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ASX ANNOUNCEMENT: FY2019 Unaudited Results Update

ASX ANNOUNCEMENT: FY2019 Unaudited Results Update

Key points

  • Strong growth in core Data & Insights business – revenue up 14% (on pcp) to $18.4m
  • Media business growing steadily – revenue up 3% (on pcp) to $6.1m
  • Strategy to simplify the business and focus on core growth units progressing well – Media Trading business was sold in October 2018 and the Performance ANZ business was sold in March 2019
  • FY2019 revenue (incl. discontinued businesses): $38.4m (FY2018: $52.4m)
  • FY2019 EBITDA (incl. discontinued businesses): ($0.5m) (FY2018: $0.7m)
  • Additional debt of $3m raised in February 2019 with existing lender, along with a $2.6m bridging short-term loan in June 2019 as Company moves to new debtor financing provider
  • Capital restructuring initiatives being considered to reduce debt exposure

Pureprofile Limited (ASX: PPL or the Company) provides an update to its FY2019 results (unaudited) ahead of the release of its Appendix 4E and full-year results.

Following the reduction to the Company’s cost base in FY2018, further restructuring initiatives were undertaken in FY2019. The Media Trading business was sold in October 2018 via a share buy-back and in March 2019, the sale of the Performance ANZ business was completed.

The sale of these businesses simplifies the Company’s offering, reduces the Company’s cost base and ensures a focus on its core strengths in Data & Insights and Media. Both these divisions continued to show growth.

Profit & Loss $A million
Continuing businesses

FY18

FY19

Growth

Data & Insights

$16.1m

$18.4m

14%

Media

$5.9m

$6.1m

3%

Performance

$3.4m

$2.2m

(35%)

Other revenue

$0.6m

Total revenue

$25.4m

$27.3m

7%

Gross profit

$15.0m

$16.1m

7%

GM%

59%

59%

Other costs

($17.5m)

($16.8m)

4%

EBITDA (continuing businesses)

($2.5m)

($0.7m)

72%

Discontinued businesses
Revenue

$27.0m

$11.1m

(58%)

Gross profit

$9.2m

$3.1m

(66%)

GM%

35%

29%

(6%)

Other costs

($6.0m)

($3.0m)

50%

Actual EBITDA

$0.7m

($0.6m)

(162%)

  • The discontinued businesses comprise the Media Trading business (which was sold in October 2018) and the Performance ANZ business (which was sold in March 2019).

  • In the UK, the Data & Insights business unit performed strongly (with growth of 10%), however the Performance business unit declined YoY due to an unforeseen reduction in sales resourcing and capability.

  • ‘Other revenue’ includes proceeds from the sale of the Media Trading and Performance ANZ businesses.
  • The total EBITDA contribution for the discontinued businesses was $0.1m. Had the businesses continued, it is expected to have contributed negative EBITDA.

Breaking the results down on a half-year on half-year basis:

Profit & Loss $A million
Period ending 30 June

H2FY18

H2FY19

Growth

Data & Insights

$7.9m

$9.0m

14%

Media

$2.6m

$3.2m

23%

Performance

$1.6m

$0.8m

(50%)

Other revenue

$0.3m

Total revenue

$12.1m

$13.3m

10%

Gross profit

$7.6m

$8.0m

5%

GM%

63%

60%

(3%)

 

Whilst the retained Performance business in the UK continued to lag, the focus on the remaining core growth areas of the business has generally been successful. This is validated on a year on year basis:

FY2019 results

During the year, the Company increased its debt facility with the existing lender by $3m. A further bridging loan of $2.6m has been provided to support the Company as it transitions to a new debtor financing provider. Total debt as at 30 June 2019 was $16.5m.To address the high-level of debt and put Pureprofile on a stronger financial footing, the Company is exploring capital restructuring initiatives and other strategic options.

CEO commentary

Pureprofile CEO, Nic Jones, said: ‘This has been a challenging year but we are happy with the performance and growth of our core business units. Having sold the non-performing businesses Pureprofile is a much stronger company.

We are confident in the continuing success of our turnaround and look forward to the year ahead.’

The Company’s Appendix 4E and full-year results, along with FY2020 guidance, are expected to be released towards the end of August 2019.

– ENDS –



For more information, please contact:

Nic Jones
Chief Executive Officer
Pureprofile Limited
nic@pureprofile.com
+61 2 9333 9700

Andrew Edwards
Non-Executive Chairman
Pureprofile Limited
aedwards@pureprofile.com
+61 2 9333 9700

About Pureprofile (ASX: PPL) Pureprofile Limited (ASX: PPL) connects businesses with empowered consumers across the world by connecting, understanding and engaging them through direct-to-consumer technology platforms. Pureprofile is a global leader in consumer research, data and insights and programmatic media. Pureprofile delivers next-generation marketing solutions for more than 700 brands, publishers and research groups worldwide.