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Digital Globe Services' US Growth Drives Up First-Half Profit

Thu, 10th Mar 2016 10:10

LONDON (Alliance News) - Digital Globe Services Ltd on Thursday reported strong trading in the first half of its financial year, with pretax profit driven by strong revenue growth from the online customer acquisition company's core US clients.

Digital Globe Services said its pretax profit for the six-month period to December 31 was USD1.1 million, compared to a loss of USD825,375 for the same period in 2014, after its revenue rose 29% to USD23.7 million from USD18.4 million. For the same period in 2014 the digital marketing company's revenue had not been enough to offset cost of sales and administration expenses.

Digital Globe said the growth in revenue was largely down to stronger sales in its US customer base. Digital Globe said it expanded its partnership with an unnamed "now-largest" telco-satellite video provider. The company delivered core customer revenue at a level that is USD4.1 million greater over the similar period last fiscal year.

Digital Globe said it expects to launch with two major new customers in the US telco and satellite space within the fiscal year.

The company added it will pay an interim dividend of USD0.026 per share. Digital Globe paid no interim dividend the previous financial year.

"We are pleased to confirm that the strong trading momentum from the second half of fiscal 2015 accelerated into the first half of the current financial year, with this period marking our strongest first half performance to date," said Chief Executive Jeff Cox.

"The company has experienced record growth over the twelve-month period, driven by expansion within our existing core customers, the launch of new business offerings and growth into new industry verticals. With our strong balance sheet and healthy profit generation, the board is confident in continued profitable revenue growth," Cox added.

Shares in Digital Globe were up 8.0% at 61.00 pence on Thursday.

By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland