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Pure Profile to focus on higher margin markets to reverse revenue and profit falls

Troubled ASX listed research and digital advertising company Pure Profile has flagged lower profits and revenue ahead of reporting its 2018 annual results.

In a statement to the stock exchange, Pureprofile said its unaudited revenues for the 2018 financial year had fallen 2% to $52.1m and EBITDA was down 28% from $0.7m to $0.5m from the previous last year’s results.

Pure Profile executive director Andrew Edwards survived a shareholder bid to unseat him following the Cohort acquisition

The figures indicate a weaker revenue performance from the company’s first half figures with second half income being $23.8m as opposed to 28.3m in the financial year’s first six month. EBITDA, however improved $0.4m from the first half’s $0.1m.

In the announcement, the company said the second half’s improved EBITDA reflected management’s focus on selling higher margin services to its strongest markets. At the end of June, Pure Profile announced it was partnering with NewsIQ, News Corp’s US first party data advertising service.

At the time of its first half result announcement in March, Pure Profile’s management said: “Pureprofile is now confident that the Cohort business has been stabilised and all business units are well positioned for a stronger second half.”

The acquisition of digital agency Cohort proved difficult for the company with the company claiming it was misled before it went ahead with the $25m purchase.

In the dispute which followed the acquisition, Pure Profile executive chairman Andrew Edwards survived a shareholder challenge that sought to replace him with Cohort founder Marcelo Ulvert. The two parties settled the matter in March.

Edwards himself stepped up from non-executive chairman to executive chairman late last year shortly before founder and CEO Paul Chan moved aside to become chief innovation officer to be replaced by  Advertising Week Advisory Council chair, Nic Jones in December.

In the ASX announcement, Pure Profile’s management team said it will continue to focus on cost control with the recent appointment of its new CFO.

The company also expects margin improvements through targeted revenue growth following the appointments of former Adroll and ADMA boss Ben Sharp head of revenue and operations and new managing director for the company’s European office.

Pure Profile expects to release its preliminary full-year results in late August 2018 and it will provide a detailed review of its FY2018 results at that time.

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