Adtraction Group AB

Hello and welcome to the presentation of Attraction third quarter results. CFO Andreas Hagström and I will present and then there will be a Q&A session. So again, please post your questions in the Q&A tool that you probably see in front of you and we will do our best to answer. So with that said, we'll jump straight into the presentation. The short story of the third quarter is this. We're still not where we need to be in terms of growth. Sales dropped by 2%. attraction remains profitable though ebitda or operating profit was at 12 million swedish kronor which is basically at the same level as last year e-commerce has been stable we saw a growth of seven percent that growth of course is fueled by the acquisition of a record which we did in q4 last year but we're also seeing a small organic growth which we think is encouraging also please note that this is the last quarter where we see which is fueled by the acquisition of a record because we consolidate a record since October 1st 2024 however this quarter we will add the affiliate future instead more on that a little bit later Finance has been weak or very weak. We saw a drop by 15% in the quarter. I will get back to that later on in the presentation. We still generate a solid cash flow in this quarter around 16 million. Andreas will dig into the details of that. But I will just say that generating a strong cash flow is a core focus for attraction and something that we're constantly working with. If we get paid early, our partners get paid early and we can deliver better services. All in all, we saw a negative growth rate, gross profit wise of 2.3%. And of course, this is related to the finance vertical. We've done a lot of M&A work. So when you're doing an M&A transaction, there's a couple of phases. First, you need to establish contact. And then when it seems like both parties want to do the transaction, we get going. In this case, the Affiliate Future case, basically everything happened in July, August, and September. So the whole transaction was basically condensed to three months. And I think that we again show that we can efficiently execute an M&A transaction, even if it turns out to be complex in certain regards. More on that also a little bit later. Then I have noted that everyone is talking about AI, and that means that I will need to talk a little bit about AI too. So I will do that in this presentation. I would also like to emphasize that Europe remains our goal. Awin is a clear market leader in Europe, and I think there is room and need for a challenger, and Attraction wants to be that challenger. So step by step, we're gonna try to grow in Europe. So let us talk a little bit about the finance vertical. We've seen weak markets in general, and that is the main explanation for the poor performance. In some cases, though, attraction has performed worse than the market in general. That's the case in Spain, for example, where we probably need to find better solutions for our customers in order to be competitive. And we are working on such solutions. I think that it's important to point out that Q3 last year was a strong quarter, so the base numbers are very strong. As a matter of fact, I think that the Q3 last year was the best quarter ever for the finest vertical for attraction. What I think is encouraging now is that Sweden is growing in September. And what is encouraging about that is that we have seen massive regulation in Sweden. And in spite of that, we're able to deliver growth. We're also seeing this sequential growth. So Q3 is better than Q2 for finance. This should be the case, but it's still encouraging that this is happening. Ecom has been stable in 2025, I think. We're seeing far fewer accounts being closed or paused. We see strong account wins. We're winning accounts, and we're seeing a more optimistic outlook from brands. When it comes to Black Friday bookings, things looked a little bit slow initially, but it seems like bookings are now picking up pace, I would say, in the last week or so. If we looked at the combined picture, I think that we see a stable 24 and 25 for finance and e-commerce together. Obviously, this is not where we want to be. We want to get back to growth. If we look at sales, we see the same picture. And again, this is a different way of presenting gross profit growth until 23 and then stable development 24 and 25 after an initial drop in 24. so the most important goal for attraction is to get back to growth if we do that we will increase eva and we will increase cash flows and that will create opportunities for us so the question is how do we get back to growth and it's basically the same story as before the main idea here is that we want to grow together with our partners and customers when we see a stronger economy and when they grow when partners and customers grow attraction too will grow and of course we want to increase our market share and that of course is a fairly complex exercise at the end of the day this boils down to us delivering a better service than competition this boils down to us delivering better results than competition and I think that we are doing a lot of things to do just that. The second thing is that we need to communicate our solutions to our customers in a better way. And we're also working on that. I think that most people would agree that there's a lot of uncertainty regarding AI traffic