LONDON (Alliance News) - Digital advertising company RhythmOne PLC said Tuesday it expects to return to revenue growth and profitability in its full-year results, as it substantially narrowed its first half loss.
AIM-listed RhythmOne, which is based London and San Francisco, reported a pretax loss for the six months to September 30 of USD10.5 million, narrowed from a USD79.3 million loss in the prior financial year.
Revenue for the company dropped to USD80.7 million for the period, compared to USD91.4 million in the prior financial year.
The company said that during the recent half-year it completed its structural switch to core mobile, video and programmatic products, with 83% of revenue now coming from those core products.
In the past two months of the period, the company said it achieved profitability on an adjusted earnings before interest, tax, depreciation and amortisation basis, "significantly ahead of internal estimates". RhythmOne reaffirmed its expectations for both revenue growth and a return to full-year profitability in the current financial year, which runs to March 2017.
"We believe that the significant steps we took last year to realign the business around our core capabilities have begun to show evidence of success, and have set us on course for both top-line revenue growth and a return to full-year profitability this financial year," said Subhransu Mukherjee, chief executive officer.
Shares in RhythmOne were down 1.4% at 36.50 pence Tuesday.
By Adam Clark; adamclark@alliancenews.com
Copyright 2016 Alliance News Limited. All Rights Reserved.
