The mobile advertising group continues its strong performance in H1 17.
Companies: Nexxen International Ltd.
Taptica (LON: TAP) Interims for the six months to 30 June have been announced today, with the market reacting favourably to the positive results.
The Group reported a revenue jump of 27% to $65.6m and Gross Profit growth of 45% to $25.8m. Net cash inflow from operating activities also grew to $13.7m from $4.5m in 1H16.
The Group attributed its strong H1 to the increased contribution of its Asia-Pacific operations, while the US remains its strongest market. TAP also opened an office in London during the period.
Gross margins also increased by 5%, with the statement saying:
"[Cost of sales] decreased as a proportion of revenue compared with the prior year due to increased technology efficiency gains, resulting from the improved use of the big data collected thereby significantly improving the gross margins."
Shares in TAP were up 9% in early trading off the back of the results.
Post period, the Group has continued to expand its reach by purchasing US video advertising optimisation company Tremor Videos for $50m.
Taptica expects to have ten global hubs in the next three years, with the aim of "building a business that is truly global in scale."
Management expects growth in-line with expectations for FY17.
The Group trades at a PE ratio of 10x versus the industry median of 12x and has a market cap of c. £215m. TAP shares have grown significantly since the beginning of 2016, with today's price of 375p 500% higher than January 2016's price of 62p per share.