sources and Google and what Google is doing. And our impression is that Brands perceive a bigger uncertainty when it comes to traffic acquisition and whatever it is that Google is doing now than they did before. And the case to diversify traffic acquisition actually makes more sense now than ever. We're sort of seeing this change in real time. We want to do M&A. Attraction has acquired five networks. I think that we're doing more than anyone else. In Europe, we're actively looking for new opportunities and we'll continue to do that. We see a lot of inbound leads. To be honest, most of that stuff is not so interesting, but there are some interesting lead inbound that's popping up here and there. We have started looking at some transactions that are not networks, but are sort of related. It's still ad tech and they're still helping retailers grow their sales. So it's the same core idea. And speaking of M&A, we have acquired Affiliate Future recently, and I will say a few words about that transaction and the rationale and the company. So the company that we acquired is called Internet Business Group, but it goes under, everyone knows that as Affiliate Future. And we acquired that from Global Data PLC Global Data is listed in London and has a market cap of around £1 billion last time I checked. And of course, Affiliate Future is a very small part of their business. We announced the transaction on October 10th and we closed it actually late Friday night. So we've only owned the company formally for a few days. transaction is a carve out which means that it's a little bit more complicated than just buying some company that an entrepreneur started which is the case for all other transactions that we've done it means that we need to spend some time trying to figure out how to separate the business from global data we need to do service agreements and a few other things. The good news is that we managed to do that too. And I think that we learned a thing or two in this process. And I think at the end of the day, this was a complex transaction. It's fairly small, but still a complex transaction. And we still managed to do it reasonably efficiently together with global data. So Affiliate Future has been around for a while. It was founded in 1999, headquartered in London, and actually this company was listed on the AIM market for a few years, I think, and then it was acquired and delisted by Global Data in 2008. They currently have 14 employees and e-commerce focus. There's no finance here, e-commerce only. Around 200 clients and close to 3,000 partners, and all of this sits on their proprietary platform. There's no customer overlap with Attraction, and we will add a few new partners here. And what we said is that brands will be offered the opportunity to migrate to attractions platform. And in practice, this means that over time, all brands will be migrated to attractions platform. We will not keep two platforms over time. Most of this work is expected to happen in Q1. We do not want to disturb the important Black Friday and Christmas trading period in either platform, actually. So why are we doing this? Well, first of all, we think that the UK is an important market. So we established operations in the UK in 2019. We are profitable, but we want to be bigger there. And the reason we want to be bigger in the UK is that the UK is Europe's biggest market for partner marketing. There's a lot of innovation going on in the UK and there's a lot of standard setting going on in the UK. So what happens in the UK typically also happens in the rest of Europe in one way or another sooner or later. There's an industry organization called APMA which we've been a founding member of and we will of course continue to be represented in that organization. We think that the UK is a hub for European expansion so a lot of their Pan-European deals start in the UK and with a bigger presence there, there's a greater chance for us to participate in those procurement processes. Affiliate Future brings an experienced team. They bring new brands and partners, and they also bring some sector expertise. So, for example, Affiliate Future has done a lot more in the travel space than Attraction has, and we expect to continue to do that and hopefully also to take that to other markets. We do expect some nice network effects when we move brands and partners to our platform. This is what we always talk about. Of course, there will also be some churn. There's always some churn. But in general, I think that we have a good process for migrating brands and partners. And I think that it's quite clear to to basically anyone that we have invested a lot more in attractions platform and that probably affiliate futures platform has been somewhat underinvested. So now I will talk about some AI things. So I'm not going to sit here and talk about how AI will impact society. There are other people with a better view on that. What I will talk about is how AI may impact our small corner of the universe and share some recent observations. So I would like to just start by talking about the usage of AI tools, or more specifically, LLMs. There was a survey done in Sweden, and it turns out that close to 50% of people born in the 2000s use use the ai tools instead of google and even more people use ai tools whenever google cannot answer a question so so there's a big usage of these ai tools and this is not true only for the young people but it's true for all age groups and it's increasing across all age groups so because the usage is so high i think it makes sense for retailers or brands to think about what they should do so we did a little survey among our clients and this is not a scientific survey it's slightly too small and and but i think we we can still observe a thing or two from the answers that we received so we asked our customers do you currently receive any traffic from ai tools or Or sorry, rather, are you currently doing anything to receive traffic from AI tools? Then 50% said that, yeah, they're already testing to get some traffic. 