Rhythmone Share Discussion Threads

[freddie ferret] 02/6/2017 14:26

Brill thanks ignore previous post 4217.

[freddie ferret] 02/6/2017 14:25

It's just it is a bit of a pain having to type in LSE:RTHM into the news section of the site when one just wants to see if anything new has happened.

[sikhthetech] 02/6/2017 14:23

hi FF,

done.

[sikhthetech] 02/6/2017 14:21

Loaf,
yes, and they had 9 offices worldwide, so maybe an opportunity to buy some assets cheap...

[freddie ferret] 02/6/2017 14:17

Sikh.

It would be of great benefit to all that are interested in this company if you would alter the header so that it has the direct feed of RNS news stories.
I think you can do this.

Thanks in anticipation.

[loafofbread] 02/6/2017 13:59

Good news for us though, as another outfit bites the dust.

[football] 02/6/2017 13:53

I wished not even biggest holding, strange you get told we need P&G as clients one day and the next day they will bankrupt us if they walk away if we ever had them

[sikhthetech] 02/6/2017 13:32

AudienceScience Shuts Its Doors Less Than A Month After P&G Client Loss


AudienceScience was a 17 yr old company, who seemed to have it all...
The industry challenges following the Methbot fraud, P&G comments, others scaling back on ad tech... adblockers and Duopoly..

[sikhthetech] 02/6/2017 12:10

1gw,
I agree it's a risk which needs to be managed.
Assuming it's the same one customer which represented 12.56% last year, they're used to dealing with 1R and Perk seem ok about dealing with the 2... would they be happy spending so much with the 1, so it is risky...
If it is Yahoo then, as you say, they are going through major changes, so we'll have to see if they continue to support 1R/Perk...

The AR states the 'one customer accounts for 23.62% of combined revenue'... I assume combined means core & Non-core... so was there any non-core contribution?

[lance corporal winstanley ash] 02/6/2017 12:06

Footy, are you over 3%?

[stocky] 02/6/2017 11:35

Can't be many shares on the float. The top 3 shareholders, combined, holding more than 43% of the company. And many companies holding above 3%.Off to the South France next week. Maybe, i'll bump into Barkie.

[1gw] 02/6/2017 10:56

STT - "very dangerous"??? (having a single big customer)

It's a risk which needs managing, not necessarily dangerous as such. Big potential upside (if you can increase the margin or persuade them to take more as you increase the opportunities), but big potential downside as well (risk of loss of pricing power, especially if they are more important to you than you are to them).

I agree it is possible that the growth in dependency on a single customer is at least in part a consequence of the Perk acquisition. As I read the report "current year" is talking about FY17 and it is also talking about just the $149m of "continuing operations". During FY17 Perk contributed only $13m revenue (so about 9%). In Perk's 3QFY16, they had one customer who accounted for 64% of revenue (and this % seemed to have been going up). So it seems credible that the bulk of the 9% from Perk came from a single customer.

My own analysis suggested (to me) that Perk's big customer was Yahoo! So it seems credible to me that this is also now R1's biggest customer.

Yahoo! is undergoing some change with the Verizon move. If this is correct, then certainly a big risk to R1, but a reasonably symmetric risk I think - big potential upside if they handle it right as well as big potential downside if they don't.

Also, margins to this customer are probably relatively low, so if they can displace some of the big customer demand on the Perk part of the business with higher margin R1 customers then there is upside here as well.

[sikhthetech] 02/6/2017 10:50

Didn't the lock in period for ex-perk shareholders expire on 17th Apr...

At that time, the share price was in a downtrend until the rise just before the results.. after the results, the share price has been in a downwards trend...

[sikhthetech] 02/6/2017 10:44

The AR holdings are dated as of 31st March & 30th Apr...

If you look at the chart or historical prices, the share price rose just before the TU on 12th Apr, peaking at 50p on the 12th Apr... There was buying interest...

However, After the TU the share price declined to a low of 42.56 on 28th Apr before a rise again until the full year results on 15th May... peaking at 49p on 12th May, the Fri before the results...


Since the results, the share price trend has been down...
and the AR does not include shareholdings after the results...

[1gw] 02/6/2017 10:34

The main news that I think comes out of the annual report on shareholdings is of a big increase by R&M:

20.4m shares on 12th July 2016 up to 45.6m shares on 30th April 2017.

