25th Jul 2022 11:52
(Alliance News) - Ebiquity PLC on Monday said it expects half-year profit to surge on higher revenue and stronger margins.
Shares in Ebiquity were up 10% at 58.00 pence in London on Monday
The London-based media and marketing consultancy said it continued its growth trajectory in the first half of 2022, with revenue up 16% year-on-year to GBP37 million. This included initial contributions from the acquisitions of Media Management LLC and Media Path, which were completed in April.
Organic revenue, which strips out acquisitions, still grew 10%.
The acquisitions have boosted the company's presence in North America and provided a technology platform that will bring "valuable economies of scale", Ebiquity said.
Further, the company significantly improved profitability with underlying operating profit expected to be in excess of GBP4.6 million, double the GBP2.3 million achieved a year ago.
The company's underlying operating margin is expected to increase to 12% from 7% a year prior as a result of improved operating efficiencies and growth in higher margin digital products.
Chief Executive Officer Nick Waters said: "We are satisfied with the group's performance in the first half, as we continue to deliver our strategic plan. Not only is revenue up strongly, but importantly, the improvements we have made to the business have also led to significant profit and margin growth".
Despite macroeconomic challenges, Ebiquity see opportunities for its digital media solutions business to serve marketers as they allocate more capital to digital advertising, it said.
By Dominique Pretorius; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
Ebiquity