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dotDigital on track to meet full-year expectations after "transformational" first half

“The three strategic pillars for growth continue to prove highly effective, delivering 25% revenue growth including 17% organic revenue growth, complemented this year by the Comapi acquisition in November,” finnCap said

DotDigital
"We continue to expect improvement in FY19 as the mobile technology gains scale," said finnCap

Marketing automation platform operator dotdigital Group PLC (LON:DOTD) is on course to meet full-year expectations after a “transformational” first half of the fiscal year.

Revenue in the six months to December 31, 2017, surged to £18.77mln from £14.98mln the year before. Organic revenue grew 17% to £17.5mln from £15mln the previous year.

READ: dotdigital's growth surge continues

Revenue from the US region was up roughly 44% to US$3.3mln from US$2.3mln the year before, driven by channel partners and system integrators for Magento and Shopify.

The expansion of the Asia-Pacific sales team paid off, with revenue from the region up around 75% to A$0.9mln from A$0.5mln in the first half of the previous financial year.

Adjusted underlying earnings (EBITDA) rose 8% to £5.7mln from £5.3mln in the same period of 2016, while profit before tax advanced to £4.35mln from £4.28mln.

After expenditure of £13.1mln, largely due to the strategic acquisition of Comapi for a cash consideration of £10.7mln, the net cash balance stood at £10.5mln at the end of 2017.

"These results show dotdigital is making good progress. We are expanding and strengthening the platform which underpins our growth while continuing to grow our presence in international markets. We're also delighted to have further cemented our partnerships with Magento, Shopify, Microsoft and our other partners, which demonstrates their trust in our ability to drive revenue for their customers through our platform,” said Milan Patel, the chief executive officer of dotdigital.

“As our offering becomes broader and more integrated, we continue to expand the quality and breadth of data on which our customers can draw when devising their campaigns. These insights are a vital component in creating personalised and relevant campaigns which increases customer engagement and ultimately ROI [return on investment] for marketers. We're working hard to ensure dotdigital continues to innovate in this area and we look forward to an exciting second half of the year," he added.

finnCap retains 115p target price

The company's joint broker, finnCap, reiterated its 115p price target after a set of interims that was in line with the January trading update.

“The three strategic pillars for growth continue to prove highly effective, delivering 25% revenue growth including 17% organic revenue growth, complemented this year by the Comapi acquisition in November,” the broker said.

“Geographic expansion, increasing numbers of strong partnerships, and product innovation continue to drive the strong growth as the group excels at current operations and demonstrates the strength of its path to become an omni-channel data-led customer behaviour and analysis platform,” it added.

In late afternoon trading, dotdigital shares were trading at 85.9p, down 9.6% on Monday's close.

 -- Updates share price --

Quick facts: Dotdigital Group PLC

Price: 95 GBX

AIM:DOTD
Market: AIM
Market Cap: £283.13 m
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