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Matomy profit held back by focus shift

Management has shifted the business to focus on fast-growth areas in the marketing space
March 31, 2017

The evolution from print to digital advertising has hit a plethora of companies in the media space in recent years. Matomy Media (MTMY) thinks that evolution is not yet at an end, and that mobile and video marketing will eventually take over from static desktop display ads.

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And so management has re-aligned the company accordingly, and it shows in its latest results numbers. Mobile app revenues more than doubled in the year to December 2016, while the video division - the group's largest - reported a 55 per cent increase in revenue to £112m. But the more traditional divisions, including email, social and web display marketing, all reported double-digit revenue declines, which kept overall group top-line growth down to just 2 per cent. Meanwhile, a big upswing in research and development costs pushed adjusted cash profits down 34 per cent to £17.1m.

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