When we covered RhythmOne’s (RTHM) half-year figures in December, we highlighted the importance of RhythmMax, its programmatic platform, designed for the marketing of digital advertising in real time. Two months later, the group announced a $163m (£122m) deal to acquire California-based YuMe Inc. That's accelerated its digital strategy, providing access to a data-driven platform with premium video/TV inventory, and cross-screen targeting technology.
The deal has enhanced its ability to exploit the trend among consumers to access media across diverse devices and formats, while deepening its footprint in a rapidly expanding addressable market. Market projections from eMarketer show spending of $46.6bn in programmatic digital display through 2018, accounting for four out of every five dollars of digital spend in the US.
Naturally, the deals have had a bearing on full-year figures, but it’s worth noting that historical on-platform revenue grew 14 per cent. Reported earnings were constricted by $16.2m in exceptional items, the bulk of which related to the acquisitions, although the cost of revenue fell proportionately.
RHYTHMONE (RTHM) | ||||
ORD PRICE: | 220p | MARKET VALUE: | £171m | |
TOUCH: | 220-222p | 12-MONTH HIGH: | 448p | LOW: 157p |
DIVIDEND YIELD: | nil | PE RATIO: | na | |
NET ASSET VALUE: | 361ȼ* | NET CASH: | $27m** |
Year to 31 Mar | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
2014 | 247 | 17.6 | 3.2 | nil |
2015 | 215 | -24.8 | -5.2 | nil |
2016 | 116 | -77.2 | -22.9 | nil |
2017 | 149 | -14.9 | -33.2 | nil |
2018 | 255 | -22.9 | -25.6 | nil |
% change | +71 | - | - | - |
Ex-div: | - | |||
Payment: | - | |||
£1=$1.33 *Includes intangible assets of $210m, or 270ȼ a share **Includes $43m of restricted cash |