Other than that, RG has gone down a bit (34.0m voting rights from 31.9m shares plus 2.1m cfd on 19th Jan 2017) down to 30.4m "voting rights as a shareholder" on 30th April 2017 - not clear to me if the 30.4m annual report number also includes all cfds with voting rights). Toscafund has dipped slightly from 139.4m on 10th March 2017 to 138.7m on 30th April.

AVG isn't listed but I suspect that's an omission rather than a reduction.

[1gw] 02/6/2017 10:24

No football, I don't think that's the reason they now have 9.2% vs the 5.0% on that website page. That website shareholder page is a bit of a waste of space. It only seems to get updated for the institutions when there is a TR-1 and they don't even put the date that the shareholding applies.

So for example, RG's 6.88% is as of 19th January, his TR-1 following the dilution. R&M's 5.04% is as of 12th July 2016, their last TR-1 (pre the Perk dilution).

The Barclays, HL, TD Direct and Halifax numbers were all showing their current values as far back as 14th April 2015! They haven't even updated them for the Perk dilution. Worse than useless!

I think that R&M have probably acquired their position over an extended period. Because of the way R&M is structured they only have to notify when they cross 5% and 10%.

[football] 02/6/2017 10:10

Major shareholders list in RhythmOne plc

As of 01 June 2017

Major Shareholders' Information % Holding

Toscafund Asset Mgmt 28.2%

Hargreaves Lansdown Asset Mgmt 7.84%

Richard Griffiths 6.88%

Barclays Wealth Mgmt 6.79%

TD Direct Investing 5.64%

River & Mercantile Asset Mgmt 5.04%

Halifax Share Dealing 3.45%

Rhythmones website yesterday


Could they just bought all of the perk shares before they come onto the market in recent weeks.

[1gw] 02/6/2017 10:06

AVG Ventures - no mention of them as a 3%+ shareholder in the annual report. Is that because the notification of their 3.04% interest wasn't made until May?

[lance corporal winstanley ash] 02/6/2017 10:00

R&M have a history or working with Tosca.

[1gw] 02/6/2017 09:59

R&M shareholding.

Loaf - the 9.22% number could be wrong but I would be surprised.

The number (5.04%) on the holdings page is the last number notified by TR-1 (on 13th July 2016) and has been there on the R1 site since at least 15th July 2016.

So I suspect they asked major known shareholders for updated positions as at end-March and end-April and have used that information for the annual report.

Note that on the website shareholder page, the only director holding listed is Mark Opzoomer's at 0.01%. No mention of BM or SC, both of whom held more shares than MO at 31st March 2017 according to the annual report. So there is no particular evidence that the "1st June 2017" update of the website page has anything to do with the information released in the annual report is there?

In terms of the other shareholders you say have been identified by Bloomberg, I suspect it is R1's systems that let them down. If the other shareholders have not crossed the threshold where they are required to notify R1 (and this might be 5% for some of them), then it looks like R1 might not have any way of identifying their holdings. Once they have notified then I think R1 takes the initiative to ask them for updated numbers for the annual report. At one point I think R1 were trying to analyse the shareholder register "properly" but I can't see any clear evidence that this is happening now.

[football] 02/6/2017 09:50

So it's more performance related now which was easy decision for him to make seeing that the share price was 16p a year or so ago and now in the low 40s which makes him look good as the share price is more than doubled

[1gw] 02/6/2017 09:42

loaf - no he absolutely did not take a pay cut in FY17 (although his base salary appears to have been unchanged) in my opinion. He actually got a huge increase in bonus, presumably reflecting delivery against his annual targets.

The only reason the total remuneration appears to have fallen is to do with the way the long-term incentives are valued - which has nothing to do with any decisions on remuneration taken by the board in FY17. If anything it has to do with the shareprice and the revised (in FY16?) option scheme. If the shareprice had made it over the 50p threshold long enough for some of his 7m chunk of options to vest then I think that chunk of the options would have been valued in the FY17 total remuneration.

[1gw] 02/6/2017 09:27

football - I think there is a "normal" vesting schedule but with the possibility of accelerating it. The 50p threshold is absolute, as far as I remember, in that he can't exercise any of the options until the shareprice has reached 50p and remained there for some defined period. Once that happens then I think the "normal" vesting schedule applies (maybe a certain percentage of the options vest every quarter?) but if higher shareprice thresholds are reached then they vest more quickly.

[geheimnis2] 02/6/2017 09:13

As you were

G2 x