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Pureprofile reports increased revenues and reduced costs in first quarter trading update

Pureprofile has reported increased revenues and continued profit improvements on the back of reduced costs in its first quarter trading statement to the ASX.

The research and consumer data company reported its revenues for the three months of the financial year were $12.9m, up 5.6% on the previous quarter with its data and insights division increasing sales by 29% and the media business unit up 19%.

Nic Jones, Pureprofile CEO: “I have long held the view that we can grow faster in the UK and US”

Pureprofile CEO, Nic Jones, told Mumbrella: “As I said when I joined Pureprofile I knew it was going to be a big challenge and so set out to focus on getting costs under control and getting the right leadership team in place.

“That’s taken some time (and I am naturally an impatient person) but I’m very excited to now have put that team in place across the global business and having resolved the vast majority of our cost issues, it feels like we are ready to start driving the business forward. Indeed our costs in Q1 2019 are $1.3m less than they were in Q1 2018 and it feels like we are pretty close to where we need to be.

“In terms of focus markets, our data and insights business is powering across all markets, plus I have long held the view that we can grow faster in the UK and US which is reflected in our numbers and sales pipeline. I expect to see continued growth in both markets in the coming months including some exciting new partnerships.”

In the announcement, the company reported new US-based projects paper products manufacturer Georgia- Pacific and through the expansion of its relationship with global research agency, House of Brand. In Australia, Pureprofile also booked contracts with Medibank and Qantas Loyalty to provide ongoing market research services.

At the time of the company’s annual report, Jones flagged stabilising Pureprofile’s cost base and expanding revenues as priorities after joining the business last December.

In the ASX announcement, the company did not disclose its earnings, only saying: “The reduction to the company’s cost base, which was undertaken in FY2018, continues to have a significant impact with positive EBITDA for a second consecutive quarter.”

Previously, Pureprofile has not disclosed quarterly figures. Last financial year, the company reported an EBITDA of $0.4m, a fall of 75% over the previous year, on revenues of $52m.

The reduction in the company’s cost base comes after te it disposed of its Sparc Media trading unit to its original management earlier this month and wrote off its disastrous investment in digital agency Cohort a week earlier.

Jones told Mumbrella he does not see the company divesting any more assets, saying: “I’m looking at stability and growth across our business in what is a market facing continuous long-term dramatic change.”

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