TASTE

Mytaste Group

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myTaste: First comment Q4; above expectations

myTaste today released the report for the last quarter of 2017, which was much better than we expected. Shopello's sales were significantly higher than our forecast, driven by a more significant contribution from acquisitions than our projections suggested and higher income generated from the Shopello partner network thanks to the Google Shopping integration.

The net sales came in significantly higher than our forecasts, mainly driven by strong performance within Shopello. The acquired companies contributed to a more significant degree than expected and it seems like the “original” Shopello business picked-up to a substantial degree. We will look into this development as we are relatively cautious in our forecast. Kampanjjakt also launched an app that simplifies the consumer to keep track of promotions and discount codes from their favorite stores. This development is in line with the Groups strategy to enhance the value of the acquired companies through the in-house technical expertise.

The myTaste segment also produced higher income than we thought. Focus during the quarter has been to develop new products in performance-based marketing with the aim of increasing sales in line with the Group's new financial targets. The new ad network, called Smakligt!, seems to hold great potential for myTaste to monetize on the food user-base.

The result during the quarter was affected by non-recurring costs related to restructuring and the acquisitions of SEK 1.5m, adjusted for this the EBITDA margin came in at a healthy 13%. Our projections for both segments are somewhat conservative, as we have gradually reduced our forecasts due to the weak financial development in the past year. But today’s report is clearly a step in the right direction!

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