Acxiom reveals improving financial picture as profits rise

by Daniel Farey-Jones, Brand Republic 23-May-06, 07:30

LONDON - US data giant Acxiom has revealed a 55% increase in profits from $14.9m (£7.9m) last quarter to $23.1m, as well as bringing its international operations back to profit.

Last year, the company made a narrow fourth-quarter loss on its operations in Europe, Australia and China, but this has now improved to a profit margin of 7% for the year to March 31.

However, full-year revenues at its international operations were down by 12.7% from $212m to $185m in this year. The company expects international revenues to grow by up to 5% over the next year with its profit margin between 2% and 4%.

Its US operations drove its overall full-year revenue growth, which was up 9% from $1.223bn to $1.333bn. US revenues are expected to grow between 7% and 10% over the next year with profit margins between 14% and 15%.

Overall full-year profits were down 8% from $69.7m to $64.1m.

Charles D Morgan, Acxiom CEO, said: "We have accomplished what we said we would after a challenging first quarter of the fiscal year. Our cash flow reached a record level, we have an impressive list of new contracts and the committed pipeline is promising."

The new contracts include General Motors, US Bancorp and Primedia.

Acxiom's board has been fighting off attempts by its largest shareholder, ValueAct Capital Partners, to take control of the company. ValueAct, which owns around 12% of Acxiom, has nominated three candidates for election to the company's board at its AGM this month.

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