CORRECT: Digital Globe Services Profit Down But 2nd Half Improves

(Correcting dividend information to include previous year's payout.)

LONDON (Alliance News) - Online advertising company Digital Globe Services Ltd on Monday said its pretax profit fell in the financial year to the end of June but the group said its revenue was in line with expectations and saw an acceleration in the second half.

The company said its pretax profit for the year to June 30 was USD662,570, down from USD3.8 million a year earlier, primarily as a result of the company lead generation costs nearly doubling, as the majority of its other costs remained broadly flat.

Digital Globe said its revenue for the year was up to USD40.3 million from USD38.9 million, in line with market expectations, and it said its revenue in the second half improved to hit a record level for a six-month period. It added the second half also saw an improvement in its gross margin.

The company said it will pay a final dividend of 4.10 US cents per share, compared to 3.60 cents a year earlier and, according to the company, 15% ahead of market expectations. It did not pay an interim dividend, so its full-year dividend fell to the 4.10 cents from 9.8 cents a year earlier. It also will launch a USD500,000 share buyback, subject to a floor of 50.00 pence per share.

Shares in the company were up 6.9% to 56.13 pence Monday.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

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