviously not happy with our performance in the second quarter. Gross profit dropped by 2.6%, and we wanted to grow. We said in the beginning of the year that we expected growth, then April happened. In April, we delivered a lot lower sales than expected both in the finance vertical and in the e-com vertical. We saw a recovery. In May and June were substantially better months than, April, but that was, not enough to end up with growth. Adjusted for currency effects, we're fairly close to zero, but that is still, not, good enough. We need to grow. So let us continue and discuss what's going on. I think an important thing here is that attraction
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