20 said that not yet but we'll probably do that soon within 12 months or so and then 30 said no or they don't know i think to be honest that all of these strategies make sense because the thing is that no one is really getting any traffic from the ai tools so 70 of the respondents in our little service said that they're essentially getting no traffic from the ai tools 30% said that they don't know, which means that they're not getting any traffic. And then there's a few percent who said that they are indeed getting more than 10% of their traffic from AI tools. To me, that actually sounds a little bit strange. And I think that this data should not necessarily be completely trusted. Because what's going on here is, just like we said last time, that the AI tools are stealing content from websites without sending users back. And here I would like to quote someone called Matthew Prince. He's the CEO of Cloudflare, a company called Cloudflare. So Cloudflare is an internet infrastructure company. And he said this, 10 years ago, Google sent publishers one visitor for every two pages it had crawled. Six months ago, the ratio was one visitor for every six pages. Now it's one for every 18. Likewise, OpenAI's rates went from 250 to 1 six months ago to 1,500 to 1. And for Anthropic, six months ago it was 6,000 to 1. Now it's about 60,000 to 1. So that means that these AI tools are crawling content sites and they're not sending users back. So the business model is fundamentally changing for the internet. And again, Just like I said in the last quarter, the reason is that we all find these services great and useful. So we tend to communicate with these tools and we tend to stay within these tools rather than click out. And my big question is still what business model will these companies use? So all of them offer subscription services. We've seen experiments with ads. And again, it's not far fetched that Google and Meta and XAI will work with ad-based models. And I think basically that everyone needs to go in this direction, including chat GPT. I will say a few words about Google because Google is doing a lot of things. And I think that a good starting point to understand what Google is doing is to conclude that Google's focus is Google. So first of all, we have received some reports from clients that because of Google AI overview, some clients lose up to 20% of their traffic on specific keywords, not in general. And what has happened here is that Google has encouraged everyone to produce great, great content. They say produce great content and then you will get traffic. Then Google says, you know what? I changed my mind. I'm going to take that content and present it in an AI overview and you will no longer get any visitors. So this creates uncertainty, I would say, about Google's business practices. And I think that if we think that Google's focus is Google, then we can actually sort of predict of what they're doing. So here I searched for an expensive click. So that's Låna pengar or borrow money. That's a very expensive click. And there's no AI overview inside there. Nowhere close to this search result can we see an AI overview. Then I search for something that's... A much cheaper click that's going to be scavsor or blisters. And the first thing that is presented here is an AI overview because there's no opportunity cost for Google. So my take is that if Google can make money from ad links, they will continue to do that. So it's not really the user experience that's guiding Google's behavior. It's their own revenue streams. When there is an opportunity cost to present an AI overview, we'll see fewer of those. This is not a scientific survey or investigation by any means. This is just an observation, but I think it works. And we can predict how Google will behave. And this, of course, has an impact on brands. Maybe be a little bit careful to put all of your money in that Google basket. A couple of weeks ago, maybe two weeks or so, we've seen AI mode in Sweden. I think people are not talking about it so much, but I think that we can expect the same behavior from Google here as we've seen in AI overview. A company that's been very active in all sorts of ways, doing deals left and right at all times is ChatGPT. And we're just going to look at what they're doing when it comes to our corner of the universe. So first of all, again, we see the young people dominating the use of this model. So up to 50% of messages comes from users age 18 to 25. So they are totally dominating when it comes to the usage of ChatGPT. Very few messages, only around 2% in this report that we saw, actually use ChatGPT to find products that they can purchase so you do a lot of other stuff with this and that's because ChatGPT is a productivity