Ebiquity PLC · LSE:EBQ
Ebiquity — H1 2010 Earnings Presentation
30 slides from Ebiquity's earnings presentation, October 2009
Slide 1: Interim Presentation: Six months ended 31 October 2009
Interim Presentation Six months ended 31 October 2009 … another period of significant progress an Ebiquity company
Slide 2: Financial highlights
Financial highlights • Group revenues increased by 8% to £9.3m (2008: £8.6m) • Analytics revenue increased 15% to £6.7m (2008: £5.8m) • International clients now account for 36% of Group revenue (2008: 28%) • Underlying operating profit of £760,000 (2008: £921,000) • Underlying operating profit excl
Slide 3: Key drivers
Key drivers • Rapid international expansion • US business continues to grow strongly • Contract renewal rates firm • Newslive progressing well – 11% of Platform revenues 3
Slide 4: Analytics division: international expansion
Analytics division: international expansion International revenue up 40% (an increase of £961k) International represents 51% of Analytics revenue (2008: 42%) and 36% of total revenue (2008: 28%) 4
Slide 5: Billetts penetration of top 100 global advertisers
Billetts penetration of top 100 global advertisers* 57 of Top 100 in 2009 60 Top 50 Top100 50 40 30 20 10 0 2007 2008 2009 * Working with an advertiser in one or more markets 5
Slide 6: Growth of US business
Growth of US business $3,000 3,000 $2,689 2,500 2,000 $1,821 $1,750 $k 1,500 $1,285 1,000 500 0 6 7 8 9 9 pr- 0 pr- 0 pr- 0 pr- 0 er0 A A A A ob ct O to e ar l fy Ha 6
Slide 7: Global business: International growth
Global business International growth £3.3m 36% % of total group revenue International clients are defined as non-UK sourced revenue or UK sourced revenue where marketing activity is analysed in more than one country 7
Slide 8: Revenue of overseas ventures
Revenue of overseas ventures 2,000 France: subsidiary, results consolidated £1,787 1,800 Germany: 10% stake, option to take control, treated as associate Spain: option to acquire stake, not consolidated 1,600 Billetts America: subsidiary, results consolidated 1,400 £1,169 1,200 1,000 £k 800 600 £413
Slide 9: Analytics division: international expansion
Analytics division: international expansion 70% of the top UK Advertisers We represent nearly 50 international clients in up to 40 markets We work with 57 of the top 100 companies 9
Slide 10: ebiquity: Media and Marketing Analytics
ebiquity Media and Marketing Analytics
Slide 11: Financial Summary
Financial Summary Six months ended 31 October 2009 11
Slide 12: Revenue
Revenue Oct 09 Oct 08 YOY Apr 09 All numbers in £’000s 6m 6m % 12m Analytics 6,660 5,773 15.4% 12,842 Platform 2,600 2,875 (9.6%) 5,633 Intersegment elimination - (56) 100.0% (56) Total 9,260 8,592 7.8% 18,419 Impact of new accounting standard: IFRS8 (Operating Segments) No material change to previo
Slide 13: Revenue: Analytics division
Revenue: Analytics division International revenue up 40% (an increase of £1m) •Representing a greater proportion of Analytics revenue: 6m Oct 09 6m Oct 08 51% 42% •Representing a greater proportion of total group revenue: 6m Oct 09 6m Oct 08 36% 28% International revenue: non UK sourced revenue, or
Slide 14: Revenue: Platform division
Revenue: Platform division Advertising monitoring •Softer renewal rates (by value): 6m Oct 09 6m Oct 08 74% 85% Editorial monitoring •Newslive showing good sales traction, and now represents larger share of Platform: 6m Oct 09 6m Oct 08 11% 6% 14
Slide 15: Gross profit
Gross profit Oct 09 Oct 08 YOY Apr 09 6m 6m % 12m Analytics 3,452 2,948 17.1% 6,912 Platform 1,329 1,464 (9.2%) 2,942 Total 4,781 4,412 8.4% 9,854 Analytics: Strong revenue growth, with good management of costs Platform: Fall in advertising monitoring revenue, partially offset by cost reductions 15
Slide 16: Gross margin analysis
Gross margin analysis Increased revenue 6m Oct 09 6m Oct 08 and good management of Analytics 52% 51% staff costs Reduced revenue 6m Oct 09 6m Oct 08 from ad monitoring compensated by Platform 51% 51% reduced staff and production costs 6m Oct 09 6m Oct 08 Total 52% 51% 16
