13.04.2016 23:36:16
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DGAP-News: RNTS Media N.V.
DGAP-News: RNTS Media N.V.: reports significant progress in 2015
- Listing upgrade to the Prime Standard of the Frankfurt Stock Exchange providing a more liquid and transparent trading venue for RNTS Media's shares
- Placement of EUR100 million convertible bonds to finance acquisition-driven and organic growth
- Significant expansion of global reach to over half a billion monthly active users
- Inneractive's 630 million monthly active users to be combined with this
- Launch of many new features and ad formats addressing key mobile advertising growth trends and client demands
- Expansion of management team to reflect the Group's focus on the substantive ad tech market and the increased managerial requirements induced by organic and acquisition-driven growth
12 months ended 31 12 months ended 31 Pro-forma figures2 December 2015 December Change EURm 2014 % EURm
Revenue 81.1 64.0 27%
Gross margin 30.0% 38.1% -8.1 pp
Adjusted EBITDA3 -13.7 0.7 n/m
Adjusted loss after tax3 -16.2 -1.8 n/m
Adjusted basic loss per share3 -14c -4c n/m
Operating cash flow -12.6 -8.6 -45.9%
Net debt 11.6 -9.3 n/m
2 Pro-forma results show the financials of the Group as if Fyber had been acquired on 1 January 2014 3 Results adjusted to exclude separately disclosed items as explained in the notes to the consolidated financial statements
The full Annual Report 2015 including financial statements and notes to the financial statements can be downloaded at: ttp://www.rntsmedia.com/reports-presentations/
Andreas Bodczek, CEO of RNTS Media, said: "We achieved a number of important milestones during 2015 on our journey towards becoming one of the world's leading mobile ad tech companies as we invested in the technologies, products and people that will deliver a lasting competitive advantage. The Group's global reach expanded significantly, both organically as well as through acquisitions, with monthly active users on the platform growing to over half a billion and delivered ad impressions growing more than 500% over 2014.
RNTS Media has made considerable strategic progress during the year to ensure it is best positioned to capture the fastest growing segments of the ad tech market. Mobile advertising spend continued to grow at the expense of desktop advertising and other traditional marketing channels, climbing 50%, from $19bn to $30bn, in the US alone during 2015. As a result of this rapid growth, mobile ads now account for 50% of the total US digital ad spend.
However, despite this growth, mobile advertising still only accounts for 15% of total US ad spend, and this constitutes a significant growth opportunity for the Group, given that 24% of all media was consumed through a mobile device. In-app ad spend, RNTS Media's core market, hit $21bn in 2015 from $14bn in 2014 in the US alone and is poised to outpace mobile web ad spend 3-to-1 in 2016. RNTS Media continued to profit from these underlying market trends with its existing product portfolio and worked towards strengthening key areas for future growth such as programmatic media trading and video advertising.
Strategic Developments In line with our strategic goals, 2015 was a transformational year, during which we placed EUR100m of convertible bonds to accelerate organic growth and take advantage of a series of important acquisition opportunities. These successful acquisitions greatly strengthen our market position, both in terms of technology and product offering, broaden the reach of our platform, and give us scale and global presence.
In May, the Group acquired Falk Realtime, an ad tech company focused on programmatic trading of advertising, real-time bidding ('RTB') and ad serving. The acquisition strengthened the programmatic stack of RNTS Media's core asset Fyber, an independent advertising technology company, and added new functionalities that enable app developers to monetize their content more effectively. The entire Falk Realtime team joined the Group, and together we continue to develop our programmatic products to deliver on market trends and meet customer demand.
Heyzap, operating a similar business model to Fyber, joined the Group in January 2016 and put Fyber in a market leading position for Mediation. The shared mission to empower the app economy with smarter ad monetization made Heyzap the perfect fit to further strengthen our market position. RNTS also benefits from the added technology hub in San Francisco, with the entire Heyzap team being integrated into Fyber.
The latest addition to the Group is Inneractive, a fast-growing Tel Aviv-based mobile Ad Exchange with a core focus on RTB across video and display advertising. Subject to formal closing of the deal, Inneractive will significantly enhance our global scale with its 630 million monthly active users and we would expect it to account for about one third of the Group's pro-forma gross revenues in 2016. In 2015 Inneractive grew gross revenue by more than 100% to $43.2 million and was profitable. It is aiming to double its revenues again over the next two years. Although the company will continue to run as a separate entity within RNTS Media, we see significant revenue synergies in connecting clients across platforms and enabling seamless customer access to cross-company products. The closing is expected for the second quarter of 2016, after the satisfaction of certain customary closing conditions and expiry of the statutory 50 day waiting period for mergers in Israel.
