TIDMBOOM
RNS Number : 9646T
Audioboom Group PLC
24 July 2015
24 July 2015
Audioboom Group plc
("Audioboom" or the "Company")
Half Yearly Report
Audioboom (AIM: BOOM), the leading spoken-word audio on-demand
mobile platform, announces its unaudited interim financial results
for the six months ended 31 May 2015, another period of continued
growth in its active userbase and content partners.
Audioboom is a mobile, web and connected device platform which
aims to provide the very best spoken-word content in news, current
affairs, business, entertainment and sports - see
www.audioboom.com. Audioboom is using this platform to create the
world's first aggregated audio content syndication and advertising
network, with the aim of driving long-term revenue generation.
KPIs & Financial highlights
-- Over 4m registered users (Nov 2014: 3.14m)
-- Over 3,000 active content partners (Nov 2014: over 2,000)
-- 1.5m total mobile app installs since launch
-- Revenue of GBP46k (5 months ended 31 May 2014: GBP24k)
-- Cash at period end of GBP6.19m (as at 31 May 2014: GBP3.06m)
Operational highlights
-- Successful marketing campaign and content deal with Russell Brand
-- In-vehicle deal with AUPEO! & app integration with Apple CarPlay and Android Auto
-- Revenue referral agreement with Audible, a subsidiary of Amazon.com
-- Nobex Radio partnership agreement
-- First mobile network operator to roll-out Audioboom app under Cloud Africa deal
-- Appointments of David McDonagh (CFO) and Nick Candy (non-executive director)
Post-period highlights
-- Advertising revenue share agreement with Cumulus Media, the US's second largest radio group
Rob Proctor, CEO of Audioboom, commented:
"We are continuing to grow our user base, add high quality
content partners and increase the number of customers downloading
our iPhone and Android app. We have also advanced our position as a
major aggregated audio advertising network whereby we look to build
up significant revenues by running advertisements in-stream on any
websites, apps, and third party audio platforms that use our
platform to provide on-demand content.
"We are confident of our ability to deliver substantial growth
in advertising revenues next year and remain focussed on achieving
our long-term goals, targeting cash generation and profitability in
2017."
Audioboom Group plc Tel: 020 7403 6688
Rob Proctor, Chief Executive
Officer
David McDonagh, Chief Financial
Officer
Arden Partners plc - NOMAD and Tel: 020 7614 5900
Broker
Chris Hardie/Ciaran Walsh, Corporate
Finance
Walbrook PR Tel: 020 7933 8780 or audioboom@walbrookpr.com
Sam Allen / Paul McManus Mob: 07884 664 686 / Mob: 07980 541
893
About Audioboom (www.audioboom.com)
Audioboom is the leading mobile, web and connected device
platform for the very best spoken-word content in news, current
affairs, business, entertainment and sports.
It operates a digital, on-demand, streaming audio platform
enabling the creation, broadcast and consumption of audio across
multiple global media outlets. Audioboom works with some of the
biggest names in broadcasting across sport, entertainment and
current affairs to bring their content to millions of listeners
worldwide via Facebook, Twitter and other media platforms.
The technology allows partners to embed playlists onto their
sites and apps, use our mobile apps and functionality as listen
again players and re-syndicate their content around the web.
Audioboom also allows the monetisation of audio via the dynamic
insertion of pre and post roll advertising into content as a user
is listening, allowing contemporary advertising selection,
depending on content genre and geographic location of the user.
Audioboom has over 3,000 active content partners, including the
BBC, Telegraph, Guardian, Cumulus Media, Sky Sports, Premier
League, Southern Cross Austereo, Reuters, CNBC, Universal and
Fox.
Audioboom is using this platform to create the world's first
aggregated audio content syndication and advertising network.
CEO Statement
I am delighted to provide an overview of trading for the 6
months ended 31 May 2015 and a summary of our results for that
period, during which we marked our first year as a listed company
following our admission to AIM in May 2014. We have made tremendous
progress since becoming public and I am pleased to report continued
growth in our registered user base, active content partners and app
installations.
