Ebiquity anticipates its operating profit to be lower than market expectations due to slowdown in the Advertising Intelligence practice, continued underperformance of the US Digital Analytics practice and revenue delays in Media practice opportunities in Germany.
Despite the challenges in the US and Germany, the Media, Analytics and Tech practices (the retained business following the disposal of the Advertising Intelligence business) is progressing well in the UK and Ireland, French markets and others, with overall revenue growth in line with expectations at around 8%. A global multi-year assignment across VW Group and the appointment as a global analytics partner to Nestle are encouraging wins. Continued investment in these practices lowers management’s expectations with regard to the operating profit.
The continued underperformance of the Advertising Intelligence practice is on account of the uncertainties around the proposed disposal. The closure of this disposal will allow Ebiquity to focus on strengthening its core Media, Analytics and Tech practices.
The company’s net debt position is expected to improve due to CMA’s final clearance of the sale of the Advertising Intelligence business and the subsequent receipt of sale proceeds expected around the year end.