Mporium Group plc (AIM: MPM), the technology firm delivering event-driven marketing, announces an update on trading during the first quarter of the financial year.
- Outstanding growth following introduction of new business division, MporiumX
- Significant progress in monetisation of Allay's consumer claims opportunity
- Total revenues booked exceed £5.4m, with MporiumX accounting for 95%
- Reiteration of EBITDA break-even target during 2019
- Trading in line with management's expectations
The Company has experienced significant growth driven principally by the introduction of its new business division, MporiumX. Notably, the Company has announced a contract and subsequent contract expansion between MporiumX and a leading global sports media business, in addition to a transformational deal to become the exclusive supplier of customer acquisition and lead generation for Allay.
Trading continues to be pleasing and in-line with expectations. As an indicator of the step change undertaken by the business during the course of 2019, revenues booked during to the end of February 2019 exceeded £5.4m, of which the vast majority was business placed through MporiumX, and Mporium's Agency division showed a year-on-year increase of over 85%. The Company has a revolving working capital facility in place to support current strong growth expectations.
Significant progress has been made in the monetisation of Allay's consumer claims opportunity. MporiumX has seen growth in billed revenues during the first five weeks of operation and revenues are expected to increase materially over the coming months. In addition, IMPACT has already been deployed across several areas for performance marketing and lead generation, particularly on behalf of sports rights holders. The overall target is for MporiumX to achieve double-digit gross margins on lead generation.
In the Agency division, implementation of the IMPACT technology continues to grow. The division is firmly established within leading agency groups and is also experiencing significant traction outside the traditional agency roster in areas such as consultancy and recruitment. The gross margin delivered has been commensurate with previous period averages.
The Company reiterates its target of EBITDA break-even during 2019, encouraged by greater than expected revenue growth in MporiumX. One critical underlying growth driver is the strong demand for lead generation within the consumer regulation sector. Mporium expects this growth to accelerate as a result of increasing regulation, consumer awareness and prescriptive compensation across many verticals. In addition, growth in the MporiumX division is also driven by lead generation for sports rights holders and additional targets include sectors such gambling and real estate.
Adoption of the IMPACT technology platform among our Agency clients is growing and is also expected to contribute significantly to the 2019 results. The rollout of an IMPACT self-serve solution for agencies is expected to significantly improve implementation and profitability of this business over the coming years.
Fully audited results for the financial year ended 31 December 2018 (which will not include the transformational growth of MporiumX) are expected to be announced in May.
CEO, Nelius De Groot, commented:
"This has been a transformational period for Mporium and we face the year ahead with increased optimism."
To learn more about Mporium, see the latest company presentation here: