London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Provision for doubtful debt has shot up... current $22.3m (2018: $2.8m)
AS EXPECTED.
Note 16B (2)
"(2) At 31 December 2019, the Group included provision to doubtful debts in the amount of USD 22,376 thousand (31 December 2018: USD 2,822 thousand) in respect of collective impairment provision and specific debtors that their collectability is in doubt."
https://www.tremorinternational.com/wp-content/uploads/2020/03/TRMR-Final-results-310320.pdf
stt1 your tiresome arguments are predicated on false beliefs.
Tremor have not had to raise massive loans, like the other companies you try to relate them to, and you don't even know what remnant credit facilities they have access to, should they need it, from the days of R1. If there is indeed any debt arising they can manage it, but that is pure speculation to assume they are borrowing money.
Also they operate across the entire range from SSP to DSP.
So, nice try but you got it wrong AGAIN and AS EXPECTED!
and regarding Cash...
from results:
"Net cash as at 31 December 2019 of $76.9 million*** (31 December 2018: net cash of $54.4 million),"
Didn't $28m of that cash come over from rthm, last April?
Tricky,
"Tremor also remains highly cash-generative, with a net cash position at 31 December 2019 of over $76.9 million."
Ad Tech companies need high cash balances to pay for Inventory. A lot of inventory is paid on 90days terms, so Trmr is currently likely to be paying for inventory from Dec-Jan.
As several rthm operations were closed during fy2019, there won't be any cash contribution from them this year, fy2020.
If Covid-19 continues for months then it could leave them getting short of cash..
The Trade Desk and MediaMath, both huge companies within the AdTech Ecosystem had to raise money because of the way inventory payments work.
"DSPs shoulder this burden directly because they constantly owe money to inventory suppliers. The Trade Desk took out a $200 million loan in 2017 to preserve liquidity while it bridges inventory payments. MediaMath has raised more than $600 million, including $225 million last year."
https://adexchanger.com/online-advertising/sizmeks-bankruptcy-is-changing-how-the-supply-side-manages-dsp-debts/
Eddie,
What is your opinion of the results or are you waiting to see what direction the sp takes before commenting?
Tricky
"The Company traded strongly in 2019, generating an 18% increase in revenues to $325.8 million (2018: $276.9 million)"
You forgot profit from operations significantly lower at $3.2m compared to $26.6m for fy2018 - a massive 88% drop!!!
Revenues include several of rthm's operations, which have closed. Perk closed in Dec, just a fortnight before year end.
Discontinued so won't contribute towards this year's revenue or CASH.
The crucial point is revenue and cash were below expectations set just last April. I expect they will miss initial expectations set for this year as well. Rthm history repeats itself.
Annual revenues from CTV were only $31.9m. That's not much for an area that they are relying on for growth.
So this year's revenue won't include discontinued operations and CTV revenues are very low.
Lots of jam tomorrow, yet again. Smoke and mirrors.
The Company traded strongly in 2019, generating an 18% increase in revenues to $325.8 million (2018: $276.9 million), and a 36% increase in adjusted EBITDA to $60.4 million (2018: $44.1 million). This is impressive growth.
Tremor also remains highly cash-generative, with a net cash position at 31 December 2019 of over $76.9 million. Plus all the shares already held in treasury and another buyback rolling out.
Little wonder Tremor's Judas has now taken a punt!
Read the results. Do they mention anything about the discontinued operations or how much they contributed to revenues, cash or the bottom line...
Profit from operations significantly lower at $3.2m compared to $26.6m for fy2018 - a massive 88% drop!!!
So TAP made a profit from operations last year of $26.6m but rthm made a loss. After merging with rthm last April, Trmr (TAP/RTHM merged) have now massively reduced to $3.2m.
Given Trmr now follow rthm's model, I expect profits to disappear this fy, fy2020.
They also don't mention the operations they closed, eg Perk.com, which was closed in Dec. Yet they do mention Unruly, which makes it seem like the business is growing.
Given they missed the expectations set last April, I expect they will do so again for this year.
Smoke and mirrors spring to mind...
You really are the scumbag I always knew you were.
stt1, shame on you that you feel the need to spout your rhetoric when funeral homes are over flowing with peoples loved ones, families not being allowed to pay their respect in vey difficult times.
You really are the scumbag I always new you were, vile individual.
Havealot,
The results include contributions from several operations which were closed. Those discontinued operations will not be contributing this year so loss of revenue and cash...
How much did they contribute to the bottom line??
Lots of unknowns...
The fact remains that they massively missed their expectations set a year ago.
I expect they will miss this year's as well...
Underlying figures much better than you imply stt.
Exceptional one off share based payment cost, impairment and 'right of use' depreciation. Take these out and you are looking at underlying pretax of around £32m and adj EBITDA of £47m. This cannot be bad p/e of 7 !
Eddie,
"What happened to all the Doom & Gloom you were predicting pre- results today ?
Looks more like a MASSIVE U turn to me."
Not at all, the results are dire, massively down from their expectations a year ago...
AS EXPECTED...
Read the Finncap report from Apr 2nd and compare the actuals announced today...
Profit from operations significantly lower at $3.2m compared to $26.6m for fy2018 - a massive 88% drop!!!
Rhtm sp a year ago when they merged was 169p, after today's rise, the rthm sp eq is 115p... still massively lower than a year ago..
The sp dropped due to negative company newsflow...
In other words It's nice to have an investment decision proven right so conclusively BY EVENTS.
Stt1-
How many shares did you buy today?
What happened to all the Doom & Gloom you were predicting pre- results today ?
Anything change your mind all of a sudden ?
Looks more like a MASSIVE U turn to me.