The coming months will be focussed on the integration of these newly acquired assets, streamlining processes and identifying further synergy and mutual learning opportunities.
Investments in Future Organic Growth In addition to our acquisition activity, we have accomplished our product goals around the Rewarded Video product, strengthening the product capabilities and the positioning of our own Ad Exchange. We also developed and launched the Fyber Ad Server, enabling app developers to set up direct deals with advertisers as well as cross-promotion campaigns to support new app launches and drive user engagement within their apps. Other initiatives included the roll-out of enhanced ad controls, allowing the setup of even more granular ad monetization strategies, the expansion of our Mediation network and the introduction of a simplified process for app developers to join our platform.
We broadened our ad format offering in 2015 with the introduction of a substantially refreshed Rewarded Video product and Interstitial ads and will roll out Banner and Native ads in the course of 2016. We anticipate these initiatives will help offset the slower than expected growth of Offer Wall, up to now Fyber's core ad format.
Organisational Growth During 2015, we expanded our team by 34 to 306 employees by organic growth and through the acquisition of Falk Realtime. We have also set up our first US engineering hub in our San Francisco office with the acquisition of Heyzap.
As the organization grows, it has been a priority to invest in the senior management team with the skills and experience to support and inspire our rapidly expanding team. We appointed Heiner Luntz as Chief Financial Officer of RNTS Media and also strengthened the management board of Fyber with the appointments of Jim Schinella as Chief Business Officer, Henrik Basten as Chief Technology Officer, and Michael Bullion as Chief Product Officer. This expanded leadership team combines a wealth of ad tech industry expertise with the experience of managing rapid operational growth, particularly through acquisitions, and underpins our commitment to building one of the largest independent mobile advertising companies in the market.
Furthermore, we have nominated three new independent directors for approval to join our Supervisory Board at the next Annual General Meeting. The new additions will deepen our ad tech industry knowledge and best practice expertise in international and German corporate governance, thereby supporting the Group's future growth.
In August, we delivered on our commitment to providing a more liquid and transparent trading venue for RNTS Media shares by completing the transfer of our equity listing to the Prime Standard of the Frankfurt Stock Exchange.
Outlook 2016 The focus for 2016 will be on fully integrating Falk Realtime and Heyzap into the Fyber platform and putting in place the processes and technical solutions to connect Fyber's and Inneractive's platforms. At the same time we will preserve the operational flexibility for these businesses to pursue their ambitious stand-alone growth plans.
The Group expects additional momentum to be generated by these integrations alongside Fyber's plans to introduce new ad formats and monetize a larger proportion of the traffic we are seeing on our Mediation platform. We are therefore aiming to achieve a revenue run-rate for the Group of more than EUR200 million by the end of the year."
Presentation to analysts and investors
A conference call with presentation and Q&A will be held on 14 April 2016 at 16.00 CET. To attend the call, please register at: http://www.audio-webcast.com/cgi-bin/visitors.ssp?fn=analyst&id=3513
With the same link, you will also be able to join the web portion of the meeting on the day of the event.
To join the conference call please use the country specific phone numbers at http://events.arkadin.com/ev/docs/International%20Access%20Numbers_%20UKFE LBRI1_SU7.pdf and the participant passcode 81940982#
Enquiries
Analysts & Investors Heiner Luntz, RNTS Media +49 30 609 855 555
ir@rntsmedia.com
Media Alex Simmons, Smithfield +44 207 903 0669 asimmons@smithfieldgroup.com
Notes to Editors
RNTS Media is a leading mobile advertising technology company. Headquartered in Berlin, Germany and founded in 2010, it empowers app developers and publishers to generate business-critical revenue streams with targeted in-app advertising through its core asset Fyber. RNTS Media is listed on the Prime Standard of Frankfurt Stock Exchange under symbol 'RNM.' For more information, visit www.rntsmedia.com.
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13.04.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English Company: RNTS Media N.V. Johannisstr. 20 10117 Berlin Germany Phone: +49 30 609 855 528 E-mail: governance@rntsmedia.com Internet: www.rntsmedia.com ISIN: NL0010315453 WKN: A1J87D Listed: Regulated Market in Frankfurt (Prime Standard) End of News DGAP News Service ---------------------------------------------------------------------------
454169 13.04.2016
DGAP-News: RNTS Media N.V. / Key word(s): Final Results
RNTS Media N.V.: reports significant progress in 2015
13.04.2016 / 23:36
The issuer is solely responsible for the content of this announcement.
