16th Aug 2022 09:54
(Alliance News) - Tremor International Ltd on Tuesday reported a fall in half-year profit on higher costs, and flagged a number of headwinds for the remainder of the year.
Shares in Tremor International were down 15% at 370.20 pence in London on Tuesday.
For the six months ending June 30, the London-listed digital advertising firm reported a 2.8% increase in revenue to USD156.7 million from USD152.4 million a year before.
Its contribution excluding traffic acquisitions costs in the second quarter decreased to USD70.8 million from USD73.3 million in the same period a year prior. For the first half, this figure rose to USD141.8 million from USD136.7 million, despite being "impacted by challenging macroeconomic conditions".
Pretax profit dropped 18% to USD28.8 million from USD35.1 million a year ago, as operating costs rose 20% to USD97.5 million from USD81.0 million.
Adjusted Ebitda in the half rose 12% to USD72.7 million.
Looking ahead, the company said it expects to "enhance platform scale" through its pending USD239 million acquisition of Amobee and its USD25 million investment in VIDAA, both of which are expected to close in the third quarter.
Tremor said it is well-positioned to benefit from industry growth trends, provided there are no Covid-19 or war escalation related setbacks.
"Tremor's full year 2022 guidance considers challenging market conditions that limited advertiser activity in Q2 2022, such as inflationary pressures, rising interest rates, geopolitical and macroeconomic uncertainty, recession concerns, and widespread global supply chain issues in certain verticals such as automobile manufacturing, with the expectation that these challenges could continue to have an impact on the advertising demand environment for the remainder of 2022 and beyond," it said.
The company estimates its full year contribution ex-TAC to be around USD290 million, as it believes its "broad range of revenue verticals help mitigate [the] effects of these potential headwinds", and its adjusted Ebitda is expected at USD155 million.
Chief Executive Officer Ofer Druker said: "We are confident Tremor remains well-positioned to weather continued market headwinds while capitalizing on anticipated company-specific and industry-related growth catalysts."
By Dominique Pretorius; [email protected]
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