17th Aug 2023 10:43
(Alliance News) - Tremor International Ltd on Thursday said revenue fell as it swung to a loss in the first half of 2023.
Tremor shares fell 29% to 180.00 pence each on Thursday morning in London.
The New York-based advertising technology company said revenue declined 0.4% to USD156.0 million in the first half of 2023, from USD156.7 million a year ago. The company noted that programmatic revenue grew by 16% in the first half to USD138.8 million, from USD119.8 million, reflecting the firm's footprint expansion through the integration of Amobee. Meanwhile CTV revenues also increased 17%. Tremor added that programmatic revenue accounts for more than 90% of the firm's total revenue.
The firm said pretax loss during the period was USD24.7 million, swinging from a profit of USD28.8 million the year prior.
The company noted that its operating costs increased by 52% to USD148.4 million, from USD97.5 million.
Looking ahead, the firm said it expects ex-TAC, programmatic revenue and CTV revenue to increase in the second half of 2023, with the majority of growth expected during the fourth quarter.
However, the company said it expects the full-year ex-TAC contribution to be between USD320 million and USD330 million, down from previous expectations of USD400 million. Ex-TAC refers to gross profit plus depreciation and amortisation attributable to cost of revenues.
It also cut guidance for adjusted earnings before interest, tax, depreciation and amortisation to a range of USD85 million to USD95 million, from the prior guidance range of USD140 million to USD145 million.
Chief Executive Ofer Druker said: "We were incredibly pleased to achieve our goal of efficiently completing the integration of Amobee, which featured a tech-rich platform and much larger employee base than Tremor at the acquisition's close, and to have met our total annualized operating cost synergy target.
"We believe macroeconomic uncertainty is impacting major advertisers' and agencies' budgets and willingness to spend during H2 2023... We are also experiencing longer, and more complex, sales cycles related to our strategic focus on driving larger enterprise deals with major advertisers, agencies, and CTV players.
"We believe impacts from these combined factors will alleviate over time and that we will be better positioned than ever for success, and growth within CTV, when budgets expand and the spending environment improves."
By Harvey Dorset, Alliance News reporter
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