Audioboom lifts FY outlook but shares slump as AAA withdraws possible offer
Audioboom lifted its full-year outlook on Monday as it highlighted continued "strong" sales momentum, but shares in the AIM-listed podcast company slumped after All Active Asset Capital (AAA) withdrew its possible offer for the group.
For the year to the end of December 2021, the company now expects to generate revenues "significantly in excess" of the board’s expectations at the time of half year results and an increased adjusted EBITDA profit.
Audioboom said its performance has been driven by the continued strong showing in relation to its content-focused expansion plan. Highlights include increased demand and strong pricing during major events, including the start of the US NFL season, Premier League football and the F1 season.
The company also noted increased back catalogue inventory created by its proprietary AdRip tool, which has been monetised through sustained growth in ad-tech related revenue.
Audioboom said it enjoyed a record performance across all metrics in August, with unaudited monthly revenue of $7m, up 187% on the same month a year ago, and adjusted EBITDA profit of $0.5m.
Global monthly downloads increased 29% on the year to a record 98.9m and brand advertiser count rose 45% to 371. Average global revenue per 1,000 downloads was 120% higher at $63.83.
Chief executive officer Stuart Last said: "Audioboom's excellent performance has continued through 2021 as we execute our content-focused expansion plan.
"I am pleased that we continue to generate strong demand for our premium sales network, while our new ad tech tool AdRip is now delivering material value to the vast back catalogue of content on our platform. We are focused on ensuring 2021 continues to deliver even more success."
But the shares ended down 7% at 801p after AAA, which had made a potential offer of 200p a share plus 12.5 new All Active shares, said it was withdrawing the possible offer.
AAA said: "The board of Audioboom has ignored the wishes of shareholders holding a majority of its shares to give AAA the opportunity to fully explain its offer to shareholders.
"This raises concerns around key corporate governance matters at Audioboom and, in the absence of an independent Rule 3 adviser being appointed, the advice it has received from its nominated adviser Allenby Capital."