26 February 2021
Adslot – H1 FY21 results
I thought it worthwhile sharing a few thoughts on Adslot’s H1 FY21 Financial Results, released yesterday morning.
- Trading Fee revenue (which is where the Company is investing most of its resources and efforts) was up 83% HoH and 27% on PCP;
- This was derived from two record quarters of trading value and volume on the Adslot Media platform during the Half;
- EBITDA Loss reduced from ($2.2M) in H1 FY20 to ($0.9M) in H1 FY21 – a 58% improvement vs PCP and a 91% improvement HoH;
- NPAT Loss reduced from ($4.1M) in H1 FY20 to ($2.8M) in H1 FY21 – a 31% improvement vs PCP and a 77% improvement HoH;
- Net Operating Cashflows were $0.3M positive (due mostly to government COVID assistance and timing of publisher payments) during the period.
- Licence Fee revenue was down 33% vs PCP (-30% HoH), due to:
- a reduction in Symphony licence fees charged for development resources under the GroupM agreement;
- temporary market fee reductions for CY2020; and,
- negative impacts of foreign exchange.
- Regarding the reduction in Symphony licence fees, it’s important to note:
- there was a commensurate reduction in costs associated with the reduction in development resources, hence the improvement in EBITDA, NPAT and Cashflow;
- the temporary licence fee caps applied in CY2020 were removed from 1 January 2021; and,
- the Company was also able to negotiate a multi-year extension of the Symphony agreement with GroupM (currently in late-stage legal review).
- Although operating costs were flat at $5.9M (+3% HoH and -1% vs PCP), employee benefit expenses actually reduced by 9.4% vs PCP and operating costs excluding share-based payment expenses (non-cash) were reduced by 7.1% vs PCP.
The Road Ahead::
- The Company remains focussed on:
- activation of large agency groups on Adslot Media, in addition to signing further MSAs;
- deployment of additional markets of the Symphony-Adslot Media combined platform, which has been so successful in Austria;
- securing and activating additional private market places, similar to those recently signed and launched;
- pursuing further Symphony market deployments with existing clients;
- activating further markets under the Symphony – Marathon partnership; and,
- maintaining cost management disciplines.
Wishing you all a great weekend ahead.
Founder & Executive Chairman