(Sharecast News) - Media platform operator Entertainment AI traded in line with expectations throughout the first quarter of 2020 despite flagging a downturn in digital advertising spend.
Entertainment AI said on Tuesday that pre-tax losses were pegged to come in at $630,000, in line with guidance, while revenues fell 8% year-on-year to $2.1m.
The AIM-listed firm said GTChannel views were up 35% at 4.4bn but said revenues per view were down 33% at $1.57 - reflecting wider market conditions amid a fall in digital video advertising spend.
Entertainment AI also highlighted a strong balance sheet with $7.9m of net cash as of 30 April, enabling it to meet all growth objectives.
However, while the group said its multi-channel network showed "strong growth" in audience views and watch minutes, because of the impact of Covid-19 and the market-wide reduction in digital video advertising spend, Entertainment AI said it did not expect this growth to translate into a similar increase in revenue.
Chairman Dr Patrick DeSouza said: "We believe that our technology products are being launched at the right time to take advantage of opportunities brought on by Covid-19 crisis and market drop in digital ad sales.
"We have the capital and institutional backing to deliver our solutions on-time and we look forward to this challenge."
As of 1110 BST, Entertainment AI shares were up 13.73% at 29p.
30 Jun 2020 15:56
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