DotDigital revenue grows across regions, 'well placed' for more

Dotdigital Group, the AIM listed provider of intuitive software as a service (SaaS) and managed services to digital marketing professionals, reported a rise in revenues across its global operations.

Group turnover increased 26% to £26.9m and earnings before interest tax depreciation and amortisation (EBITDA) rose 17% to £8m. Recurring revenues were at 78% compared to 76% in 2015.

UK revenues grew 21% to £22m, over £4m of which was attributable to upselling new advanced features to existing clients, while international growth rose 18%.

Earnings per share rose 12% to 1.83p compared to 1.63p in 2015 and the final dividend will be more than doubled to 0.84p per ordinary share from 0.36p in 2015.

The volume of emails sent rose to 8.6b compared to 6.2bn in the previous period as the Dotdigital won a host of clients during the period, including Vogue UK, Saville Group, Dune, Paul Smith and Eurostar International.

Chief executive Milan Patel said the Dotmailer platform's easy to use proposition, growing list of global partners and its scalability, made it "well placed to continue to generate strong organic growth not only from the markets it currently operates in today but wider into the global markets it is looking to enter".

Looking ahead he said: "For 2017, our approach will be further refinement of the partner programme and developing the strategic partnerships, global expansion into the EMEA, North America and Asia Pacific regions through self-service and direct sales teams and to continue building new integrations into more ecommerce and CRM platforms that focus on the mid-market and small enterprise space.”

Analysts at N+1 Singer said: “This continues to be a high quality tech growth story with increasing connectors and markets to attack.”

The share price, having hit an all-time high close to 56p last Wednesday, was down 2.18% to 53.19p by Tuesday afternoon.