MTMY.L Share News (MTMY)

LONDON (Alliance News) - Matomy Media Group Ltd said on Thursday its pretax loss widened as revenue fell following the sale of units during the year, as well as challenging conditions in its

video media channel and email media channel businesses.

The advertising firm said revenue for 2017 fell 11% to USD245.1 million from USD276.6 million, as its pretax loss multiplied to USD16.7 million from USD3.3 million.

The decrease in revenue "includes the downward revenues of the exited activities for the first half of 2017 and [...] does not provide a true picture of Matomy's activities as of December 31", the company said.

The company sold "Performance from Matomy" and "mtmy" in July 2017

During the year, email media channel revenue decreased by 48% to USD12.2 million, mainly due to the "temporary inability to complete certain email delivery processes, following the introduction of new compliance tools by certain Internet service providers".

Video media channel revenue decreased by 47% to USD55.4 million for the year, as industry changes reduced the quantity and value of available video advertising inventory from sellers, while enforcing stricter quality requirements by video advertisers.

"As a result, scale and margins decreased across the video industry," the company said.

Domain monetisation revenue increased by 66% to USD105.4 million, and programmatic mobile in-app revenue increased by 20% to USD50.6 million.

"2017 was a year of transition for the company, as Matomy exited activities outside the company's focus, and reduced operational costs. The core activities of programmatic mobile advertising and domain monetisation have grown nicely in 2017, and the company is poised to enjoy the full effects of the new focus in the year ahead," the company said.

"The board and management are confident that the core activities will continue to grow and raise revenues through 2018 and beyond," Matomy added.

Shares in the company were down 3.2% at 61.00 pence on Thursday.