RhythmOne prepares shareholders for bumper results

RhythmOne issued a preliminary update on its expected performance for the full year ended 31 March on Thursday, confirming it was in-line with expectations.

The AIM-traded firm said that during the Period, it successfully executed against three key objectives it set forth at the start of the financial year and reiterated during the half year.

Those included growth in its on-platform programmatic revenues, the execution and integration of key strategic acquisitions, and continued profitability on an adjusted EBITDA basis.

The board said other highlights for the period included “excellent” price performance, indicative of its inventory quality, alongside strong cash flows from operations, and the identification of larger synergies than originally anticipated from the YuMe acquisition.

On the financial front, RhythmOne said revenue for the full year was expected to be 71% higher than in the 2017 financial year at $255m, while adjusted EBITDA was anticipated to surge 900% to $14m.

Period end net cash stood at $26m, a drop of $13.3m from 2017.

“We are pleased with our results for the year, and the progress we have made against our targets in terms of revenue growth, profitability and product integration,” said CEO Ted Hastings.

“We believe we are well-positioned to deliver a further strong performance in FY 2019 - fully in line with current consensus estimates in market - as we realize the full contribution of the YuMe acquisition.”

Hastings said the company anticipated that its programmatic platform would continue to serve as the firm’s principal strategic growth driver, reinforced by video and connected television leadership, unique audience data and a commitment to quality and brand safety in the marketplace.

“Further, we will maintain strong cost discipline, driving efficiency within the company with the aim of sustained profitability and value generation for shareholders.”