dotdigital posts weaker interim profit despite revenue advance

dotdigital Group PLC on Tuesday said it is trading in line with full-year market forecasts, as it posted a decline in half-year profit.

The London-based customer experience and data platform provider posted £6.2 million in pretax profit for the six months ended December 31, down 26% from £8.4 million a year earlier.

Revenue from contracts with customers however rose 4.3% to £44.2 million from £42.4 million, with average revenue per customer, excluding Social Snowball, improving on a normalised basis to £1,968 per month from £1,830.

The weaker earnings amid the improved top line are attributed to rising costs, as administrative expenses grew 12% to £27.1 million from £24.3 million.

Further hampering the bottom line, amortisation of acquired intangibles rose 61% to £1.4 million, and exceptional costs multiplied to £825,000 from £273,000.

Looking to the full-year, dotdigital said it is trading in line with full-year market expectations on a constant currency basis. These expectations include revenue of £91.9 million, which would be up from £83.9 million achieved in financial 2025.

Adjusted earnings before interest, tax, depreciation and amortisation are seen at £29.1 million, up from £26.8 million, and adjusted pretax profit is forecast at £20.0 million, up from £19.0 million.

Shares in the company were down 2.1% at 54.80 pence around midday on Tuesday in London.

‘The group delivered a solid first half against a strong comparator, with continued double?digit growth in core ARR, improving revenue quality and resilient profitability. We continue to broaden the CXDP through disciplined innovation and M&A, with the post-period acquisition of Alia further strengthening our ability to help customers capture, activate and monetise audiences across the lifecycle,’ said Chief Executive Milan Patel.

‘While customers remain cost?conscious, demand for integrated platforms with clear ROI remains strong, and we remain well positioned to execute on our strategy for the second half and beyond.’

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