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An Ebiquity company Interim Presentation Six Months to October 2008.

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Presentation on theme: "An Ebiquity company Interim Presentation Six Months to October 2008."— Presentation transcript:

1 an Ebiquity company Interim Presentation Six Months to October 2008

2 2 A company newly positioned to meet the needs of a new age Welcome to Ebiquity! 1.A new name signals our commitment to data analytics 2.A new on-line interface that brings our technology tools and services together into one powerful program 3.An upgraded advertising monitoring service - Billetts Media Monitoring 4.A new ‘state of the art’ editorial monitoring service - Newslive 2.0 5.A unique go to market strategy ‘Marketing Investment Management’ that combines the strength of our analytics business with the power of our database Our strategic goals have been met:

3 3 The CEO perspective A view from the Boardroom “Marketing, once seen as an expensive luxury, must now become a hygiene factor for my organisation The Marketing Director waxes lyrical about the intangible asset of the brand…but we all have to clearly demonstrate what that investment produces in terms of building value in the business. Marketing have constantly hidden behind a fog of measures that are based purely on tactical marketing activity, rather than solid financial metrics.. Our focus must be to develop a standard set of auditable metrics that both the Marketing Director and I understand. Without these, Marketing should realise that I will continue to challenge their budgets” ‘Marketing in 3D’ - Deloitte

4 4 A view from the agencies Looking into the future "Clients won't move in the future unless they get quantitative justification for what they do. We may not like it - creative departments of ad agencies certainly don't - but that's the way the world's going." Martin Sorrell

5 5 Perfectly positioned to help companies address the challenges of the new communications landscape

6 6...a very different recession with a mountain of debt Challenge 1

7 7 Dynamic and complex media landscape Challenge 2 Consumers and their journeys have become more complex and less stereotyped Marketing and media planning has been slow to change

8 8 Multi dimensional environment calls for sophisticated analytics The common currency is data Consolidated data analytics crucial to delivering inter-related insights and effective ROI Challenge 3 CREATIVE PR EVENTS CRM/e-CRM SPONSORSHIP DIGITAL MEDIA DIGITAL CREATIVE MEDIA CLIENT

9 9 How can I deliver more for less? ROI just became a lot tougher Ensuring that every last penny is maximised is a pre-requisite Challenge 4

10 10 SALES PriceNPDRangeDistributionQualityCompetitorEconomic -ve/+ve PR WeatherSeasonality Consumer trend SponsorshipOnlineOutdoorPressRadioTVPromotion Product Marketing External Complex data sources drive key decisions

11 11 Data landscaping Calls for a new approach to communication planning Econometrics Effectiveness Planning Media Testing ‘Pre-flight’ check Media Audit Learn Promotional Strategy Learn Additional services

12 12 An essential first step to answering key questions Are more people buying the brand? How do purchasing habits vary by region? Are people buying more of the brand? How does advertising influence Loyalty? Data landscaping

13 13 Proprietory tools to support better decision making Online tools

14 14 LOWER QUALITYHIGHER QUALITYNORM Track your own - and competitors’ - activity in real-time Online tools Billetts Media Monitoring

15 15 Desktop access to international results all in one place Dashboard delivery

16 16 People, process, data, knowledge, results People & Experience – 200 media professionals operate across an international network, with our senior team offering an average of 20 years experience in each market. Processes – uniquely developed audit process and methodology is acknowledged globally as an effective yet simple to understand tool to enable advertisers to manage their media effectively in what can be a complex area of business. Data – the leading audit pools in every sector. Unlike our competitors the panel aspect of the methodology for comparing quality has access to 100% of local market data to ensure relevant comparisons Media specialists – we have the products and services to help you at every stage of the communication process Results Driven – we approach each client problem on its own merit and apply our tools processes and expertise with client objectives foremost. A unique ability to meet a growing demand

17 an Ebiquity company The story so far…..

18 18 Two complementary divisions What we do Analytics Division Platform Division Media Auditing and Optimisation Marketing Effectiveness Ad Monitoring News Monitoring Publisher Services

19 19...but weak economy has a silver lining! A story of two parts Analytics Division Platform Division Strong growth in a market in which ROI and value are ‘mission critical’ Weaker sales from those companies for whom Ad Monitoring is not ‘mission critical’. Newslive is work in progress but early signs are promising

20 20 Strong growth with limited competition Analytics Division Billetts ‘Marketing Investment Management’ provides ‘best practice’ approach to media and marketing investment Billetts name - strongest sector specialist Largest media data base with proprietary analytics Continuing significant growth from international companies Limited competition US office growing in strength and reputation Germany, Spain and Nordics will strengthen international offering

