Member Info for stt1

Coverage Map, pg 4

https://www.totallyplc.com/wp-content/uploads/2018/07/Totally-PLC_Presentation-PDF_2018.pdf

excellent post graham..

and then looking at the coverage map, pg4 of the Presentation... There are just over 200 CCGs in England... Vocare currently have around 10%.. The potential is there for increased coverage, not only with Vocare but also with the other subsidiaries, About Health, PPH and Optimum...

Wagas
"Rightly or wrongly the SP has crashed since we bought YUME."

Yep.. agree...
I'd also say the sp has crashed because they announced disappointing results, 3 CEOs since July 2017, the DataXu court case, huge revenue forecast reductions despite announcing they were in line with forecasts... ..

and of course, the industry changes/challenges like GDPR, move to fee transparency, ads.txt..

The Shares On Loan position doesn't help either..

GDPR’s Lack of Clarity Is Causing Google and the Ad-Tech Industry Problems

The rush to comply generated headaches THROUGHOUT the supply chain

https://www.adweek.com/agencies/gdprs-lack-of-clarity-is-causing-google-and-the-ad-tech-industry-problems/

August Avg Shares On Loan (SoL)

SoL:

Shares On Loan: since Nov, just before Yume acquisition was completed.
It is still more than double the avg % from last June, after fy 2017 results were announced and pre-BM departure and Yume announcements... and still 4x the avg % following the Perk acquisition...
We had 495K new shares issued around mid Aug.. Total issued: 78,515,863 ordinary shares..

Nov 3.68m
Dec 3.17m
Jan 2018 3.3m
Feb 3.49m
Mar 2.93m 4.1%
Apr 2.76m 3.79%
May 3.29m 4.47%
June 3.17m 4.29%
July 3.62m 4.89%
Aug 3.53m 4.76%

https://www.euroclear.com/en.html

Eddie,

"The argument regarding the wider vulnerability of R1 as a Full Stack to Changes MUST also mean that they will have the opportunity for a wider income stream."

Yes, agree, when comparing to a company relying on the 1 side, with the full stack, the opportunity for a wider income stream does exist

Good set of results and outlook.

http://www.gemdiamonds.com/downloads/2018/reports/booklet-hy-2018.pdf

Adri,

"Stt, i would have thought the conclusions you draw from industry wide news or numerous other news are far less relavant to R1 than news of Taps results, aren't they? "

No, rthm run a FULL stack, so I would have thought industry changes/challenges were more revelant to them.

TAP and their larger competitor The Trade Desk run just 1 side... Therefore, any news affecting 1 side of the supply chain could affect one part of rthm.

Tremor sold their DSP to Taptica a year ago for around 1/3 of revenue.
The Trade Desk concentrate on the one side.

According to these articles...
Tremor reasons for selling their DSP.. perceived conflict of interest

"Clients were also uneasy with Tremor servicing both the buy- and sell-sides."
"“There’s always been a little bit of friction because we were selling agencies and advertisers different products while we were representing publishers,” Zagorski said. “And the people who plug into that sell-side platform would always be somewhat hesitant to commit to it in a huge way because we had that perceived conflict.”"

https://adexchanger.com/digital-tv/tremor-video-sells-demand-side-business-taptica-50m/

"The Trade Desk, which has seen its stock skyrocket post-IPO, consistently cites its single-side, agency-focused approach as a key to its success"

"One reason many cited for AppNexus’ struggles is that running both a buy-side and sell-side business leads to competitive conflicts. DSPs will always wonder if the company favors its own demand (a complaint consistently levied against Google that led to header bidding). Plus, working with ad networks, an area AppNexus focused on, leads to conflict because buyers and sellers see their businesses encroached on or conflicting with these middlemen."

"Many companies that tried to run ad tech businesses on both sides later have sold one side off: Rubicon shut down buy-side platform Chango, with then-CEO Frank Addante admitting the acquisition was a failure. Tremor Video just sold off its buy-side business to focus on the supply side. Amobee sold its sell-side business to focus only on the buy side. The Trade Desk, which has seen its stock skyrocket post-IPO, consistently cites its single-side, agency-focused approach as a key to its success."
https://adexchanger.com/platforms/appnexus-buy-side-falls-wayside/

good find, Graham...

