Homepage APD newsroom

Digital Marketing and Commerce Specialist Asia Pacific Digital Grows in Asia, Adds @ccomplice

Announcement posted by APD 16 Feb 2015

Asia Pacific Digital FY15 Half Year Results announced to ASX
  • Strong results driven by growth in Asia and margin uplift
  • APD’s digital footprint in Asia grows with Singapore acquisition
 
MONDAY 16 FEBRUARY 2015: Integrated digital marketing and commerce specialist, Asia Pacific Digital (ASX: DIG), has announced its half-year financial results to 31 December 2014, with growth in revenues from Asia and a 33% uplift in operating margins driving strong business unit EBITDA growth. Business unit EBITDA came in at $3.5 million for the half, up 43% compared to the prior corresponding period (PCP). Around 30% of revenues are now earned outside Australia, with Asian revenues recording organic growth of 64% over PCP.
Chairman of Asia Pacific Digital Roger Sharp said: “APD has committed to reinvesting its earnings in strategic growth initiatives, specifically in Asia, and we have invested $2.2 million of business unit earnings in a number of organic growth initiatives in the first half of FY15 to accelerate our product expansion and growth in the region.”
APD listed on the Australian Stock Exchange (ASX) last year on the basis of an Asian growth strategy, with success to be measured against six key targets over four years:
  1. Build core capabilities in Asia
  2. Earn 50% of revenues outside Australia
  3. Locate 50% of employees in Asia
  4. 30% organic growth rate in Asia
  5. Maintain breakeven EBITDA while reinvesting earnings to expand
  6. Long term Business Unit EBITDA margin 10%+
APD reported that it was on track to achieve, or surpassed, each KPI in the half.
 
HIGHLIGHTS
  • Footprint growing quickly across Asia.
  • International revenues (outside Australia) running at 30% of total revenues, up from 22% in PCP.
  • 54% of employees now located in Asia.
  • Asia revenues from organic growth increased 64% on PCP.
  • Business Unit EBITDA growth of 43% on PCP, from $2.4 million to $3.5 million (a 12.4% EBITDA margin).
  • $2.2m of investment spend to accelerate growth across the region, funded by growth in Business Unit EBITDA.

 
New Acquisition Accelerates Asia Growth
Today APD also announced it has expanded its footprint in Asia with the Singapore acquisition of digital agency, @ccomplice, adding to its end-to-end digital value chain provided by Next Digital, dgm, Empowered, Jericho and APD eCommerce.
@ccomplice, founded in 2010 by Tobias Wilson, has created innovative digital marketing strategies for leading brands in Asia, including Panasonic, Toyota, Lexus, Suzuki, Singpost, DBS and Standard Chartered.
Sharp said @ccomplice will join with the rest of the Asia Pacific Digital companies across the region in adopting APD as the group’s principal operating brand by the end of April 2015.
“APD is building a high growth digital marketing and commerce business in Asia from its base in Australia. With around 30% of revenues now earned outside Australia and more than half of the APD team now located in Shanghai, Manila, Kuala Lumpur and Singapore, we see the @ccomplice acquisition as an important milestone and an accelerator in the Singapore market,” Sharp said.  
At @ccomplice, CEO Tobias Wilson said: “APD is a unique organisation that is 100% focused on breaking the agency model by integrating the digital value chain and delivering tangible business results to its clients across APAC. That fits perfectly with our model. So in the end, as unexpected as it was, joining APD was a no-brainer for us, our team and our clients and we can’t wait to start bringing some real value, at scale, to the market as a whole.”
Asia Pacific Digital has four divisions, Strategies & Solutions, which will include @ccomplice, Customer Acquisition, Customer Management and eCommerce, delivering an integrated digital marketing, technology and commerce solution to more than 2,000 clients.
The ASX announcement can be accessed at http://www.asiapacificdigital.com/investors/asx-announcements.
 
Contact:
Roger Sharp, Executive Chairman (Singapore)
p: +65 6220 8187
e: rsharp@asiapacificdigital.com
 
Peter Hynd, Chief Operating Officer (Sydney)
p: +612 8235 3881
e: phynd@asiapacificdigital.com
 
Samantha Tannous, public relations (Sydney)
m: 0416 104 033 | +61 416 104 033
samantha@relativitycommunications.com
 

 
ABOUT ASIA PACIFIC DIGITAL
Asia Pacific Digital (http://www.asiapacificdigital.com) is the largest independent digital marketing and commerce specialist in the Asia Pacific region.  
APD’s integrated digital value chain provides strategy, technology, performance marketing and CRM to more than 2,000 clients. The company’s mantra is “Delivering Digital Growth”.
APD employs a team of 360+ digital professionals in Sydney, Melbourne, Auckland, Shanghai, Hong Kong, Manila (its technology hub), Kuala Lumpur and Singapore. Clients include respected brands such as Ford Motor Company (APD manages Ford’s digital platform in more than 100 countries), Lenovo, Village Roadshow, eBay, Fonterra, Maxis, Qantas and GlaxoSmithKline.
APD differentiates itself by its preparedness to enter risk and reward-sharing relationships with established clients. Its Ventures division currently operates three eCommerce businesses across APAC, providing outsourced technology and marketing services in return for a share of revenues and equity, rather than the traditional fee-for-service model. 
Asia Pacific Digital is listed on the Australian Stock Exchange (ASX: DIG).