23 Feb ASX ANNOUNCEMENT: 58.3% revenue growth in first half and strong start to second half
Pureprofile Limited (ASX: PPL) is pleased to report strong financial results for the six months to December 31, 2016.
Highlights of the H1 FY17:
- Revenue up 58.3% to $21.9m
- Operating EBITDA up 69.6% to $1.7m
- Integration of Cohort proceeding well and earnings accretive
- Board strengthened with new Executive Chairman and Non Executive Director
Managing Director and CEO Paul Chan said, “We are pleased to deliver robust revenue and profit growth. The first half delivered exciting new client wins across our business units, including Carlton United Breweries and AOL. There has been increased validation of our strategic platform investments, with Unilever choosing Pureprofile to enhance their access to insights via our innovative consumer focused platform”.
Pureprofile Group companies are well established leaders in Australia. We are focused on strategic growth via our UK and US businesses which contributed 46% of revenue in H1FY17.
Pureprofile’s 650+ active clients extend across technology, banking, entertainment, food and beverage, travel, media and entertainment, telecommunications, insurance, academic institutions, government, utilities, charities and real estate. Clients span the entire marketing value chain, from brands to their advertising agencies, media buyers, publishers and researchers.
Mr Chan said, “Pureprofile is delivering the next generation media and marketing platform with the consumer and their growing influence at the centre. We are deeply integrating with the fast growing programmatic media ecosystem, which enables us to take further advantage of our data and insights competitive advantages. We are winning the biggest brands, publishers and researchers who understand that old media is being replaced by consumer driven models. Control is shifting to the consumer and we are building a future-focused platform that enables new media models to converge around connected personal devices. Our continued growth validates our business model and demonstrates increased momentum for our platform and products”.
H1 FY17 Financial Summary
|Data and Insights||6.4||5.4||18.5|
In November 2016, Pureprofile completed the $18 million acquisition of Cohort Global, a prominent lead generation business operating in Australia, the UK and US that attracts and engages with millions of consumers each year via surveys to generate high quality leads for large brands and publishers.
Mr Chan said “Cohort is very important to the group as it accelerates our strategy and significantly increases the reach of our innovative platform to large brands and millions of consumers. The integration of Cohort is proceeding well and the business is now contributing strongly to our revenue and profit”.
Pureprofile also strengthened its board during the period with former Non-Executive Chairman, Andrew Edwards taking on greater responsibilities as Executive Chairman of the group. Andrew was most recently CEO and Chairman of advertising agency Leo Burnett UK and Eastern Europe, a group that generates more than a billion dollars of revenue globally. In addition, well known digital expert and entrepreneur Matt Berriman has joined the board as a Non-Executive Director.
Pureprofile Data and Insights strong organic growth to continue
- Expecting new publisher contract wins in Australia and Internationally for the industry leading Pureprofile platform.
- Expansion of the News Corp alliance.
Programmatic media businesses to continue international revenue growth
- Programmatic business units will continue to benefit from deeper integration with the Pureprofile platform.
- Increased local business development in New York expected to generate further publisher partners.
- Fast changing programmatic ecosystem will continue to put emphasis on data and insight capabilities in line with broader media and advertising markets.
Cohort accelerating international growth
- The integration of Cohort is proceeding well with the international business expected to continue to grow strongly in the second-half.
- Cohort is expected to exceed the minimum hurdles required for payment of the earn-out. These hurdles are 10% revenue and gross profit growth (compared to FY2016) and FY2017 EBITDA of at least $4m. Accordingly, a provision of $8.5m has been made for deferred consideration which is payable in Q2 FY2018.
 The acquisition of Cohort was completed on 8 November 2016. The Statutory results therefore only include Cohort’s results from this date.