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Unruly were never fully tucked into News Corp, and the strategic rationale for the acquisition was never very clear, aside from just owning the asset was there a greater vision?
There was no obvious rhyme or reason why a media conglomerate would want to own Unruly, who primarily functioned as a standalone unit and continued to serve other publishers as well as their corporate owner.
Unruly offers a marketplace that connects both buyers and sellers to video inventory and will provide more opportunities now, to both the huge media conglomerate News Corp (with their stake in Tremor) and to Tremor itself.
Clearly Murdoch's News Corp believe that they have found a better home (for Unruly) and will reap rewards, and of course the same goes for Tremor.
A win-win for both Tremor and News Corp, with the latter paying some of the integration costs and getting a sweetener from Tremor, who are also guaranteeing News Corp £30 million ($39 million) in revenue over the next three years, and 6.91% of their stock as part of the deal.
All that makes lady Gaga (stt1) spit her dummy out and cough up lots of yada, yada from the drains?
There may well be some risks but the rewards could be immense.
A clever move in my opinion as News Corp are set to be in Tremor, with a stake in making the sale of Unruly successful.
Paltry price paid for Unrulely? It won't be paltry once the share price is up even more.
https://digiday.com/media/paltry-price-paid-unruly-rattles-consolidating-ad-tech-market/
Thanks to STT for the article - very soundly supports TRMR as a good investment. With all the industry challenges many ad tec companies have downsized, fallen by the wayside or gone bankrupt. Tremor, having repositioned itself is doing well, with a signal to the market of its strategy. Points to more deals and the market has read the signal and reacted.
"Tremor CEO Ofer Druker said Tremor “is trading very low” contrasted to its performance and compared to its U.S. peers, but said the Unruly acquisition — and News Corp endorsement — is a good signal to the market about the company’s strategy."
Yes STT. Tremor guarantee to buy £30m of advertising space from News Corp over 3 years. In exchange they get "exclusive rights to sell outstream video ads across News Corp’s titles". If Unruly's revenue for one year was £43.5m and its main client was News Corp then that seems fine to me. Plus News Corp are contributing cash towards the integration costs of Unruly.
Dollars dollars and more dollars Pounds pounds and more pounds.
by Mark Watson-Mitchell, who's targeting prior peaks of 465p over time....here's a couple of extracts:
Https://masterinvestor.co.uk/equities/tremor-international-could-send-shockwaves-through-the-advertising-world/?utm_source=Daily+Bulletin&utm_campaign=dedca0b477-Daily_Bulletin_20200116&utm_medium=email&utm_term=0_25eff0bb7f-dedca0b477-34898813
"Tremor International could send shockwaves through the advertising world
By Mark Watson-Mitchell
16 January 2020
Rebekah Brooks is coming on board this global leader, which trades on a derisory earnings multiple, writes Mark Watson-Mitchell."
"The group offers its services to more than 450 major advertisers – such as Disney, OpenTable, Twitter, Amazon, Zynga and Expedia. It has more than 50,000 supply and publishing partners worldwide.
Earlier this month the group announced that it had agreed to acquire a company called Unruly for £14.5mfrom News Corp. And a big pointer is that News Corp is taking 8.5m new Tremor shares in exchange, giving it some 6.5% of the group’s shares, locked-in for at least 18 months.
Furthermore, Rebekah Brooks, News UK’s CEO, will go on to the Tremor board. Now that really is news!
Unruly is a leading global brand-safe video platform that leverages a combination of proprietary video marketplace technologies and data to deliver emotionally engaging content to consumers. It will fit in very well with the group’s RhythmOne division.
The group, after the Unruly deal, will have 132m shares in issue.
Prior to the deal the leading investors in the company’s equity included: Tosca Fund Management (23%), Schroder Investment (15.2%), Mithaq Capital (14.9%), River & Mercantile (7.3%), Ibex Investors (4.4%), Hargreaves Lansdown (4.2%), and Interactive Investor (4.0%).
The group’s brokers, finnCap, updated their numbers after the latest purchase. For the year to end-December 2019 they estimate that revenues will have increased nearly 18% to £325m, while pre-tax profits may have jumped 23% to £52.5m, giving earnings of 42.5p per share but no dividend.
For the current year the brokers are looking for an Unruly kick-in – taking revenues up a further 30% to £425m, with pre-tax profits up a healthy 32% to £69.3m, worth 45.5p in earnings, which allows for the Unruly dilution.
With the shares trading at around the 156p level, those broker estimates put them out on a ridiculously low 3.6 times historic earnings and just 3.4 times current year earnings.
These shares are going to go a great deal higher yet. And I would say that they are more than capable of hitting their 2017 previous peaks of 465p again.
Even so, I will cautiously only put out an end-2020 target price of 235p, which would be a sinfully low 5.5 times historic."
Muz
"Just maybe they see a future in Tremor."
As well as shares in Trmr, News International are also getting guaranteed £30m ($39m) revenue from Trmr, without the headache of costs associated with Unruly. Given Unruly's revenues were around $57m pa, that's a good deal FOR News International.
The paltry price paid for Unruly rattles the consolidating ad tech market
"With the transaction valued at about £15 million ($19 million), News Corp will receive about 7% of Tremor’s stock. Tremor is also guaranteeing News Corp £30 million ($39 million) in revenue over the next three years as part of the deal"
"Loss-making Unruly was never fully integrated into its parent company and continued to work with other publishers, offering a marketplace that connects buyers and sellers to video ads. "
https://digiday.com/media/paltry-price-paid-unruly-rattles-consolidating-ad-tech-market/
Bald_eagle
"Potential is probably more important than results at the moment. "
Don't agree. Blnx/rthm/trmr have been promising potential, or jam tomorrow for years... Look at their rns during results.
The problem has always been that they have failed to back up the promised 'potential' when it comes to results.
Trmr (was Taptica prior to rthm merger) revenues for fy2019 (Dec 2019) were expected to be $700m... What are the actuals, around $325m - half the expected revenues.
If you look back at rthm's expected revenues for their fy2019 then you'll see they, pre-merger with trmr, were expecting to announce around $350-$380m without Taptica..
RhythmOne and Taptica plot merger to compete with Google
"While the deal has yet to be formally approved it is expected that it will take the form of an all-share takeover of RhythmOne by Taptica, whose shareholders will command a majority stake in a combined entity with revenues of around $700m."
https://www.thedrum.com/news/2019/01/30/rhythmone-and-taptica-plot-merger-compete-with-google
re- stt1
Yeah! But then she goes unchallenged with a pile of cobbled-together negativity and inaccuracies and poor reasoning, stuff that is just designed to be misleading - fabricated to warn people off.
She is an idiot caught up in her own madness.
trick dicky. If he is a dalek exterminate him. He is already exterminated by me, via the filter button.
There should be a warning on this site about him, or her or it.
--NewsFlash--
Dalek explodes - AS EXPECTED
Our resident 'Dalek', aka stt1, is in overdrive again, pouring out streams of anguished negative comments - failing to accept any good news.
Uttering doom and gloom, the Renegade Supreme Dalek self-destructs when the Doctor informs it that it has failed and is the last of its kind...
When you think of the companies bought by Blnx and Tremor and think of the large fundraising years ago and see the current value of the company, it must be massively undervalued or they have bought a number of dud companies . Our resident doom monger will say its the latter of course.
But surely, this time especially with the link up with unruly it can be different. I have heard and hoped for this for years now so will believe t when I see it.
Max19, I don't really expect the TU (due by months end) will be anything special in terms of results. More likely is that there will be lots of warm words designed to give investors plenty of optimism for the future. Potential is probably more important than results at the moment. Although I would like to be surprised and the numbers bigger than expected, I don't believe TRMR are in that position.
