Taptica's (TAP) sales were buoyed by contributions from new international offices, and by two acquisitions which management says “transformed the business”. In July, the group bought a majority stake in Japan-based Adinnovation for a maximum of $5.7m (£4m). A month later, it expanded its geographic presence through a $50m deal to acquire US-based Tremor Video. Both transactions enhanced the group's presence in growth hubs for digital advertising – the latter being its largest market by revenue.
The recent expansion into the Asia-Pacific region enabled Taptica to beat expectations for sales and cash profits, even though profitability was held in check by R&D costs linked to the integration of Tremor. But the new subsidiary achieved profitability ahead of schedule, while opening up a new revenue stream - brand advertising. Meanwhile, consumers in the Asia-Pacific region continue to increase their use of the internet on their mobiles, including rapid growth in the utilisation of apps.
Berenberg forecasts pre-tax profits of £35m and EPS of 41.7¢ for the year to December 2018, against $30m and 40.9¢ in 2017.
TAPTICA (TAP) | ||||
ORD PRICE: | 360p | MARKET VALUE: | £ 243m | |
TOUCH: | 355-365p | 12-MONTH HIGH: | 513p | LOW: 268p |
DIVIDEND YIELD: | 1.1% | PE RATIO: | 23 | |
NET ASSET VALUE: | 96¢* | NET DEBT: | 6.2% |
Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
2013 | 43.3 | 8.5 | 14.2 | nil |
2014 | 63.1 | 8.2 | 10.6 | 2.3 |
2015 | 75.8 | 2.8 | 3.3 | 0.78 |
2016** | 126 | 19.6 | 26.3 | 10.1 |
2017 | 211 | 17.3 | 22.5 | 5.4 |
% change | +68 | -12 | -14 | -47 |
Ex-div: | 19 Apr | |||
Payment: | 19 Jun | |||
*Includes intangible assets of $61.6m, or 91¢ a share **Includes special cash dividend of 5.79¢, paid on 15 Nov 2016 £1 = $1.42 |