Tremor International 'severely impacted' by Covid-19

Advertising company Tremor International said on Thursday trading had been "severely impacted" by the Covid-19 outbreak, with clients cutting advertising budgets across all platforms.

While Tremor said it had made a solid start to 2020 at the time of its full-year results in March, the group stated it now appears that it was "too early" in the outbreak of Covid-19 to have fully assessed the pandemic's impact on its overall outlook.

The AIM-listed group said this was particularly evident in the travel, hospitality, automotive and retail sectors, which have experienced significantly reduced demand since mid-March 2020.

However, Tremor said increased demand in certain industries such as online services, e-commerce and pharmaceuticals had mitigated "some" of the decline.

First-half revenues were now expected to be between $131-135m, 27-29% lower than expected, and said it also anticipates an adjusted underlying loss $3-6m for the half.

Although trading volumes in April were "significantly lower" year-on-year, Tremor did note a recovery began in May - with significant further improvement evident during June.

As of 1050 BST, Tremor shares were down 1.37% at 144.0p.