Online marketing analytics group Ebiquity plc (LON:EBQ) remains on track to hit market forecasts this year after an especially strong performance from its optimisation business MPO.
This division achieved record growth in the half year to June, Ebiquity said, with a strong performance expected over the remainder of the year.
Media Value Measurement (MVM) grew but there was a slow-down in the growth rate as contract renewals and new business awards were delayed particularly in the US.
One reason was advertisers waiting for publication of a report into the way the industry operates from the US Association of National Advertisers' (ANA).
Commissioned after a study showed cash rebates to media agencies were pervasive in ad-buying, the ANA guidelines laid down a blueprint for contracts between marketers and agencies.
Ebiquity, which was a major contributor to the report, describes its publication as one of the most important events in the company’s history.
MVM business should pick up again in the second half of the year now that the report is out, it believes.
Elsewhere, the market intelligence (MI) arm faced competitive pressure and saw revenues decline faster than anticipated.
Ebiquity is launching new products to be available in the 2017 renewal season.
Two-thirds of group revenues are denominated in non-sterling currencies, so there has been some translation benefit from the pound’s recent decline though higher costs mean the impact on margins has been neutral.
Overall, “improved growth in MVM and a strong performance in MPO offsetting the weaker than initially anticipated performance from MI,” was how it summed up the half.
House broker Numis kept its profit forecast for the year unchanged at £13mln (£11.2mln in 2015) with a 162p target price.
Shares were 116p.
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