Rhythmone Share Discussion Threads

[jwoolley] 13/6/2017 08:25

.....more smoke and mirrors then....???

[football] 13/6/2017 08:15

Ad Blocking Losing Steam in EU-3

Adoption slowing to single digits in France, Germany and UK







I found a link but it says Ad Blocking is slowing! you would never think that reading some posts here would you

[1gw] 13/6/2017 08:08

Well, they have $86m odd on the balance sheet between goodwill and intangible assets at the end of March 2017 vs $131m at the end of March 2015 before the write-downs. So fairly slim compared to what it was.

If they buy something big then that's likely to come with a good chunk of goodwill, and another good chunk of intangibles that will need amortizing. So yes, the amortization will add to the gap between adjusted EBITDA and profit, offsetting some of the reductions in exceptional costs that should come through from having completed the recent transformation. As will any acquisition costs and integration/restructuring costs. But investors buying into R1 now are buying into the story that R1 has been successful enough through its recent reinvention to act as a consolidator in the ongoing shake-out of the industry aren't they? So this isn't necessarily a bad thing. And any further acquisitions should increase revenues, add to economies of scale (operational gearing) and may well be accretive in their own right.

[gowlane] 12/6/2017 21:39

But you can make a plausible argument that a company that goes in for acquisition led growth like 1R could have an increasing absolute gap between management's declared ‘adjusted ebitda’ and the bottom line net profit figure signed off by the auditors.

All it needs is a sizeable loss-making acquisition, (have 1R/Blinkx ever made any other kind?) preferably of a company that has itself been on a buying spree, with all bits and bobs bundled together, a hefty D&A charge, share based compensation etc.

Then turn off a few revenue streams just before the year end, begging the question, will we have some hefty restructuring charges and/or straight forward write-offs the following year?

Who knows, but we do have a big fat balance sheet once again that may get trimmed.

[sikhthetech] 12/6/2017 19:57

Snapchat seduces advertisers with new self-serve tools and certified partners

Snapchat names some of it's partners..

Certified Partners:

"But with the new Certified Partners program, its given extra training to a select set of its top ad tech partners and will favor them when referring clients. Certified Partners include SocialCode, Adaptly, Unified, and Hyfn. "

Standard Partners:
"Snapchat is expanding its standard partner program by adding 25 new partners including Resolution Media, Booyah Advertising, and PMG Worldwide."

[loafofbread] 12/6/2017 19:50

10X revenues. If only!

[2oco] 12/6/2017 19:33

Item posted by Brian in Twitter.

[geheimnis2] 12/6/2017 18:11

wibble wibble alex!

[sikhthetech] 12/6/2017 13:58

APPNEXUS AND UNRULY LAUNCH INDUSTRY'S FIRST OUTSTREAM VIDEO HEADER BIDDING SOLUTION

one step ahead...
"The solution enables publishers to auction outstream video inventory across desktop and mobile, while optimising revenue through direct transactions."

[football] 12/6/2017 11:41

Just wondering if anyone has a link or two about ad blocking or ad fraud as they seem to be very hard to find

[sikhthetech] 12/6/2017 10:57

Why Safari’s Desktop Tracker Blocking Matters (Even Though Safari Desktop Doesn’t)

[sikhthetech] 12/6/2017 10:49

always smoke and mirrors...
plus the industry challenges around fraud, fake news, reducing ad tech spending etc all came about within the last few months... so yet to hit...

[alex1621] 12/6/2017 08:44

In Skegness with a Trabant? You been taking "truth drugs" again Geh2?

[jwoolley] 12/6/2017 07:49

Smoke and mirrors.....

[wheeze] 12/6/2017 07:08

Footy check out the pie chart comparing the other technologies vs google ad sense - R1 66572 vs over 2 million for google. R1 comparable with twitter ads.Top ten will do me. At 40p undervalued imho.

[geheimnis2] 11/6/2017 23:01

Lol...course you are hotpants...

Sure you're not on the lash with the girls in Romford again?

[precinct14] 11/6/2017 22:55

It's spelt Grass, stocky. Ask Barky. Me,I'm enjoying a picnic on top of Angel Falls, a stunning location where the borders of Venezuela, Brazil and Luxembourg converge. Breathtaking views.

[1gw] 11/6/2017 22:46

But you can see from the bridge that the gap (between Adjusted EBITDA and bottom-line profit) is largely down to the level of two items:

1. Acquisition & exceptional costs
2. Amortisation & depreciation

I accept they have some latitude in what they class as "exceptional" costs and so the first item can perhaps be managed to some extent. In FY17 though, I presume the first item was higher than the average of the 5 years you looked at largely because they had to take a write-off on the disposal of PVMG (which accounted for over 40% of this item). So there wouldn't have been a lot of discretion there.

I don't think they have a lot of discretion at all on the second item, having agreed the rules for D&A with the auditors, do they? In fact, if I look back to FY15 (the latest of the 5 years you look at) I see the D&A was a whopping $18.8m, compared to "just" $10.2m in FY17. The D&A is a function of how much they have sitting on the balance sheet, nothing to do with how much revenue is going through the P&L and FY17 is considerably down on FY15 mainly I think because of the write-offs they were forced to take in FY16.

[gowlane] 11/6/2017 21:49

1gw, to be precise here I pointed out that the gap between ebitda and net profit
had doubled over the last year as a % of revenues in comparison to 5 years trends.

And speculated what might be the outcome this year if that gap has become the new benchmark. Same result if you look at the gap as a % of operating costs

a valid viewpoint in my book. But it is a conscious management choice, what they choose to omit in terms of costs when calculating adjusted ebitda. Not something that follows any rules of business, statistics or accounting that I know of.

more a question of how much they choose to spin things, character, past form and track record tells me to be wary of these guys

[1gw] 11/6/2017 21:46

I think it's highly likely there will again be some exceptional costs in FY18, but I suggest at this point it seems likely that they will be considerably lower than in FY17, absent a really major acquisition (which of course can't be ruled out) or getting hit by another industry crosswind (which also can't be ruled out, but by its nature is currently not expected).

FY15
$3.1m acquisition costs
$1.6m Restructuring and severance costs
$4.7m Total acquisition & exceptional costs

FY16
$1.1m acquisition costs
$1.8m Restructuring and severance costs
$62.3m Write-downs (goodwill impairment, change in intang. asset lives)
$65.3m Total acquisition and exceptional costs

FY17
$2.4m acquisition-related costs
$2.8m Restructuring and severance costs
$3.9m Loss on disposal of PVMG assets
$9.1m Total acquisition and exceptional costs

So just looking at the line items, it seems to me likely there will be another chunk of acquisition-related costs in FY18. I would however expect restructuring and severance costs to be meaningfully lower than in FY17 (now the "fundamental transformation" is complete) and no further write-downs/losses on disposal.

A good topic of conversation with the new CFO at the AGM for anyone interested I would have thought.

[sikhthetech] 11/6/2017 21:10

There are several subsidaries listed within the AR...
PV has been sold and although they mentioned draw down of certain other assets, were these named?
There's still Verti Tech and Ad On Network listed as subsidaries.. I'm assuming these were closed when they said 'certain other assets'...
together with several new ones, persumably acquired as part of Perk... Playerize, AdRedeem, 0945993 BC ltd, Blinkx (Canada) Inc.


Are these part of core or maybe 1R will close...more exceptional costs!!

[stocky] 11/6/2017 20:49

Apartment. Just came back from Grasse. Nice place.