European performance marketing agency NetBooster has announced improved profitability in its second-quarter financials for 2014.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose from €100,000 in Q2 2013 to €1 million in the same quarter this year. Gross margin held steady at €8.6 million year on year.
NetBooster put the hike in profits down to a streamlining of its business and several large client wins, including Peugeot Citroen, Marin and Office Depot. The restructuring also extended to the agency’s client base where it let a number of its less profitable advertisers go.
Casting these clients adrift had a detrimental effect on NetBooster’s gross margin though, which is why no year-on-year growth was recorded by the agency in this part of its balance sheet for Q2 2014.
There is still a small amount of reorganisation left to complete in the group as a whole. This will see the use of the agency’s positive cash flow to squeeze out Guava’s remaining 9.5% shareholding before delisting from the Danish entity.
Denmark-based Guava sold a 90.49% stake in its company to NetBooster four years ago and it has been going through a rebrand to the NetBooster name since.
Tim Ringel, CEO of NetBooster, spoke of the need to build on the profitability from the second quarter to bolster its roster of clients for the rest of the year through the recently announced data department.
“Our goal for the second half of 2014 and the coming quarters, is to leverage this profitability and keep growing our gross margin with new landmark clients in all product segments but especially in our Data and Technology Consultancy offering,” he commented.