Ebiquity Plc · LSE:EBQ
Ebiquity — H1 2019 Earnings Presentation
29 slides from Ebiquity's earnings presentation, Sep 26, 2019
Slide 1: Interim Results 6 Months ended 30 June 2019
Interim Results 6 Months ended 30 June 2019 26 September 2019
Slide 2: Interim Results for 2019 agenda
Interim Results for 2019 1. Highlights 2. Financial Overview 3. Strategic Opportunity 4. Summary 5. Appendix 2 Interim Results – June 2019
Slide 3: Highlights
Highlights 3 Interim Results – June 2019
Slide 4: Highlights
HIGHLIGHTS • Transitional period following sale of Advertising Intelligence business completed on 2 January 2019 • Group revenue maintained at £35m • Media revenue down 1% to £28m; Analytics & Tech revenue up 4% to £8m • Underlying operating profit of £3.4m in line with expectations • Tight control
Slide 5: During H1 2019 we added several new clients to our roster
FINANCIAL OVERVIEW During H1 2019 we added several new clients to our roster European Global airline digital group brand 5 Interim Results – June 2019
Slide 6: Financial Overview
Financial Overview 6 Interim Results – June 2019
Slide 7: Headline Results
FINANCIAL OVERVIEW Headline Results Headlines 2019 2018 Change £m £m £m Revenue 35.3 35.3 (0.0) Underlying Operating Profit 3.4 3.7 (0.2) Underlying Profit before Tax 2.9 3.0 (0.1) Underlying Earnings Per Share (p) 2.6p 2.4p 0.2p Statutory (Loss)/Profit before Tax (4.2) 2.2 (6.4) Statutory Earnings
Slide 8: Group Income Statement Summary
FINANCIAL OVERVIEW Group Income Statement Summary Income Statement 2019 2018 Change £m £m £m % Revenue 35.3 35.3 (0.0) (0%) Operating Expenses 32.0 31.7 0.3 1% Operating Profit 3.4 3.7 (0.3) (8%) Operating Margin 10% 10% Finance Costs 0.5 0.6 (0.1) (24%) Profit before Tax 2.9 3.0 (0.1) (5%) EPS (p)
Slide 9: Balance Sheet Summary
FINANCIAL OVERVIEW Balance Sheet Summary 30 June 31 Dec • Goodwill and intangibles reduced by £5.9m 2019 2018 due to impairment of Stratigent £m £m • IFRS 16 adoption: “Right of use” asset of £9.0m in non-current assets and £9.8m Goodwill 29.7 34.8 lease liability in non-current liabilities Other in
Slide 10: Cash Flow Statement
FINANCIAL OVERVIEW Cash Flow Statement • Cash outflow from operations of £1.5m including highlighted items Cash Flow (includes highlighted items) 2019 2018 £m £m • Underlying cash inflow from operations was £0.6m Cash generated from operations (1.5) 6.2 • Investing activities include: Interest and T
Slide 11: Revenue by segment
FINANCIAL OVERVIEW Revenue by segment • Media includes: o Media Performance & Revenue 2019 2018 Change Management fell by 3% o Contract Compliance up £m £m £m £m by 15% • Analytics & Tech includes: Media 27.7 28.0 (0.3) (1%) o Advanced Analytics up by 2% Analytics and 7.6 7.3 0.3 4% o AdTech up by 1
Slide 12: Operating Profit by segment
FINANCIAL OVERVIEW Operating Profit by segment Operating Profit Operating Profit 2019 2018 Change Margin % £m £m £m £m 2019 2018 Media 6.7 7.2 (0.5) (7%) 24% 26% Analytics and Tech 0.7 0.4 0.3 57% 9% 6% Unallocated costs (4.0) (4.0) 0.0 0% Total 3.4 3.7 (0.3) (8%) 10% 10% Underlying figures shown fo
Slide 13: Highlighted Items
FINANCIAL OVERVIEW Highlighted Items • £5.9m charge for the write down of Highlighted Items – Continuing Operations 2019 2018 goodwill and intangible balances £m £m relating to Stratigent LLC Share based payments 0.1 0.2 • £0.7 m charge relating to London office relocation including: Impairment of g
Slide 14: Strategic Opportunity
Strategic Opportunity 14 Interim Results – June 2019
Slide 15: We go to market with three practices
STRATEGIC OPPORTUNITY We go to market with three practices Practices Media Analytics Tech Media Management AdTech Services Media Performance Advanced Analytics MarTech Contract Compliance Reporting Media Analytics & Tech segments £28m revenue £8m revenue 15 Interim Results – June 2019
Slide 16: Our primary differentiators
