Tremor recovers to record second-half performance in 2020

The AIM-traded advertising technology company said programmatic net revenue increased 30% to $161.6m (£116.17m), offset by an expected decrease of 43% in performance activity.

Total net revenue increased 12% to $184.3m, with 88% of net revenues generated from programmatic activities - compared to 76% in 2019 - with programmatic revenues accounting for 91% in the fourth quarter.

Tremor reported a record second half adjusted EBITDA of $58.7m, up 51% year-on-year, while its full-year adjusted EBITDA came in at $60.5m, up marginally from $60.4m.

The board said full-year earnings were impacted by Covid-19-related and industry-wide headwinds across global advertising markets in the first half.

It said the increase in programmatic activities was mainly attributable to revenue growth in connected TV, self-serve platforms, and the DSP offerings in private marketplaces.

That was offset by the expected decrease in performance activities.

Building on momentum from 2020, Tremor said it experienced a “strong start” to 2021 compared to the same period pre-Covid-19 in 2020, driven by strong organic growth.

Reported earnings per share fell to 1.6 US cents from 5.6 cents, and adjusted diluted earnings per share totalled 30.46 cents, falling from 37.05 cents.

Net cash from operating activities totalled $35.2m at year-end, down from $45.1m, which the board put down to working capital requirements during the record fourth quarter and second half.

Net cash as at 31 December was $96.8m, up from $78m at the half-year, after returning $10m to shareholders since March via its share buyback programmes.

“The record performance that Tremor achieved during the second half of 2020 and the strong start of 2021 is a clear endorsement of our strategy, the company's platform and our ability to generate sustainable organic growth,” said chief executive officer Ofer Druker.

“Whilst, as previously flagged, Tremor was impacted in the first half of 2020, as Covid-19 reduced demand across the advertising sector, overall, 2020 was a significant year in the company's development.

“It is clear that we have the right foundations in place to generate significant growth.”

At 0951 GMT, shares in Tremor International were up 7.52% at 572p.