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There you go then stt1. Buy 1 share in either R1 or Tap and you can meet both brassneck and me at either GM.
Indeed. I'm in town on those days so will try and get to both. Hopefully they'll do a bit of Q&A rather than just vote the deal through which seems a foregone conclusion.
brassneck - I presume the location of the R1 GM will be defined in the Scheme Circular due out a week on Monday.
Looking forward to the double-header. Tap EGM on the Thursday, R1 GM on the Friday (21st/22nd March). A good chance to meet and establish which posters belong to which ids?
Going to have to sell all my TAP shares, just noticed they aren't in the top 30 on Ads.txt, clearly not a viable business. Surely that should have been in the Shareholder Circular too?
Given the supposed cash generation I'd be disappointed if they halve it. I think there is the possibility of some form of special dividend given the individual businesses were going to buy back $20m.
On a separate note, has anyone seen the venue of the EGM for R1. Their RNS said 10.15 on 22nd March but I couldn't see an address - could just be me being super thick though.
The current yield is 1.7%. I wonder if that might halve? I’m more excited by the buyback but as you say, a dividend will be a novel and well received experience!
Tardis, will be interesting to see what they do on dividend with Tap’s 29 Mar results too. That will be another new feeling for R1 holders.
The truth is Rusty, there has been no investor interest in RTHM for the last two years. Merger with TAP, trading under their banner, can only be a good thing.
Have to say. I have heard all this on every thing RTHM1 have bought. Still waiting for the increased revenues and 2real profit".
I did post previously, What I didnt want was another takeover by RTHM1, Tto cloud the results. We didnt get that we got a " merger".
Sceptical to say the least. Hope I am wrong.
So once TAP and RTHM the combined company will have had 2018 earnings of roughly $700m revenue and $100m Ebitda. This has been announced by Taptica management and also fits consensus figures for both companies. The market cap for both companies is $169m and $176m respectively. So on today's stock prices the combined company should have a market cap of c. $345m.
So based on those figures, I have done some comparisons with three other publicly listed ad-tech companies, The Trade Desk (TTD), Criteo (CRTO) and S4 Capital (SFOR). The first two on NASDAQ, the last on AIM. CRTO have just released their 2018 results this week, TTD are due to release on 21/2 so figures are estimates, SFOR figures are those quoted by their CEO in a recent interview based on current trading. Figures are in USD. Market Cap based on today's stock prices. TTD do not seem to report EBITDA figures as far as I can tell.
Market Cap/Revenue
TTD 6,635m/465m = 14.3
SFOR 614m/150m = 4.1
CRTO 1,848m/2297m = 0.8
TAP/RTHM 345m/700m = 0.49
Market Cap/EBITDA
SFOR 614m/30m = 20.5
CRTO 1,848m/321m = 5.75
TAP/RTHM 345m/100m = 3.45
So whilst this is slightly simplistic, it shows how undervalued TAP/RTHM are at today's share prices compared with its rivals.
Once combined I think on current performance of the two companies, £3.50 - £4 will be a realistic valuation. I am hoping that the buyback which is due to start as soon as the deal is completed, will quickly push the SP over £3 .
Industry challenges - Apple's ITP & GDPR...
Google Exec and an article on Criteo ..
Ad-tech firm Criteo is facing an uphill battle after Apple and GDPR threatened to wipe out its revenue — but Amazon's rivalry with retailers could be a big bright spot
https://www.businessinsider.com/criteo-q4-2018-earnings-amazon-is-a-bright-spot-after-apple-challenges-2019-2?r=US&IR=T
Fallout From Apple ITP Is Severe And 7 Other Takeaways From Google Exec Sean Downey At Industry Preview
https://adexchanger.com/industry-events/fallout-from-apple-itp-is-severe-and-seven-other-takeaways-from-google-exec-sean-downey-at-industry-preview/
There's been bullish notes for years, yet rthm have failed to deliver..
Why not publish fy results and the Annual Report before proceeding?... Remember the rthm/Yume takeover GM was before they published their H1 2018 TU... and look what happened after that takeover..
