TIDMRTHM
RNS Number : 1645M
RhythmOne PLC
11 October 2016
H12017 TRADING UPDATE
Core Focus Drives 45% Growth in Programmatic Revenues, Ahead of
Plan
London, England and San Francisco, CA. - 11 October 2016 -
RhythmOne plc ("RhythmOne" or the "Company") today provides a
preliminary update on its expected performance for the half year
ended 30 September 2016 ("H12017" or "the Period"). This update is
based on unaudited, pre-close figures that may be subject to change
following an audit review of the Company's accounts.
Financials
Performance for the Period is expected to be materially ahead of
management expectations across several key metrics, as follows:
-- Revenues of at least $80M, 80% from Core mobile, video and programmatic products
-- Programmatic revenues of at least $55M, representing 45% growth year-on-year
-- Adjusted EBITDA(1) loss below ($2.9M), a c.60% improvement over H12016
Importantly, the Company achieved increasing profitability on an
adjusted EBITDA(1) basis in each of the last two months of the
Period, significantly ahead of internal estimates. For context,
this performance was delivered while the Company simultaneously
accelerated the draw down of its Non-Core products and migrated
certain Core revenues onto its programmatic platform.
Products
The above performance was largely the result of RhythmOne's
fundamental realignment toward Core mobile, video and programmatic
products, leveraging the Company's unified programmatic platform,
RhythmMax. Total programmatic transaction volume grew by over 85%
year-on-year, with notable increases in quality. This was due to
new and expanding Supply and Demand integrations and the
international launch of the platform across Canada, Australia and 7
EU markets. Total programmatic KPIs for the Period are outlined in
the table below:
Metric Q12016(2) Q22016(2) Q12017 Q22017
------------------- ---------- ---------- ---------- -------- --------
Volume Billions 1,242.1 2,741.6 3,516.6 3,924.2
------------------- ---------- ---------- ---------- -------- --------
Desktop(3) % n/a n/a 49.9 51.5
------------------- ---------- ---------- ---------- -------- --------
Mobile(3) % n/a n/a 50.1 48.5
------------------- ---------- ---------- ---------- -------- --------
Fill Rate(4) % 2.61 1.18 0.49 0.62
------------------- ---------- ---------- ---------- -------- --------
Price(5) $/CPM 0.60 0.58 1.42 1.25
------------------- ---------- ---------- ---------- -------- --------
Outlook
"It is encouraging to see the financial results of the Company
begin to reflect our intense strategic and operational focus on
Core mobile, video and programmatic products," said S. Brian
Mukherjee, CEO of RhythmOne. "Within a year, the team has
successfully built an industry-leading, programmatic platform,
which currently ranks #4 in size and #3 in quality, as measured by
comScore and Pixalate, respectively. Our ability to source and
represent unique, quality inventory at scale remains a core
strength of the Company - one that we intend to augment through
both organic and inorganic means. We maintain that the significant
steps we took in FY2016 to realign the business around our Core
capabilities have set the stage for both top-line revenue growth
and a return to full year profitability in FY2017."
The Company will publish its interim results on Tuesday 15
November 2016.
The information communicated herein constitutes inside
information.
Notes:
1. This press release contains references to adjusted EBITDA and
adjusted Loss for the Period attributable to equity holders of the
parent. These financial measures do not have any standardized
meaning prescribed by IFRS and are therefore referred to as
non-GAAP measures. The non-GAAP measures used by RhythmOne may not
be comparable to similar measures used by other companies. Adjusted
EBITDA is defined as profit/(loss) attributable to equity holders
of the parent before interest, other expenses, taxes, depreciation
and amortisation, share based payment expense, acquisition and
exceptional costs and other expense. Management believes that this
measure is a useful supplemental metric as it provides an
indication of the results generated by the Company's principal
business activities prior to consideration of how the results are
impacted by non-recurring costs, how the results are taxed in
various jurisdictions, or how the results are affected by the
accounting standards associated with the Group's share based
payment expense.
2. Q12016 and Q22016 KPIs are adjusted to reflect on-platform
(RhythmMax) and off-platform (third-party) programmatic
products.
3. Volume of transactions (ad requests) processed through the
platform. Volumes are continuously optimized for performance and
yield.
4. Proportion of the transaction volume monetized. The Q12016
and Q22016 adjustments now include combined on-platform and
off-platform metrics, which resulted in year-on-year increases in
volume and price, and a decrease in the fill rate due to improved
quality controls and yield optimization.
5. Average price across all ad formats, expressed as Cost per
Mille or Thousand Impressions.
About RhythmOne
RhythmOne is a technology-enabled digital media company that
connects online audiences with brands through premium content
across devices. Founded in 2004, the Company pioneered Internet
video search and works with digital advertisers, publishers and
content providers to offer fully integrated, cross-screen solutions
that span desktop and mobile video, rich media, display, social and
native advertising, and content formats. Through its fully
integrated programmatic platform, RhythmMax, the Company represents
digital advertising inventory across owned, controlled and extended
supply sources. The RhythmMax platform includes unique brand safety
technology, RhythmGuard, which combines leading third-party
verification and proprietary filtering technologies to ensure
inventory quality in brand safe environments. RhythmOne's goal is
to maximize the return on advertising spend and provide the most
efficient and effective marketplace for digital advertising. The
Company is headquartered in San Francisco, California with offices
in the US, UK and Canada. For more information please visit
www.rhythmone.com.
Press Contacts for RhythmOne
Analyst and Investor Contact
Dan Slivjanovski
RhythmOne plc
Financial Media Contacts
Edward Bridges / Charles Palmer
FTI Consulting LLP
(UK) 020 3727 1000
Nomad and Broker for RhythmOne
Nick Westlake (Nomad) /Lorna Tilbian / Mark Lander
Numis Securities Limited
(UK) 020 7260 1000
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTQBLFFQBFXFBQ
(END) Dow Jones Newswires
October 11, 2016 02:00 ET (06:00 GMT)
Rhythmone (LSE:RTHM)
Historical Stock Chart
From Apr 2024 to May 2024
Rhythmone (LSE:RTHM)
Historical Stock Chart
From May 2023 to May 2024