Slide 17: Underlying operating profit (pre highlighted items)
Underlying operating profit (pre highlighted items) Oct 09 Oct 08 YOY Apr 09 6m 6m % 12m Analytics 3,057 2,481 23.2% 6,017 Platform 595 589 1.0% 1,296 Unallocated expenses (2,668) (2,326) (14.7%) (5,242) Underlying operating profit 984 744 32.3% 2,071 excl. impact of forex Impact of forex movements
Slide 18: ebiquity: Media and Marketing Analytics
ebiquity Media and Marketing Analytics
Slide 19: Year on year operating profit analysis excluding forex
Year on year operating profit analysis excluding forex 1,500 £668 1,400 1,300 1,200 £214 1,100 £141 £984 1,000 £k £73 900 800 £744 700 600 500 FX u e st s ts er FX l. en o os th l. c v rc tC O c ex R e e en ex 08 artn m 09 20 P op 20 l b er ev e b er o D o ct ct O O 19
Slide 20: Underlying profit margin excluding forex
Underlying profit margin excluding forex 6m Oct 09 6m Oct 08 EBITDA margin 13.3% 11.4% 6m Oct 09 6m Oct 08 Operating Profit (EBIT) margin 10.6% 8.7% 20
Slide 21: Year on year operating profit analysis including forex
Year on year operating profit analysis including forex 1,500 £668 1,400 1,300 1,200 £214 1,100 £141 £984 1,000 £k £921 £73 900 800 £744 £760 £224 700 £177 600 500 X in FX u e st s ts er FX ss X l.F ga l. en o os th l. lo .F c c v rc C O c cl in FX ex e e t ex FX i n 08 8 R rtn en 9 09 0 00 0 08 a m
Slide 22: Underlying profit margin including forex
Underlying profit margin including forex 6m Oct 09 6m Oct 08 EBITDA margin 11.0% 13.5% 6m Oct 09 6m Oct 08 Operating Profit (EBIT) margin 8.2% 10.7% 22
Slide 23: Profit before tax
Profit before tax Oct 09 Oct 08 YOY Apr 09 6m 6m % 12m Underlying operating profit 760 921 (17.5%) 2,363 Highlighted items – non cash (332) (333) 0.3% (675) Highlighted items - cash (158) (161) 1.9% (258) Reported operating profit 270 427 (36.8%) 1,430 Net finance costs (67) (131) 48.9% (243) Share
Slide 24: Diluted EPS
Diluted EPS Increase largely due to 6m Oct 09 6m Oct 08 deferred tax credit on treatment of share options Reported 0.97p 0.28p following share price increase Fall largely due to foreign 6m Oct 09 6m Oct 08 exchange impact affecting underlying results Underlying 1.71p 2.03p nb. the deferred tax impac
Slide 25: Net debt
Net debt Oct 09 Oct 08 Apr 09 Cash 1,521 1,277 1,246 Loans to associates 310 - 362 Gross debt (3,314) (4,000) (3,800) Net debt (1,483) (2,723) (2,192) Net cash from operating activities up to £895k (2008: 111k) Scheduled debt repayments in the current period of £486k Continued improvement in debtor
Slide 26: Summary and outlook
Summary and outlook • Maintained demand for services • Expanding overseas footprint • Attraction to large multinationals • Financially strong • Investing for growth • Prospects remain good 26
Slide 27: Financial Appendices
Financial Appendices ebiquity Media and Marketing Analytics
Slide 28: Highlighted items
Highlighted items Oct 09 Oct 08 Apr 09 6m 6m 12m Recurring Share based expenses 151 152 313 Amortisation of purchased intangibles 181 181 362 332 333 675 Non recurring Management restructuring* 158 161 258 158 161 258 Total 490 494 933 * Current period charge relates to the final stage of the previo
Slide 29: Statement of financial position
Statement of financial position Oct 09 Oct 08 Apr 09 Non current assets 12,795 13,841 12,871 Current assets Trade debtors 2,823 3,194 3,118 Accrued income 1,989 2,083 1,836 Cash 1,521 1,277 1,246 Loans to associates 310 - 362 Other 741 853 978 7,384 7,407 7,540 Current liabilities Trade creditors 91
Slide 30: Cashflows
Cashflows Oct 08 Oct 07 6m 6m Cash generated from operations 865 376 Finance expense (75) (147) Income taxes refund/(paid) 105 (118) Net cash from operating activities 895 111 Investing activities Purchase of PPE (70) (341) Capitalised development costs (107) (454) Repayment from associate loans 52