Advertisers shook their fists at Facebook after the social media giant revealed it had been overestimating how long users spent watching video ads on its website. Frustration with the poor transparency of media could drive more of them to Ebiquity (EBQ), which offers data-backed insights to marketers on the best ways to spend their money. Strong demand pushed comparable sales up 5 per cent in the six months to June 2016, compared with the six months to June 2015, sending underlying operating profit up 8 per cent to £8.6m.
Like-for-like sales surged a record 51 per cent in the marketing optimisation segment as advertisers clamoured for advice. They also rose 5 per cent in the main media-value measurement division, as robust international trading offset delayed spending by US clients ahead of the summer release of media transparency reports. But they slid 11 per cent in the market intelligence business; management is counting on a new international portfolio platform and other product upgrades to spark a recovery.
Ebiquity is targeting double-digit growth in annual revenue over the next five years, fuelled by product investments and geographical expansion. Broker Numis expects adjusted pre-tax profit of £13m for the year to December, giving EPS of 11p, up from £11.2m and 10.8p in 2015.
| EBIQUITY (EBQ) | ||||
|---|---|---|---|---|
| ORD PRICE: | 103p | MARKET VALUE: | £75m | |
| TOUCH: | 100-105p | 12-MONTH HIGH: | 148p | LOW: 96p |
| DIVIDEND YIELD: | 0.8% | PE RATIO: | na | |
| NET ASSET VALUE: | 64p* | NET DEBT: | 59% | |
| Half-year to 31 Oct | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 35.6 | 2.5 | 2.1 | nil |
| Half-year to 30 Jun† | ||||
| 2016 | 42.3 | 4.6 | 3.1 | 0.4 |
| % change | +19 | +84 | +45 | - |
Ex-div: 6 Oct Payment: 28 Oct *Includes intangible assets of £71m, or 97p a share †Ebiquity has changed its financial year-end to 31 December | ||||
