ASX-listed big data company, Invigor Group (ASX:IVO), has reported $8.5 million in revenue for the first half of the financial year, up 58 per cent from the prior corresponding period. The group attributed its "strong growth" to the Condat business, following its $4.5 million acquisition in November 2015.
Under Invigor’s ownership, Condat booked revenue of $7 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of $743,000. Its gross margin was up 18 per cent, at $1.3 million.
At the time of the acquisition, Invigor executive chairman, Gary Cohen, said Condat is the "major provider of smart media solutions" to public broadcasters in Germany. He said its software would "strongly complement Invigor’s existing product offering" and its development towards becoming an end‐to‐end big data and content distribution provider.
“We have identified Condat as a business which will seamlessly slide into our vision of taking Invigor’s existing product offering and moving toward becoming an end‐to‐end solution for our clients who want to source, aggregate and analyse data and publish relevant content as a result,” Cohen said, at the time.
During the acquisition period, Condat projected revenue of about $7 million for 2016, with an operating EBITDA margin expected to exceed 15 per cent.
Whilst the Condat business saw figures soar, Invigor posted a loss of $6.8 million after booking $1.5 million of impairments arising from the My Verified ID Holdings and Kit Digital Inc investments. The business recorded EBITDA at a loss of $4.1 million.
According to Invigor, it used the year to streamline its cost base. More than $1 million worth of annualised costs were removed, the full benefit of which the company expects to be recognised in FY17.
“Financial year 2016 has been a transformational year for Invigor and we are pleased with our achievements,” Cohen said.
According to the Group, Invigor delivered operational progress across the group securing new partnerships with International Data Corporation Australia (IDC) and commerce platform, Sprooki which integrates with the Insights Visitor platform deployed at Manly Wharf.
“All these achievements give us the platform to drive continued growth and underpin our revenue base for the next few years. While 2016 can be characterised as a year of restructure and transformation, 2017 will be the year of considerable growth, and one in which we capitalise on the work undertaken in 2016,” Cohen added.