Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Graham,
"The Vocare sellers sold a business that TLY wanted simple really isn't it"
EXACTLY... It is as simple as that..
TLY provide Out of Hospital Services. Therefore, they need to provide the services required by the NHS..
NHS announced the push for Integrated Care.... Vocare provides that Integrated Care....
NHS 10 year plans were finally published last month, a lot later than expected ...However, the contents of the plans were known for over a year and were the reason behind buying Vocare.
The Integrated Care model is scheduled to be rolled out over next 2 yrs...
TLY have their structure in place to help roll out the Integrated Service...
There was a need to buy Vocare or something before the similar to ensure TLY have the necessary structure in place....
How can TLY continue with their strategy to become the leading provider of Out of Hospital Services if a large part of that service is missing???
Jan 2019
Rollout of ICS by Apr 2021.. shows there will be a lot of contracts up for grabs over the next 2 yrs...
The NHS Long Term Plan..
Create Integrated Care Systems everywhere by Apr 2021.
In the meantime, within the current legal framework, the NHS and our partners will be moving to create Integrated Care Systems everywhere by April 2021, building on the progress already made. ICSs bring together local organisations in a pragmatic and practical way to deliver the ‘triple integration’ of primary and specialist care, physical and mental health services, and health with social care. They will have a key role in working with Local Authorities at ‘place’ level, and through ICSs, commissioners will make shared decisions with providers on population health, service redesign and Long Term Plan implementation.
https://www.longtermplan.nhs.uk/wp-content/uploads/2019/01/nhs-long-term-plan.pdf
Article on Fee transparency... Move to fee transparency...
rthm's court case with DataXu over fees..
How dependent are rthm on fees? What would happen if the industry continues their moves to 'transparency in fees'...
Marketers Deserve Complete Transparency About Exchange Fees
"Most ad exchanges, while similar in function, operate on the transactional revenue alone in the form of take rates, which are not always disclosed to all the participants, especially buyers. Buyers are mainly left to figure out how much of their spend is really going toward buying media vs. ad tech exchange fees. Take rates are a contentious issue, with recent price wars. Many exchanges have dynamic take rates that change on impression-to-impression basis. All of this leads to non-transparent behavior, which leads to questionable tactics such as bid caching or hidden fees."
https://adexchanger.com/data-driven-thinking/marketers-deserve-complete-transparency-about-exchange-fees/
RTHM - court case with DataXu over fees...
rthm/DataXu
https://adexchanger.com/online-advertising/rhythmone-dataxu-tussel-unpaid-bills-hidden-fees/
rthm/DataXu court action..
https://www.pacermonitor.com/public/case/22028832/RhythmOne_LLC_v_DataXu,_Inc
Rubicon declared themselves transparent on Fees...
Rubicon/Guardian have declared that have reached a mutual agreement..
https://www.wsj.com/articles/the-guardian-and-ad-tech-vendor-rubicon-project-settle-legal-dispute-1539348209
"RHYTHMONE (INCLUDING YUME)
Does it charge buy-side fees or other nontransparent fees: No response. "
"TELARIA (TREMOR VIDEO) - (Tremor sold TremorDSP to TAP).
Does it charge buy-side fees or other nontransparent fees: No.
https://adexchanger.com/platforms/rubicon-got-rid-buy-side-fees-else-charging/
How dependent are rthm on fees? What will happen to their revenues, profits if they had to make their fees more transparent?
Brassneck
"I don't really care what Stt thinks"
Nobody should....Everyone should do their own research and form their own opinion.... it's their own money...
Nobody should follow cheerleaders/traders...
I, for one, am glad I did my own research, researching industry challenges and rthm's history and sold some at around 500p and wasn't tempted by the cheerleaders to trade... Means I can buy 3 times more and at 1/3 of the sp...
I don't consider selling rthm at a huge loss and then buying TAP in the hope that the merger will work as wise investing at all... Arb trading hoping for a small profit set against the huge loss in the current holding... short term trading...
