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dotDigital profits surge as new customers sign up

Frank Beechinor-Collins, chairman, described it as a ‘great set of results.
dotDigital profits surge as new customers sign up
Shareholders also get an 80% increase in the final dividend.

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Email specialist dotDigital (LON:DOTD) saw profits and revenues surge as new corporate customers signed up and its US operation started to contribute significantly.   

Revenues rose by 33% to £21.4mln in the year to June, while pre-tax profits were 45% ahead at £5.2mln. Shareholders also get an 80% increase in the final dividend at 0.36p.

Frank Beechinor-Collins, chairman, described it as a ‘great set of results’.

The core email business notched up revenue growth of 32% as a raft of big names joined. Honeywell, The All England Club, Sony Music, and Ladbrokes became customers, though dotDigital said the improvement was also driven by new client wins in the mid-market and small enterprise sectors, especially from the Magento e-commerce platform.

The average monthly spend rose by 41% to £445, while recurring revenues were 76% of the total. US sales more than doubled to US$3mln.

Simone Barratt, chief executive, added that demand for email marketing and multi-channel automation continues to be strong both in the UK and internationally.

“The dotmailer platform, with its 'ease of use' proposition, its specialist connectors, its specialist professional services, and now its growing list of global strategic partnerships, is well placed to continue to generate strong organic growth in revenue, not just in the UK, but increasingly overseas as well.”

Northland Capital said that, given the problems currently in the online advertising sector, including blocking software and fraud, email marketing continues to offer a "measurable form of digital marketing," adding that dotDigital is "well placed to capitalise."

Meanwhile, broker finnCap said the email specialist had "once again produced a strong set of results," as it raised its target price on the shares to around 45p.

Shares were less than a per cent lower to 38.5p today.

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