NEWS22 May 2020

Ebiquity 2019 revenue down

Financials Media News UK

UK – Media and marketing consultancy Ebiquity’s revenue decreased by 1% in 2019, according to the company’s preliminary full-year financial results.

Revenue for the year ending 31st December was £68.7m, down from £69.4m in 2018. Underlying operating profit for the year was £6.2m, which the company said was in line with its expectations.

Ebiquity reduced its net debt to £5.6m at the end of 2019, compared with £27.5m the previous year. The firm attributed the reduction to the completion of the sale of its ad intel unit to Nielsen in January 2019.

Revenue from the media segment, its largest division, increased 1% year-on-year, while total revenue from analytics and tech declined by 7%. 

The company said excluding Stratigent, its loss-making business that was wound down in September, group revenue grew by 2% like-for-like.  

Reductions to marketing spend due to Covid-19 have had an impact on Ebiquity’s revenue in some sectors, the company said. It has taken cost reduction measures including temporary salary reductions for the board and some staff, and the use of furloughing schemes in some countries. It is also deferring the payment of dividends.

Nick Waters, formerly chief executive of UK and Ireland at Dentsu Aegis Network, is due to take over as chief executive at Ebiquity with effect from 1st July.

Alan Newman, interim chief executive, said: “Ebiquity made good progress in 2019 and our results met the board’s profit expectations, with our high potential consulting practices growing strongly. The company continues to have a strong liquidity position supported by recent cash conservation measures. Trading in the first quarter of 2020 was as expected.

“Our business in 2020 remains difficult to predict with confidence and we continue to withhold guidance. We will continue to monitor economic conditions closely and adopt a prudent approach to our cost base as we and our clients adapt to, and emerge from the global crisis.”