Adslot Ltd (ADJ): March 2020 Quarterly Update
Adslot released its 2020 March Quarter Activity Report and Appendix 4C today.
- Progress continues in signing Master Service Agreements (MSAs) with agency holding companies, with the signing of Dentsu Aegis Network;
- Initial trading from IPG and Havas commenced;
- Despite initial trading activity from agency holding companies, we saw a drop in overall value and volume of media traded on Adslot Media Q-on-Q due to the economic impact of COVID-19 on global media spend;
- Despite the Q-on-Q drop, the value of media traded on Adslot Media was still up 5% compared to the prior corresponding period, and the volume of trades were up 25% on PCP;
- Adslot continued to sign a number of top-tier global publishers, including Dow Jones & Co. and The Economist in the US, and Reach plc (publisher of the Daily Mirror, Sunday Mirror and Daily Express) in the UK;
- Data integrations with Oracle Data Cloud and LiveRamp completed, with first trades utilising these capabilities expected in the June 2020 quarter;
- A Symphony partnership agreement executed with Marathon, a European provider of ERP software servicing 50 agencies across 7 markets in Europe, with deployments to customers to occur from the September 2020 quarter;
- Further annualised cost reductions of $2.3M, on top of the $4.0M in annualised cost reductions announced mid-March;
- Cash balance of $8.4M as at 30 March 2020.
As previously announced, the Company has made significant cost reductions across the entire business in order to preserve its cash runway. These reductions included:
- All the board of directors agreeing to take no fees for the remainder of FY2020;
- the CEO, Ben Dixon, and CFO, Felicity Conlan, volunteering to reduce their salaries by 30%; and,
- the entire Executive Team volunteering, and all staff globally agreeing, to a temporary 25% reduction in salaries during the crisis.
To this end, I would like to first thank the Board and Executive Team for their strong, decisive leadership and personal sacrifice during these unprecedented times, and secondly – my sincerest thanks and admiration to every single member of the global team who agreed to a 25% reduction in salary in order to protect each other’s jobs, and ensure the Company will not only survive, but thrive in the months and years ahead.
Founder & Executive Chairman