Marketing communications company PhotonGroup (ASX:PGA) has disclosed its ebitda for the first 10 months of the financial year is 18% lower than normalised ebitda for the same period last year.
The company said it had earned an ebitda of $46 million for the year, compared to an ebitda of $55.8 million in year-to-date FY10 when normalised for extraordinary and abnormal items.
Revenue has also been 6% lower than last financial year at $289.4 million.
Net revenue and ebitda is down a respective 8% and 19% from the prior corresponding period for the Australian agencies division, due to lower spending from some clients. Revenue for the international division meanwhile fell 8%, and ebitda by 21%.
The company also provided an update on its restructure plan, including to mostly sell out of the search marketing business.
PhotonGroup had previously announced a decision “not to invest the capital in search arbitrage which would have been required to adapt to changing dynamics in the industry.”
As a result, the company took steps including selling a loss-making US business in January and closing an Australian one in March.
PhotonGroup has also arranged to outsource subsidiary Dark Blue Sea's domain portfolio and platforms operations, the update read.
But the company still owns a 51% stake in a US search marketing business.
In total the company had invested $130 million in search arbitrage and related businesses, all of which has now been written off, PhotonGroup said.
PGA shares fell 5.71% in Tuesday's trading to $0.066.
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