Melbourne IT (ASX:MLB) has invested $1.25 million in Melbourne-based social media marketing platform provider Tiger Pistol as the IT services firm looks to provide social media management services to customers.
According to Tiger Pistol's website, it creates and maintains social media profiles for small to medium sized businesses. The company also monitors and responds to reviews from customers. It can also post content on the client's Facebook or Twitter profile to drive traffic and create awareness.
Melbourne IT CEO Martin Mercer said that in partnership with Tiger Pistol, it will assemble a suite of solutions for small businesses who want to "get found online".
"Many small businesses need help to successfully engage with their customers on social media. Tiger Pistol will enable us to manage a business's social media presence and take advantage of advertising opportunities on social media," he said in a statement.
Melbourne IT will begin offering the service in 2015 to existing customers with established websites and new customers who may not have a social media presence.
In June 2014, Mercer told Computerworld Australia that the company needs to "re-orientate" and develop products that it is "confident there is a market for".
"We then need to promote the product and sell it properly," he said. "It's easy to say but it's amazing how many companies don't manage to get it right."
In September 2014, the company reported revenues of $59.6 million for its half year ended 30 June 2014. This compared to revenues of $51.3 million for the same period in 2013.
The company also reported a net profit after tax (NPAT) of $2.7 million, compared to $3.9 million last year. Earnings before interest, tax, depreciation and amortisation (EBITDA) were $3.6 million, down slightly from the $3.7 million reported last year.
Melbourne IT's SMB Solutions division reported revenue of $46.1 million, up from the $38.2 million in 2013. This revenue improvement was due to the acquisition of the Netregistry Group for $50.4 million in February 2014.
"Bundling of different products across new price points in specific brands continues to be the focus of an integrated marketing and sales team. This component-led approach will help deliver growth in the core product offering of domains, hosting and email," read the report.
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