Brassneck,
Good to see you finally taking an interest in the stats now that they have improved...Good to see them improve as well..
Now that the stats are improving, do you still believe that they DON'T give rthm a competitive advantage.. as you did in your Aug 29th Post.
29th Aug post:
Quite Stt so the question is where can you get competitive advantage as a business in ad tech? This is partly why I think Pixalate is an important part of the R1 story as being the cleanest is a differentiator. Ads.txt, GDPR and fee transparency do not carry any opportunity of competitive advantage. I believe there will be more focus and quality of inventory in the future which should put R1 in a good place if they can keep the focus on this area.
Tricky,
Yes rthm are saying they are compliant. They follow IAB rules.
This from their website:
"Support For IAB Europe's GDPR Consent Solution
RhythmOne expects to support the IAB Europe’s GDPR Transparency & Consent Framework. Read more about the standard and how it is helping all parties in the digital advertising ecosystem ensure that they comply with the EU’s General Data Protection Regulation when processing personal data or accessing non-personal or personal data on user devices."
https://www.rhythmone.com/landing/gdpr#tePkBVi8ltRQzEdS.97
According to this article, it is the same IAB's GDPR Framework which is being questioned..
GDPR Will Pick Up Momentum In 2019
"Consumer advocacy groups are also filing complaints on behalf of consumers, primarily directed at the big tech set, under a new collective redress or class action mechanism introduced through Article 80 of the GDPR."
"But there was still a lot of groundwork laid this year and many hints dropped about what DPAs will prioritize in 2019. Data security and consent, particularly as it pertains to advertising and location tracking, top the agenda, Tigner said."
"The most recent warning, which was issued in November against a Paris-based location data company called Vectaury, name-drops the IAB Europe GDPR Transparency and Consent Framework, a mechanism created by the advertising industry that allows publishers and vendors to share consent strings. Reading between the lines, the CNIL appears to be questioning the viability of consent strings if users don’t have a clear and obvious way of giving their consent to every party touching their data."
https://adexchanger.com/privacy/gdpr-will-pick-up-momentum-in-2019/
GDPR... Ad Tech companies starting to get hit..
Google hit with £44m GDPR fine over ads
https://www.bbc.co.uk/news/technology-46944696
Tardis,
"As to your speculation, I’m sure a special dividend would be gladly received by any holders."
Yes, I would have thought especially by Viex and Tosca...
Still don't know who have been loaning out shares for a fee.. Make money on loaning out the shares and if there is a special divi, take some cash out...
Did you notice that Yume was then sold for a similar sp as before the $10m share buy back and special divi...
A $10m buy back is around 5% of company.
jrlse,
"I have had stt1 on filter for a long time."
Your right to filter whoever you wish...When you say 'a long time' do you mean few short weeks... it's just you asked me a question on 5th Dec, so just last month.. oops..
Anyway, good luck with your tunnel vision...
It does amaze me how so many posters believe rthm's future is dependent on being able to suppress any discussion on rthm..
Anyone can read STTsBumbag's posts to see how he posts so much useless and pointless posts, mostly about me..lol. If anyone doesn't believe me then read his posts...
http://www.lse.co.uk/member-info.asp?nick=STTsbumbag
Regarding what Singer might do here..
Referring to my 6th Jan post... I think rthm BoD will do similar to what happened at Yume... dress rthm up and sell..
Yume had falling revenues, had a $10m buyback.. plus special divi and then sold on for around similar sp as before the results and buy back..
Whether Singer does similar here and sells to or buys TAP or any other company is anybody's guess...
Rthm should prove their model and have solid figures and believable outlook before buying anything.
My 6th Jan post:
Just months before the rthm/Yume deal was announced, Yume also announced a $10m buy back.
For fy2016, their results were:
Revenue: $160m (2015 $173m)
Gross Margin 50% (2015 45%)
Cash (and equivalents) $65.7m
Their buy backs were around $3.61-$3.64..
https://www.businesswire.com/news/home/20170216006240/en/YuMe-Reports-Fourth-Quarter-Full-Year-2016
There was also a special divi of $1 a share, just before the rthm/Yume deal was announced...
Yume's last sp on Feb 1, before completion closed at $3.70. Compare that to the buy back prices!
https://finance.yahoo.com/quote/YUME/
Special Divi announcement:
https://www.businesswire.com/news/home/20170622005385/en/YuMe-Declares-Special-Dividend-Quarterly-Dividend
Obviously a buy back will also help INCREASE EPS, which Should come in handy when it comes to reporting "in line" forecast.
I think rthm will possibly follow a similar route.
1gw/Brassneck,
"On the subject of acquisitions, the longer R1 delay announcement of the buyback program details the more likely I think it is that they are in discussions on an inorganic move."
"Unless of course R1 need some US regulatory consent for the buyback program - in which case might the US government shutdown be having an impact?"
So for no share buy back... you think it's MORE LIKELY they are inorganic move but it could also be because of US shutdown..
In other words, true to form, you haven't got a clue and are just guessing...speculative waffle...
Could it also be that the buy back hasn't happened because, as stated in their Sec Filings, they warned of additional costs with GDPR and possibly California Privacy Law or other unexpected costs have arisen that they need to perserve cash..
Obviously, nobody actually knows...
rthm 20-F filing..
"Complying with any new regulatory requirements HAS resulted in increased costs"
Form 20-F RhythmOne plc For: Mar 31
"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 REDUCE ITS REVENUE or compromise its ability to effectively pursue its growth strategy."
https://www.streetinsider.com/SEC+Filings/Form+20-F+RhythmOne+plc+For%3A+Mar+31/14454121.html
Tardis,
"In this current market it seems that if you get the wording of your RNS wrong or announce anything slightly negative (or neutral), the market punishes you."
