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LONDON (Alliance News) - Audioboom Group PLC's shares fell on Tuesday after saying its pretax loss widened in its recent financial year due to more cash being spent on marketing its consumer products.
Audioboom's shares were down 7.1% at 3.25 pence on Tuesday morning.
The audio content platform provider reported a pretax loss of GBP7.4 million for the year ended November 30, compared to a loss of GBP3.9 million the previous year, as net cash used in operating activities rose to GBP5.7 million from GBP2.4 million.
Audioboom said this net cash was used in "developing the business", namely in marketing spend relating to the consumer products, website and apps. Earlier this year, Audioboom updated its website and launched new iOS and Android apps, after which registered users rose by 46% to 4.6 million from 3.1 million.
Audioboom said revenue rose to GBP192,000 from GBP51,000 the prior year, but it said this was heavily weighted towards the end of the year, with the final quarter generating more than double the previous quarters as the pace of revenue growth picked up.
This appears to have continued into the first quarter of the current financial year. In the three months to February 29, Audioboom said revenue already had exceeded that of the full year to November 30.
Audioboom added it has strong advanced bookings of advertising revenue for the second quarter and net cash at February 29 was GBP2.2 million. It said it had added another 543 content channels during the quarter, meaning the total number of channels now stands at 7,400.
Audioboom noted it would be focusing on the US and India over 2016, and said it expects revenue growth throughout 2016, accelerating in 2017.
No dividend was offered for the past year.
"2015 was a year of steady but important progress for Audioboom. We focused the business on our market leading software as a service platform and the monetisation of this asset through advertising revenue share agreements. In short, quality content is the key to driving 'listens'; listens drive advertising and advertising drives revenue," said Chief Executive Rob Proctor.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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