Audioboom Group PLC Third quarter update and adoption of new standard (1712M)
October 11 2016 - 2:00AM
UK Regulatory
TIDMBOOM
RNS Number : 1712M
Audioboom Group PLC
11 October 2016
11 October 2016
Audioboom Group plc
("Audioboom" or the "Company")
Third quarter update and adoption of new standard
Audioboom (AIM: BOOM), the leading spoken word audio on-demand
platform, is pleased to provide a trading update in respect of the
three months ended 31 August 2016.
Following the release of the Interactive Advertising Bureau
publishing guidelines in September 2016, Audioboom is adopting many
of its recommendations as standard practice for all its future
reporting. One of the key recommendations is that companies should
now report unique file requests ("UFRs") as their measuring
standard rather than listens, which has historically been one of
Audioboom's KPIs.
IAB has selected this new key measurement because UFRs provide a
more definable measure and are standard across all platforms. The
measurement standard is based on ubiquitous system log files,
whereas 'listens' can be calculated by companies in many different
and variable ways.
Under the new IAB industry standards, Audioboom reported an
increase in UFRs from 93.4m in Q2 to 102.5m in Q3, representing
approximately 10% growth in real terms, quarter on quarter.
Audioboom is now also calculating its served advertising
impressions on a quarterly basis, as a measure of potential
revenue. The Board believes that this is a valuable addition to its
published KPIs and is pleased to report an increase in served
advertising impressions from 43.5m in Q2 to 59.0m in Q3. This
represents approximately 35% growth quarter on quarter,
demonstrating Audioboom's commitment to commercialisation across
its platform.
Audioboom had 8,948 content channels at the end of Q3, adding
over 800 during the quarter, including Saavn, India's largest music
service. Additionally, Audioboom has signed new sales and
distribution deals with Spotify, TargetSpot and Pandora.
Most importantly, Q3 revenues exceeded the total revenue
generated in H1, reflecting the momentum Audioboom is now enjoying.
Advance bookings for Q4 and into 2017 show this growth continuing
to accelerate. The Board is, therefore, confident in meeting its
revenue expectations for the full year ending on 30 November 2016.
The Board is targeting a cash-flow positive position by Q1
2018.
Finally, the Company previously announced that it was
considering the acquisition of SONR News Limited ("SONR"),
primarily for the purpose of obtaining its engineering team and
Neuro-Linguistic Programming and Artificial Intelligence algorithms
but also for the potential to accelerate the Company's
speed-to-market of its proposed ad-serving platform. The Board
confirms that it is continuing with its due diligence and is in
ongoing negotiations with the board of SONR.
Rob Proctor, CEO of Audioboom, said: "We are now starting to see
significant month on month increases in revenue. Crucially, Q3's
performance, together with Q4 advance bookings, show Audioboom has
transitioned from a content focused business to a revenue focused
business in the past twelve months. This fundamental change has
taken time to execute and, now that we have done much of the work,
we are starting to see the rewards.
"The Board is confident that revenue expectations for the full
year will be met. The momentum we have created is accelerating,
particularly in the US, where an increasing amount of our focus is
being placed. As we head towards 2017, the revenue generating
capabilities of our global platform and our continued cost
reduction measures will ensure that we have a strong and positive
outlook."
Enquiries:
Audioboom Group plc
Rob Proctor, Chief Executive Tel: +44 (0)20 7403 6688
Officer
David McDonagh, Chief
Financial Officer
Liberum (NOMAD and Broker) Tel: +44 (0)20 3100 2222
Neil Patel / Richard Bootle
Hudson Sandler
Cat Valentine / Jocelyn Tel: +44 (0)20 7796 4133
Spottiswoode
About Audioboom
Audioboom is the leading spoken--word audio platform for
hosting, distributing and monetising content.
Audioboom works with more than 3,000 active broadcasters,
content creators and podcasters around the world -- including
Cumulus, the BBC, NewsCorp, Associated Press, NBC Sports Radio,
Undisclosed and Global -- hosting approximately 9,000 content
channels.
Audioboom's hosting and distribution platform allows partners to
embed, share via social channels and re--syndicate their content.
Audioboom content receives more than 30m unique file requests per
month, and growing. Additionally, Audioboom works with its partners
to monetise their audio via live in--reads, the dynamic insertion
of pre and post roll audio adverts, and video ads.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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October 11, 2016 02:00 ET (06:00 GMT)
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