That's always been the case... Whenever any company publishes vague updates or misses targets/expectations they tend to get punished.. If they publish a few in a row then they get a reputation, which normally results in fewer and fewer investors tending to believe them...
TAP.
I see Tap published a simple 'in line with management expectations' rns yesterday... Changed from their Market expectations TU from last month...
Reminded me of rthm's TUs changing from Market to Management expectations...
fy 2018 TU:
"We believe we are well-positioned to deliver a further strong performance in FY2019 fully in line with current consensus estimates in MARKET"
https://investor.rhythmone.com/newsroom/2018/04/19/trading-update-financial-year-2018
H1 TU..Sept..
" Performance for H1 2019 is expected to be in line with MANAGEMENT expectations
https://investor.rhythmone.com/newsroom/2018/09/25/directorate-and-management-changes-092518
Brassneck,
"Still a question over what revenues will look like this year (I’m at 375m)"
So your revenue expectation is now lower than the $385m you were expecting in Sept and more in line with what I've been saying...
I've said <$400m...
and in Dec (13th Dec) I said that I think likely that they will miss lower forecast on Reuter's website...
So you now also believe they could miss the lower forecast of $379m...
https://www.reuters.com/finance/stocks/analyst/RTHM.L
feel free to add...
Adding in Dec SoL... from Nov to Dec, there was a slight fall of 210k SoL...
Now the SoL have fallen for 6 months in a row,.. yet since Oct's big drop in Sol, the sp has struggled to move above 200p
Shares on Loan (SoL):
Mar 2.93m
Apr 2.76m 3.79%
fy2018 TU
May 3.29m 4.47%
June 3.17m 4.29%
fy2018 results
July 3.62m 4.89%
Aug 3.53m 4.76%
Sept 3.22m 4.33%
H1 TU
Oct 2.13m 2.87%
Nov 1.99m 2.69%
Dec 1.78M 2.41%
https://www.euroclear.com/en.html
TAP..
Wasn't their CEO found liable for certain false statements when he was CEO of Plimus Inc and so resigned in Dec?
After the CEO resigned they announced their buy back..
Rthm have a history of bad acquisitions which they then close down, resulting in huge writeoffs...
I think it's far better for rthm to prove the current model rather than cloud their accounts with more acquisitions...
Tricky,
"You are stating the obvious stt1 "
Hindsight is a wonderful thing, now that I've posted the evidence from rthm SEC filing.
You should've said that I was 'stating the obvious' when I initially mentioned GDPR and industry challenges, OVER A YEAR AGO... ;-)
But it's good to see that you and others now agree.... finally...
If you go through the posts, some were even suggesting that GDPR doesn't affect rthm or it doesn't affect them much because they are a US company or it doesn't give rthm a competitive advantage...
Similar hindsight views came after the ads.txt discussion...
;-)
Tricky,
"stt1, my take on what you are saying is that, implementation of GDPR will cost R1 revenue and you state that failure to comply will result in all manner of penalties too."
I think you'll find rthm's OWN 20-F filing state it..... rthm's 20-F was filed in July 2018, around 6 weeks after GDPR became effective...
and according to this article the IAB GDPR framework is being questioned..
"The IAB Europe's GDPR Transparency and Consent Framework which many ad tech companies now depend on to pass user consent strings could be on shaky legal ground."
"(the CNIL), issued a warning against a small French ad tech company called Vectaury that collects and processes geolocation data through a software development kit for programmatic advertising. "
"Downstream partners in a supply chain DSPs, SSPs and DMPs, for example aren't in a great position to collect user consent on their own, so if they want to comply with GDPR, they generally depend on consumer-facing publishers to get consent on their behalf and pass it along within a secure CMP."
https://adexchanger.com/ad-exchange-news/is-the-iabs-consent-framework-in-trouble/
at last some posters are now accepting that GDPR does affect rthm and the industry.
It's gone from GDPR doesn't affect them TO it doesn't affect them much as most of their business is in US to it does affect them..
I suppose the 20-F I posted, convinced them... ;-)
After all why would a company spend time and money on being GDPR complaint on something they believe doesn't affect them??
I don't think anybody knows for sure how much GDPR has affected a company.
The points are:
Ad tech companies follow the industry's IAB GDPR framework guidelines. IT IS THAT framework which is questioned by the some authorities.
If the IAB framework needs to change then rthm WILL have to change their system to continue to comply.
2) If PII is being strictly defined to include IP addresses then this will affect targeting and the way the model works.
20-F filing by RTHM... CNIL questioning the IAB framework came later..
- 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
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
Just months before the rthm/Yume deal was announced, Yume also announced a $10m buy back.
For fy2016, their results were:
Revenue: $160m (2015 $173m)
Gross Margin 50% (2015 45%)
Cash (and equivalents) $65.7m
Their buy backs were around $3.61-$3.64..
https://www.businesswire.com/news/home/20170216006240/en/YuMe-Reports-Fourth-Quarter-Full-Year-2016
There was also a special divi of $1 a share, just before the rthm/Yume deal was announced...
Yume's last sp on Feb 1, before completion closed at $3.70. Compare that to the buy back prices!
https://finance.yahoo.com/quote/YUME/
Special Divi announcement:
https://www.businesswire.com/news/home/20170622005385/en/YuMe-Declares-Special-Dividend-Quarterly-Dividend
Obviously a buy back will also help INCREASE EPS, which Should come in handy when it comes to reporting "in line" forecast.
I think rthm will possibly follow a similar route.
Gem Diamonds has recovered a 125-carat diamond at its Letšeng mine in Lesotho, bringing the company’s annual haul of 100-carat-plus stones to 15.
https://www.diamonds.net/news/NewsItem.aspx?ArticleID=63195