(Sharecast News) - Connected television advertising specialist Tremor International reported a third-quarter contribution, excluding traffic acquisition costs, of $64.9m, down from $76.7m year-on-year.
The AIM-traded firm said its contribution ex-TAC for the nine months ended 30 September, meanwhile, slipped to $206.7m from $213.4m in the same period of 2021.
It said all results for the three and nine months ended through September included contributions from Amobee, for when its acquisition closed on 12 September through to the end of that month.
Advertising demand during the quarter was still impacted by challenging macroeconomic conditions, the board reported, particularly as several direct-to-consumer brand customers experienced "significant pressure" on advertising budgets due to rising inflation.
Tremor said it achieved third quarter adjusted EBITDA of $30.1m, down from $42.3m in year-on-year, and adjusted EBITDA of $102.9m for the first nine months of the year, compared to $107.2m in the same part of 2021.
It said it maintained strong margins, including a 43% adjusted EBITDA margin in the third quarter on a reported revenue basis, and 46% on a contribution ex-TAC basis.
For the nine month period, its adjusted EBITDA margin came in at 45% on a reported revenue basis, and 50% on a contribution ex-TAC basis.
Tremor said it continued to expand its connected TV market share, with a record third quarter spend of $73m, making for an increase of 45% year-on-year.
It also reported a record connected TV spend of $183.9m for the nine months ended 30 September, which was 33% higher than the prior-year period.
Connected TV spend during the nine months ended 30 September reflected 39% of total spend, and 44% of programmatic spend.
Video revenue, including connected TV, continued to represent the "overwhelming majority" of Tremor's contribution ex-TAC, at around 87% for the third quarter and 81% for the first nine months of 2022.
The board said the company was in a "strong" net cash position of $109.1m as at 30 September, following the completed acquisition of Amobee, investment in Vidaa, and completion of a $75m share repurchase programme.
It said that provided it with "ample liquidity" for current business needs, as well as future potential investments and initiatives.
At the end of September, the firm said it had used $100m from its secured $180m credit facility relating to the acquisition of Amobee, including $90m from a secured term loan and $10m from a revolving credit facility.
The company said it had $80m remaining on its revolving credit facility as of 30 September.
"During the third quarter we executed on long-term strategic initiatives that we believe will support our future growth by completing our acquisition of Amobee and investment in Vidaa", said chief executive officer Ofer Druker.
"The combination of the expanded scale, customer base, and new technological capabilities from Amobee, alongside the exclusive ability to share global ACR data, enable exclusive high quality connected TV advertising opportunities, and gain access to exclusive sports content monetization opportunities through our investment in Vidaa, is expected to greatly benefit our partners and expand our market share within the connected TV arena."
At 0956 GMT, shares in Tremor International were down 24.12% at 287.6p.
Reporting by Josh White for Sharecast.com.
