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SDL H1 Pre-tax Profit Up 9% - Update

(RTTNews) - Content and language translation software services provider SDL plc (SDL.L) reported Tuesday a 9% increase in pre-tax profit for the six months ended June 30, helped by double-digit revenue growth.

SDL's profit before tax for the first half was GBP 12.86 million, 9% higher than GBP 11.78 million posted in the same period last year. Pre-tax profit, excluding exceptionals, was GBP 16.33 million, up 12% from GBP 14.52 million in the prior-year period.

Profit attributable to equity holders of the parent rose to GBP 9.62 million or 12.05 pence per share from GBP 8.65 million or 10.98 pence per share in the same period last year. Adjusted profit advanced to GBP 12.13 million or 15.18 pence per share from GBP 10.63 million or 13.50 pence per share.

Headline revenue for the first two quarters grew 13% to GBP 94.50 million from GBP 83.29 million in the year-ago period. SDL noted that revenue comprised a 5% contribution from acquisitions, a 3% negative impact from currency, and 11% organic growth at constant currency.

Revenues from Language Services segment was GBP 58.98 million, up 9% from GBP 53.97 million last year. At constant currency, revenue from the division increased 12% year-over-year. SDL said that the segment experienced continued steady recovery in demand from 2009 levels, in part due to growth in the less mature accounts.

Language Technologies revenue marginally declined to GBP 14.57 million from GBP 14.66 million a year ago. On a constant currency basis, revenue improved 2% from the prior-year period.

Revenues from the Content Management Technologies surged 43% to GBP 20.95 million from GBP 14.66 million, helped primarily by the acquisitions of Fredhopper in December 2009 and Xopus in June 2010. At constant currency, excluding acquisition impact, revenue grew 19% from last year.

SDL, which acquired 100% stake in statistical machine translation services provider Language Weaver this July, said it is committed to open an office in Turkey in the later half of 2010, in order to cater to its Language Services division.

Further, the group confirmed that it is on track to initiate a maiden dividend payment for the 2010 financial year.

SDL.L is currently trading at 525.00 pence, down 11.50 pence or 2.14%, on the London Stock Exchange.