tool and not a shopping tool so people currently use that for productivity purposes rather than shopping purposes but of course this may change this may change we're seeing that ChatGPT is doing a number of initiatives which is related to e-commerce. They've done a deal with Shopify about an instant checkout. They're partnering with Etsy in the US and with Walmart. I think that these things are like test balloons in one way or another. I would personally don't believe much in the instant checkout concept. I think that in order to see massive volume ChatGPT and OpenAI will need to start working with ads, which again will create quite a different user experience. If they do, that means that attractions partners can acquire traffic from ChatGPT in the same way that they currently acquire traffic from Google. So then the business model stays sort of intact, but traffic is moving from Google to ChatGPT. a big question mark here of course is what will happen to these shopping agents and the honest answer is that we don't know we need to follow this development and fundamentally a partner marketing network such as attraction can be used to give commission to anyone who's building a shopping agent. So just take a tracking link and that will work out nicely. But this is very early days and we haven't seen any of that materialize yet. But speaking of partners and I think that we have some interesting observations regarding partners role in the ecosystem. So the first observation is that partners can help brands for specific products be seen in the AI search results. So for some reason I wanted a mascara. I had no idea what I should buy. So I just asked ChatGPT what mascara should I buy? Which one is best? ChatGPT suggests that I should buy Maybelline, Lancome, L'Oreal or something like that. And ChatGPT also says that the reason that I say this, the reason that I, ChatGPT, say this is that Metro Mode, Elle, Bestie Test, Skönhetsguiden say that these brands are great. And all of these sites that ChatGPT is referring to is working with attraction partners. So if someone were to click one of those links that you find in the search results, you would end up at an attraction partner that's linking to attraction brands. Now, it's quite clear that for the reasons that I stated before, it's quite clear that most people do not click those links, but it's clearly better to be seen indirectly here than to not be seen. Which brings us to the second point here, that partners can also help retailers be visible in, for example, ChatGPT. So I had no idea where I should buy my mascara. I had no idea where to get that. So I asked ChatGPT, and the answer was Lyko. Well, that seems reasonable, I think. Lyko is a big retailer. But I also asked ChatGPT, why do you say this, ChatGPT? And ChatGPT is then referring to Bestie Test and Femina, which are attraction partner sites. If you click on those, you'll once again find links to Lyko. And again, Lyko is probably not getting a lot of traffic here, but with all of this uncertainty, it's obviously much better to be seen in the AI results than to not be seen. And to work with partner marketing and attraction is a sure way to be seen in the LLMs. We have demonstrated this for many brands and a lot of people who are working with... with this type of optimization actually recommend partner marketing because the logic here simply is to look at what are other people saying about the particular brand. Well, that seems reasonable. I'm just going to go ahead and quote that. That's what ChatGPT is currently doing. So the main point here is that we should not or no one, no retailer or e-commerce company should put all of their eggs in that Google basket. I think that it's probably more risky now than ever to do that. And we're also seeing that brands are willing to listen to that. They understand that it's super risky to put 50% to 60% of their budget in that Google basket. So that was my little AI overview for this quarter. Let us go back to the numbers. I will say a few things and then I will pass the mic to Andreas. So this is a graph of attractions employees. And what has happened here is that we acquired ad record in the first quarter of 23, the number of employees increased. Then as we performed a little bit worse, the number of employees decreased throughout 2024. acquire ad record in the fourth quarter 24 and the numbers jumped up a little bit and has since decreased and now in the third quarter we're slightly increasing it again of course what will happen in the fourth quarter is that we that number will increase by 14 and because of the affiliate future acquisition so we've tried to be disciplined when it comes to costs so we've tried to keep costs down obviously what will happen now is that the cost will increase as a result of the affiliate future future acquisition probably we will add slightly less than 1 million Swedish per month or slightly less than 3 million Swedish per quarter as a result of this of this acquisition so with that said I will pass the mic to Andreas thank you Simon

