Bidstack sees margins improve as it shifts from development to commercialisation
"The board has been focussed on improving gross margin and controlling ... total operational costs ... as it starts to rebalance capital deployed to reflect the shift from product development to commercialisation"
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Bidstack Group PLC, the native in-game advertising group, said the second half of 2021 has started well and is in line with management’s expectations.
The first half of 2021 saw the company triple revenues to £820,000 from £274,000 in the same period in 2020.
Gross margin improved to 34.5% from 27.9% the year before.
The loss before tax was £3.6mln versus the previous year’s loss of £3.2mln, mostly reflecting administrative expenses of £3.9mlnm (2020: £3.2mln).
Cash at the end of June stood at £695,000, compared to cash of £5.9mln a year earlier, since when the company has tapped the market for £10.86mln.
Operationally, the first half of the year saw the group make significant progress in bringing new titles on board and it is now offering advertisers an increased inventory from a portfolio boasting more than 30 games.
“Since the period end Bidstack has onboarded a number of new games including Nordeus' flagship football management game, Top Eleven, T-Bull's classic car driving simulation game Racing Classics PRO: Drag Race & Real Speed, Motionlab Interactive's multiplayer PDC Darts Match and Suji Games' animated simulation game Hyper Airways. We expect a number of further games to join Bidstack's roster in the second half,” the chair, Donald Stewart revealed.
"With improving visibility of the sales pipeline, we believe the company has a strong pipeline of revenue for the second half as existing advertisers rebook with growing spend and business development efforts come to fruition,” Stewart added.
James Draper, Bidstack’s chief executive, said the company’s technology and commercial expertise are “proven and in high demand”.
"Campaign spends are growing substantially and the number of game studios wanting to work with our team is expanding,” Draper said.
"Key highlights, such as the exclusive partnership with Nordeus, progress in the US with the IAB and growing access to our inventory, all lead me to believe we are on the pathway to scalability.
"The opportunities that lie ahead in the second half in relation to innovative product launches have our team hugely motivated – and we look forward to sharing more of these developments when we can."