Matomy Media (MTMY) struggled with an industry-wide transition from desktop computers to mobile devices in the first half of the year. But the Israeli tech group soon got its act together, boosted by recent acquisitions that enhanced its offering in the fast expanding areas of mobile, video, domain monetisation and email advertising.
Adjusted cash profit growth of 27 per cent to $26m (£18m) was achieved during a period of global economic uncertainty, a reflection of the group's unique offering of a full suite of digital advertising services, according to management. Among the most popular products of 2015 was MobFox. A strong contribution from this one-stop mobile advertising platform acquired in late 2014 drove mobile revenues up 100 per cent.
Matomy's other new arrivals also pulled their weight. Highlights included Optimatic, a fully managed video advertising solution for publishers, and Team Internet, a leading provider of services in the direct navigation search market. Successes here helped to offset weak performances from social, which was affected by clients building in-house social media buying teams, and display, which continued to be hampered by consumers switching to mobile. Looking ahead, management remains focused on developing its mobile performance-based advertising offerings, alongside plans to expand in Asia.
Broker Canaccord Genuity expects adjusted cash profit of $32.7m in the year to December 2016, giving adjusted EPS of 22.8¢ (from $25.7m and 19.8¢ in 2015).
| MATOMY MEDIA (MTMY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 100p | MARKET VALUE: | £ 94m | |
| TOUCH: | 100-101p | 12-MONTH HIGH: | 207p | LOW: 90p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 20 | |
| NET ASSET VALUE: | 116¢* | NET DEBT: | $13.5m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 107 | 6.8 | 8.0 | nil |
| 2012 | 120 | 7.8 | 7.0 | nil |
| 2013 | 193 | 8.8 | 9.0 | nil |
| 2014† | 237 | 4.6 | 10.0 | nil |
| 2015 | 271 | 9.9 | 7.0 | nil |
| % change | +14 | +117 | -30 | - |
Ex-div:na Payment:na *Includes intangible assets of $149m, or 159¢ a share †Matomy floated in July 2014 £1=$1.43 | ||||
