With interims expected next week, marketing analyst Ebiquity (LON:EBQ) is under Proactive’s spotlight as we look back on an eventful six months for the group.
In September, Ebiquity launched a new global advertising intelligence platform, extending its reach to 15 European countries and up to 80 territories worldwide.
It rolled out the platform to more than 120 companies with users across every continent.
The platform allows clients to access a database of over 25mln ads, as well as new charting and presentation capabilities, automated report functionality and an improved user interface.
An especially strong performance from its optimisation business MPO put the group on track to meet market forecasts for the year.
The division achieved record growth in June for the preceding half, which the group said would continue through to the rest 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 the publication of a report into the way the industry operates.
In July, Ebiquity was a major contributor to a report from the US Association of National Advertisers (ANA) on transparency.
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 described it as one of the most important events in the company’s history.
The group said MVM business should pick up again in the second half of the year now that the report is out.
What the broker says
House broker Numis forecasts pre-tax profits of £7.9mln, or 6.9p earnings per share.
“The group generates two-thirds of revenues outside of Sterling, though it partially hedges its transaction exposure, so FX benefits will not be felt until 2017.
"We expect new CEO Michael Karg to develop his six focus areas for growth at the results.
"We view Ebiquity as offering standout value at <10x earnings for a market-leading provider of must have information, largely on subscription or a repeat basis," said analyst Paul Richards.
Numis has a target price of 162p against a current market price of 106p.