1gw,
yes, all very good for traders like you but what about the long term holders?
Rthm sp was around 500p pre the Yume/rthm takeover... Now it's around 175p...
There will be trading opportunities as there have been with rthm for years but is this merger a good deal?
Rthm have been running a full stack for years... They have made a loss for years...
Industry challenges like GDPR, Apple's ITP, move to fee transparency, move to fewer SSPs/DSPs etc...
Those are facts.. but obviously wouldn't bother traders looking for trading opportunities..
Data Privacy - GDPR, California Privacy Law...
Article on Facebook...
Facebook behaved like ‘digital gangsters’, say MPs
https://www.theweek.co.uk/99643/facebook-behaved-like-digital-gangsters-say-mps
42Trader,
"And at least if there is so something they have found and are still wanting to merger then they are comfident it can be sorted or improved. "
Not necessarily....
They stated warnings in their 20-F of significant costs ahead....a few months after taking over, the 'new management' warned of material weaknesses in internal financial reporting... were they planning to move to US but have now abandoned it due to those material weaknesses??
As I've said I originally bought rthm (then blnx) in 2011 and have followed them and have researched the ad tech industry... Why is discussing rthm or the ad tech industry a grudge? The only posters I see who have a grudge are those with goading, abusive posts...
These and other risk factors are discussed in "Risk Factors" of RhythmOne's Annual Report on Form 20-F filed with the United States Securities and Exchange Commission on July 31, 2018, a copy of which can be found at www.sec.gov."
https://investor.rhythmone.com/newsroom/2018/09/25/directorate-and-management-changes-092518
These risks include those the company has already warned about...
The company has warned:
"MATERIAL WEAKNESSES", "SIGNIFICANT" costs, "ADVERSELY AFFECT...OPERATING results..IN THE FUTURE.""
"D. Changes in Internal Control Over Financial Reporting
As a result of material weaknesses related to the ......."
https://www.sec.gov/Archives/edgar/data/1713721/000143774918014094/rhyth20180713_20f.htm
Page 43..
"SIGNIFICANT costs", SUBSTANTIAL MANAGEMENT TIME", "ADVERSELY AFFECT...OPERATING results..IN THE FUTURE."
"The combined company will incur significant costs and devote substantial management time as a result of becoming subject to reporting requirements in the United States, which may adversely affect the operating results of RhythmOne in the future. "
https://www.sec.gov/Archives/edgar/data/1713721/000119312517377843/d399085df4.htm
and I agree with Safi's statement..it could be months before we know about rthm's true performance...
"Unfortunately since R1 have not released any trading updates, and will be taken over before the full year results are due, we may not confirm any of these forecasts until the TAP June update. In face if TAP decides not to release quarterly updates we may not know R1s performance for another 9 months!! And that would be obscured by integration costs and write offs. "
1gw,
Thanks.
I fully accept if you don't wish to mention Leadimpact, Verti Tech, Ad On Network or Pinball Corp..
Is it a coincidence that after Blinkx (now rthm) acquired Zango assets their revenues, cash and profitability shot up and then post 2014 blog and profit warning, revenues, cash declined substantially and profits turned to losses?
The old management were only replaced after the rthm/Yume takeover.. Now we find that the 'new management' have decided to sell (merger deal) at unfavourable levels and below that of when they took over a year ago.. and only a few months after taking over...
Do you think they found anything untoward?