And then starting with net sales, we have 286 million. That is a negative growth of 2%. And if we were to exclude currency exchange effects, we would have had a growth of 0% instead. Then looking at gross profit, we have 54 million, also that a negative growth of 2%. The same thing goes for currency exchange here, would have been 0%. Profitability, starting with EBITDA, we have 11.9 million and that is an increase by 2%. We can see the same seasonality effects as previous years, lower cost base in the third quarter due to vacation pay. And for transparency and comparability, we also present one of costs of around one million kronor in the quarter. You can see that in the other external costs in the P&L. And for last year, we had one of costs of two and a half million, mostly related to personnel costs. If we were to add back the costs of two million in ad record for 24, which is not presented in the consolidated results of that year. We can also see that we have slightly lowered our total cost base year to year. And then adjusted net result per share, 0.57 kronor. That is the same as last year. Vertical, starting with e-commerce, we have 31.3 million in gross profit. That is a 7% growth. We can see that we grow on 7 out of 12 markets. And as Simon mentioned, we can also now see slightly positive organic growth in this quarter. And the finance vertical, 21.7 million gross profit. There's a negative growth of 15%. If we look for the positives here, we can see that the Swedish finance vertical is back to pre-legislation numbers. What we've said before is that we're going to take a hit in the Swedish market due to legislation. But what happened now is that we can see sequential growth month over month since April. Up until October, we can also see year-over-year growth in both September and October for the Swedish finance vertical. Looking at the vertical as a whole for finance, we can also see that we have growth on three of the smaller markets. Looking at the other vertical, which is everything outside of the attraction platform, we see one million in gross profit. Then geographies, the Nordics, we have 41.8 million, and that is a 2% growth. We can see growth from two out of four markets. And in Europe, 12.2 million in gross profit, that is a 15% negative growth, most of which comes from the headwinds in the Spanish finance market. And we can also see or finance as a whole as well, because we can see growth on two out of eight markets in Europe. Then looking at cash flow, we can see that we bounce back when it comes to working capital. We have a positive effect in the third quarter. We can also see on a rolling 12 basis that we have a good operating cash flow on the blue line above. And the operating cash flow for the quarter is 16 million. We have small investing activities on minus 0.3 million, giving us a total cash flow of 15.7 million in the quarter, and ending on a net cash position of 115 million. By that, I give the mic back to you, Simon.

Thank you, Andreas. Our goals also remain the same. The core of Attraction is that we want to deliver growth, profitability and cash flows. And the main focus, of course, again, is to get back to growth. Attraction wants to be a European network. We think there's room for a hungry challenger that challenges Eowyn. And in order to do that, we need to be a leading consolidator. I think it's fair to say that we are a leading consolidator. We've done most of the transactions in our space. And to be honest, we rarely see any competition, any real competition when we buy something, which to me tells me that we are the ones driving this. We want to serve a wider range of clients and we're going to update our platform to make it easier to work with smaller clients. And we also have a number of initiatives to work with bigger clients. So everyone essentially should be able to find a home at Attraction. So what's happening now is the question. Again, we want to get back to growth. This is our main goal for 2026. We do not think that we will see growth in Q4. We expect a small negative growth. And again, this is related to the finance vertical. We will focus a lot on the affiliate future integration to make that team a part of our traction and to migrate everything to our platform. We are looking forward to more M&A opportunities. And to be fairly transparent there, there's nothing concrete going on right now. There are some discussions, but there's no live process or anything like that. So I don't expect to announce anything in the next few months at least. Then we think that Bundler is doing quite well in the report. I wrote that we believe that they have product market fit, and that means that things are starting to happen a little bit on their own. There's a lot of companies that understand that Bundler provides a great value and a great service bundler is building more and more integrations and the bundler team is very proud that they recently helped Klarna launch some of their credit cards and bundler is providing some of the services related to that so this was the presentation for today we have received a number of questions as usual. We're of course grateful for that. We're grateful for the interest in attraction. So I'm just gonna go ahead and start reading here. So the first question is this. Given that the finance vertical exhibits higher margins than e-commerce, could you shed some light on how the margins can hold up given the mixed effects during the last quarter? Well, it's actually the other way around. So e-commerce has higher gross profit margins than finance, and I think this probably explains the development that you've seen. Then the question is could you shed some light on growth initiatives in other Europe