LONDON (Alliance News) - Matomy Media Group Ltd on Wednesday said it will implement a new strategic plan in the second half of its 2016, noting its full year adjusted earnings before interest, tax, depreciation and amortisation is expected to come in lower due to the additional investment required for its plan.
The digital advertising company said it has identified emerging trends in the digital advertising industry, including a rapid decline in desktop display advertising and the shift to mobile, the transition from contractual relationships to programmatic based transactions, and the broad adoption of video-based advertising as the leading medium to communicate with consumers.
As a result, Matomy said, over the past 18 months it has switched its focus to be towards proprietary video, mobile and other programmatic technologies, with around 38% of its revenue in the first quarter of the year mobile related revenue, 40% from video related activity and 77% programatic, noting there is an overlap.
In light of this, Matomy said it has adopted a strategic plan, to be implemented as of the second half of the year, which allocates an initial sum of USD3.3 million for expenditure during 2016 primarily to conduct additional research and development for mobile and video, and to up its marketing efforts. Matomy said its strategic plan is expected to yield results in mid-2017.
This came as the company said it expects revenue for the first six months of the year to June 30 to be no less than USD122.0 million, having previously been USD125.0 million for the same period a year earlier. Matomy said it has traded on a positive earnings before interest, tax, depreciation and amoritsation basis for the first six months of the year.
As a result of the financial and human resource investment needed to support these strategic initiatives, Matomy said it expects revenue for 2016 to be in the range of USD265.0 million to USD300.0 million, and adjusted earnings before interest, tax, depreciation and amoritsation to be between USD17.0 million and USD21.0 million. For 2015, its revenue came in at USD208.8 million, whilst its adjusted earnings before interest, tax, depreciation and amortisation was USD25.7 million.
"Today the company's technology is already at the forefront of the industry, and even after the additional investment, we expect to remain one of the most efficient companies in the ad tech industry, and one of the only listed companies that is profitable on an earnings before interest, tax, depreciation and amortisation basis and cash generative. I'm confident that this strategic plan will better leverage our technological capabilities, excellent operational capabilities and unique corporate culture," said Chief Executive Ofer Druker.
Shares in Matomy were down 2.2% at 70.65 pence on Wednesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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