London-based data and analytics company, Ascential, experienced a significant surge in its stock value on Friday due to an announcement of improved earnings for the first half of 2023. The firm's shares rose by up to 14%, propelled by a significant reduction in its pretax loss and a rise in adjusted pretax profit.
Ascential reported a pretax loss of £11.8 million ($14.5 million) in the first half of the year, marking a substantial decrease from the £41.6 million loss recorded during the same period in 2022. By 05:16 ET (09:16 GMT) on Friday, the company's shares were trading 10.50 pence higher at 200.80 pence.
In addition to the reduced pretax loss, Ascential also reported an increase in adjusted pretax profit, which excludes exceptional and one-off items. The figure rose to £49.8 million from £48.4 million a year earlier, signaling a positive financial trend for the firm.
The company attributes these favorable results to an increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). This figure rose to £78.6 million from £67.2 million, largely due to strong performances from Ascential's Lions and WGSN units.
Revenue also saw a significant uptick, escalating to £307.4 million from £260.7 million. This growth was bolstered by robust expansion across all company segments.
Despite potential challenges posed by macroeconomic uncertainties and currency fluctuations that could impact their industries, Ascential maintains an optimistic outlook for the remainder of the year, citing several growth avenues available to it.
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