Pureprofile posts $5.37m loss in half-year results and notes ‘ongoing challenges’ with ad market

Consumer research, data and insights company Pureprofile has revealed a loss of $5.368m for the six months to 31 December, 2019.

Throughout the six months, the group said it had realised savings by simplifying the business, an executive team restructure, automation, technology rationalisation and the relocation of its UK office, however noted it was facing “ongoing challenges within the advertising industry”.

Pureprofile’s half-year results (Click to enlarge)

The business’ cost-reducing exercises saved $1.8m.

This half-year’s result was a slight improvement from the prior corresponding period when the group posted a $6.283m loss for the first half of the 2019 financial year.

Revenue from ordinary activities of $13.162m was down 44.6% on last half-year. When just looking at business units which are continuing this financial year, revenue dropped 4.8%. Earnings before interest, tax, depreciation and amortisation (EBITDA) was up 141.5% to $655,341.

Pureprofile’s performance by business unit (Click to enlarge)

The revenue drop was primarily attributed to the sale of business units, including the ANZ Performance unit, which had contributed $4.529m in revenue during the half-year to 31 December, 2018. The Medaa Trading and Adsparc businesses were also disposed of, and had previously contributed $5.405m.

The group said its data and insights business had improved 6%, with revenue of $10.048m, but noted an impairment of goodwill for the media business of approximately $2.1 to reflect a decline in its business amidst “ongoing challenges within the advertising industry”.

The media business unit’s revenue was down from $2.945m to $2.185m.

(Click to enlarge)

Pureprofile’s non-current liabilities include borrowings of $21.591m.

Looking ahead, Pureprofile said: “The group continues to create a simplified, sustainable business by focusing on growing the core Data & Insights business. This is being executed by building greater sales capability in ANZ. The group will also continue to build on the momentum in the UK experienced over the past couple of years with encouraging results seen in the improvement of the UL Performance business, which is expecting further growth in Q3 FY2020. This, coupled with the ongoing identification of opportunities to reduce the cost base through automation and further rationalisation is expected to have a growing, positive impact on the group’s bottom line,” it said in an announcement to the ASX.

No dividend was paid to shareholders during the reported financial period.

The company has battled numerous financial and positioning hurdles over the past couple of years.

Pureprofile’s plan (Click to enlarge)

Most recently, in August last year, CEO Nic Jones resigned as the group posted a $10.7m loss to the ASX and announced amendments to its debt facilities.

Jones had previously said it needs to get better at telling the market what it does, noting it was looking to “join the circle” between advertisers, publishers and consumers.

In the opening slide of its half-year presentation, Pure Profile noted: “We connect consumers to more if what they want, and our clients to more of the people that matter.”


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