RE: Results31 Mar 2020 19:31
ShareNicely,
"Figures bang in line with expectations. "
The results form a similar pattern to rthm results. They were bullish at the beginning of the year but always failed to back the up when it came to results. These results show the same pattern.
Have a look at how bullish they were a year ago for fy2019 and compare it to what they have actually published. They were only within expectations if you're comparing to the vastly lowered expectations in the TU of 6th January, which was post fy2019 (Dec 2019).
They are actually a lot lower than the expectations set by the company broker, Finncap on 2nd April, ie after they merged with rthm.
Compare Finncap 2nd Apr 2019 for this fy expectation with the vastly lowered revised note of 6th Jan 2020.
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"CTV revenues look good, $18m in Q4"
They are comparing Q1 2019 against Q4 2019. Q1 2019 was pre-rthm merger, which completed at end of Q1. Therefore, not a proper comparison.
Trmr are following rthm with CTV, so I'd thought Q4 2019 was from rthm and not organic growth.
CTV revenue of 4x$18m is approx $72m, which is very poor given they are now moving more and more to rely on that format.
The fy revenues of $325m is approx 1/2 they were expecting a yr ago.
Crucially the $325m revenues include contribution from several rthm operations which were closed during the year. Likewise their cash includes cash received from the rthm merger (Apr 2019) and cash from operations which are now discontinued.
Crucially there will be nil cash or revenue contributions from those discontinued operations for this fy2020.
Therefore, I expect this year's fy2020 (Dec 2020) revenues to be a lot lower than $300m and their cash to be substantially lower.
The lower and missed expectations existed pre-Covid-19.
And don't forget there were already further Industry Challenges to hit the industry this and next year, pre-Covid-19.
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