Dotdigital Group plc : TRADING UPDATE

dotDigital Group Plc

("dotDigital", the "Company" or the "Group")

TRADING UPDATE

dotDigital Group plc (DOTD)  the UK's leading provider of intuitive email marketing and marketing automation software and managed services to digital marketing professionals, today gives an update prior to the Group's Interim Results for the six months ended 31st December 2013. The trading performance in this statement is based on unaudited initial management estimates.

First Half Highlights

·    Overall revenue from continuing operations up 32% from £5.7m to £7.6m;

·    Monthly recurring revenues from dotMailer's Software as a Service ("SaaS") based usage charges up 29% to £5.8m;

·    Creative and managed service email marketing revenues more than double to £0.7m;

·    Cash balances at 31st December 2013 of £7.3m;

·     Following approval at the AGM on 17 December 2013,a maiden final dividend of 0.1 pence per ordinary share for the year ended 30 June 2013 will be paid on 31 January 2014 to those shareholders on the register on 10 January 2014.

Based on the performance for this Half Year the Board remains confident of achieving both revenue and profit expectations for the full year.

Peter Simmonds, CEO of dotDigital Group plc, commented:  "Our strategy of focussing on the sales of our email marketing and marketing automation solutions to the corporate & mid-market sectors continues to deliver high levels of growth with strong recurring revenues. Compared to the same period last year our average monthly billing per client has increased from £238 to £284 per month and the average monthly commitment of new clients has risen by 36% compared to the same period last year. Revenues from the US region grew from $88k to $456k reflecting the good early progress being made by our New York office. The new contract wins in the first half included such well known brands as Metapack, GFK, Santander, Skanska, OFGEM, Fraser Hart, Harley Davidson, Payzone, Fujifilm and Fruit of the Loom and the pipeline of new prospects remains strong."

The Group intends to announce its Interim results for the six months ended 31st December 2013 on Tuesday 11th February 2014.