Mobile ad specialist Taptica International Ltd (LON:TAP) beat both revenue and profit expectations in the year just ended driven by a recent expansion into the Asia-Pacific region.
Sales jumped by 68% to US$211mln in 2017, while underlying profits (adjusted EBITDA) increased by a third to US$34.2mln, both slightly higher than broker estimates.
READ: Taptica International can use additional firepower to give earnings a boost, says broker
The US and Asia-Pacific drove the improvement, helped by first contributions from Tremor DSP, a US-based video-focused advertising platform acquired last year for US$50mln and Japan-based Adinnovation.
Hagai Tal, Taptica’s chief executive, said growth in the Asia-Pacific region was especially strong as the use of apps and streaming on smartphones surged.
In China, for example, Taptica signed 91 new clients, including one of the country’s largest e-commerce groups.
WATCH: US and Asia-Pacific boosts performance at Taptica
Asia-Pacific, and the US were the two standout regions for growth in digital ad spending, while Tremor had diversified the group’s revenue streams into brand advertising, another potential a growth area.
Industry trends show no sign of the use of apps slowing, Tal added and the group will use its recent US$30mln fundraise to look for further acquisitions.
The final dividend rises by 25% 5.4c. Statutory profits fell to US$17.3mln from US$19.6mln after acquisition costs and amortisation.
In a note to clients, analysts at ‘house’ broker finnCap said: “The 2017 results were delivered to expectations and accompanied by a positive outlook statement confident of meeting market expectations for impressive growth in 2018, which will be driven by further geographic expansion – both in Europe and particularly APAC where mobile usage is so strong – and further moves into video and brand advertising.”
They added: “Last year was transformational for Taptica; the business delivered impressive 27% organic sales growth in H1 and was assisted in H2 by the significant acquisitions of Adinnovation and Tremor Video’s DSP business, to deliver a headline 68% YoY growth in revenue and 32% growth in adjusted PBT across the year.
“Looking ahead, management is confident of meeting market growth expectations while delivering on a three-year plan to build a truly global business with a presence in ten key hubs worldwide.”
The analysts reiterated their full-year 2018 forecasts and 550p target price on the stock.
In late afternoon trading, Taptica shares were changing hands at 365p, down 2.7% on Friday’s close.
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