Ebiquity

LN: EBQ

Market Cap£75m

Last Close 64.5p

Ebiquity is a world leader in media investment analysis, harnessing data to provide independent, fact-based advice, enabling brand owners to perfect media investment decisions and improve business outcomes.

Investment summary

Ebiquity’s FY21 results showed revenues up 13% and a much-improved operating profit performance at £4.7m (FY20: loss of £0.3m). The group has now completed on two acquisitions, which grow the US revenue base and increase automation, improving scalability. Media Management (initial consideration: £6.1m) lifts the group’s presence with larger US corporates, while the purchase of Swedish-based MediaPath for £15.5m adds a blue-chip international client roster including AB InBev, Disney and Heineken. Importantly, it also brings a proprietary technology platform that should bring significant benefits to the wider group. Management expects the deals to be earnings enhancing in FY22.

Y/E Dec	Revenue (£m)	EBITDA (£m)	PBT (£m)	EPS (fd) (p)	P/E (x)	P/CF (x)
2020A	55.9	1.8	(1.3)	(1.9)	N/A	147.0
2021A	63.1	6.8	4.1	2.7	23.9	6.7
2022E	N/A	N/A	N/A	N/A	N/A	N/A
2023E	N/A	N/A	N/A	N/A	N/A	N/A

Industry outlook

Google’s withdrawal of support for third-party cookies from FY23 and increased regulatory scrutiny of privacy considerations mean that the digital media ecosystem is both extremely complex and in transition. The need for advertisers to be guided to navigate, whilst optimising and benchmarking their spend, is unlikely to diminish.

Last updated on 17/05/2022