I have no real idea what has driven the recent improvement in the SP...anyone have any thoughts? Or if it is sustainable.
by Mark Watson-Mitchell, who's targeting prior peaks of 465p over time....here's a couple of extracts:
Https://masterinvestor.co.uk/equities/tremor-international-could-send-shockwaves-through-the-advertising-world/?utm_source=Daily+Bulletin&utm_campaign=dedca0b477-Daily_Bulletin_20200116&utm_medium=email&utm_term=0_25eff0bb7f-dedca0b477-34898813
"Tremor International could send shockwaves through the advertising world
By Mark Watson-Mitchell
16 January 2020
Rebekah Brooks is coming on board this global leader, which trades on a derisory earnings multiple, writes Mark Watson-Mitchell."
"The group offers its services to more than 450 major advertisers – such as Disney, OpenTable, Twitter, Amazon, Zynga and Expedia. It has more than 50,000 supply and publishing partners worldwide.
Earlier this month the group announced that it had agreed to acquire a company called Unruly for £14.5mfrom News Corp. And a big pointer is that News Corp is taking 8.5m new Tremor shares in exchange, giving it some 6.5% of the group’s shares, locked-in for at least 18 months.
Furthermore, Rebekah Brooks, News UK’s CEO, will go on to the Tremor board. Now that really is news!
Unruly is a leading global brand-safe video platform that leverages a combination of proprietary video marketplace technologies and data to deliver emotionally engaging content to consumers. It will fit in very well with the group’s RhythmOne division.
The group, after the Unruly deal, will have 132m shares in issue.
Prior to the deal the leading investors in the company’s equity included: Tosca Fund Management (23%), Schroder Investment (15.2%), Mithaq Capital (14.9%), River & Mercantile (7.3%), Ibex Investors (4.4%), Hargreaves Lansdown (4.2%), and Interactive Investor (4.0%).
The group’s brokers, finnCap, updated their numbers after the latest purchase. For the year to end-December 2019 they estimate that revenues will have increased nearly 18% to £325m, while pre-tax profits may have jumped 23% to £52.5m, giving earnings of 42.5p per share but no dividend.
For the current year the brokers are looking for an Unruly kick-in – taking revenues up a further 30% to £425m, with pre-tax profits up a healthy 32% to £69.3m, worth 45.5p in earnings, which allows for the Unruly dilution.
With the shares trading at around the 156p level, those broker estimates put them out on a ridiculously low 3.6 times historic earnings and just 3.4 times current year earnings.
These shares are going to go a great deal higher yet. And I would say that they are more than capable of hitting their 2017 previous peaks of 465p again.
Even so, I will cautiously only put out an end-2020 target price of 235p, which would be a sinfully low 5.5 times historic."
Earlier this morning the SP reached 50% impressive rise in just a month period.....a small bout of profit taking (healthy,and normal...) drove it back a bit,but the decent volume suggest that the SP recovery has more legs to go IMHO....having said that,we will need a decent TU to move us towards 250p and above in the near term...I personally expecting this to take place....again, IMHO.GLA.
Apart from the fact the tipsheet incorrectly used £ instead of $ (making the forecasts look better than they actually shown by Finncap), the company and industry newsflow paints a different picture...
Recent company/industry newsflow - read their Sept report, read about Perk.com...
Profit warning,
closing several rthm operations,
Still being affected by Industry Challenges,
Large DSP DataXu being sold for only $150m,
Perk.com closing down - LOSS OF PREMIUM SUPPLY SIDE, DEDICATED USERS.
The profit warning from the company themselves, is there in black and white - AS EXPECTED.
" This coupled with the weakness in the Performance division year on year means that the Board believe the Company will be marginally behind full year expectations on profitability for 2019. "
The closing of rthm's operations - rthm operations not so good then? - AS EXPECTED
"Several of RhythmOne's products have been discontinued alongside its demand-side platform ("DSP"). The development of RhythmOne's data management platform ("DMP) has also been taken in-house. This initiative created an operational challenge for management, however they believe the decision will markedly benefit the company in the medium-term. The reduced development, maintenance and data centre costs form part of the wider initiative to streamline the Company's operations."
