Rhythmone Share Discussion Threads

[1gw] 27/6/2017 12:47

Feeling at the AGM (from management) was that AVG probably are out. Ted H's spin was that this was consistent with AVG's venture capital focus (they've already had their early-stage return on their Perk investment) and with their pre-merger position - ie that AVG were not one of the Perk investors pushing for R1 paper.

[lance corporal winstanley ash] 27/6/2017 12:39

So I'm assuming the new CEO was associated with AVG, hence the disposal of shares. Where have these gone though. Not sold to the market looking at volumes.

[sikhthetech] 27/6/2017 12:27

200 additional staff??

"The broader RadiumOne operational footprint includes approximately 200 staff globally, dramatically enhancing 1R's international footprint and instantaneously scaling the Company's programmatic sales team."

[nickb] 27/6/2017 12:24

I like what I see we are busy building an amazing and unique company

[nickb] 27/6/2017 12:22

Looking forward to a write up from the boys.

Encouraging to see the negative posters being very negative always a good signal😀

[football] 27/6/2017 12:20

Maybe stocky but agm over all brokers up date to 70p plus and looks like we are in for a lot of M&A this year with Ted and maybe a another deal very soon (AI?)

[sikhthetech] 27/6/2017 11:43

so 1R say that revenues will improve $65m-$75m during the next 12 months and adjusted ebitda by $1m-$3m...
cost upto $22m...

seems a good deal..

[stocky] 27/6/2017 11:38

Very positive AGM.

[severnof9] 27/6/2017 11:19

My take is that this is a good acquisition.

Tosca are in control here and I have no doubt that they wanted Rythmone to purchase Perk for the appointment of Hastings who quickly became president of the board and is now to be CEO. He has a track record of acquisitions and I suspect he was instrumental in landing the Radium 1 deal which gives us the demand side strength we need to be a major consolidating player in the Industry. The acquisition cost 5.5 million $ cash and the assumption of 3-4 million $ of debt. The rest of the consideration, if paid is in shares. A steal in my view


The deal brings up to 75 Million $ revenue and 3-4 Million dollars EBITDA. The Consensus EBITDA for Rythmone from the May 17 presentation for FY 2018 was 15.1 million $ which the CEO/board stated they were comfortable with. Since then the suggestion is that revenue per month is increasing

The combined comScore rankings for the combined outfit should put us ahead of Google and into number 1 spot on ComScore. The synergies and savings to be made will drop through to the bottom line instantly

The share price seems to be being controlled for now but in time the price will take car eof itself. I expect that to show by the November update.

[sikhthetech] 27/6/2017 10:31

N+1 singer seem to like the news...

"RTHM has made three key announcements this morning. Firstly that trading for Q1 has been in-line with expectations, which from the simplest perspective means a continuation of the improvement in profitability. Secondly the business has made an attractive acquisition that adds technology, extends service, adds clients, extends international operations and should enhance fill rate and pricing. The third announcement concerns CEO succession planning. After driving the restructuring of the group and returning it to profitability Brian Mukherjee is stepping down to an advisory role. Ted Hastings who joined RTHM with the Perk acquisition is taking over as CEO (he is currently President of RTHM). Accretion from the deal is very large with 7% in FY18 but rising to 29% in FY18 as the full year effect and cost savings feed through. We reiterate our Buy rating based on both strategic product and financial progress. Forecasts and TP under review pending finalisation. BUY"

[kendonagasaki] 27/6/2017 10:23

Hes never wrong?

[sikhthetech] 27/6/2017 10:23

the CFO also left, just before the Perk deal was completed...
Be interesting to see what they have to say about it...

[alex1621] 27/6/2017 10:15

It's an unusual move. If the company has turned a corner and is improving why change the CEO? I'd love to hear an insiders perspective on this move ... unfortunately those on here that claim to have that insight clearly do not.

[phil140158] 27/6/2017 10:09

There's a note on Research Tree (RT) by a broker Whitman Howard(?) on the acquisition. If anyone has Premium membership of RT, maybe they could post a summary. Cheers!

[stocky] 27/6/2017 09:48

The deal seems ok, but what was the point of the TU?

[sikhthetech] 27/6/2017 09:31

what are these 'certain assets'... they also bought 'certain assets' of Zango a few years ago...

[sikhthetech] 27/6/2017 09:23

"Off out to enjoy my remaining vacation, goodbye."...

you mean you need to get back to the agm... ;-)

[barkboo] 27/6/2017 09:21

Although I am/was an accountant - a bookmaker not a bookkeeper. I pay someone to make my accounts read what I want them to read.

Get the picture.

Off out to enjoy my remaining vacation, goodbye.

[alex1621] 27/6/2017 09:12

What is "real profit" in BarkyLand? According to you R1 have been in "real profit" since September. I don't believe that R1 have made either an IFRS profit or even an adjusted EBITDA profit ... they are still loss making, even by their own measure.I will be happy to be proved wrong.

[sikhthetech] 27/6/2017 09:06

AVG sold a few days ago...
Given they backed Perk, it's surprising they sold out just before Ted takes over...
unless it was a coincidence...

[barkboo] 27/6/2017 09:03

Anyone notice who the faces posting first thing..........Alex, Benny, Fluffy Johnny Boy, cranky Kenny, JonC - do I have to say anymore? lol

[sikhthetech] 27/6/2017 08:59

Ken,
absolutely... the industry is fast moving and constantly changing...
why should it take 12-18months... that's unbelievably slow, they took weeks to integrate Perk...