If the Health Secretary thinks NHS111 is doing well then that's good for the service, given he's the decision maker..

Jinky,
"This does auger well for the future of RTHM £6.00 would do nicely for starters."

Brassneck,
"It’s all very upbeat around video and future prospects. "

Why? Are you both making a direct comparison between Taptica to 1R?
Really?

Biffa,

"The market even gives Tap twice the market cap than us."

Despite the 'great' results from 'TAP' and announcement of a divi, the shares only ended up around 5%...
Following the results, the sp initially spiked and then fell back.. so possibly traders jumping on board pre- the results and then selling on news???.

No reason why same won't happen here. 'Tap' still not twice the mcap of rthm...

Biffa,

"The market even gives Tap twice the market cap than us."

Where did you calc that from please?

According to this site, 'Tap' mcap is round £260m and rthm around £160m, so nowhere near twice. More nearer to 50-60% more for 'Tap'.
'Tap' also announced a divi this morning.

Yes, ad tech is growing but the duopoly is taking majority of the money...Amazon is growing fast...



The Facebook-Google duopoly means ad tech growth is drying fast

"Meanwhile, of the $88bn spent on digital ads last year, over 90% went into Facebook and Google’s pockets, leaving a remaining market worth just $9bn for those smaller outfits."

https://www.marketingtechnews.net/news/2018/aug/14/facebook-google-duopoly-means-ad-tech-growth-drying-fast/

There was a huge trade earlier...
13.18 965k shares, £1.87m...

Maybe we'll get a holding rns???

Hi Doc,

"so what is your advice?"

This is a BB for discussion, everyone should do their own research and form their own opinion - I wouldn't buy/sell/hold based on an anonymous poster's opinion..
Would you invest thousands of pounds based on someone phoning or knocking at your door?? It's your money...

As previously stated, last year was about the need for change, industry changes/challenges.. this year onwards should be about the consequences... the advertisers charter, is just one of those consequences..

Nobody can say if the entire advertiser charter is an advantage or disadvantage to any company - it's not as clear cut. Some companies will already fulfil some of the demands, others will not but will obviously need to change, in order to survive.
There are so many moving parts here, as the ad tech is constantly changing. Advertisers Charter is just one of those moving parts.

Those companies who adopt all the demands should have an advantage... obviously advertisers will have their individual priorities...

What's your opinion?

well spotted Graham... interesting line up of contracts up for tender..

Brassneck/1gw,

I would have thought that the advertisers charter would affect all companies within the advertising ecosystem... if the advertisers consider 'transparency' as a major demand (it is in the Advertiser's list) then I would have thought it any company wishing to be at the forefront would comply with ALL the demands in the list...

The report cleanup... It seems SupportFreeContent was closed last year, just as the merger with Yume was announced. Just WEEKS prior to the merger announcement, 1R announced it as a 'pioneering initiative' but then went and closed it... How much revenue were 1R earning from this browser extension? If you search for 'supportfreecontent' then you'll notice there are several sites recommending that you remove it. Are there any skeletons in the cupboard?

"Another pioneering initiative designed to enhance the experience for RhythmOne publishers is called Support Free Content. This initiative arose out of the need to recapture revenues lost due to ad blocking. Support Free Content helps publishers address ad blocking by offering consumers choice - gating their access to publisher content via a set of monetization options that range from subscription, to white listing within their ad-blocker, to downloading a browser extension that provides alternative avenues for monetization."

https://uk.advfn.com/stock-market/london/rhythmone-RTHM/share-news/RhythmOne-PLC-Final-Results/74584803

Following on from P&G and other large advertisers demands for changes to the advertising ecosystem... following on from Methbot fraud etc...

I think the Advertisers demands of reforms would affect the advertising ecosystem, wouldn't it???....
The charter Includes fee transparency... as expected.

How much do 1R earn from 'hidden fees'? Their court case with DataXu over fees ended 6 months ago...
https://www.pacermonitor.com/public/case/22028832/RhythmOne_LLC_v_DataXu,_Inc

All opinions welcome?

