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Interim Results

Adgorithms revenues up 80%

03 August 2015 13:27

Adgorithms reports revenues of $12.3m in the six months to the end of June - 80% up on last time.

This growth was driven by the growth of video advertising and other indirect activity.

It said the strong growth achieved can be attributed to the growing number of direct customers using Albert, the company's technology solution. Adjusted COGS increased by $4.5m to $8m (65% of total revenues) for the six month ended 30 June 2015 from $3.5m (52% of total revenues) in the same period last year.

The adjusted COGS in the first half of 2015 exclude non-cash share based compensation of $5,069. The adjusted COGS in the first half of 2014 included serving fees of approximately $611,119, which were added to COGS in H1 2014 to allow for a like for like comparison with H1 2015. The Company started paying such serving fees, associated with market needs that evolved with the growth of the video sector, only during the second half of 2014 and expects to continue paying such fees into the future.

The adjusted operating expenses in the first half of 2015 and the first half of 2014 exclude share base compensation of $6.7 million and $2 million respectively, and $1.2 million of IPO bonuses paid to management and employees following the Company's successful IPO in June 2015.

Adjusted operating expenses as a percentage of revenues were 13% in H1 2015 (H1 2014: 21%). The main decrease is associated with the scalability of the technology. Since Albert is fully automated, there is only a marginal growth in operating activities that is needed to support a large growth in revenue. Operating expenses grew by 16%, while revenue grew by 80%.

Adjusted like-for-like EBITDA in the first half of 2015 was $2.6 million (H1 2014: $1.9 million), an increase of 39%. Adjusted EBITDA without serving fees in 2014 grew 5% from $2.5 million in H1/2014 to $2.6 million in H1/2015. Results have benefited from the scalability of the Company's business model and the speed at which Albert can be deployed, from initial sign up to autonomously managing online campaigns.

At 1:27pm: (LON:ADGO) Adgorithms Ltd share price was +3p at 122.5p

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