2nd Jan 2019 11:12
LONDON (Alliance News) - Matomy Media Group Ltd on Wednesday said its loss in the nine months to the end of September was more than twice its annual loss for 2017, but it has now exited its non-profitable activities and sold its Mobfox business.
Shares in the advertising technology firm were up 53% at 8.40 pence on Wednesday in London.
The firm posted a pretax loss of USD39.3 million for the nine months to September 30, more than double its pretax loss of USD16.7 million for the whole of 2017.
This is the first year Matomy is reporting its quarterly results, and therefore comparative figures were not included for the nine months to September 2017.
Matomy's revenue for the period was USD101.0 million including bad debt, with revenue before bad debt totalling USD103.3 million. This was less than half the company's USD245.1 million revenue for 2017 as a whole.
Total operating expenses came to USD56.6 million for the year to September, including USD30.9 million in impairments of goodwill and intangible assets.
However, Matomy President & Chief Executive Liam Galin said that the company has now exited activities that were not profit-making.
Moreover, after the third quarter, the company sold its in-app advertising business Mobfox which Galin said "needed heavy investments to take it to the next level".
The November sale of Mobfox, Matomy said, was the result of a highly competitive market that demanded consolidation in order to grow. The sale is expected to to reduce operational costs and and cut corporate overhead.
The Mobfox sale is also expected to increase Matomy's profitability, resulting in a higher value for shareholders with the savings taking effect after a "short transition period".
Galin said: "We can now focus our attention and resources on growing our profitable domain monetization activity. In parallel, we are working closely with our stakeholders to resolve concerns so we may move forward in maximizing value for all."
Matomy's domain business includes Tonic, a self-service platform to buy and sell web traffic. Tonic is part of Matomy's majority-owned domain business Team Internet AG.
In December, Matomy published a letter from a minority shareholder in Team Internet AG, relating to the payment of consideration for the acquisition of the remaining Team Internet stake.
Rainmaker Investments GmbH, holder of the 10% stake, said that Matomy had not made a "detailed and clear proposal" regarding the "full immediate payment" of the consideration for its stake, due November 30.
Matomy failed to pay the amount due on November 30, triggering Rainmaker's right to repurchase some or all of the Matomy's shares in Team Internet, at Rainmaker's discretion, at 60% of their original price.
Matomy said its is in discussions with Rainmaker regarding the terms of the purchase for the final 10% of Team Internet.
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