and when we can see a pickup in momentum in these markets? So we're doing a lot of different projects that are long-term in nature that I think will help us grow going forward. big thing here is that we're doing a process to clarify our offering and we're going to work with different tiers and pricing will be very clear we're also working with a better international offering and all of these things will help boost growth but but again they are mainly um long-term projects in order to get back to growth. I think we basically need a stronger development in the finance vertical. And here's a question that's very much related indeed. I'll still read it and then I'll try to answer whatever I have not answered before. You have several initiatives ongoing that seems to be growth related, the tracking project, the influencer tool, Salesforce and also Bundler. Can these initiatives get attraction back to growth or do you also need a general market recovery? Yeah, I think that longer term these efforts probably will help us, but short term we will need a bit of a market recovery. We should remember, however, that we're not super far from growth. If we adjust for FX, we were actually at the 0% growth rate in the quarter when it comes to sales. And everything that we do that generates a little bit of growth, for example, the tracking project will help in that regard. Do you have any insights into Black Week as of now? So how is the activity from advertisers looking? they more or less optimistic compared to last year this of course is a good question and here's the thing up until very recently things looked sort of bad to be honest but we've seen a great pickup in activity in just the last week and we're now seeing good momentum as usual that doesn't necessarily translate into sales or gross profit but at least we're seeing good momentum and we're hoping that um that we will also see good development for sales and gross profit. You have previously mentioned that clicks and conversions have seen growth for the past couple of years. The reason why attraction is not growing is due to commission levels that have declined. Can we have an update on the commission levels as of today? So it's not only the commission level. So I would say that to some extent it's the commission levels, but it's also related to order value. If order value drops, we will typically get a lower commission, even if the percentage commission is the same. And it's also a question of product product mix what are we getting paid for and this actually is a fairly complicated thing to sort out but to answer this specific questions i would say that we have not seen a drop in commission levels recently if anything they're slightly increasing but when the you know when this plays out very nicely and both commission levels and and volume will increase and that will result in growth Then a question regarding Affiliate Future. It seems like you're paying around 15 million for a company that is not generating any profit. This differs from the past. What is your view on this? So clearly, Affiliate Future has lower profitability than the companies that we acquired before. But I also think that Affiliate Future has not been prioritized by the former owner. So they were not focusing on this. We intend to focus on Affiliate Future and we think that we can turn this into a profitable company fairly soon if they have better processes, a better platform and access to better systems. So we would expect Affiliate Future to be as profitable as some of the other companies that we have acquired. And here's another question about affiliate future. Do you expect the network effects when customers migrate to the attraction platform result in more conversions from affiliate futures existing customers? So yeah, it's the short answer, but I'm not going to answer the second part of that. If so, how much more? Because we honestly don't know that. I think that our tracking is slightly more up to date. I think that we can handle consent problems and app tracking and deduplication and so on, a little bit better than Affiliate Future with their platform. But it's very difficult to put a number on that because we, to be honest, really haven't started that process. general i expect better conversion but also there will be some churn there always there always is some some churn related to this so let's see if we have uh some more uh questions there were actually a lot of more questions so we're just going to keep we're just going to keep going so first the first question about affiliate future What's your plan for Affiliate Future? On their website, they stated 600 advertisers some years ago, but now they state or you state 210 advertisers. What have caused this decline? So first of all, the main problem here is that Affiliate Future site is not properly updated. Of course, it should have been updated. And I think that what's going on here is that I don't know how old that number is, 600, but what happened was that Affiliate Future used to be very much focused on travel. Then COVID hit and they saw a big drop in sales and revenue related to COVID. After COVID, they diversified their portfolio and they're now much less dependent on travel. Travel is, of course, still an important vertical for Affiliate Future, but not the way it used to be. So I hope that answers your question. Could you resonate a little bit about