TIDMBOOM
RNS Number : 9347R
Audioboom Group PLC
02 July 2015
Audioboom Group plc
(the "Company" or "Audioboom")
Advertising revenue share agreement and trading update
Major US radio group uses Audioboom to roll-out digital
strategy
Audioboom (AIM: BOOM), the leading spoken-word audio on-demand
mobile platform, announces an agreement with Cumulus Media
Holdings, Inc. ("Cumulus"), the second largest radio group in the
USA, to use its fully featured SaaS platform to provide on-demand
creative, hosting, broadcasting and advertising tools for the
entire Cumulus radio network, encompassing over 450 stations, over
100 nationally syndicated shows and over 240 million unique
listeners.
The Audioboom platform will be used by Cumulus to embed content
across its networks' websites and mobile apps, offering
listen-again, on-demand and bespoke podcasts and to create clips
that can be distributed via Audioboom's embeddable players, social
media integration (Twitter and Facebook), and RSS feeds into third
party audio platforms. Importantly, the platform will allow
Cumulus, as exclusive sales representation agent, to monetise this
digital content through the sale of pre- and post-roll video, audio
and display advertising, as well as the significant growth of
'in-read' native advertising for podcasts. Under the agreement
Audioboom will receive a share of all advertising revenues
generated using its platform.
In addition, Audioboom and Cumulus will collaborate to
commission and produce original audio content to be distributed
through new podcast networks covering news, sports and country
music. This content will allow revenues to be generated from
additional 'in-read' or 'mid-roll' advertising, to run alongside
pre- and post-roll ads.
As part of the agreement Audioboom will also appoint Westwood
One, Inc. ("Westwood"), the national syndication and media sales
arm of Cumulus, as its advertising sales representative to sell
advertisments embedded in the audio content made via the agreement,
as well as additional US content provided by Audioboom.
Westwood is a wholly-owned subsidiary of Cumulus, and is the
leading multi-platform provider of sports, music, news, spoken
word, and digital audio content in the US with 244 million weekly
listeners and 70 million digital users a month. Their national
portfolio includes well known brands such as the NFL, NBC Sports
Radio, the GRAMMYs, NASH, and Rdio, and they have a strong
reputation in effectively connecting advertisers and audiences.
As part of the agreement, Cumulus will be issued up to 20
million warrants (representing 3.8% of the Company's existing share
capital) to subscribe for ordinary shares in Audioboom at 12.5
pence per share. A proportion of these warrants will be conditional
on Audioboom having received certain levels of net revenue from the
advertising revenue share with Cumulus/Westwood. Further details of
the warrant terms will be announced at the time of their issue,
expected to be within the next 30 days.
Trading update
The Cumulus agreement, together with progress and developments
in other areas, especially our new video ad players, provides us
with confidence that we will achieve our long-term plan for
substantial growth in advertising sales.
The Directors believe the Company is well positioned to deliver
revenues for the year ending 30 November 2016 in line with market
expectations. However the additional time taken to conclude the
Cumulus partnership negotiations means that advertising revenues in
the current year will be substantially skewed to the latter part of
the financial year, resulting in lower sales than market
expectations.
Additionally, Audioboom has taken the strategic decision to
increase its marketing budget by approximately GBP800,000 over the
course of the financial year, so that the Company can further
capitalise on the strong growth in KPIs in H1 with a view to
achieving its long-term goals, targeting cash generation and
profitability in 2017.
Audioboom CEO, Rob Proctor, commented, "As we've consistently
explained, the generation of significant advertising revenues is a
long-term goal, and so we have initially focused on building up our
active user base and content partners. This transformational deal
will help to boost these existing KPIs, but it is also a very big
step towards revenue generation. This partnership represents a
major step-change in our plans for monetisation, and as we see the
full roll-out of our platform across the entire USA we expect to
benefit from a considerable increase in monthly listens and
registered users but also a steady flow of advertising
revenues.
"It's also worth noting that our partnership with Cumulus is not
just about making Cumulus content available to our users, rather,
this is about using our platform to allow Cumulus to become a truly
distributed media company, providing on-demand content across all
of Cumulus' stations' websites, apps, third party websites, and
third party audio platforms. In fact, anywhere a potential listener
may chose to consume content and which, in turn, will generate
advertising revenues for Cumulus and Audioboom."
Cumulus Media CEO, Lew Dickey, commented, "This exciting new
partnership marries Cumulus' and Westwood One's best-in-class local
and national content with Audioboom's industry-leading technology
and distribution capabilities. Radio is America's #1 reach medium,
and as listeners continue to increase their consumption of audio,
this partnership allows for new ways for consumers to explore and
engage with the radio stations and on-air talent they know and love
today. Additionally, from an advertising perspective, the
short-form and on-demand digital medium provides a unique and
effective way for brands to activate consumers. This partnership
highlights Westwood One's continued commitment to bringing new
unique content and advertising options to market."
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, CBS, 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.
About Cumulus Media (www.cumulus.com)
Cumulus is America's second larget operator of radio stations.
Cumulus provides high-impact local marketing solutions in 90
metropolitan areas. It introduces businesses of all sizes to their
communities of over 240 million listeners via radio, digital media,
targeted e-mail and on-site promotions. These solutions help its
customers build strong brands and tap into over US$4 trillion of
local spending power.
About Westwood One (www.westwoodone.com)
Westwood One is the leading multi-platform provider of sports,
music, news, spoken word, and digital audio content. It is the
national-facing arm of Cumulus Media, and the largest audio company
- with 9,100 affiliates, 244 million weekly listeners, and 70
million digital users a month. Westwood One is the expert in audio
- its team is passionate about utilising its diverse platform to
design custom solutions for audio companies, publishers, and
marketers. It is a trusted connection between audio companies,
advertisers, and the audience.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTUAUURVNABRUR
Audioboom (LSE:BOOM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Audioboom (LSE:BOOM)
Historical Stock Chart
From Apr 2023 to Apr 2024