The sharp fall in first-half earnings at Matomy Media (MTMY) reflected consumers' rapid transition from desktop computers to mobile devices, the rise of automated ad trading and more stringent regulations among major media trading platforms. Still, exclude one-off acquisition costs and the performance-based digital advertising group's operating profits rose 12 per cent to $7.3m (£4.8m).
Combined video, social and mobile sales rose 47 per cent to $47m - almost 38 per cent of total turnover. Management has zeroed in on these growth markets, as well as the Americas, where robust demand for video and email marketing fuelled a 17 per cent rise in sales to about $77m. But these gains couldn't offset a sharp slump in display advertising sales.
Matomy bolstered its offering by acquiring Avenlo - an email marketing company that specialises in data analysis and targeting - and Team Internet, which added domain and search expertise. The group also completed its integration of MobFox, improving its mobile and automated ad-trading services. Those deals helped Matomy to more than triple its number of active advertising customers to 5,183.
The group has regained momentum in recent months: trading in June was the strongest for the year. Nonetheless, broker Canaccord Genuity lowered its forecasts and now expects adjusted pre-tax profits of $22.0m in 2015, giving EPS of 17.6¢ (2014: $16.1m and 15.9¢).
| MATOMY MEDIA (MTMY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 99p | MARKET VALUE: | £91m | |
| TOUCH: | 98-100p | 12-MONTH HIGH: | 255p | LOW: 91p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 111¢ | NET CASH: | $26.6m | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2014† | 108 | 6.3 | 18 | nil |
| 2015 | 125 | 2.5 | 1 | nil |
| % change | +16 | -60 | -94 | - |
*Includes intangible assets of $122m, or 132¢ a share †Matomy floated in July 2014 £1=$1.54 | ||||