Industry Challenges continues to affect trmr - AS EXPECTED
"The performance-based division has continued to be impacted in 2019 by the well-documented headwinds which have affected both topline revenue and profitability. "
https://www.investegate.co.uk/tremor-international--trmr-/rns/interim-results/201909240700083776N/
Since interims, they closed perk.com -losing millions of Premium Dedicated Users... plus loss of cash and revenue, in fy2020 onwards...
"Perk.com closing:
"Due to changes in the company direction, all Perk applications will be shutting down on December 1, 2019. Users will need to redeem their Perk Points by November 20, 2019, or the points will expire. Thanks again for all your support these past several years!"
www.Perk.com
If News Corp wanted to "desperately" get rid of unruly I can think of better ways than accepting shares in Tremor, agreeing to lock them in for 18 months and taking a seat on the board of Tremor. Just maybe they see a future in Tremor.
For all newbies to TRMR we must apologise for Stt1, who is our resident doomster & naysayer when TRMR is concerned. He seems to be a long term vendetta against TRMR (and formerly RTHM)....so he is probably really annoyed that the share price has increased so markedly in the last few days. Take all he says with a pinch of salt and as always DYOR....definitely don't believe what Stt1 writes.
Tardis,
"Guess the Unruly acquisition is what caught investors’ eyes."
If Unruly was so great, why did News International sell for a paltry $19m - a company with $57m revenues..
I think News International were desperate for a deal...
Like Unruly, look at the more realistic valuation - the lower than expected price paid for DataXu - $150m when it was valued at twice that a few months earlier!
Why didn't News Corp fully integrate Unruly??? Were there problems?
It seems like News Corp were desperate to get rid of UnRuly and along came Trmr. Remember, only a year ago, Singer was desperate to sell Rthm and along came Trmr.
The paltry price paid for Unruly rattles the consolidating ad tech market
"With the transaction valued at about £15 million ($19 million), News Corp will receive about 7% of Tremor’s stock. Tremor is also guaranteeing News Corp £30 million ($39 million) in revenue over the next three years as part of the deal"
"Loss-making Unruly was never fully integrated into its parent company and continued to work with other publishers, offering a marketplace that connects buyers and sellers to video ads. "
https://digiday.com/media/paltry-price-paid-unruly-rattles-consolidating-ad-tech-market/
by Mark Watson-Mitchell, who's targeting prior peaks of 465p over time....here's a couple of extracts:
Https://masterinvestor.co.uk/equities/tremor-international-could-send-shockwaves-through-the-advertising-world/?utm_source=Daily+Bulletin&utm_campaign=dedca0b477-Daily_Bulletin_20200116&utm_medium=email&utm_term=0_25eff0bb7f-dedca0b477-34898813
"Tremor International could send shockwaves through the advertising world
By Mark Watson-Mitchell
16 January 2020
Rebekah Brooks is coming on board this global leader, which trades on a derisory earnings multiple, writes Mark Watson-Mitchell."
"The group offers its services to more than 450 major advertisers – such as Disney, OpenTable, Twitter, Amazon, Zynga and Expedia. It has more than 50,000 supply and publishing partners worldwide.
Earlier this month the group announced that it had agreed to acquire a company called Unruly for £14.5mfrom News Corp. And a big pointer is that News Corp is taking 8.5m new Tremor shares in exchange, giving it some 6.5% of the group’s shares, locked-in for at least 18 months.
Furthermore, Rebekah Brooks, News UK’s CEO, will go on to the Tremor board. Now that really is news!
Unruly is a leading global brand-safe video platform that leverages a combination of proprietary video marketplace technologies and data to deliver emotionally engaging content to consumers. It will fit in very well with the group’s RhythmOne division.
The group, after the Unruly deal, will have 132m shares in issue.
Prior to the deal the leading investors in the company’s equity included: Tosca Fund Management (23%), Schroder Investment (15.2%), Mithaq Capital (14.9%), River & Mercantile (7.3%), Ibex Investors (4.4%), Hargreaves Lansdown (4.2%), and Interactive Investor (4.0%).
