Corporate overview
The Getupdated group originated from a company called Eastpoint, which was formed in 1999 by Mattias Kaneteg. Through his entrepreneurial focus and strategic acquisitions Eastpoint rapidly grew into the Getupdated brand we all know today.
Getupdated is an international vendor of innovative Internet marketing services. Getupdated has a complete portfolio of services covering search engine optimisation, paid search, social media, web development, visitor conversion, media planning and analysis. The Getupdated group has some 160 employees in Sweden, the UK, France, Ireland and Italy. Getupdated collaborates with a large customer base, extending from major multinational corporations to small local enterprises. The parent company Getupdated Internet Marketing AB is listed on NASDAQ OMX First North and its certified adviser is Erik Penser Bankaktiebolag.
The end of 2008 saw Getupdated initiate a restructuring package to recreate the conditions for a profitable and sustainable growth. In 2009, the company was realigned from consulting to its core business of Internet marketing. The employee headcount reduced by 72 people in 2009, as annualised costs were cut by some SEK 42 m. Further annualised cost reductions of SEK 8 m paid off gradually through 2010.
Cost-cutting implemented is expected to have a positive effect on operating profit and cash flow. Going forward, the focus will be on increasing growth through continued work on sales promotion measures.
| Since the second quarter 2009, operations have been divided according to a new geographical segment division, which is currently reported in three primary segments |
| Sweden, consisting of the wholly owned operations Getupdated Sweden and Getupdated Internet Solutions (corporate name being changed to Circuit Interactive). |
| UK, consisting of wholly owned subsidiary Just Search. |
| Other countries, which consisted of France, Ireland and Italy. |
| Interim Period January-September 2010 |
| Net sales were SEK 166.3 m (SEK 176.6 m). Excluding Media-Analys, net sales were SEK 145.6 m (SEK 151.7 m). Organicsales growth in the core business of Internet marketing was some 11%. |
| Operating profit/loss was SEK 2.4 m (SEK -27.2 m). Profit/loss excluding non-recurring items amounted to SEK -3.3 m(SEK -9.1 m). The improved profit/loss year on year is mainly a result of cost-reducing measures. |
| Cash flow from operating activities was SEK -16.5 m (SEK-22.3 m). |
| Net profit/loss was SEK -4.5 m (SEK -32.5 m). Net profit/lossper share after dilution was SEK -0.09 (SEK -0.69). |
| Decision taken to start up operation in Italy. |
After the End of the Period
Letter of intent signed to invest in UK video content provider Wooshii.
Outlook
The Board of Directors’ judgment remains that in 2010, Getupdated will achieve good growth and profitability in its core businessof Internet marketing. The Board also judges that the group will post a positive cash flow for 2010.