19th Jul 2018 11:33
LONDON (Alliance News) - Podcasting platform Audioboom Group PLC said Thursday its interim loss worsened after costs associated with its failed acquisition hurt despite revenue rising significantly.
For the six months ended May, Audioboom's pretax loss deepened to GBP3.7 million from GBP2.9 million the year prior. This was despite revenue rising 43% to GBP2.6 million from GBP1.8 million the year before.
Profit performance was hurt by a rise in costs, including those associated with Audioboom's aborted USD185 million acquisition of Triton Digital Canada Inc. Audioboom faced GBP1.2 million in transaction costs connected with the failed deal.
The Triton acquisition collapsed in May after Audioboom failed to raise the funds required to complete the deal which was originally announced in February.
"These results have been achieved despite the considerable distraction of the aborted Triton deal," Audioboom Chief Executive Officer Rob Proctor said. "It bodes well for the rest of 2018 and beyond that we are now solely focused on turning Audioboom into the pre-eminent podcasting platform."
"Audioboom generated a 43% increase in revenue over the same period last year and expects substantial further increases in the second half due to the rapid growth in Audioboom Original Network podcasts, major new podcast signings and subscription fees," Proctor noted.
Proctor believes the GBP5.6 million of funding the firm has raised through convertible loan issues and share placings will be "sufficient" to see the firm "through to positive cash generation."
"Visibility for advertising campaigns for the third and fourth quarter is strong, and the board believes revenue for the full year will be in line with current market expectations, underpinned by a brand count that is more than twice what it was this time last year and with greatly increased available ad inventory", Proctor added.
Shares in Audioboom were 2.5% lower at 1.95 pence on Thursday.
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