multiple pay for affiliate future, 50 million for zero million in EBITDA? Please help us thinking about this. Well, what you're saying here is essentially true. Maybe there is a little bit of profitability going on at affiliate future. But what we're paying for is actually the gross profit, the contracts, the partners, the expertise of the team. And I am convinced that we will turn this into a profitable operation. And of course, as a seller, you wouldn't expect to accept zero million for when you try and sell a company. Someone is willing to pay something. But of course, there's been a lot of price negotiations in the process here. Then another question about e-commerce. I'm just now reading questions in the order that they appear. So we're going to swing from topic to topic here. So it seems like Swedish e-commerce performed well during the third quarter, according to public data like e-handelsbarometer. Is there any reason why you do not see an acceleration of growth in the e-commerce segment? So first of all, I agree that we're not seeing an acceleration. We're seeing a stable development. And this... This question pops up from from time to time, and there are a couple of different reasons here. So first of all, e-commerce to attraction is anything that's not consumer finance. So we would include things like insurance, streaming, audiobook services, and a lot of those things, or electricity for that matter. So a lot of those things are not included in e-handelsbarometern. And then when it comes to e-handelsbarometern, I don't think that their method of measuring things is that accurate actually. So maybe take a look at that. But Yeah, I think the main thing is that we're sort of measuring different things here. Are you still active in M&A discussions with other companies? Can we expect more acquisitions in 2026 or is affiliate future enough? So affiliate future clearly is not enough. I think that we have demonstrated that we are the leading consolidator here. We will keep looking at other networks. And we, like I said in the presentation, we may actually... look a little bit outside our core business and buy companies that sort of help retailers with the same thing, increase sales at a predictable cost. But we don't know yet. There's always some discussion going on. I would actually be surprised if we don't do a deal in 2026. But again, these things take time. What countries within the finance vertical are the most challenging? So clearly that is Spain. So Spain has been very challenging. I think that the market there is changing, the way that different players are cooperating is changing, and our performance in Spain is worse than the general performance of the market. We need to update our offering and and provide a somewhat different service to our customers and our team in spain is working on that and at some point we will see a different development also things have been challenging in in norway recently but that's mainly related to strong performance in 2024 so uh Here's another question. It seems like Affiliate Future has some tilt towards travel. Could you help us understand the seasonality in the business? Is Q4 the strongest?

It's not as e-commerce heavy as Attraction, but it has a little bit of a tilt towards Q4, yes.

And in general, of course, the travel season happens in the summer months, and then there's going to be some delays with payments and so on. I don't think that Affiliate Future will affect the seasonality of attraction as a whole. It's a little bit too small. Then another question here, do you expect Envisage Affiliate Future to burden profits initially, given its carve out before recouping that later on, thus putting it on a net neutral contribution of the next year. So yeah, probably we will have a fairly neutral contribution for a while. I don't know exactly the time perspective. We're now starting to work with the Affiliate Future team to see what can be done. But we... Anyway, do not like losses, so that will not happen. This will either be profitable or it will be sort of neutral. How large part of the gross profit do you expect to lose when forcing to change platform for affiliate future customers? Well, I want to use a different verb here than forcing. We are more or less... giving them access to a much, much better platform. So they should welcome that. Having access to attractions platform will create opportunities. But yes, of course, there will be a churn. Sometimes because the customer wants to do something else, sometimes maybe because we don't want a specific customer on our platform. So if I were to say a number, I would say we can migrate 90% of gross profit or a little bit more or a little bit less. And that means that there will be like a 10% churn or something like that. And in the best of worlds, it's lower than that. So, here's a question for Andreas. Your working capital has supported free cash flow generation of late. How should one think about your ability to retain current working capital in relation to sales levels?

Like we previously mentioned, I'd say that it's going to be normalized. We have made initiatives that have had big effects, like you've seen in the last couple of quarters. But now we should be seeing a normalized working capital comparing to the sales, yes. We're faster to invoice, but you could say that the project, so to say, of this is more or less over or closed.

