Vela Technologies Regulatory News (VELA)

17 Aug 2009 07:00



Asia Digital Holdings plc

("Asia Digital" or "the Group")

Trading Update

Asia Digital Holdings plc (AIM: ADH.L), an independent online marketing group, is pleased to announce the following trading update for the six months to 30 June 2009. It is expected that the Group will announce its interim results for the six month period to 30 June 2009 on Tuesday, 29 September 2009.

The Group operates three distinct Internet advertising businesses within Asia, Australia and New Zealand. These businesses cover digital advertising strategy, planning and execution using predominantly banner display advertising and search engine marketing. The underlying focus of all Group operations is to deliver a demonstrable return for advertisers from their digital budgets.

The Group is pleased to report material growth in its Asian operation and that overall Group trading over the period has shown a steadily reducing EBITDA loss on a monthly basis. The Board now expects to achieve positive Group EBITDA within Q4 2009 on a month by month basis. 

Improved performance has been largely driven by the strong growth in the new Asian operations that were launched in India and Singapore in the first half of 2007. By servicing the embryonic digital advertising sector, these businesses have grown steadily despite the backdrop of global recession. Based on unaudited figures, Asia represents 34% of Group sales (15.8% in H1 2008) and 39% of Group gross profit in the first half of 2009 (16.6% in H1 2008).

Over the first half of the year, the more mature Australian business, launched in the first half of 2003, has seen a small adverse impact in trading due to recessionary pressures despite remaining consistently profitable and the largest part of the Group. With no key client losses, the Group expects to see a return to growth in Australia as the economic situation improves. Furthermore, the Australian business has launched a small operation in New Zealand and initial results are very encouraging.

In addition, the Group has made material savings in operating company and holding company central costs in the first half of the year and these will continue in the second half.

Commenting on the trading update, Adrian Moss, Chief Executive Officer of Asia Digital Holdings, said: "We are pleased with the growth in Asia and, as a result of this and cost savings made, are confident of achieving monthly EBITDA positive trading in Q4. We remain excited by the material opportunities that the region presents, Asia is still at an early stage in advertiser adoption of the Internet medium and there are more Internet users in the region than anywhere else in the world. Asia Digital is in a position to progress and benefit from the early phase of advertiser adoption and beyond." 

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