In This Article:
Release Date: April 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ebiquity PLC (FRA:YO4) has a strong recurring revenue model with good forward visibility, supported by low customer churn.
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The company is undergoing a cultural and operational reinvigoration under new leadership, focusing on profitability and operational efficiencies.
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Ebiquity's AI-driven solutions and proprietary data analytics tools set it apart in the industry, enhancing service delivery and client value.
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The company achieved significant growth in marketing effectiveness, delivering a 13.4% increase driven by new client wins and expanded scope with existing clients.
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Ebiquity's global presence and local expertise allow it to serve over 75 of the top 100 global brand advertisers, providing a competitive advantage in the market.
Negative Points
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Ebiquity PLC (FRA:YO4) experienced a revenue decline of 4.3% compared to 2023, primarily due to reductions in media performance and media management service lines.
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The company's adjusted operating profit decreased from 12 million in 2024 to 7.9 million, with a decline in profit margin from 15% to 10.3%.
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Revenue in North America and APAC saw significant declines of 7.8% and 13.2% respectively, impacted by reduced media performance scope and competitive pressures.
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The company faced a statutory loss of 3.6 million, although this was an improvement compared to 2023.
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Ebiquity's net assets reduced by 6 million during the year, and there was a decline in lease liabilities and contingent consideration liabilities.
Q & A Highlights
Q: Can you elaborate on the revenue decline in 2024 and the areas where growth was observed? A: The revenue for 2024 was 76.8 million, a decrease of 4.3% from 2023. This decline was primarily due to reductions in media performance and media management service lines, which saw declines of 2.8 million and 2 million, respectively. However, there was growth in marketing effectiveness by 1.2 million and modest growth in contract compliance by 0.1 million. (CEO)
Q: How did Ebiquity manage costs despite the revenue shortfall? A: We managed our costs effectively, with staff costs increasing by just over 1% despite inflationary pressures, and other operating expenses also rising by just over 1%. This tight cost control resulted in an adjusted operating profit of 7.9 million, down from 12 million in 2024, with an adjusted profit margin of 10.3%. (CFO)
Q: What were the geographic revenue trends for Ebiquity in 2024? A: The UK and Ireland remained consistent with revenue broadly flat at 32.2 million. Continental Europe saw a 4.4% decrease to 21.7 million, North America experienced a 7.8% decline to 16.1 million, and APAC saw the steepest drop with revenue down 13.2% to 6.7 million. (CEO)