The group’s brokers, finnCap, updated their numbers after the latest purchase. For the year to end-December 2019 they estimate that revenues will have increased nearly 18% to £325m, while pre-tax profits may have jumped 23% to £52.5m, giving earnings of 42.5p per share but no dividend.
For the current year the brokers are looking for an Unruly kick-in – taking revenues up a further 30% to £425m, with pre-tax profits up a healthy 32% to £69.3m, worth 45.5p in earnings, which allows for the Unruly dilution.
With the shares trading at around the 156p level, those broker estimates put them out on a ridiculously low 3.6 times historic earnings and just 3.4 times current year earnings.
These shares are going to go a great deal higher yet. And I would say that they are more than capable of hitting their 2017 previous peaks of 465p again.
Even so, I will cautiously only put out an end-2020 target price of 235p, which would be a sinfully low 5.5 times historic."
Funny how a share can sit in the doldrums for months, then all of a sudden a hive of activity.
Guess the Unruly acquisition is what caught investors’ eyes.
Long may this rise continue.
A long way to go until we meet P/E parity with S4 Capital.
The tipsheet is flawed... I hope people weren't buying on the back of it...
They using £ instead of $, so they are misquoting the Finncap note.
They mention there will be an increase in revenues of 18% for fy2019 to £325m. Yet they fail to mention that the revenues for fy2019 were originally reported to be around $700m, so they are in fact 1/2... They also fail to mention that the revenue increase is due to the merger with rthm, a company who ON THEIR OWN had forecasts of around $350m for their yrend...
by Mark Watson-Mitchell, who's targeting prior peaks of 465p over time....here's a couple of extracts:
Https://masterinvestor.co.uk/equities/tremor-international-could-send-shockwaves-through-the-advertising-world/?utm_source=Daily+Bulletin&utm_campaign=dedca0b477-Daily_Bulletin_20200116&utm_medium=email&utm_term=0_25eff0bb7f-dedca0b477-34898813
"Tremor International could send shockwaves through the advertising world
By Mark Watson-Mitchell
16 January 2020
Rebekah Brooks is coming on board this global leader, which trades on a derisory earnings multiple, writes Mark Watson-Mitchell."
"The group offers its services to more than 450 major advertisers – such as Disney, OpenTable, Twitter, Amazon, Zynga and Expedia. It has more than 50,000 supply and publishing partners worldwide.
Earlier this month the group announced that it had agreed to acquire a company called Unruly for £14.5mfrom News Corp. And a big pointer is that News Corp is taking 8.5m new Tremor shares in exchange, giving it some 6.5% of the group’s shares, locked-in for at least 18 months.
Furthermore, Rebekah Brooks, News UK’s CEO, will go on to the Tremor board. Now that really is news!
Unruly is a leading global brand-safe video platform that leverages a combination of proprietary video marketplace technologies and data to deliver emotionally engaging content to consumers. It will fit in very well with the group’s RhythmOne division.
The group, after the Unruly deal, will have 132m shares in issue.
Prior to the deal the leading investors in the company’s equity included: Tosca Fund Management (23%), Schroder Investment (15.2%), Mithaq Capital (14.9%), River & Mercantile (7.3%), Ibex Investors (4.4%), Hargreaves Lansdown (4.2%), and Interactive Investor (4.0%).
The group’s brokers, finnCap, updated their numbers after the latest purchase. For the year to end-December 2019 they estimate that revenues will have increased nearly 18% to £325m, while pre-tax profits may have jumped 23% to £52.5m, giving earnings of 42.5p per share but no dividend.
For the current year the brokers are looking for an Unruly kick-in – taking revenues up a further 30% to £425m, with pre-tax profits up a healthy 32% to £69.3m, worth 45.5p in earnings, which allows for the Unruly dilution.
With the shares trading at around the 156p level, those broker estimates put them out on a ridiculously low 3.6 times historic earnings and just 3.4 times current year earnings.
These shares are going to go a great deal higher yet. And I would say that they are more than capable of hitting their 2017 previous peaks of 465p again.
Even so, I will cautiously only put out an end-2020 target price of 235p, which would be a sinfully low 5.5 times historic."