(Alliance News) - Taptica International Ltd on Thursday said it is on track to achieve market expectations for profitability despite lower revenue from performance-based advertising.
Shares in advertising and mobile marketing technology company Taptica closed up 3.1% at 101.00 pence.
Taptica also announced that, at its annual general meeting, shareholders had approved its name change to Tremor International Ltd.
Speaking at the company's AGM, Non-Executive Chair Tim Weller said trading in the first five months of its financial year has been mixed, with performance-based advertising activities generating lower revenue than the year before.
However, the company's brand advertising platform has traded well and its margin has improved in a sustainable way and the company believes it will meet market expectations in terms of profitability.
As a result of its April merger with RhythymOne PLC, Taptica is now expecting around USD20 million of cost savings and synergy benefits in its current financial year, with RythmOne expected to start contributing meaningfully to Taptica's bottom line the year after.
At present, Taptica's cash position is around USD70 million, following a USD15 million share buyback programme.
Weller said: "2019 was always going to be a year of integration and reorganisation. As highlighted above, I'm pleased to report our teams have already made substantial progress. The strategic rationale for the merger remains strong and in the best interest of shareholders, as such the board remains optimistic in the medium term."
On Tuesday, Taptica said ride share and food delivery company Uber had filed a complaint against Taptica and other companies alleging unfair competition, fraudulent concealment, and negligence. Taptica believes Uber's claims are without merit.