The Melbourne-based Adslot Limited (ASX: ADJ) has announced its financial results for the half-year ended December 31st, 2018 (1H FY2019) reporting its continued efforts in executing previously stated strategic objectives including promotion of the product Symphony and its user base; focus on the US market for trading fees and implementation of a cost reduction plan.
The company offers trading technology and digital marketing services to clients across Europe, North America, Australia, and worldwide. Its range of flagship products comprise Adslot for advertisers and publishers, Symphony for media agencies and Webfirm including web-design, and social media marketing services.
As per the report, Adslot recorded the revenue from continuing operations at $ 5.05 million, up 41% as compared to the $ 3.59 million in the prior corresponding period (pcp) to December 31st, 2017 (1H FY2018).
The total revenue and other income were at $ 5.22 million, also up by 25% on the pcp. Due to the growth in revenue accompanied by a reduction in cost by 13%, there was a $ 2.1 million increase or 60% growth in the EBITDA and around $ 1.6 million increase or 27% improvement in NPAT compared to the corresponding period to December 31st, 2017. The EBIDTA and NPAT were posted at $ 1.39 million and $ 4.34 million respectively.
Moreover, there was strong growth in the trading technology revenue during 1H FY2019, reflecting an increase of 62% against the previous corresponding period to $ 4.2 million. A significant contribution to this growth came from the proceeds from License Fees at $ 3.318 million, up 51% on half-on-half and 46% on pcp, primarily driven by the additional Symphony deployments in Indian and Thailand markets, under the GroupM contract. This was accompanied by a major increase in the trading fee revenue to $ 0.872 million, up 144% half-on-half and 179% on the pcp, stemming from improvements in the growth of trading fees in all regions, especially from traction in the US market. As per the latest update, the product Symphony is now deployed in 15 countries.
The revenue from non-strategic services segment declined by 6% (pcp) to $ 0.835 million, falling $ 52k in total in comparison to the previous corresponding period, primarily due to Webfirm.
Besides, the total operating costs reduced by 1% half-on-half and 13% on pcp to $ 6.572 million during the concerned period, representing the effectiveness of the ongoing cost management initiatives and the February 2018 cost reduction program that resulted in savings of $ 0.9 million or 20% in salaries and employment related costs against the prior period. The cash receipts also increased by 61% to $ 6.648 million in 1H FY2019 and there were net operating cash outflows of $ 0.871 million, up 71% on pcp.
Adslot has a market cap of AUD 57.12 million. At the time of the market session on Wednesday, February 27th, 2019 at 02:45 PM AEST, the ADJ stock was trading at AUD 0.040 with no intra-day changes.
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