dotdigital Group PLC - London-based online marketing - Warns on slowing growth as reports improved half-year results. For six months that ended December 31, pretax profit rises 21% to GBP8.6 million from GBP7.1 million a year before, on revenue of GBP30.9 million, up 9.5% from GBP28.2 million. Proposes no interim dividend, the same as past years. Instead will continue to conduct a full dividend review at year-end.
Looking ahead, dotdigital notes "unwinding" of customer buying behaviour in post-lockdown environment, as reduced growth in demand for SMS - or mobile text - marketing will hit growth. As such, now expects full-year revenue growth to be slower than previous expectations during the current and future financial years. Expects 7% to 8% full-year revenue growth. Adjusted operating margin was 29% in first half, but dotdigital expects this to narrow to 20% to 22% by the June 30 year-end.
Current stock price: 73.08 pence, down 51% on Thursday
12-month change: down 56%
By Tom Waite; thomaslwaite@alliancenews.com
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dotDigital Group (DOTD)