Last checked at 7 Nov 2014 07:00
Rightster Group plc
("Rightster" or the "Group" or the "Company")
Q3 2014 Business Update
Significant Strategic Partnership wins, Strong Growth in Video Views to 1.2 billion per month and Subscribers across its YouTube network surpass 53 million
Rightster Group plc (LSE AIM: RSTR), the cloud-based global video distribution and monetisation network that simplifies delivery to TV scale audiences in the complex online video market, today releases an update on its key business developments for the third quarter of 2014.
The integrations of Viral Management Limited and Base79 Limited (which were acquired in July and August respectively) are progressing, with full integration expected to be complete by the end of the year. Average monthly video views for Q3 2014 have significantly increased to 1.2 billion, a 211% increase on the 386 million average monthly video views achieved in Q2 2014. Rightster is also pleased to report that during September 2014, it surpassed 53 million subscribers across its YouTube network (a 430% uplift on June 2014) and reached 113 million unique users (a 102% increase on June 2014).
Rightster still considers scale to be the key determinant of success and in September, the Comscore results confirmed that, as expected, Rightster has secured a position as the largest YouTube multi-channel network (MCN) outside of North America and the fourth largest YouTube MCN within the US. Informa have estimated that global Over-The-Top video revenues will be worth £24 billion by 2017 and the Company is focused on retaining a leading position in this highly competitive online video market over the next three to five years.
Throughout Q3 2014, the Company displayed positive signs of continued growth across the business with noteworthy wins including a partnership with Turkish Airlines for a global YouTube campaign, as well as a grant from the Arts Council England (worth £1.8 million over 3.5 years) to establish and manage their MCN for the arts. By the end of the year, the Company is confident that it will see over 150% net revenue growth year on year. Despite continued variability in advertising CPMs (as mentioned in the Company's half year results), the Board remains cautiously optimistic ahead of the traditionally busy Q4 advertising period.
Charlie Muirhead, Founder & CEO Rightster, commented: "I'm delighted to see Rightster's average monthly video views hit the 1.2 billion mark and for us to surpass 53m subscribers across our YouTube network. I am also pleased to report that we're on track to achieve over 150% net revenue growth year on year in 2014. As expected, we've solidified our position as the No. 1 YouTube MCN in Europe and the 4th biggest YouTube MCN outside of North America, which is helping us to secure even more significant deals, such as Turkish Airlines."
For further information please contact:
Rightster Group plc via Newgate Threadneedle
Lorna Smith, Investor Relations
Cenkos Securities Tel: 020 7397 8900
Max Hartley (Nomad) / Julian Morse (Sales)
Newgate Threadneedle Tel: 020 7653 9850
Josh Royston / Heather Armstrong
About Rightster
Rightster was founded in May 2011 by CEO Charles Muirhead, with the vision of enabling media businesses and brands to overcome the huge fragmentation in the online video market with a single technology platform for engaging audiences and transacting with optimal efficiency. Rightster's cloud based software and services platform makes it simple for sports, fashion, news, entertainment, music, and viral rights holders, as well as brands and creators, to enhance the value of their video whether on a licenced, ad-funded, direct to consumer or paid placement basis.
Following the acquisitions in July and August 2014, Rightster's network now stands at over 1,950 Content Owners and over 7,500 Publishers. The Group now employs 256 staff in 11 offices across 10 countries.