TIDMRTHM
RNS Number : 5582U
RhythmOne PLC
13 July 2018
FIRST QUARTER TRADING UPDATE AND DIRECTORATE CHANGES
Q1 Trading In Line with Management Expectations
London, England and San Francisco, CA - 13 July 2018 - RhythmOne
plc (LSE AIM: RTHM, or the "Company"), today updates the market on
its performance for the first quarter of the financial year 2019,
covering the period from 1 April 2018 to 30 June 2018 ("Q12019" or
"the Period").
Financials
RhythmOne's Q12019 financial performance was in line with
management expectations. The Company started the year strong with
quarter-over-quarter growth in both revenue and EBITDA(1) . This
upward trajectory was fueled by continued growth in programmatic
platform revenues. The Company is tracking against its key
objectives for the year:
-- Enhancing its unified programmatic advertising platform;
-- Growing its base of data-driven engaged audience segments; and
-- Innovating around video and connected TV (CTV) advertising.
Products
RhythmOne continued to ramp its unified programmatic platform,
RhythmMax. During the Period, the Company integrated several new
programmatic demand and supply partners and cultivated
relationships with industry-leading companies to develop new CTV
measurement capabilities. Further, the Company launched new
programmatic products available via private marketplaces, including
packaging of its high-value CTV supply and bundling of data-driven
packages designed to achieve specific performance objectives
relative to viewability and verification. Within the platform, key
programmatic performance indicators below illustrate a significant
rise in volume of approximately 23% compared with the same time
last year, coupled with a slight increase in fill rate year-over
year. Mobile supply volume continues to grow, representing over 75%
of ad opportunities available on the platform during the first
quarter. Importantly, programmatic inventory fill rate continues to
demonstrate strong growth, with an increase of approximately 51%
over the same Period last year. This is largely driven by expanded
supply relationships and increased monetization of high-value,
high-impact and high-margin video, CTV and rich media
inventory.
KPIs
Metric Q12018 Q42018 Q12019 (Est)
Volume Billions 7,817.4 7,630.6 9,591.3
Desktop(2) % 35.9 35.1 24.6
Mobile(2) % 64.1 64.9 75.4
Fill Rate(3) % 0.20 0.24 0.21
Price(4) $/CPM 2.86 3.36 4.32
Integration
Integration work resulting from the YuMe, Inc. ("YuMe")
acquisition remains on track. RhythmOne has successfully
consolidated campaign operations into a single platform,
facilitating centralized deployment and optimization of advertising
campaigns. In addition, the Company has ported over a significant
portion of the YuMe video supply, and has created the
infrastructure for CTV partner support. Finally, to create
additional internal efficiencies, the Company has moved to a single
platform for ad unit development and delivery of custom
creative.
Outlook
"We are pleased to provide this update on our first quarter
trading in FY2019, with revenue and adjusted EBITDA(1) performance
in line with current market expectations," said Mark Bonney, CEO of
RhythmOne. "The RhythmMax platform continues to drive growth as we
add additional controlled supply, package premium inventory for
sale within private marketplaces and advance our leadership
position within CTV. These steps underscore our overall strategic
focus on mobile, video and programmatic trading - which we intend
to maintain throughout FY2019. Our focus is on continued
strengthening of our financial performance to better position the
Company to leverage industry consolidation, as appropriate, while
maintaining strong cost discipline, driving efficiency within the
Company with the goal of cash generation, and sustaining
profitability and value creation for shareholders."
Directorate Changes
In addition to the trading update, RhythmOne today announces
that Mark Opzoomer, Non-executive Director, has notified the Board
of his decision to retire and step down as a Company Director to
devote more time to personal interests. The resignation was
accepted on 12 July 2018. He will retire from the Board on 13 July
2018, effective as of the conclusion of the Annual General
Meeting.
The Company also announces that Ujjal Kohli, Non-executive
Director, has notified the Board of his decision to retire and step
down as a Company Director to devote more time to personal
interests. The resignation was accepted on 12 July 2018. He will
retire from the Board on 13 July 2018, effective as of the
conclusion of the Annual General Meeting. In light of these
resignations, the Board is undertaking a review of its current
composition including the appointment of at least one qualified
U.K. Non-executive director.
"We sincerely appreciate the contributions of both Mark and
Ujjal to the RhythmOne Board throughout their tenure. Mark and
Ujjal have served on numerous committees and provided valuable
insight and guidance based on their extensive corporate operating
experience and expertise in the Internet, communications and media
space. We wish them every success in their future endeavors," said
Eric Singer, Chairman of the Board, RhythmOne.
The information communicated herein constitutes inside
information.
Notes:
1. Adjusted EBITDA. This press release contains references to
adjusted EBITDA. This financial measure does not have any
standardized meaning prescribed by IFRS and is therefore referred
to as non-GAAP measures. This non-GAAP measure used by RhythmOne
may not be comparable to similar measures used by other companies.
Adjusted EBITDA is defined as loss for the period, adjusted to
exclude finance income and expense, taxation, depreciation and
amortization, share based payments and exceptional items in
continuing operations and in discontinued operations, which include
goodwill impairment, change in intangible assets' lives,
acquisition-related costs, restructuring and severance costs,
settlement of litigation, re-measurement of deferred consideration
and unrealized foreign exchange gain and loss. Management believes
that this measure is a useful supplemental metric as it provides an
indication of the results generated by the Company's principal
trading activities prior to consideration of how the results are
impacted by nonrecurring 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. Volume of transactions (ad requests) processed through the
platform. Volumes are continuously optimized for performance and
yield.
3. Proportion of the transaction volume monetized, which is
impacted by seasonality and fluctuations in demand and supply.
4. Average price across all ad formats, expressed as Cost per Mille or Thousand Impressions.
Press Contacts for RhythmOne
Analyst and Investor Contact Financial Media Contacts
Ed Reginelli Edward Bridges / Rob Mindell
RhythmOne plc FTI Consulting LLP
(UK) 020 3727 1000
Nomad and Broker for RhythmOne
Nick Westlake (Nomad) / Michael Wharton
/ Toby Adcock
Numis Securities Limited
(UK) 020 7260 1000
About RhythmOne
RhythmOne drives engagement between advertisers and targeted
audiences - resulting in real, measurable business outcomes. We
offer fully-integrated, cross-screen solutions that span desktop,
mobile, and connected TV ("CTV") across high-impact video, rich
media, display, social, and native advertising formats - helping
advertisers reach high-propensity audiences wherever and however
they consume content. The connections we make are further enhanced
through unique audience data and powered by our unified
programmatic platform, RhythmMax. RhythmMax includes RhythmGuard, a
proprietary verification and brand safety filtering technology that
screens underperforming and suspicious traffic before it reaches
the marketplace. This end-to-end platform - coupled with the
world-class service of our account teams - is designed to provide
more direct, efficient, and effective connections, driving ROI for
advertisers and publishers. Founded in 2004 in the UK, RhythmOne is
headquartered in San Francisco with offices in the US, UK, Europe,
APAC, and Canada. For more information, please visit
www.rhythmone.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTLIFSSDDIVLIT
(END) Dow Jones Newswires
July 13, 2018 02:00 ET (06:00 GMT)
Rhythmone (LSE:RTHM)
Historical Stock Chart
From Oct 2024 to Nov 2024
Rhythmone (LSE:RTHM)
Historical Stock Chart
From Nov 2023 to Nov 2024
