Digital Globe Services, a leading provider of digital marketing solutions for large, consumer-facing organisations, reports record revenues for the year to the end of June.
Revenue increased 19% to $47.8m while revenue from verticals outside of the company's core telecoms and media clients increased to $19.2m (FY15: $15.3m).
Gross margin compression in second half due primarily to increased marketing investment in core business and new verticals, resulting in gross margin for the year of 27.6% (FY15: 32.7%). The group posts a gross profit of $13.2m (FY15: $13.2m).
- Adjusted EBITDA margin of 5.3% (FY15: 7.3%), reflecting investments in core business, technology enhancements and acquisition of on-shore call centre
- Adjusted EBITDA of $2.5m (FY15: $3.0m)
- Underlying adjusted EBITDA of $3.3m before reallocation of $0.8m of revenue reversal
- Net loss of $4.9n driven primarily by non-cash goodwill impairment of $1.4m, write-down of $3.3m of ageing accounts receivables and $0.8m of revenue reversal
Chief executive Jeff Cox said: "This financial year has been characterised by significant investment in both our technology and our people including growing our contact centre agent staff by 20%. Consequently we have recorded our highest ever revenue at $47.8m and increased our revenue from verticals outside of the company's core telecoms and media clients to $19.2M from $15.3M in FY15.
"Furthermore, we are delighted to have won our first major European telecoms customer which we expect to start generating revenue for us in FY17. The consequence of the investments we made this year is a compression in margins causing our Adjusted EBITDA to drop to $2.5m from $3.0m in FY15.
"We expect the progress made in FY16 to continue into FY17 with a recovery in our margins as our investments bear fruit. We are confident in achieving continued growth and a significant increase in profitability in FY17."