Rhythmone cuts loss as revenue soars on integrated acquisitions

RhythmOne’s shares were boosted on Thursday after the digital advertising technology outfit cut its interim losses as the integration of YuMe spurred revenue growth.

For the six months ended 30 September, pre-tax losses were cut to £1.6m from £8.3m over the equivalent period last year, on the back of a 53% increase in revenue to £175.5m.

The AIM-listed company’s newly integrated YuMe business, which was acquired just prior to the start of the new financial year in February, added £58.2m and the full contribution of RadiumOne, which was acquired in June 2017, also boosted the figure.

Mark Bonney, chief executive of RhythmOne, said: "We are pleased to have achieved our objectives for H1 2019. During the Period, we focused significant effort on advancing key strategic and financial objectives including the unification of the RhythmOne programmatic platform where today we can say that the majority of our revenue is transacted on the platform."

The unified, multi-channel, multi-format programmatic platform helped to drive revenue growth over the period and has been integrated with 162 new supply partners including Buzzfeed, Forbes and Bell Media.

Cash and cash equivalents at the end of the period stood at £22m, down from £39.3m at the same point last year.

Amy Rothstein, chief operating officer, said: "As we move into our seasonally strongest period for cash generation, we look forward to maximizing shareholder value through various methods including the Share Buyback Program and other strategic opportunities. With the unified RhythmOne Programmatic Platform, we are well positioned to take advantage of growth opportunities."

RhythmOne’s shares were up 6.09% at 188.00p at 1034 GMT