All right. So here's a question, I guess, for me. When should one expect finance to stabilize? To be honest, I expected that to happen already because we've seen lower interest rates and we've seen perhaps more stable economy in that in in that regard so we're a little bit surprised by some some of the development here and tell me to be honest i cannot i cannot set the date or time time frame here all we can do is focus on providing a great service to our partners and brands and over time we are confident that we will resolve this Please remind us how are margins, gross and EBITDA impacted by a smaller share of finance? Well, again, we see a... We have higher margins, gross profit margins in e-commerce. everything else equal. But on the other hand, we are, I would say, more efficient in the finance space. So EBITDA across the finance team is greater than EBITDA across the e-commerce team. So it's a little bit tricky to sort that out. And we actually don't report to that level. But those are the main things. Has Affiliate Future been growing prior to being acquired? Well, no, not really. So they saw a big drop in connection with COVID. And since that, it's been a more or less stable business for a few years. How large is negative growth in gross profit from the Swedish finance vertical? So we're not disclosing things at that level, unfortunately. What we have disclosed is that we have been back to growth for September and probably October in finance. And what we're seeing is that is that I think that's encouraging, like I said before, because that shows that we can get back to growth also after a massive and very strange regulation. What has been the main reasons for not returning to growth during 2025 in your review? Well, I think that the main reason is the performance of the finance vertical. I would argue that that's the main reason. If we did not see a significant drop in finance in the third quarter, we would have been back to growth. Then you may recall that we saw a strange development in Q2. We were expecting to return to growth. Then what did Trump call it? Liberation Day happened. That caused a lot of uncertainty in the market. So it caused a lot of uncertainty. the market recovered, but that of course also had an impact. And here's a question from you, Andreas. I don't know if you know this on top of your head. Other external costs rose from 10 million in the second quarter to 13 million in the third quarter. Why? And what do you expect going forward?

We expect it to be slightly around those numbers as well because what we said now is that we have a one one-off effect there of one million and then there has been some previous personnel costs that are now also external costs due to contracts reasons all right um

Trade Doubler has experienced strong growth across most markets. How does your performance compare to peers? Are you underperforming or is Trade Doubler outperforming? Well, I would say neither. If you look at the Trade Doubler's report, you will see that in the Nordics, they had negative growth and attraction is 75% a Nordic business. So I think that we're... sort of both performing in line with the markets. Also, I think that TradeAlba has done something very impressive with MetaPick and they see growth across many markets with MetaPick.

Can I give an addition to my previous answer as well? If you were Referring to the third quarter, we're higher than the second quarter. We also had our yearly annual conference of a one-off effect as well of 2 million in other external costs there.

All right. So how much of finance is Sweden now? Unfortunately, we're not disclosing that per market. Then we had a question about other costs again. That's the same answer as before. How do you work with M&A? Do you want to be finished with integration before you move on to the next target? Or could you, for example, acquire two companies in the same quarter? So I don't think that... We have a small M&A team. I don't think that we realistically could acquire two companies in the same quarter. But what we can do is to work with integration and start looking at other things. So now there's going to be full focus on integration and migration, and then we're already looking at other... things because it's not necessarily the same team that's doing these different things could you update on the tracking solution for your advertisers how has this progressed yeah this is an this is an ongoing project i think we have good momentum as often happens We need a little bit more time than we expected to start this process. But now I think we have good momentum. Brands understand that they need to compensate if tracking is not executed for consent reasons. And I think in general, this process is going good. And I expect this to have an impact on our business. But also it will take some time before we can... uh see the effects of this but we have a team that's working on this right now and things are happening every day here's a question that i've actually been waiting for and here we go curious about your influencer tool how does this differ versus current solutions on the market and will this be a separate platform from your attraction platform so the reason that we mentioned this tool in in the report is that you may in a couple of months see something from attraction and then we we just wanted to inform investors in advance and i would like to remind the listeners here that attraction is working with influencers already we have a lot of collaborations with with influencers and what's going on now is that we will have a better user interface for these influencers so it will still be based on attractions platform but we will have a user interface that's much better suited for influencers as we see it and probably there will be other commission models in play also so I'm not going to say so much more about that at this stage but we will talk more about this going forward as we launch this thing we learn things and then we also understand the the potential in it so um I think that's it. Those are the questions that I can see to date. And I thank you for listening. And then we'll see you next quarter. Thank you very much.