We have stated before that the long-term strategy of the
business is to drive revenue growth through the creation of the
world's first aggregated audio content syndication and advertising
network. Post the period-end we successfully concluded a major
advertising revenue share agreement with Cumulus Media Holdings,
Inc ("Cumulus"), the US's second largest radio group, which will
see them use our platform to roll-out their entire digital
strategy. This provides a huge opportunity to generate significant
advertising revenues and gives us excellent coverage of the US
market which we see as an increasingly significant contributor to
our growth plans. Whilst the signing of this agreement has taken
longer than we'd hoped it is a big step towards significant revenue
generation and we continue to target cash generation and
profitability for the business in 2017.
Update on Key Performance Indicators ('KPIs')
As we've previously outlined the near-term focus of the business
is to achieve a critical mass of active registered users and
increase the partnerships we have with the very best audio content
providers. In addition, following the launch of the iOS and Android
Audioboom apps, we will provide updates on the number of app
downloads.
As announced in our quarterly update in June, active content
partners, that is those partners who have posted content during the
period, exceeded 3,000 for the first time by the end of May, up
from around 2,000 active content partners at the beginning of the
period. Our number of registered users also increased over the last
six months from 3.14m at the end of November 2014 to over 4m users,
adding over 200,000 users in May alone, a new monthly record for
Audioboom. In terms of app downloads we now have over 1.5m total
app installs since the new iOS and Android apps were launched, with
more than 550,000 added in May alone, another monthly record.
Although not currently a reported KPI, the number of "listens"
(that is, the number of times users consume Audioboom content
through the website, the iOS and Android apps, and via the
embeddable content players) will become an important metric in the
coming months as it will ultimately drive advertising revenue.
Total listens for the most recent quarter (to end May) exceeded 75
million, taking the total lifetime listens for Audioboom content
past the 500 million mark.
We intend to provide the next update on these KPIs in September
covering the 3 month period up to the end of August.
Financial Results
During the first half, Audioboom continued its focus on growing
the number of registered users, number of content partners using
its platform and the number of app downloads. Revenues at this
stage remain minimal at GBP46,000 (5 months ended 31 May 2014:
GBP24,000) and the business recorded an adjusted operating loss of
GBP2.90m (5 months ended 31 May 2014: GBP0.75m). The increase in
underlying losses reflects the implementation of the business's
growth strategy and increased marketing activities, together with
the additional corporate and governance costs of being listed on
AIM.
Whilst cash controls remain tight within the business, the
Company continues to invest in future growth and as a result net
cash used in operating activities increased to GBP2.66m (5 months
ended 31 May 2014: GBP0.65m). Audioboom continues to be well funded
with cash reserves of GBP6.19m (as at 31 May 2014: GBP3.06m) and we
are targeting a move into cash generation and profitability in
2017.
Operational Review
The advancement across all of our KPIs is very encouraging and
we believe we have a strong platform to deliver significant revenue
growth next year.
The initial roll-out of the Audioboom app has gone very well
since the launch of the iOS app at the back end of last year and
the launch of the Android app in February 2015. Our high profile
marketing campaign, headed up by a content partnership with Russell
Brand to position the mobile app to a younger audience, proved to
be successful and the number of app downloads continues to build
momentum with record numbers recorded in May as I've already
mentioned.
As we announced in April, Audioboom users can now listen to the
very best spoken-word content, on demand, whilst in their car
following the integration of our iOS and Android apps with Apple
CarPlay and Android Auto respectively. This follows on from the
deal announced in March this year with Aupeo whereby we became
their global provider and delivery platform for audio content. As
part of this agreement we will create, curate and seamlessly
deliver UK, US, Australian and European news, sport, comedy and
entertainment audio content directly into the Personal Radio by
AUPEO! in-car infotainment platform.
We also continue to develop a Hispanic version of our app to
expand into the South and North American markets and will update
shareholders once this is launched, expected to be before the
financial year end.
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