Shares in market research company System1 Group PLC (AIM:SYS1) rallied 9% higher to 180p in early deals on Thursday after it issued a trading update that showed record revenue growth in its Data business.
In the third quarter to 31 December 2022, Data revenue grew 18% year-on-year to £3.4mln, a quarterly record and representing 55% of third-quarter revenue, System1 said in its statement. Year-to-date Data revenue increased by 31% to £9.6mln.
Meanwhile, the reduction in consultancy revenue narrowed as expected from 46% in the first six months of the year to 21% in the third quarter.
Consequently, total Q3 revenue fell by 4% to £6.2mln. The rate of decline narrowed from 15% in the first half and was 12% in the year to date.
The company's gross profit margin also improved in Q3 compared with the first half, lifting the year-to-date margin to 82.7% from 81.5% at the end of September 2022.