Growth Despite Profit Dip for Ebiquity

UK-based marketing and media consultancy Ebiquity Plc has announced results for the calendar year 2018, with an effective like-for-like revenue increase of 7% for its continuing business, but underlying profit before tax down £2.7m to £5.2m.

Early in the year the group announced the sale of its Advertising Intelligence (AdIntel) division to Nielsen for £26m - the divestment was completed on 2nd Jan 2019. It now has 18 offices and 550 staff. Revenue of Ebiquity's continuing business increased by 8% to £69.4m, equivalent to 7% on a like-for-like, constant currency basis. Underlying operating profit fell to £6.3m, from £9.0m in 2017 due to planned investment which it said 'did not fully deliver anticipated revenue growth'

The remaining business is now organised into two segments, Media, and Analytics & Tech. Revenue for the Media division rose %% to £54.2m, with strong growth in the US (up 26%); while Analytics & Tech grew an impressive 19% to £15.2m. The company has also launched a new AdTech advisory practice.

CEO Michael Karg says 2018 has been 'a challenging, transformational and transitional year', adding: 'Against the background of revenue growth, the reduction in the continuing business operating profit was disappointing and was a result that clearly fell short of our goals'. Karg believes the company 'now has greater financial flexibility, a more streamlined business and a strengthened management team', and is 'well-positioned to serve advertisers' needs and drive growth through the provision of specialist advice, proprietary tools and high-quality service'.

Web site: www.ebiquity.com .