LONDON (Alliance News) - Brave Bison Group PLC on Wednesday reported a drop in revenue and a widened loss for 2017, as it took an impairment charge related to technology and customer relationship intangible assets.
The stock was down 5.9% at 0.8001 pence per share at midday on Wednesday.
The social video company said its revenue nearly halved in 2017 to GBP9.1 million from GBP17.7 million the prior year, with GBP5.7 million of this decline due to a low margin advertising revenue product with was terminated by the company in the first quarter of the financial year.
Advertising revenue fell to GBP4.0 million compared to GBP10.9 million in 2016, due to termination of the low margin product. Fee Based Services revenue decreased to GBP5.1 million from GBP6.8 million the year before, impacted by loss of two major clients in the fourth quarter of 2016.
Administration costs decreased 32% to GBP8.7 million from GBP12.9 million and restructuring costs were lower at GBP1.0 million versus GBP1.2 million in 2016.
Brave Bison's pretax loss widened to GBP17.2 million from GBP6.5 million the year before, largely due to a GBP12.2 million impairment charge related to technology and customer relationship intangible assets.
However, the company's operating loss narrowed to GBP4.9 million compared to a GBP6.4 million loss recorded in 2016, primarily due to the closure of foreign offices as the business re-focused on the Europe, Middle East, & Africa and Asia Pacific regions.
The company ended 2017 with GBP4.8 million in cash and cash equivalents.
Brave Bison Chief Executive Officer Claire Hungate said: "As a social video company we sit at the epicentre of the consumer entertainment marketplace; consumers are moving to social, social is moving to smart phone and smart phone internet traffic is predominantly video based. As you would expect advertising revenue is following with 5.7% of global advertising revenue being spent on social media video by 2019."
"Our owned and operated social media communities across Facebook, Instagram and You Tube reach over 850 million people a week which gives us our own brand safe distribution network. This combination of services and skills means we are well placed to benefit from a digital first and video first ecosytem and as we move into 2018 we are committed to achieving profitability," Hungate added.
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