Zango:
https://en.wikipedia.org/wiki/Zango_(company)
revenue cash(cash + equ) profit(loss)
fy2008 $6.5m, $39.4m, ($16m)
Jan 2009 - Blinkx buys 'certain' Zango assets after it's foreclosure
fy2009 $13.9m, $21.3m, ($8.8m)
2010: start sp: 175p
fy2010 $33.6m, $14.5m, ($8.5m)
2011: start sp: 832p
fy2011 $66.1m $52.8m $7.6m
2012: start sp: 777p
fy2012 $114.4m $38.4m $3.9m
2013: start sp: 657p
fy2013 $198m $55.9m $17.4m
2014: start sp: 2065p
fy2014 $247.2m $126.9m $12.2m
Jan 2014 Blog
July 2014 profit warning
2015: start sp: 260p
fy2015 $214.9m $95.7m ($20.8m)
2016: start sp: 165p
fy2016 $166.7m $78.4m ($92.3m)
2017: start sp: 385p
fy2017 $175m $75m ($18.7m) *(inc Perk acquisition q3 2017)
and as the 2016 Annual Report, pg54 shows, Leadimpact, Verti Tech, Pinball, Ad On Network are still listed as subsidiaries.... but not in the 2017 Annual Report...
https://investor.rhythmone.com/assets/pdf/blinkx_annual_report_FY2016.pdf
2017 Annual Report - Pg 63
Vert Tech, Ad On Network still listed.. Pinball, Leadimpact aren't listed..
https://investor.rhythmone.com/assets/pdf/RhythmOne_Annual_Report_FY2017.pdf
Coincidence???
1gw,
What happened to Leadimpact, Pinball, Verti Tech and Ad On, which are listed in the 2016 Annual Report?
Safi,
"If these figures check out then R1s latest quarter will have been brilliant, which alone would have sent the SP north of 300p by now."
Yes and the question is why didn't they? Similar happened when rthm/Yume merger was announced some 18months ago...As is now, there were huge expectations when that was announced in 2017 and completed a year ago, supposedly creating one of the largest independent market places...
Yet, the 'new' management had not been in charge for a full 6 months and decide to sell (deal on worse terms) than they received for Yume...
The current sp of around 175p is significantly lower than the around 500p, it was just pre-Yume announcement...
RhythmOne plc to Acquire YuMe, Inc., Creating One of the Largest Independent Digital Video Advertising Marketplaces
"to acquire all its issued and to be issued share capital for a total consideration of approximately US $185M based on current exchange rates. "
https://www.businesswire.com/news/home/20170904005417/en/RhythmOne-plc-Acquire-YuMe-Creating-Largest-Independent
1gw,
" In FY16 they decided to rebrand as RhythmOne and bring everything (or most parts of the company) together."
The subsidiaries you say they brought together and haven't listed...
2016 Annual Report..
The subsidiaries..page 54...
You say 'MOST parts of the company'...Which of these subsidiaries were brought together and which were closed/sold, resulting in the huge writeoffs?
RhythmOne (US) Holdings, Inc. Holding company 100% United States
Blinkx (UK2), Ltd Holding company 100% United Kingdom
Blinkx UK Ltd Trading company 100% United Kingdom
RhythmOne, LLC Trading company 100% United States
Pinball (Canada), Inc. Holding company 100% Canada
Blinkx (Canada), Inc. Trading company 100% Canada
Prime Visibility Media Group, LLC Trading company 100% United States
Prime Visibility, LLC Trading company 100% United States
Verti Technology Group, Inc Trading company 100% United States
Pinball Corporation Holding company 100% United States
AdKarma, LLC Trading company 100% United States
Blinkx (UK) Holding Ltd Holding Company 100% United Kingdom
AdOn Network LLC Trading Company 100% United States
https://investor.rhythmone.com/assets/pdf/blinkx_annual_report_FY2016.pdf
2017 Annual Report - Pg 63
Vert Tech, Ad On Network still listed.. Pinball, Leadimpact aren't listed..
https://investor.rhythmone.com/assets/pdf/RhythmOne_Annual_Report_FY2017.pdf
Are you saying Leadimpact, Pinball Corporation, Verti Technology, Ad On Network were merged in when they rebranded from Blinkx to RhythmOne?
Weren't these the companies at the centre of the 2014 blog?
Industry challenges - Apple's ITP & GDPR...
Google Exec and an article on Criteo ..
