LONDON (Alliance News) - Digital advertising platform provider Crossrider PLC on Tuesday said its pretax loss narrowed slightly in the first half as a sharp rise in revenue was offset by higher costs, though it said its focus on improving margins should generate better second-half profit.
Crossrider said its pretax loss for the half to the end of June was USD2.1 million, compared to the USD2.5 million loss it made a year earlier. The loss came despite the company's revenue surging, up to USD40.8 million from USD26.6 million, as this was offset by costs rising in line with revenue and the ramping up of the company's operations.
The company, which floated in London a year ago, said it saw 62% organic revenue growth from its mobile business in the first half, with its monthly unique users rising 20% in the half. It expects the investments it has made in its technology to drive improved margins in the second half and, therefore, improved mobile profits.
Crossrider said its current trading has been robust and said it is focusing on improving margins. Thanks to that focus, the company now expects its group earnings before interest, taxation, depreciation and amortisation for the full year will be ahead of its current forecasts, though the high-margin strategy and focus on profitable work will mean revenue will be below the market view, it said.
"The first six months of the year has seen organic growth across our platforms, particularly in mobile. The key to being at the cutting edge of our rapidly growing market place is our continued investment in technology, and we are very excited by the recent investment in programmatic media buying and video technology which create the building blocks for future growth," said Koby Menachemi, Crossrider's chief executive.
"Additionally, we continue to search for suitable earnings accretive acquisitions and are evaluating a number of meaningful opportunities," he added.
Shares in Crossrider were down 0.6% to 83.00 pence on Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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