Ebiquity PLC · LSE:EBQ
Ebiquity — H1 2011 Earnings Presentation
28 slides from Ebiquity's earnings presentation, January 2011
Slide 1: Interim Presentation
Interim Presentation Six months ended 31 October 2010 January 2011 an Ebiquity company
Slide 2: Progress ahead of plan
Progress ahead of plan • Largely completed planned integration of Xtreme and TMC ahead of schedule • Established a new high quality data centre in Newcastle • Consolidated German operations in Baden Baden with Sales and Marketing in Hamburg • Cost synergies ahead of management forecast • New brandin
Slide 3: Revenues and operating profit ahead of forecast
Revenues and operating profit ahead of forecast Revenues £20,513 Operating Profits £1,436 71% International Revenue 4% pro forma revenue increase 3 an Ebiquity company
Slide 4: Key business drivers
Key business drivers Effectiveness Accountability Efficiency Globalisation Procurement Transparency 4 an Ebiquity company
Slide 5: New business structure to reflect new capabilities
New business structure to reflect new capabilities Practice Advertising Intelligence Media ROI Digital Editorial Intelligence Technology an Ebiquity company
Slide 6: Greater geographic reach
Greater geographic reach Office Partner 6 an Ebiquity company
Slide 7: Penetration of the top global advertisers
Penetration of the top 100 global advertisers 85 of top 100 in 2010 7 an Ebiquity company
Slide 8: One brand One proposition
Delivering Our message ng the Xtreme acquisition we have a confusion of brand names and serv One brand One proposition an Ebiquity company
Slide 9: an Ebiquity company
ebiquily data-driven insights
Slide 10: Our Journey
Our Journey • We began as a small advertising monitoring business • We now stand at the centre of a growing and complex market • There are few, if any, other companies with the skills necessary to help brand owners navigate these complexities • We have built the skills and the international credenti
Slide 11: Financial Summary
Financial Summary Six months ended 31 October 2010 All numbers in this presentation are in £000’s unless noted otherwise an Ebiquity company
Slide 12: Revenue
Revenue Revenue increase of 122% ... Pro forma* YOY increase of 4% Six months Six months ended 31 October ended 31 2010 October 2010 Pro Reported % Reported % % forma* Analytics 7,538 37% 6,660 72% 7,288 37% Platform 12,975 63% 2,600 28% 12,460 63% Total 20,513 9,260 19,749 * Based on management acc
Slide 13: Revenue: international
Revenue International revenue doubled to 71% of group revenue (2009: 37%) Mainland Europe domestic 14% (2009: AsiaPac nil) domestic 4% US domestic (2009: nil) 14% (2009: 12%) Plus 39% multi territory contracts (2009: 25%) International revenue: non UK sourced revenue, or UK sourced revenue where mar
Slide 14: Revenue: recurring and renewable
Revenue Strong repeat business and renewal rates Recurring and renewable revenues 85% Renewable revenues Recurring revenues 77% 8% UK Platform renewal rate (by value) UK Platform renewal rate (by value) 6 months to 31 October 2010 6 months to 31 October 2009 92% 74% an Ebiquity company
Slide 15: Gross margins
Gross margins Positive impact of acquisitions on gross margins with early synergy release Reported Pro forma 31 October 2010 31 October 2009 Margins maintained Analytic 49% 49% on increased revenue s Increased largely due Platform 57% 54% to recognised synergies (£215k) Increased largely due Total 5
Slide 16: Underlying operating profit
Underlying operating profit Synergies implemented earlier than planned 6 months ended 6 months ended 31 October 31 October 2009 2010 Reported Reported Pro forma Analytics 2,533 3,057 3,034 Platform 3,667 595 3,066 Unallocated expenses (4,764) (2,892) (4,977) Underlying operating profit 1,436 760 1,1
Slide 17: Underlying operating margin
Underlying operating margin Improved margin from realised synergies Reported Pro forma 31 October 31 October 2010 2009 EBITDA 10% 9% Operatin g profit 7% 6% (EBIT) Total (pre highlighted) operating profit £1,436k (2009: £1,123k). Reported operating profit and margin in October 2009: £760k and 8% an
Slide 18: Underlying diluted EPS
Underlying diluted EPS EPS in line with market expectation Report Market ed expectation 1.3p 1.3p Our effective tax rate has been negatively impacted by a geographical shift in profits towards overseas territories where tax rates are higher. Were the geographical mix in line with the previous year,
Slide 19: Highlighted items
Highlighted items High planned non-recurring integration costs to release significant cost synergies Six months Six months ended 31 October 2010 ended 31 October 2009 Current/prior year Organic Total Total acquisition related Recurring: Share based expenses 640 - 640* 151 Amortisation of purchased 1
Slide 20: Profit before tax
Profit before tax Impact of significant planned restructuring costs 6 months ended 6 months ended 31 October 2010 31 October 2009 Reported Reported Underlying operating profit 1,436 760 Highlighted items – recurring (1,371) (332) Highlighted items – non recurring (2,056) (158) Reported operating (lo
Slide 21: Financing analysis
Financing analysis £2.5m available facility 6 months to 31 October 2010 Availabl As at e As at 1 Total 31 facility May original October 31 2010 Drawn Repaid facility 2010 October 2010 Term loan 8,000 - (1,057)* 6,943 8,000 - Revolving Credit - 1,500 - 1,500 2,500 1,000 Facility * includes £64k forex
Slide 22: Operating cash flow and net debt
Operating cash flow and net debt Short term and non recurring impact of integration costs 31 October 31 October 30 April 2010 2009 2010 Cash 1,750 1,521 5,243 Loans to associates - 310 285 Debt (8,443) (3,314) (7,569) Total (6,693) (1,483) (2,041) an Ebiquity company
Slide 23: Financial summary
Financial summary • Company size has doubled Revenue up 122%, Gross profit up 131%, Underlying operating profit up 89% Worldwide headcount up X% • Strong international renewable revenues 71% of revenue comes from International 85% of revenue is recurring • First half recognised cost synergies ahead
Slide 24: Outlook
Outlook Confident of another successful year • Growth drivers continue to define our strategy – International/ROI • International multiple geography assignments will continue to drive growth • Germany and USA offer significant growth potential • Continue to build organic growth via cross selling • S
Slide 25: Financial Appendices
Financial Appendices Six months ended 31 October 2010 an Ebiquity company
Slide 26: Appendix: International revenue
Appendix: International revenue International revenue doubled to 71% of group revenue 6 months % of 6 months % of ended total ended total 31 October revenu 31 October revenu 2010 e 2009 e Multi territory 7,954 39% 2,291 25% US domestic 2,944 14% 1,081 12% Europe excl UK domestic 2,857 14% - - AsiaPa
Slide 27: Appendix: Statement of financial position
Appendix: Statement of financial position Oct 10 Oct 09 Apr 10 Non current assets Goodwill 30,700 8,754 30,235 Purchased intangibles 9,080 2,638 9,291 Other 3,686 1,403 3,418 46,466 12,795 42,944 Current assets Trade debtors 6,648 2,823 8,300 Accrued income 3,029 1,989 2,081 Cash 1,750 1,521 5,243 L
Slide 28: Appendix: Cash flow statement
Appendix: Cash flow statement Oct 10 Oct 09 Apr 10 Cash (used in) / generated from operations (2,230) 865 3,243 Finance expense (231) (75) (271) Income taxes (paid) / refunded (316) 105 (551) Net cash from operating activities (2,777) 895 2,421 Investing activities Acq’n of subsidiaries, net of cash