Shares bounce for Ebiquity following deepening losses and US acquisitions
Shares in media consultancy Ebiquity fluctuated today after the firm announced deepening losses, as well as the planned acquisition of US-based media audit specialist Media Management for $8m.
Ebiquity said its pretax loss for 2021 widened after booking costs of £7.9m relating to the 2020 acquisition of Digital Decisions.
The media investment analysis firm also recently bought up Forde and Canadian media performance consultancy Semple Media Works in January 2022.
It is therefore no surprise that investors were left uncertain when the company decided to tie in its most recent results with yet another major acquisition announcement this morning.
However, what both acquisitions do is show how the company’s focus remains on international expansion, especially in the US market.
Discussing the results, chief executive Nick Waters said he was “pleased with our progress” after a challenging 2020.
“Looking at 2022, we expect further good revenue growth as well as margin enhancement. Our global market is not only massive, but also becoming increasingly complex”, he said.
“In terms of geographic performance, Asia Pacific grew the fastest, while North America regained momentum with strong growth. Benefiting from the ever-increasing rise in digital advertising spend, Digital Media Solutions exceeded our expectations, with strong revenue and margin improvements”, Waters added.
Revenue was up £7.2m (13 per cent) to £63.1m for 2021, whilst its pre-tax profit increased to £4.1m compared to a loss of £1.3m in 2020.
Shares initially dropped seven per cent this morning, but climbed during the day, and were up three per cent at close.