Tremor International posts 'record' results for first half

Video and connected television advertising technology company Tremor International reported a “record” financial performance in its first half on Thursday, underpinned by “significant” programmatic activity.

The AIM-traded firm said that strong programmatic growth reinforced its strategy to create an end-to-end platform, while leveraging technology, data and business intelligence.

It said that momentum was buoyed by a “strong performance” in video across all screens, fuelled by connected TV.

Second quarter programmatic revenue increased 196% year-on-year to $67.5m (£49.3m), while first half programmatic revenue was ahead 146% at $123.2m.

Adjusted EBITDA for the second quarter was 2,930% higher than the prior year at $37.3m, while first half adjusted EBITDA was 3,545% firmer, at $64.8m.

Looking ahead, Tremor said its guidance assumed that the global economy continued to recover, and that it did not experience any major pandemic-related setbacks that could cause a deterioration in economic conditions, or a “significant” reduction in advertiser demand.

For the third quarter, it said it was expecting a profit contribution ex-traffic acquisition costs (TAC) of at least $75m, and adjusted EBITDA of around $37m.

Its management said it was “confident” in the medium- to long-term prospects of the company, with Tremor “well-placed” to further benefit from the ongoing resurgence in the global digital advertising industry.

“I am pleased to report that the first half of 2021 further validated Tremor's strategy of developing an end-to-end technology platform, and our focus on video, connected TV and data,” said chief executive officer Ofer Druker.

“This impressive revenue growth, which we believe is one of the highest across our peer group, affirms our continued investment in product innovation and business development.”

Druker said he was also “proud” that all of the growth achieved in the first half was organic, and the result of increased client spending on programmatic advertising.

“Increasingly, Tremor is empowering our clients to deliver impactful brand stories to targeted, relevant audiences globally.

“The successful capital raise through our U.S. IPO and concurrent listing of our shares on the Nasdaq in June represents a milestone achievement for Tremor, and a de-facto endorsement from our shareholders.”

At 1054 BST, shares in Tremor International were up 8.84% at 788p.