Digital River records operating profit of €1.4m

Shannon-based e-commerce firm Digital River last year returned to operating profit after recording a surplus of €1.4m. New accounts filed by the US-owned Digital River Ireland Ltd show the firm returned to operating profit after revenues rose 4% going from €65.4m to €67.3m.

Numbers employed by the firm last year increased from 102 to 107 with staff costs falling from €4.63m to €4.33m.

The operating profit last year followed an operating loss of €2.92m in 2013.

The firm last year recorded pre-tax profits of €479,709 after interest charges of €924,165 are taken into account.

The 2014 pre-tax profits were significantly down on the €14.6m generated in 2013.

However, the profits were attributable to an exceptional gain of €17.3m relating to the company’s sale of its investments in Softonic International SL and IntershareSL.

In the accounts, the firm’s directors state: “An overall profit of €438,588 was achieved in the year.

"The significant decrease is due to the sale of investments in 2013,” he said,

According to the directors’ report, the company provides e-commerce site development and hosting, site merchandising and order management.

The directors further state while revenues for 2014 were similar to 2013 “gross margins remain very strong at 64%.

In the accounts, the firm’s directors state: “An overall profit of €438,588 was achieved in the year. The significant decrease is due to the sale of investments in 2013.”

According to the directors’ report, the company provides e-commerce site development and hosting, site merchandising and order management.

The directors further state while revenues for 2014 were similar to 2013 “gross margins remain very strong at 64%.

The company’s directors state “having reviewed the performance of the company in 2014, they are satisfied with the performance of the business and the results were in line with expected performance.

"The directors expect that business activity for the company year will remain strong with similar results to previous years".

At the end of last year, the firm had shareholder funds of €24.57m while cash stood at €41.95m.

The directors’ report also states that “the balance sheet continues to be very strong in the current year”.

On the risks facing the company, the directors state that “the most significant risk the company faces is associated with client development and retention.

"It is important that the company maintains key client relationships and increases the number and type of products offered through services to diversify the turnover base”.

Digital River established its European headquarters at the Shannon Free Zone in 2006.


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