Digital ad firm Matomy has recorded a significant rise in net profit for the first half of 2014 as demand for its mobile and video services soared.
The company’s H1 financials detail a $12.6 million pre-tax gain between January-June, a four-fold rise from the $3.2 million in 2013. Matomy’s performance was boosted by revenue growing 11% year on year to $107.6 million.
Earnings in the Americas represented most of the firm’s total revenue as H1 business rose by $14.4 million to $65.9 million. Europe on the other hand posted a much less promising set of results. Matomy saw a $4.4 million decline in revenue from the European market, with the slump attributed to the ongoing recovery of Spain.
The results come in light of the company’s invitation to trade on the London Stock Exchange last month. A previous attempt at trading was lodged in March, but premium listing rules which dictate that 25% of the shares in issue had to be held by investors within Europe prevented the move.
Mobile and video propping up search
Client demand for solutions connected to the mobile and video marketing segments appears to be at a peak, as Matomy’s results proved.
The company prides itself on being able to monetise the activity of publishers by enabling them to sell ad space on their sites. Advertisers benefit from this service by using Matomy’s inventory to promote their offerings. As numerous studies have highlighted this year, it seems spend on mobile and video placements is showing few signs of slowing down.
Based in Israel, the company saw revenue from its display and video wing grow 18% year on year to $59.7 million. Mobile chipped in with a much lower total, of $11.3 million, but revenue doubled compared to the $5.1 million earned during H1 2013.
An increase in earnings across these rapidly growing areas helped offset a huge 62% decline in revenue from search marketing. Matomy generated $4.7 million from its PPC business in the first half months of the year, down from $7.7 million in 2013.
After heeding the signs, the company has announced plans to dedicate more resources to mobile and video as advertisers look into new ways of getting their messages across.