2017 was a transitional year for Matomy Media (MTMY) – the costs of which weighed heavily on the top line, and heavier still on earnings. Following the launch of its new strategy last May, the group exited various non-core activities – with revenue contribution from these discontinued areas down 43 per cent to $21.5m (£15m), thus contributing to an overall fall in sales.
Exceptional impairment charges tied to these activities were largely responsible for an even steeper fall in pre-tax profits. That said, exclude these exceptional items, and group operating expenses fell by a creditable 13.5 per cent to $50.7m – a key objective under Matomy’s new game plan. And its two core segments – domain advertising and programmatic mobile advertising – both traded strongly over the reporting period. The former enjoyed 66.5 per cent revenue growth to $105m, while the latter saw 20.1 per cent growth to $50.6m. Still, Matomy’s strategy has not inspired success across all business areas. Email and video saw sales fall by a whopping 47 per cent to $67.6m, stemming from new compliance tools and margin-squeezing industry pressures.
| MATOMY MEDIA (MTMY) | ||||
| ORD PRICE: | 61p | MARKET VALUE: | £60m | |
| TOUCH: | 61-61.5p | 12-MONTH HIGH: | 118p | LOW: 60p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 71¢* | NET CASH: | $8m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2013 | 193 | 8.8 | 9.0 | nil |
| 2014† | 237 | 4.6 | 10 | nil |
| 2015 | 271 | 9.9 | 7.0 | nil |
| 2016 | 277 | -3.3 | -13.0 | nil |
| 2017 | 245 | -16.7 | -35.0 | nil |
| % change | -11 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
*Includes intangible assets of $92.1m, or 94p a share †Matomy floated in July 2014 £1=$1.41 | ||||
