Pure Profile sees half year losses widen after ‘challenging and transformational’ period

Online survey platform Pureprofile reported a tripling of losses in the financial year’s first six months, the company announced in its half-year results released to the ASX this morning.

In the first market announcement since founder Paul Chan left the business, the company reported a collapse in its bottom line with losses before income tax benefit climbing to $10.3m, from $2.2m in the corresponding period last year. Total comprehensive income for the half-year attributable to the owners of Pureprofile was -$8.6m, compared to -$1.8m the year prior.

Across the company’s three major business lines, the data and insights business was the bright spot with a 23% increase in revenue to $8.2m, however media revenues were down 19% to $9.1m while the lead generation operations fell 23% to $11.1m.

Describing the period as ‘challenging and transformational’, the company attributed much of the losses to a failure to integrate the Cohort business acquired in November 2016.

Costs also increased 8% to $12.4m over the corresponding period, with management attributing this to “the duplication of key cost items across the acquired business”.

Pureprofile’s business model (Click to enlarge) Source: ASX 

“Following a challenging first half, we stand at the beginning of a very exciting future at Pureprofile,” said CEO Nic Jones in a media statement.

“As Content Creators’ and Distributors’ paths to monetisation become further challenged, as users demand real value for the data and Brands look for new ways to connect with customers, Pureproflie is ready to connect them together and increase value for all parties.”

The company reported revenue of $28.3m and underlying EBITDA [earnings before interest, tax, depreciation and amortisation] excluding one-off expenses relating to restructuring and the impairment of intangible assets and disposal of brand names relating to Cohort of $1.3m. EBITDA was reported as $0.1m.

The company is currently recruiting a new CFO and has promised regular and open communication to the market.

Pureprofile’s underlying EBITDA (Click to enlarge) Source: ASX


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