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RNTS Media reports significant progress in 2015
Highlights
- Three successful acquisitions in 2015 & 2016 to date with Falk
Realtime, Heyzap and Inneractive1, strengthening RNTS Media's
technology stack and significantly expanding its global reach
- Listing upgrade to the Prime Standard of the Frankfurt Stock Exchange providing a more liquid and transparent trading venue for RNTS Media's shares
- Placement of EUR100 million convertible bonds to finance acquisition-driven and organic growth
- Significant expansion of global reach to over half a billion monthly active users
- Inneractive's 630 million monthly active users to be combined with this
- Launch of many new features and ad formats addressing key mobile advertising growth trends and client demands
- Expansion of management team to reflect the Group's focus on the substantive ad tech market and the increased managerial requirements induced by organic and acquisition-driven growth
12 months ended 31 12 months ended 31 Pro-forma figures2 December 2015 December Change EURm 2014 % EURm
Revenue 81.1 64.0 27%
Gross margin 30.0% 38.1% -8.1 pp
Adjusted EBITDA3 -13.7 0.7 n/m
Adjusted loss after tax3 -16.2 -1.8 n/m
Adjusted basic loss per share3 -14c -4c n/m
Operating cash flow -12.6 -8.6 -45.9%
Net debt 11.6 -9.3 n/m
2 Pro-forma results show the financials of the Group as if Fyber had been acquired on 1 January 2014 3 Results adjusted to exclude separately disclosed items as explained in the notes to the consolidated financial statements
The full Annual Report 2015 including financial statements and notes to the financial statements can be downloaded at: ttp://www.rntsmedia.com/reports-presentations/
Andreas Bodczek, CEO of RNTS Media, said: "We achieved a number of important milestones during 2015 on our journey towards becoming one of the world's leading mobile ad tech companies as we invested in the technologies, products and people that will deliver a lasting competitive advantage. The Group's global reach expanded significantly, both organically as well as through acquisitions, with monthly active users on the platform growing to over half a billion and delivered ad impressions growing more than 500% over 2014.
RNTS Media has made considerable strategic progress during the year to ensure it is best positioned to capture the fastest growing segments of the ad tech market. Mobile advertising spend continued to grow at the expense of desktop advertising and other traditional marketing channels, climbing 50%, from $19bn to $30bn, in the US alone during 2015. As a result of this rapid growth, mobile ads now account for 50% of the total US digital ad spend.
However, despite this growth, mobile advertising still only accounts for 15% of total US ad spend, and this constitutes a significant growth opportunity for the Group, given that 24% of all media was consumed through a mobile device. In-app ad spend, RNTS Media's core market, hit $21bn in 2015 from $14bn in 2014 in the US alone and is poised to outpace mobile web ad spend 3-to-1 in 2016. RNTS Media continued to profit from these underlying market trends with its existing product portfolio and worked towards strengthening key areas for future growth such as programmatic media trading and video advertising.
Strategic Developments In line with our strategic goals, 2015 was a transformational year, during which we placed EUR100m of convertible bonds to accelerate organic growth and take advantage of a series of important acquisition opportunities. These successful acquisitions greatly strengthen our market position, both in terms of technology and product offering, broaden the reach of our platform, and give us scale and global presence.
In May, the Group acquired Falk Realtime, an ad tech company focused on programmatic trading of advertising, real-time bidding ('RTB') and ad serving. The acquisition strengthened the programmatic stack of RNTS Media's core asset Fyber, an independent advertising technology company, and added new functionalities that enable app developers to monetize their content more effectively. The entire Falk Realtime team joined the Group, and together we continue to develop our programmatic products to deliver on market trends and meet customer demand.
Heyzap, operating a similar business model to Fyber, joined the Group in January 2016 and put Fyber in a market leading position for Mediation. The shared mission to empower the app economy with smarter ad monetization made Heyzap the perfect fit to further strengthen our market position. RNTS also benefits from the added technology hub in San Francisco, with the entire Heyzap team being integrated into Fyber.
The latest addition to the Group is Inneractive, a fast-growing Tel Aviv-based mobile Ad Exchange with a core focus on RTB across video and display advertising. Subject to formal closing of the deal, Inneractive will significantly enhance our global scale with its 630 million monthly active users and we would expect it to account for about one third of the Group's pro-forma gross revenues in 2016. In 2015 Inneractive grew gross revenue by more than 100% to $43.2 million and was profitable. It is aiming to double its revenues again over the next two years. Although the company will continue to run as a separate entity within RNTS Media, we see significant revenue synergies in connecting clients across platforms and enabling seamless customer access to cross-company products. The closing is expected for the second quarter of 2016, after the satisfaction of certain customary closing conditions and expiry of the statutory 50 day waiting period for mergers in Israel.
