Digital Marketing Group sees profits fall

Digital Marketing Group (DMG) has reported a drop in profit for the first half of its financial year.

Ben Langdon
Ben Langdon

The company, the largest digital marketing agency in the UK, posted pre-tax profit of £2.93m for the six months to 30 September, compared with the £3.5m in the same period last year.

It saw earnings before interest, taxes, depreciation and amortisation drop from £3.85 million to £3.63 million.

The company has managed to reduce its like for like costs by £4.24 m to £16.56 m for the period.

The company said that its e-commerce business had shown strong growth but the data businesses, which has many clients in the financial services industry, “had been less robust” with a fall in revenue of £3.4 million.

DMG is headed by chief executive officer Ben Langdon (pictured) and he says: “Our business is stronger than ever following a large cost reduction programme and strong levels of existing client spend. Combined with our position as the UK’s largest digital marketing business, we are extremely optimistic about the future, particularly as clients begin to re-invest in marketing.

“We predicted a tough six months but these results are predominantly in line with the past two years’ performance and give us confidence for the rest of the year.”

DMG’s clients include Berghaus, Royal Mail, History Channel, SeaFrance and Yorkshire Building Society.

The company is listed and its share price was up 2.33% at time of writing to 55 pence, although down 23% year-on-year.

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