STRATEGIC OPPORTUNITY Our primary differentiators: a clear leadership position in core services, reach among top advertisers, data, and our analytics platform Key differentiators Scale & Reach Capabilities Market Leadership Top Global Brands Data Analytics A market-leading World’s Largest Independen
Slide 17: Our aim is to become the trusted advisors to the CMO
STRATEGIC OPPORTUNITY Our aim is to become the trusted advisors to the CMO Our Ambition CEO CFO CTO CMO 17 Interim Results – June 2019
Slide 18: Enhancing our core capability in marketing and media data analytics
STRATEGIC OPPORTUNITY We are enhancing our core capability in marketing and media data analytics and continue building layers on top Consulting Client Focus Tools • Insights & Consulting • Cross-selling & internationalising accounts Our Core Marketing & • Media & Marketing Data Media Data Tool Ecosy
Slide 19: Standardising and scaling methodologies and tools in Media practice
STRATEGIC OPPORTUNITY During 2019 we continued investing in standardising and scaling our methodologies and tools in our Media practice Ebiquity’s Media Tool Suite Data Capture Data Processing Data Analysis Reporting Digital Sync™ Benchmarking TV TheRack™ Benchmarking Connect™ Savings ValueTrack™ Tr
Slide 20: Defining a global strategic roadmap for in-housing digital media
CASE STUDY: ADTECH Defining a global strategic roadmap for in-housing digital media Global TMT Group Combined with a superb bench of talented expert advisors, Ebiquity have delivered relevant thought leadership, and have enabled us to drive meaningful transformation of our marketing activities. Glob
Slide 21: Transforming the client-agency partner model globally
CASE STUDY: MEDIA MANAGEMENT Transforming the client-agency partner model globally Ebiquity’s media management team has been with us every step of the way and helped us choose the right roster of agency partners. Bob Rupczynski, SVP Marketing Technology Client Challenge Solution Outcomes • McDonald’
Slide 22: Making the case for long-termism in marketing investment
CASE STUDY: ADVANCED ANALYTICS Making the case for long-termism in marketing investment Ebiquity are key partners in our insight and effectiveness programme. Innovative analytics have helped us change the way we think about marketing, which has ultimately helped us achieve better returns. Ann Consta
Slide 23: Summary
Summary 23 Interim Results – June 2019
Slide 24: Summary
SUMMARY • 2019 is transitional period following AdIntel sale – have focussed on improving profitability and strengthening foundations for future growth • Continued to invest in areas of strategic value: Analytics, Digital, USA • Facing diverging market trends - greater demand from for independent ad
Slide 25: Appendix
Appendix 25 Interim Results – June 2019
Slide 26: Ebiquity is a leading independent marketing and media consultancy
Ebiquity is a leading independent marketing and media consultancy Media Analytics Tech Achieve higher media performance Build evidence-based marketing Design the right technology through best-in-class media programmes rooted in data and ecosystem to drive higher value management and transparency ana
Slide 27: Our services map into all key stages of our clients' media lifecycle
APPENDIX Our services map into all key stages of our clients' media lifecycle Media Media Media Performance Key Media Media Performance Management Advanced Analytics Ebiquity Management Management Contract AdTech MarTech Services Compliance Manage & Design Media Define Evaluate Select Optimise Model
Slide 28: We are a trusted partner of advertiser associations around the world
APPENDIX We are a trusted partner of advertiser associations around the world “In the ANA’s media transparency work, Ebiquity provided the intellectual capital to translate major industry findings into workable business process prescriptions” - Bob Liodice, CEO ANA “Ebiquity has been instrumental in
Slide 29: We work with global brands across a variety of key sectors
APPENDIX We work with global brands across a variety of key sectors AUTO FMCG FINANCE RETAIL & QSR TMT 29 Interim Results – June 2019