26 February 2021

Adslot – H1 FY21 results

Dear Shareholder,

I thought it worthwhile sharing a few thoughts on Adslot’s H1 FY21 Financial Results, released yesterday morning.

The Positive:
  • 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.


The Negative:
  • 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.

You can download the results presentation here, and the full half-year financial results (Appendix 4D) here.

Wishing you all a great weekend ahead.

Kind regards,

Andrew Barlow
Founder & Executive Chairman


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