Half-year update boosts dotDigital shares

AIM-listed marketing software business dotDigital (LON:DOTD) watched its share price increase by 7.05% to 184.13p (as of 15:40 GMT) after it provided a trading update for the six months ended 31st December. Organic revenues for the period from continuing operations were up by 22% and pre-tax profits were in line with upgraded forecasts.

CEO Milan Patel commented: “H1 2021 delivered another period of strong growth and significant strategic progress, in a highly competitive environment, as customers continued to turn to us to elevate and future-proof their digital marketing strategies. At the same time, we began to see a step change in returns from the investments we have made into key areas of the business.

“The fact that the majority of our growth in the period came from SMS clearly demonstrates the value of our omnichannel offering, which has grown and evolved since the acquisition of Comapi in 2017 to become a fundamental part of the Group’s DNA. The headway we are making in growing our non-UK markets is accelerating, particularly in North America and APAC, and the resource we have put into strengthening and deepening our strategic partner relationships is having a substantial, positive impact on sales performance.

“While Covid-related restrictions continue to cause disruption and uncertainty for organisations around the world, they have triggered a dramatic acceleration in digital transformation, from which dotdigital stands well-placed to benefit. Momentum from the first half has continued into the second, and we remain confident of delivering another year of strong sales growth and material progress against our strategic pillars.”