28th Aug 2015 08:25
LONDON (Alliance News) - Matomy Media Group Ltd Friday posted a fall in pretax profit for the first half of 2015, as a rise in selling and marketing costs offset an increase in revenue, and reduced its full year earnings guidance.
For the half year to end-June Matomy reported a pretax profit of USD2.5 million, down from USD6.3 million a year before, as a rise in revenue to USD125.0 million from USD107.6 million was offset by a step up in the cost of revenues, and selling and marketing costs increased to USD12.9 million from USD10.0 million.
The digital advertising company said that based on its current business trends it expects to deliver a full year earnings before interest, tax, depreciation and amortisation - adjusted to strip out finance expenses, gains on re-measurement of fair value, losses from affiliated companies, non-recurring items and share-based payments- in the range of between USD25 million and USD27 million.
It had previously guided between USD26 million and USD28 million in April, when it had warned it would post earnings and revenue below market expectations due to stricter internal regulations imposed by media trading platforms.
At that time it had guided for revenue of between USD275 million and USD285 million for the full year. In Friday's interim results the company did not provide any further guidance on revenue.
For the first half it posted an adjusted Ebitda of USD9.7 million, down from USD12.7 million a year before.
"The digital advertising industry is undergoing significant changes that are causing certain disruptions to different aspects of the marketplace. As such, we experienced a challenging first half of the year in the display business unit. However, these challenges have validated our diversified business model, and contributed to increased focus on our main strategic growth engines through enhanced programmatic capabilities, as well as to the strength of our recent acquisitions," said Chief Executive Officer Ofer Druker in a statement.
"We are confident that the changes we have made to our operations, combined with further planned investments and prudent cost reductions, will strengthen our market position and drive our long-term profitable and sustainable growth," Druker added.
Shares in Matomy were down 1.5% at 97.00 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
MTMY.L