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
<pre>
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
</pre>
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
<pre>
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
</pre>
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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service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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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
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454169 13.04.2016
DGAP-News: RNTS Media N.V.: reports significant progress in 2015
| Quelle: EQS Group AG