21 21 Advertising Monitoring less strong as economy bites Platform Division Successful launch of ‘vertical strategy’ Few premium pricing opportunities Renewal rates under pressure as companies for whom Ad Monitoring is not mission critical suspend service Growth drivers –multi-geography monitoring –Product integration with analytics clients as part of ‘Marketing Investment Management’

22 22 Newslive - work in progress but good start Platform Division Weak economy means reputation monitoring increasingly mission critical But more price competitive than before Successful launch of ‘best in class’ platform - September Trials phase successfully completed Loss making in 2008/9 Full impact in 2009/10

23 23 Six months to October 2008 Financials Financial Summary

24 24 Revenue Oct 08Oct 07YOYApr 08 All numbers in £’000s 6m %12m Analytics5,7175,4675%11,310 Platform2,8752,935(2%)5,910 Total8,5928,4022%17,220

25 25 Gross Margin Oct 08Oct 07YOYApr 08 6m %12m Gross profit Analytics2,8922,6469%5,541 Platform1,5201,738(13%)3,418 Total4,4124,3841%8,959 Gross margin Analytics51%48%6%49% Platform53%59%(10%)58% Total51%52%(2%)52%

26 26 Underlying Operating Profit Oct 08Oct 07YOYApr 08 6m %12m Analytics1,20483644%1,857 Platform(228)295(177%)419 Central(55)(69)(20%)(259) Underlying operating profit9211,063(13%)2,017 Highlighted items - non cash(333)(1,690)83%(1,835) - cash(161)(463)65%(1,305) Reporting operating profit427(1,090)139%(1,123)

27 27 Profit Before Tax & EPS Oct 08Oct 07YOYApr 08 6m %12m Underlying operating profit9211063(13%)2,017 Highlighted items(494)(2,153)(77%)(3,140) Reported operating profit427(1,090)139%(1,123) Net finance costs(131)(127)(3%)(250) Profit before tax296(1,217)124%(1,372) EPS (diluted, in pence) Underlying1.902.70(30%)4.39 Reported0.14(3.22)104%(4.00)

28 28 Net Debt Oct 08Oct 07Apr 08 Cash1,2771,2861,687 Gross debt4,0004,0383,751 Net debt2,7232,7522,064 Unutilised cash facility1,0004,100

29 29 A unique offering in a growing market Outlook Media and Marketing analytics key driver of growth International growth likely to continue to accelerate with strong pipeline Advertising Monitoring likely to continue to show some weakness Growing impact of Newslive as revenues begin to scale although loss making in year one Continue to be confident that the Company is well positioned for future growth

30 30 The Future Looks Bright We help our clients to save money, make them more efficient and help them to make better informed decisions Our services are even more valid during economic uncertainty We see big international opportunities with limited credible competition We are at the beginning of our journey – our strategy is set, and we have delivered our promises We are conservatively financed We control our costs tightly We are in a position to look at well priced acquisition opportunities

31 an Ebiquity company The Registry Royal Mint Court London EC3N 4QN Tel. +44 (0) 20 7650 9600 Fax. +44 (0) 20 7650 9650 www.ebiquity.com

32 an Ebiquity company Financial Appendices

33 33 Highlighted items Oct 08Oct 07Apr 08 6m 12m Recurring Share based expenses1524599 Amortisation of purchased intangibles181188369 333233468 Non recurring Write down of development asset-1,457 Property costs-246458 Management restructuring161127521 Other-90236 1611,9202,672 Total4942,1533,140

34 34 Balance sheet Oct 08Oct 07Apr 08 Non current assets13,84113,28413,606 Current assetsTrade debtors3,1943,4963,052 Accrued income2,0831,6981,904 Cash1,2771,2861,687 Other853466797 7,4076,9467,440 Current liabilitiesLoans2,4002,0381,951 Deferred income2,9272,5622,830 Other4,4003,3754,528 9,7277,9759,309 Non current liabilitiesLoans1,6002,0001,800 Deferred tax615720667 Other3912465 2,2542,8442,532 Net assets9,2679,4119,205

35 35 Cashflow Oct 08Oct 07 6m Cash generated from operations376430 Finance expense(147)(164) Income taxes paid(118)167 Net cash from operating activities111433 Investing activities Purchase of PPE(341)(140) Capitalised development costs(454)(211) Finance income1630 (779)(321) Financing activities New borrowings50062 Loan repayments(251)(1,019) 249(957) Net decrease in cash(419)(845)


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