Taptica International Limited (LON:TAP) saw its shares jump in early morning trading Tuesday as it said its underlying earnings (EBITDA) for the 2018 financial year would be moderately ahead of market expectations.
The AIM-listed mobile advertiser said sales momentum from 2017 had continued into the current year in both its performance-based marketing and brand advertising businesses, while it had seen as expansion in its Tier 1 client base as well as increasing contributions from its existing household-name clients and it international offices, particularly in the Asia-Pacific region.
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The group added that it had continued to work closely with Tremor Video DSP, its brand advertising arm, to implement operational and cost efficiencies and to achieve improvements in gross margins for the unit.
Considering the improvements, the company said it expected its adjusted EBITDA for the 2018 financial year to be “moderately” ahead of market expectations while revenue growth would be in-line with market expectations.
In a note to clients, analysts at City broker finnCap said the group had "sustained its impressive FY 2017 sales momentum into [the first half of] this year", adding that despite a recent fall in the share price around privacy concerns following the Facebook scandal, the results showed Taptica "remained unaffected by these issues and has little exposure to Facebook".
Taptica shares were up 12.6% at 312.5p.
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