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Marimedia goes mobile

Marimedia's mobile and video investments look set to pay off
March 27, 2015

Soaring video consumption and the global adoption of mobile devices present rich opportunities for Marimedia (MARI). The company's 'Qadabra' software matches ad slots on publishers' websites with the highest-paying advertisers. Platform improvements fuelled user growth last year, sending its adjusted cash profits up 18 per cent to $10.5m (£7.1m).

IC TIP: Buy at 143p

The Israeli group has used the proceeds from its Aim listing last May to improve its technology and scale up its business. Research spending surged to $2m as it developed new mobile, video and real-time bidding capabilities, and it also bolstered its average headcount by more than half to 110 employees. The upshot was that sales to direct publishers leapt 59 per cent to about $56m.

Marimedia acquired Taptica, which enables brands, publishers and app developers to precisely target and acquire smartphone and tablet users. It plans to integrate that technology with its own upcoming platform, which allows publishers to sell mobile and video advertising slots in real time. The combined offering will be able to track users across all media and devices, and use data analytics and machine learning to secure the best price for publishers and the highest return for advertisers. Management hopes that will help to attract larger, deep-pocketed clients.

Broker N+1 Singer expects pre-tax profit to soar by 70 per cent to $17m in 2015, sending EPS up by half to 20.4¢ (from $10m and 13.6¢ in 2014).

MARIMEDIA (MARI)
ORD PRICE:143pMARKET VALUE:£93m
TOUCH:140-145p12-MONTH HIGH:177pLOW: 113p
DIVIDEND YIELD:1.1%PE RATIO:20
NET ASSET VALUE:65¢*NET CASH:$24.7m

Year to 31 DecTurnover ($m)Pre-tax profit ($m)Earnings per share (¢)Dividend per share (p)
2010nananana
201120.33.7nana
201225.34.0nana
201343.38.514.2nil
201463.18.210.62.30
% change+46-4-25-

Ex-div: 16 Apr

Payment: 17 Jun

*Includes intangible assets of $20.7m, or 32¢ a share

£1=$1.49