Deal Group Media PLC
20 January 2005
Press Release 20 January 2005
Deal Group Media plc
Trading update
Deal Group Media plc, the full service online marketing group, which comprises
the newly rebranded operating company dgm, provides the following trading update
as it enters its close period.
Trading conditions for the year ended 31 December 2004 continued to be very
strong and the Board expects the Preliminary Results to be in line with the
uplifted market expectations as stated in the second quarter of 2004.
Trading for the last quarter reflected a growing demand among Christmas shoppers
to buy online with Group turnover increasing to £4.45 million for Q4 2004
representing 232 per cent. of the equivalent period for 2003.
The internet advertising sector experienced strong growth during 2004 and now
accounts for 3.4% of ad spend in the UK (Interactive Advertising Bureau/ PwC).
Industry analysts maintain a positive outlook for the sector, fuelled by rising
online penetration through the growth of Broadband, and increased demand for
advertising with a visible return on investment.
Against this background, the Group's performance has outstripped that of the
sector, increasing its market share by offering a broader sales mix. This has
been achieved by focusing on client retention, taking advantage of cross-selling
opportunities, and new client acquisitions. Recent wins include Oxfam, Standard
Life Healthcare, Alliance & Leicester and ING Direct.
During the final quarter of 2004, the Group undertook a major restructuring in
order to provide future scalability. There have been a number of key senior
management appointments across all disciplines, a reorganisation of the sales
and account management functions, and products have been structured into three
distinctive branded offerings: dgmPerformance, dgmSearchLab and dgmAdNetwork.
Additionally, the Group has embarked upon a business continuity programme to
provide a more robust technology infrastructure in line with its growing
business levels.
As stated at the time of the Interim Results, the Board continues to look for
potential earnings enhancing acquisitions and will update shareholders of any
developments.
Adrian Moss, Chief Executive of Deal Group Media plc, said: 'Our performance in
the last year has been in line with market and internal expectations. These
targets have been achieved by improving the Group's sales mix, thereby creating
a number of cross-selling opportunities, and through the acquisition of new
clients.
'The recent restructuring has been undertaken in anticipation of further future
growth and our rebranded products mark a step change in the presentation and
marketing of our services. We look forward to reporting our Preliminary Results
in mid-March.'
For further information, please contact:
Enquiries:
Deal Group Media plc
Adrian Moss, Chief Executive Officer /
Jonathan Lines, Marketing Director Tel: +44 (0) 20 7691 1880
Durlacher Limited
Richard Swindells Tel: +44 (0) 20 7459 3600
Media enquiries:
Abchurch Communications
Ariane Comstive Tel: +44 (0) 20 7398 7700
ariane.comstive@abchurch-group.com www.abchurch-group.com
- Ends -
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