4th Apr 2019 09:58
LONDON (Alliance News) - Bidstack Group PLC on Thursday reported a significant increase in its annual loss due to higher expenses and acquisition-related costs.
Bidstack shares were trading down 8.2% at 13.12 pence each on Thursday morning in London.
For 2018, the in-game advertising firm's pretax loss came in at GBP3.3 million compared to GBP494,746 a year prior.
This was due to administrative costs trebling to GBP1.3 million from GBP402,642 a year prior and cost of sales doubling to GBP240,849 from GBP101,699.
Transaction costs of GBP713,744 due to the reverse takeover of Bidstack Ltd completed in September and share-based payments of GBP1.4 million, also related to the acquisition, added to the profitability slump.
More positively, revenue jumped to GBP316,906 from GBP10,034, although this proved insufficient to offset the higher costs.
"The team has made great progress in the development of the Bidstack platform since completion of the reverse takeover," Chair Donald Stewart said.
"These advances coupled with the high levels of interest in Bidstack's business model we are experiencing from games publishers, developers and other leading technology businesses all support the directors' belief that we have a significant first mover advantage in the provision of dynamic native in-game advertising and that the business will generate highly significant amounts of advertising traffic."
The company said it is "well placed" to meet market expectations in 2019 and expects "extensive growth" in 2020.
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