LONDON (Alliance News) - DotDigital Group PLC Tuesday said slower than expected investment mean it will see increased earnings in its current year, but "marginally slower" revenue growth in the following year, as it reported a rise in pretax profit for its first half.
The digital marketing software-as-a-service company reported a rise in pretax profit to GBP3.3 million from GBP2.5 million a year before, as revenue rose to GBP12.6 million from GBP10.0 million, although this was partly offset by a rise in administrative expenses.
DotDigial attributed its profit growth to further investment in building out its Mid and West Africa business and Australia, as well as adding hybrid cloud infrastructure in the US, which it said will help drive growth in the future.
Revenue growth was helped by a focus on winning "higher value clients", along with increasing recurring spend from its existing clients. This led to a rise in the average monthly billing from all clients to GBP525 from GBP400.
"Based on the strong performance at the half year to 31 December 2015, the growing demand for marketing automation, the newly released product features and investment strategy, the board remains confident of delivering strong growth, underlying profitability and increasing shareholder value for this year," said Chief Executive Officer and Chief Financial Officer Milan Patel in a statement.
Shares in DotDigital were down 5.7% at 45.48 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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dotDigital Group (DOTD)