Media Corp is buoyed by Google truce

INTERNET advertising company Media Corporation will announce strong first quarter trading numbers today after search giant Google lifted a penalty on two of its websites.

The group, which is expected to report a £1.3m loss for the year to September 2009, said pre-tax profits swung from the red to £370,000 in the three months to December.

Revenues were up from £1m at the same point last year to £4.6m, according to unaudited figures.
The update comes after Google lifted a penalty on Media Corp’s and sites in mid-October. Media Corp said it did not know why the measure, which relegated from number one on Google search to around number 100, was imposed in October 2007 or why it was relaxed.

Chief executive Justin Drummond told City A.M. the AIM-listed group had been boosted by the move and by its recent acquisition of online poker operation Purple Lounge. Drummond said: “The advertising business has been tough, but that really picked up in the first quarter. We are making money again.”

He said Media Corp would look to consolidate several medium-sized rivals in the coming year.