Ad-tech firm Criteo is facing an uphill battle after Apple and GDPR threatened to wipe out its revenue — but Amazon's rivalry with retailers could be a big bright spot
https://www.businessinsider.com/criteo-q4-2018-earnings-amazon-is-a-bright-spot-after-apple-challenges-2019-2?r=US&IR=T
Fallout From Apple ITP Is Severe And 7 Other Takeaways From Google Exec Sean Downey At Industry Preview
https://adexchanger.com/industry-events/fallout-from-apple-itp-is-severe-and-seven-other-takeaways-from-google-exec-sean-downey-at-industry-preview/
There's been bullish notes for years, yet rthm have failed to deliver..
Why not publish fy results and the Annual Report before proceeding?... Remember the rthm/Yume takeover GM was before they published their H1 2018 TU... and look what happened after that takeover..
They won't have to issue fy results or the Annual Report because of the takeover...and it'll be a year before anyone knows if the merger has worked...
Still would like to see what companies they merged into the new RhythmOne and which were closed, causing the huge writeoff in 2016...
Since you mentioned the companies, can you please list them, 1gw?
1gw,
" In FY16 they decided to rebrand as RhythmOne and bring everything (or most parts of the company) together."
Can you please name which subsidiaries they brought together under the rthm brand and which ones closed, resulting in the writeoffs?
Tardis,
"RTHM have low levels of income form Europe. As you know most of their income comes from the US."
It doesn't matter how much income they get from Europe, if they receive any income from European citizens then they need to comply with GDPR... Not just rthm.. How is consent passed between themselves and their partners..
Given they run a full stack, I think GDPR would impact rthm more.
Secondly the last time I checked Apple's ITP changes would affect companies across the world.
Recent article with comments from a Google Exec.. Have you heard of Google?.
Fallout From Apple ITP Is Severe “ And 7 Other Takeaways From Google Exec Sean Downey At Industry Preview
Privacy-first is the new normal.
Many of the changes and regulations are consumer-driven.
We're all very aware of GDPR, and the importance of consent. But that's just one piece impacting the ecosystem and it's just one region.
We all know about the California [Consumer] Privacy Act and similar things are happening in Brazil and India. It's just the new normal.
Then there are other things that technology companies need to do to protect users as well, outside of regulation, like the elimination of third-party cross-site cookie tracking.
It's not too soon, however, to talk about the fallout from Apple's Intelligent Tracking Prevention (ITP), which has been severe.
This was the number one talking point from all advertisers and agencies at CES “ noisier than October [when Apple released a very difficult-to-track iPhone] because people were going through the results and seeing the impact.
Programmatic is based on the ability to use third-party cookies to track and target. When that's interrupted, there's an impact to your results and how you do business. It's a pretty substantial impact."
https://adexchanger.com/industry-events/fallout-from-apple-itp-is-severe-and-seven-other-takeaways-from-google-exec-sean-downey-at-industry-preview/
Tardis,
The rthm/Yume completed a year ago then 6 months later they publish the 20-F, warn of material weaknesses in internal control over financial reporting. They also warn of impact from GDPR changes.
A few weeks later they sign the NDA with TAP.
A month after that the CFO resigns...
Do you think it's all a coincidence? Did they find anything untoward whilst changing their internal processes that they decided to the best course of action was to 'sell'? Has GDPR or Apple's ITP impacted the business that they have to change their strategy, as they mentioned in their 20-F
- Page 13:
"In particular, Europe's new General Data Protection Regulation ("GDPR") (which came into force in May 2018) extends the jurisdictional scope of European data protection law. As a result, RhythmOne IS subject to the GDPR when it provides its targeting services in Europe. The GDPR imposes stricter data protection requirements that may necessitate changes to RhythmOne's services and business practices. Potential penalties for non-compliance with the GDPR include administrative fines of up to 4% of annual worldwide turnover. Complying with any new regulatory requirements HAS resulted in increased costs and could force RhythmOne to incur further substantial costs or require RhythmOne to change its business practices in a manner that could reduce its revenue or compromise its ability to effectively pursue its growth strategy."
https://www.sec.gov/Archives/edgar/data/1713721/000143774918014094/rhyth20180713_20f.htm
Bott,
good post..
