Home Shares Taptica shares surge 6.8pc following jump in profits

Taptica shares surge 6.8pc following jump in profits

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Taptica shares surge 6.8pc following jump in profits

Shares in Taptica were up 6.8 percent in late-morning trading on Tuesday.

The marketing and advertising firm reported a jump in both income and profits for its half-year results.

The group reported adjusted underlying earnings of $21.6 million, up from $13.1 million for the same time the year previous.

Revenues in the first half jumped increased from $65.6 million last year to $144 million.

Taptica’s chief executive Hagai Tal said the group full-year adjusted underlying earnings would be ahead of market expectations.

Tal said that the Taptica’s revenue share balance between the company’s brand advertising and performance-based marketing businesses would remain the same “for at least the rest of the year.”

The group’s chief executive also said the following the Cambridge Analytica, which took place last year, financial investors and private equities were regaining confidence and “returning to the space”, leading to slight recovery.

“We’re starting a new period where the sector is becoming more attractive to investors,” Tal added.

“We are pleased to report another half of significant year-onyear growth resulting from increased usage of apps by consumers as well as increasing mobile internet access resulting in existing clients growing their ad spend accordingly,” said Tal.

“We also experienced good growth through our expanded global presence. Specifically, the Company saw increasing demand from the AsiaPacific region as well as first contributions from its offices in the UK and India.”

Analysts at City broker finnCap said Taptica’s plans for international expansion, the Tremor acquisition, and $30 million in funding meant that the group was in a good position for “further earnings-enhancing M&A and discussions are already underway with targets”.

Taptica also declared an interim dividend of $0.04 per share, up from no interim dividend in the first half of 2018. The group ended second half with a net cash balance of $42.1 million, which was compared to a net debt of $4 million towards the end of last year.

The firm’s brand advertising division generated $71.9 million in the first half of the year.

The group also reported that its performance-based marketing business had a 9.9 percent increase in revenues to $72.1 million.

This increase was helped by “significant” contributions from its growing international presence, particularly in Japan.

Shares in the group (LON: TAP) are currently trading 5.22 percent higher at 363,00 (1419GMT).