Global advertisers demand reform of digital ad ecosystem

"It seeks to build on the concerns highlighted by Procter & Gamble[3] and Unilever[4] in the areas of transparency, brand safety, ad fraud and viewability by creating a framework that agencies, ad-tech companies and media platforms should comply with if they want to secure advertising revenues in the future."

1) Zero tolerance to ad fraud with compensation for any breach
2) Strict brand safety protection
3) Minimum viewability thresholds
4) Transparency throughout the supply-chain - complete transparency through the supply chain (digital or otherwise) covering pricing and trading, FEES and costs, placement and data usage. Advertisers respect the right of partners to be profitable and commit to relevant and fair levels of remuneration for services rendered.

5) Third-party verification and measurement as a minimum requirement:
6) Removal of ‘walled garden’ issues
7) Improving standards with data transparency:
8) Take steps to improve the consumer experience

https://www.wfanet.org/news-centre/global-advertisers-demand-reform-of-digital-ad-ecosystem/

"D. Changes in Internal Control Over Financial Reporting"

More significant costs for this year and going forward. Hopefully, whilst they move to better control over financial reporting, they won't find any skeletons in the cupboard

From F4, Page 43...

"significant costs", " devote substantial management time", "which will increase when it is no longer an emerging growth company"

"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.

As a company subject to reporting requirements in the United States, the combined company will incur significant legal, accounting and other expenses that RhythmOne did not incur as a public company in the United Kingdom. For example, RhythmOne will be subject to the reporting requirements of the Exchange Act and is required to comply with the applicable requirements of the Sarbanes-Oxley Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as rules and regulations subsequently implemented by the SEC, including the establishment and maintenance of effective disclosure and financial controls and changes in corporate governance practices. Compliance with these requirements will increase RhythmOne’s legal and financial compliance costs and will make some activities more time consuming and costly, while also diverting management attention. In particular, RhythmOne expects to continue to incur significant expenses and devote substantial management effort toward ensuring compliance with the requirements of Section 404 of the Sarbanes-Oxley Act, which will increase when it is no longer an emerging growth company as defined by the JOBS Act."

https://www.sec.gov/Archives/edgar/data/1713721/000119312518021752/d399085df4a.htm

Amobee Closes $100 Million Purchase of Videology

"“For a lot of the independent ad-tech companies, their end-game right now is to survive in a consolidating industry and probably to get acquired,” he said. “Singtel is a great company and their directive to us is to build and grow a profitable business on a global basis.”"

https://www.adweek.com/digital/amid-a-wave-of-ad-tech-consolidation-amobee-wont-rule-out-further-acquisitions/

Behind the fall of Videology

"Ad tech middlemen have faced constant pressure from competition from the Facebook-Google duopoly, and Videology was no exception. In 2015, Google announced it would pull all YouTube inventory from Videology’s ad exchange. From that point, it was only possible to buy YouTube inventory via Google’s own buy-side tools, DoubleClick Bid Manager and AdWords."

"The spotlight on agency transparency that kicked off in 2016, with the Association of National Advertisers’ report on agency and vendor business practices, put pressure on Videology, according to industry sources. GroupM was well-known as a major partner to Videology, and the association created a perception problem with some."

"“Videology was likely shackled by the fact they couldn’t disclose all their partnerships and relationships,” said Edwards. “The market has evolved since their inception — marketers are smarter, people want to know more about where their ad dollars are going, and who and how you’re trading — maybe they couldn’t disclose that.”"

https://digiday.com/media/behind-fall-videology/

"The company raised total venture funding of more than $130 million and TOOK OUT AN $80 MILLION CREDIT FACILITY facility with FastPay and Tennenbaum Capital last year."

"Videology filed for chapter 11 in the U.S. Bankruptcy Court for the District of Delaware on Thursday. The filing states Videology has estimated liabilities of more than $100 million. The filing lists the company’s assets at $86.5 million."

"Ad-tech companies, ONCE A HOT ATTRACTION for investors, have been beset with increasing turbulence in recent years in a digital advertising market dominated by Google and Facebook . Some of the recent deals in the industry reflect those changing fortunes. Notably, Rocket Fuel, a public ad-tech company once valued at $2 billion, sold last year to rival Sizmek for $125.5 million."

https://www.wsj.com/articles/ad-tech-company-videology-prepares-bankruptcy-filing-lines-up-buyer-1525953720