"It's fine to believe in a company, or if you prefer in a share, but when the facts change, as Keynes famously said, he changed his mind and so to I."
exactly and so far rthm nor anyone here has shown any evidence to suggest that things are materially any different now than they were under the previous management. The sp is a lot lower now than the rthm/Yume takeover and it could be that Singer has decided that it's better to 'sell' (deal) at current levels... After all the sp was been drifting for a while and fell after the fy2018 results...
rthm is still a 'show me the money' share...There's a lot of trader's talk and hype...
Is the merger a good fit and good for the future, especially given other companies seem to be moving away from the full stack model...
The BoD will say anything to ensure the deal goes through...
I find it too much of a coincidence that in July 2018 in their 20-F filing they warned of material weaknesses in their internal financial controls, warned of costs and possible change in business model due to GDPR and then ONLY 3 WEEKS later they sign a NDA with TAP...
Really..
Internal Control over Financial Reporting:
The company has warned:
"MATERIAL WEAKNESSES", "SIGNIFICANT" costs, "ADVERSELY AFFECT...OPERATING results..IN THE FUTURE.""
"D. Changes in Internal Control Over Financial Reporting
As a result of material weaknesses related to the ......."
https://www.sec.gov/Archives/edgar/data/1713721/000143774918014094/rhyth20180713_20f.htm
Page 43..
"SIGNIFICANT costs", SUBSTANTIAL MANAGEMENT TIME", "ADVERSELY AFFECT...OPERATING results..IN THE FUTURE."
"The combined company will incur significant costs and devote substantial management time as a result of becoming subject to reporting requirements in the United States, which may adversely affect the operating results of RhythmOne in the future. "
https://www.sec.gov/Archives/edgar/data/1713721/000119312517377843/d399085df4.htm
GDPR:
- Page 13:
"In particular, Europe’s new General Data Protection Regulation (“GDPR�) (which came into force in May 2018) extends the jurisdictional scope of European data protection law. As a result, RhythmOne IS subject to the GDPR when it provides its targeting services in Europe. The GDPR imposes stricter data protection requirements that may necessitate changes to RhythmOne’s services and business practices. Potential penalties for non-compliance with the GDPR include administrative fines of up to 4% of annual worldwide turnover. Complying with any new regulatory requirements HAS resulted in increased costs and could force RhythmOne to incur further substantial costs or require RhythmOne to change its business practices in a manner that could reduce its revenue or compromise its ability to effectively pursue its growth strategy."
"Evolving definitions of personal data within the EU, the United States and elsewhere, especially relating to the classification of IP addresses, machine or device identifiers, geo-location data and other such information, may cause RhythmOne to change RhythmOne’s business practices, diminish the quality of RhythmOne’s data and the value of RhythmOne’s solution, and hamper RhythmOne’s ability to expand its offerings into the EU or other jurisdictions outside of the United States. RhythmOne’s failure to comply with evolving interpretations of applicable laws and regulations, or to adequately protect personal data, could result in enforcement action against RhythmOne or reputational harm, which could have a material adverse impact on RhythmOne’s business, financial condition and results of operations."
https://www.sec.gov/Archives/edgar/data/1713721/000143774918014094/rhyth20180713_20f.htm
"What's the point in taking a year or two out to prove that they can grow R1-YuMe organically and profitably"
I think it's more jam tomorrow just when the industry challenges like GDPR, Apple's ITP move to fewer SSPs/DSPs, move to fee transparency are resulting in the NEED for more consolidation.. .
They have been doing the same with other acquisitions...
How about Perk, Rad1... They were bought 1-2 yrs ago...
Are they growing?
Didn't Tosca do the same at Yume because they wanted the rthm/yume takeover to go through?