26th Aug 2014 08:53
LONDON (Alliance News) - Audioboom Group PLC Tuesday expressed optimism for the launch of its new application at the end of September, as it posted a widened loss in the five months to the end of May, hit by an exceptional cost relating to its formation via a reverse takeover.
One Delta PLC acquired Audioboo Ltd and changed its name to Audioboom in May through the issue of GBP174.5 million in new shares and 19 million warrants.
Audioboom posted a pretax loss of GBP2.1 million to the end of May, widened from GBP519,000 in the previous year, as administrative expenses rose and it posted a GBP1.4 million adjustment relating to the reverse takeover of Audioboo.
The company posted revenue of GBP24,000, up from GBP22,000 in the previous year for the five month period.
In March the company raised GBP3.5 million in a share placing, and following the acquisition, it is using the cash to fund the development and working capital requirements of its Audioboo social media platform.
The company said that its registered users were up 100% over the last 12 months to 2.8 million at August 25 from 1.4 million the year before. It has also increased its number of content partners to 1,200 from 150 the year before, it said.
Audioboom said that since the period end it has continued to grow content partners and the number of listens. It recently announced a deal with UTV Media PLC's talkSPORT business to sell advertising on its UK sport content, which it said shows the "readiness of the platform for monetisation."
Whilst it is continuing to work on a number of similar agreements in the US and Australia, it said that it still considers it vital to continue to rapidly acquire content and users to ensure the platform becomes compelling, and grows to a "critical viral mass" before it can fully implement monetisation.
Also on Tuesday, the company announced that it has won a new content partnership deal with India's Essel Group. Under the deal, Audioboom is working with companies and brands across Essel, and will initially provide more than 30 new channels, allowing the embedding and sharing of content across websites, applications and social media, as well as live reporting from Essel's ZeeTV reporters and journalists.
Shares in Audioboom were trading up 9.9% at 9.20 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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