They won't have to issue fy results or the Annual Report because of the takeover...and it'll be a year before anyone knows if the merger has worked...
Still would like to see what companies they merged into the new RhythmOne and which were closed, causing the huge writeoff in 2016...
Since you mentioned the companies, can you please list them, 1gw?
Thanks brassneck. Personally I'm waiting for our friend with the coloured pencils to draw our attention to what happened to reuters consensus earnings recently. Sparse dataset and all that but can only be a matter of time.
Well I've had a quick shifty through the circular on the TAP website. Reassurance on the profit outlook is encouraging. I couldn't help thinking there were two glaring mistakes:
Assumptions outside their control: that GDPR wouldn't decimate the global digital advertising ecosystem and force advertisers to rely on leaflet drops into target communities before March 2019
Assumptions within their control: there will be no skeletons to come out on their crazy past initiatives/acquisitions
If they've missed those two what else might they be hiding? Not sure I can rely on that document.
I'll just have to go to the EGM and ask them!!
1GW, the only note I had was from Whitman Howard on 13th Dec. They had revenues at $400m for the year, adj ebitda at $55m and EPS at 38.8p.
Reuters printout I refer to was on 15th December. The numbers were a bit volatile around then, and on 16th December they were showing $402m revenue and 54c/share (adjusted) earnings.
Funny old world. I had convinced myself that R1 had deliberately not given any guidance with the 1H results.
In fact, reading the Tap circular, I realise I was wrong. Re-reading R1's interim results "Outlook" section, R1 do in fact give a profit forecast, confirming trading in line with market expectations:
"The Company continues to trade in line with consensus forecast revenue and adjusted EBITDA is in line with consensus forecast EBITDA."
The point here being that since this statement is made in the middle of the 2nd half of the financial year (with 1H results published), they can only really be talking about full-year performance forecasts.
So that being the case rule 28 of the takeover code would require them to confirm or retract the profit forecast.
So what was consensus forecast as of 13th December? My printout from reuters shows $408m mean revenue and 51c/share (adjusted) earnings. Other datapoints would be individual brokers notes, although I don't remember seeing any published around 13th December. Does anyone else have sight of such forecasts for revenue and/or adj ebitda?
and R1 GM on 22nd March, before publication of Taptica 2018 results.
So April 2nd is the beginning of the new era. And the start of the 15m buyback.
Hiya Rusty You might not remember me but I was more active on this board years ago. It warms my heart to see you still here. Hope all is well, other than the obvious dismal SP. I have been watching and still hold some RTHM but lost loads years ago to get that house. I sincerely hope you are well and sorry to message with no value to add to the forum other than my confusion at the TAP merger not resulting in a sustained SP rise. My heart skipped a beat when i saw it go over 200 and I'm at a loss as to why all the gains have been lost so quickly. Either way, I remember you being much more light hearted than your last post and, i guess, i wanted to remind you of more positive times. Like i said, i still hold a teeny tiny amount. Hope all is well
As Alzheimer's started to set in?
I'm sure STT1 that you have posted many times all the subsidiaries of the company and have put your negative spin on it in many different ways on how much money they have potentially lost and out dodgy the past is!
I'm sure many posters here would like if you replies to questions they have asked you first before you get a reply from anyone posting here.
You keep posting please discuss but you never answer a question.
stt1, can you tell me when, IF EVER, you posted something positive about RTHM1.
You dont need to answer it, I will answer if for you. NEVER, Now go crawl underr your rock. Lowlife scum. Thats all you are. How the administrators let you get away with it time after time is unbelievable.
Stt As if you really wanted to know. You idiot.
1gw,
" In FY16 they decided to rebrand as RhythmOne and bring everything (or most parts of the company) together."
Can you please name which subsidiaries they brought together under the rthm brand and which ones closed, resulting in the writeoffs?
Tardis , you are spot on. This debacle has been ticking over for many years and needs to end soon.
Tosca have been working on this for a long , long time.
Pennies from heaven.