viewEbiquity PLC

Marketing group Ebiquity plummets as it warns on profits

Ebiquity is in the process of flogging its floundering Advertising Intelligence division to Nielsen, a deal which got the formal go-ahead from regulators today

Ebiquity has faced various challenges of late which will dent profits

Marketing and media group Ebiquity plc (LON:EBQ) saw 25% wiped from its value on Thursday morning after warning that operating profit will be “materially below” current forecasts.

The AIM company is in the process of offloading its floundering Advertising Intelligence division to Nielsen Media Research, a deal which regulators formally approved earlier today.

READ: CMA provisionally clears sales of Ebiquity’s Advertising Intelligence unit

Unfortunately, it is still stuck with another underachieving business in the shape of its US Digital Analytics practice which has endured various “challenges” over the past year, while delays in closing new contracts in Germany haven’t helped matters.

Performance has been better in the UK & Ireland and France, with the company signing deals with global giants Volkswagen and Nestle. But Ebiquity is investing heavily into these practices, denting profitability.

Despite the hit to the bottom line, the group expects revenue to grow 8% year-on-year, and its net debt position should be “materially improved” once the sale of the Advertising Intelligence division completes.

Shares were down 24.2% to 50p.

Quick facts: Ebiquity PLC

Price: 17.2 GBX

Market: AIM
Market Cap: £14.2 m

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