14th Apr 2015 11:55
LONDON (Alliance News) - TLA Worldwide PLC Tuesday reported higher pretax profit for 2014, as revenue rose 12% thanks to a strong performance by its sports marketing business, and it said trading so far in 2015 has met its expectations and it expects to deliver another year of double-digit growth.
The athlete representation and sports marketing company reported a pretax profit of GBP419,000 for 2014, up from GBP50,000 in 2013, as revenue rose to GBP20.8 million from GBP18.6 million.
Its closely-watched earnings before interest, tax, depreciation and amortisation, also stripping out exceptional and acquisition costs and share-based payments, rose to GBP9.0 million, from GBP7.3 million, with its Ebitda margin also improving to 43% from 39% as its baseball representation business increased its profit contribution.
The company's sports marketing division was particularly lifted by its events business, which delivered a USA Eagles v New Zealand All Blacks rugby game in November with a sell-out attendance at the Soldier Field stadium in Chicago. It was the first game between the two sides in the US for 35 years.
It said its baseball representation business had negotiated a total of USD194 million of off-season contracts on behalf of baseball player clients in 2014, up from USD150 million in 2013, giving it long-term revenue visibility. Thirteen new baseball players were added to its client list in 2014 bringing the total baseball client list to 267
TLA is set to get a boost this year from its acquisition last month of Australian and UK sports marketing agency Elite Sports Properties for up to USD19.5 million. The deal added 250 clients and sports stars including cyclist Chris Hoy and swimmer Becky Adlington, as well as the Cricket World Cup 2015 and the Rugby World Cup 2015.
TLA's total client base rose by 8% to 474 over 2014, but stands at more than 700 following the ESP deal.
It will also get a boost this year after it secured a four-year deal to co-promote the International Champions Cup football tournament in Australia from July 2015, with the first tournament featuring clubs Manchester City, Real Madrid and AS Roma.
"Trading in the current year is in line with management expectations and we continue to experience good momentum in the business. With the recent acquisition of ESP, and the launch of major new sports events in Australia this July, TLA looks set to achieve an another year of double-digit growth in 2015," Chairman Bart Campbell said in a statement.
TLA raised its final dividend for 2014 to 0.8 pence, from 0.7p in 2013.
Its shares were up 1.1% at 43.45 pence Tuesday afternoon, and are up 20.7% so far in 2015 having hit an all-time high of 44.25p.
By Steve McGrath; [email protected]; @stevemcgrath1
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