Audioboom zooms after strong final quarter

Audioboom shares rallied on Monday after the podcast platform reported annual revenue had almost doubled after particularly strong trading in the final three months of 2018.

For the 13-month period ended 31 December the company reported revenue of $11.7m, which was up 92% on the $6.1m produced in the 12-months ended 30 November 2017.

US revenue per 1,000 listens increased to $25.87 in December, up 32% from the end of the first half.

Meanwhile there was a $5.2m loss before interest, tax, depreciation and amortisation, which also excluded items such as the costs of the aborted Triton Digital transaction and corporate restructuring, versus a $5.7m LBITDA the year before.

At its interim results, the company revealed £1.2m of transaction costs and adviser fees relating to the aborted Triton deal.

Rob Proctor, chief executive of Audioboom, said: "2018 posed exceptional challenges for the business, so it is hugely satisfying that our revenues have almost doubled. Even more significant is the cash flow break even performance in the final three months of the period, achieved through higher revenues, continued cost control and improved financial processes."

At 31 December cash stood at $1.6m, remaining at the same level as at the beginning of the quarter following the cash flow break-even point being reached, while the AIM traded company's brand advertiser count increased from 130 in May to 160 in December. Last summer the group raised £5.6m of funding via new equity and convertible loan notes.

Proctor argued that Audioboom was the "go-to platform for top talent and broadcasters", citing launches of podcasts by Jonathan Ross and Heston Blumenthal with the platform later in the year as evidence of this.

"The exciting results in the final three months of the period, 2019 pre-booked advertising campaigns and content acquisition pipeline are all pointing towards a further significant increase in company performance in 2019," he said.

Audioboom's shares were up 26.19% at 1.32p at 0943 GMT.