LONDON (Alliance News) - Digital advertising platforms firm Crossrider PLC on Tuesday said its pretax loss widened in 2015 due to impairment charges it booked, offsetting a significant growth in revenue and improvement in gross margins.
Crossrider's pretax loss for the year to the end of December was USD14.7 million, compared to a USD7.5 million loss a year earlier, despite revenue rising to USD84.6 million from USD71.1 million.
This rise in revenue, however, was more than offset by the group booking USD9.1 million in impairment charges associated with the carrying value of its web apps platform, along with much higher selling and marketing costs.
While its gross margin improved significantly in the year, Crossrider's operating margin suffered from the higher selling and marketing costs, lower-margin mobile sales doubling, and a decline in revenue from its higher-margin web apps business.
"Whilst not without its challenges, primarily at the wider industry level, 2015 was a progressive year for Crossrider in which it successfully focussed resources on mobile platforms and delivered strong margins in line with expectations," said Don Elgie, Crossrider's executive chairman.
"The investments made during the year in mobile and video reflect Crossrider's strengths as a technology company, and the board looks forward to the future with confidence," he added.
Crossrider shares were up 1.2% to 37.95 pence on Tuesday morning.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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