Audioboom narrows loss as is strives for profitability

The AIM-traded firm said its adjusted EBITDA loss narrowed to £2.2m from £2.6m, and net cash as at 31 May was £0.3m, prior to the receipt of placing funds in June.

Its board said the balance sheet at period end contained trade payables relating to podcast partners, and transaction costs associated with the aborted acquisition of Triton Digital, which were fully paid as of 13 July from the proceeds of the June fundraising.

Pre and post period end, Audioboom said it received £5.6m of funding via new equity and convertible loan notes, which were now converted.

A further £0.4m was expected to be received subject to VCT clearance being obtained from HMRC.

On the operational front, Audioboom reported further “impressive growth” across all its existing key performance indicators, with total first half unique file requests at 372 million, from 325 million a year ago.

Monthly unique users in May stood at 87 million, compared to 81 million for May last year.

Total first half available ad impressions were 1.24 billion, up from 789 million, while content partner channels increased to 14,566 from 11,843.

“These results have been achieved despite the considerable distraction of the aborted Triton deal,” said Audioboom CEO Rob Proctor.

“It bodes well for the rest of 2018 and beyond that we are now solely focused on turning Audioboom into the pre-eminent podcasting platform.”

Proctor said Audioboom generated a 43% increase in revenue over the same period last year, and expected “substantial” further increases in the second half due to the rapid growth in Audioboom Original Network podcasts, major new podcast signings and subscription fees.

“The underlying EBITDA loss also decreased over the period.

“As we progress through the second half of the year, we are confident that the combination of increased revenues and our continued focus on tight cost control will further benefit the group.”

Audioboom said it believed the recent £5.6m of funding received through convertible loan notes and a placing and subscription would be sufficient to see the company through to positive cash generation.

“Visibility for advertising campaigns for the third and fourth quarters is strong, and the board believes revenue for the full year will be in line with current market expectations, underpinned by a brand count that is more than twice what it was this time last year and with greatly increased available ad inventory,” Proctor explained.