The coming months will be focussed on the integration of these newly acquired assets, streamlining processes and identifying further synergy and mutual learning opportunities.
Investments in Future Organic Growth In addition to our acquisition activity, we have accomplished our product goals around the Rewarded Video product, strengthening the product capabilities and the positioning of our own Ad Exchange. We also developed and launched the Fyber Ad Server, enabling app developers to set up direct deals with advertisers as well as cross-promotion campaigns to support new app launches and drive user engagement within their apps. Other initiatives included the roll-out of enhanced ad controls, allowing the setup of even more granular ad monetization strategies, the expansion of our Mediation network and the introduction of a simplified process for app developers to join our platform.
We broadened our ad format offering in 2015 with the introduction of a substantially refreshed Rewarded Video product and Interstitial ads and will roll out Banner and Native ads in the course of 2016. We anticipate these initiatives will help offset the slower than expected growth of Offer Wall, up to now Fyber's core ad format.
Organisational Growth During 2015, we expanded our team by 34 to 306 employees by organic growth and through the acquisition of Falk Realtime. We have also set up our first US engineering hub in our San Francisco office with the acquisition of Heyzap.
As the organization grows, it has been a priority to invest in the senior management team with the skills and experience to support and inspire our rapidly expanding team. We appointed Heiner Luntz as Chief Financial Officer of RNTS Media and also strengthened the management board of Fyber with the appointments of Jim Schinella as Chief Business Officer, Henrik Basten as Chief Technology Officer, and Michael Bullion as Chief Product Officer. This expanded leadership team combines a wealth of ad tech industry expertise with the experience of managing rapid operational growth, particularly through acquisitions, and underpins our commitment to building one of the largest independent mobile advertising companies in the market.
Furthermore, we have nominated three new independent directors for approval to join our Supervisory Board at the next Annual General Meeting. The new additions will deepen our ad tech industry knowledge and best practice expertise in international and German corporate governance, thereby supporting the Group's future growth.
In August, we delivered on our commitment to providing a more liquid and transparent trading venue for RNTS Media shares by completing the transfer of our equity listing to the Prime Standard of the Frankfurt Stock Exchange.
Outlook 2016 The focus for 2016 will be on fully integrating Falk Realtime and Heyzap into the Fyber platform and putting in place the processes and technical solutions to connect Fyber's and Inneractive's platforms. At the same time we will preserve the operational flexibility for these businesses to pursue their ambitious stand-alone growth plans.
The Group expects additional momentum to be generated by these integrations alongside Fyber's plans to introduce new ad formats and monetize a larger proportion of the traffic we are seeing on our Mediation platform. We are therefore aiming to achieve a revenue run-rate for the Group of more than EUR200 million by the end of the year."
Presentation to analysts and investors
A conference call with presentation and Q&A will be held on 14 April 2016 at 16.00 CET. To attend the call, please register at: http://www.audio-webcast.com/cgi-bin/visitors.ssp?fn=analyst&id=3513
With the same link, you will also be able to join the web portion of the meeting on the day of the event.
To join the conference call please use the country specific phone numbers at http://events.arkadin.com/ev/docs/International%20Access%20Numbers_%20UKFE LBRI1_SU7.pdf and the participant passcode 81940982#
Enquiries
Analysts & Investors Heiner Luntz, RNTS Media +49 30 609 855 555
ir@rntsmedia.com
Media Alex Simmons, Smithfield +44 207 903 0669 asimmons@smithfieldgroup.com
Notes to Editors
RNTS Media is a leading mobile advertising technology company. Headquartered in Berlin, Germany and founded in 2010, it empowers app developers and publishers to generate business-critical revenue streams with targeted in-app advertising through its core asset Fyber. RNTS Media is listed on the Prime Standard of Frankfurt Stock Exchange under symbol 'RNM.' For more information, visit www.rntsmedia.com.
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13.04.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English Company: RNTS Media N.V. Johannisstr. 20 10117 Berlin Germany Phone: +49 30 609 855 528 E-mail: governance@rntsmedia.com Internet: www.rntsmedia.com ISIN: NL0010315453 WKN: A1J87D Listed: Regulated Market in Frankfurt (Prime Standard) End of News DGAP News Service ---------------------------------------------------------------------------
454169 13.04.2016
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