TASTE

Mytaste Group

Research update

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myTaste: Improvements are coming

The reported sales level fell short of our estimates yet again. Both segments showed adverse development. myTaste was affected by the significant traffic drop that has continued through the third quarter. To our surprise, Shopello, which is usually is rather stable, showed a considerable decline. Sales for the segment decreased due to a termination of the cooperation with a low-quality partner, and a competitor who acquired a major partner.

On the more positive side; the rights issue, which was conducted after the period ended, was successful and fully subscribed. The new capital gives the company the opportunity to execute on their new strategy within Shopello. The already conducted M&As will boost the coming quarters rather significantly.

We have revised our projections yet again due to the continued organic underperformance. Our Estimated Fair value, in Base-case, amounts to 5.4 (7.8) SEK per share.

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