Slide 1: Financial Year 2019 Half Year Results
Slide 2: H1 FY19 - Executive Summary
H1 FY19 - Executive Summary • The December 2018 half saw the Company’s continued execution of its previously stated strategic objectives: • Maintain the Symphony product and grow its user base; • Focus on the US market for trading fees; and, • Implement a cost reduction plan. • The benefits of this
Slide 3: H1 FY19 saw strong revenue growth across the business
H1 FY19 saw strong revenue growth across the business… Group Revenue from Trading Licence Fee Trading Fee Revenue Continuing Technology Revenue Revenue Operations Revenue $5.217M $5.058M $4.191M $3.318M $0.872M Up 25% Up 41% Up 62% Up 46% Up 179% vs PCP $4,191 $3,318 $5,217 $5,058 $872 $4,176 $2,276
Slide 4: Reduced operating costs, and improved EBITDA and NPAT
…reduced operating costs, and improved EBITDA and NPAT Operating EBITDA NPAT Costs $6.572M ($1.386M) ($4.344M) (13%) (60%) (27%) vs PCP H1 FY18 H1 FY19 H1 FY18 H1 FY19 (1,386) Thousands Thousands Thousands (6,572) (3,474) (7,536)
Slide 5: Revenue Segments
Revenue Segments • Adslot derives its revenue from 3 main sources: • Licence fees generated primarily from Symphony but also from Adslot Media; • Trading fees generated primarily from Adslot Media but also from Symphony; and, • Services provided to Symphony customers as well as services provided to
Slide 6: License Fee Revenue has returned to strong growth
License Fee Revenue has returned to strong growth CAGR 32% $3,500 Thousands +51% HoH $3,000 $2,500 Licence $2,000 Fees $1,500 $3.318M $1,000 $500 +46% vs PCP $- H1 FY 15 H1 FY 16 H1 FY17 H1 FY18 H1 FY19 • License Fees grew 51% half-on-half (HoH) and 46% on prior corresponding period (PCP) • License
Slide 7: Trading Fee revenue has also returned to growth
Trading Fee revenue has also returned to growth CAGR 17% $1,000 Thousands +144% HoH $900 $800 $700 Trading $600 Fees $500 $0.872M $400 $300 $200 +179% vs PCP $100 $- H1 FY 15 H1 FY 16 H1 FY17 H1 FY18 H1 FY19 Note: Trading Fee revenues are invoiced and recognised in the Company accounts in the month(
Slide 8: Delivering a record half in Trading Technology revenue overall
Delivering a record half in Trading Technology revenue overall CAGR 28% $4,500 Thousands 64% HoH $4,000 $3,500 $3,000 Trading $2,500 Technology $2,000 $4.191M $1,500 $1,000 $500 62% vs PCP $- H1 FY 15 H1 FY 16 H1 FY17 H1 FY18 H1 FY19 Licence Fees Trading Fees • Trading Technology revenue grew by 64%
Slide 9: Services revenue decreased slightly, but is expected to stabilise
Services revenue decreased slightly, but is expected to stabilise at current levels in future halves -5% HoH Services $0.835M -6% vs PCP • Services revenue is non-strategic and includes statement of works for Adslot Media and Symphony clients as well as the company’s Webfirm services division. • Non
Slide 10: 1H FY19 – Operating Costs Reduced
1H FY19 – Operating Costs Reduced -1% HoH Operating Costs $6.572M -13% vs PCP
Slide 11: Operating Costs
Operating Costs • Total Operating costs of $6.572m for the half were 1% lower HoH, and 13% lower on PCP. • Operating Costs are Total Expenses excluding Depreciation and Amortisation and Taxes. • Employment related expenses remain the most significant operating cost incurred. • The decrease in operat
Slide 12: Improved EBITDA
Improved EBITDA (52)% HoH EBITDA Loss ($1.386M) (60)% vs PCP • EBITDA loss for the half of $1.386m decreased by 52% HoH and 60% on PCP.
Slide 13: Improved NPAT
Improved NPAT (23)% HoH NPAT Loss ($4.344M) (27)% vs PCP • NPAT loss for the half of $4.344m decreased by 23% HoH and 27% on PCP.
Slide 14: Increased cash receipts and reduced net operating cash outflows
Increased cash receipts and reduced net operating cash outflows Net Cash Receipts Operating Cash Cashflows $ 6.648M $4.819M* ($0.871M) +61% (71%) (39%) vs PCP Thousands Thousands Thousands Note: The company subsequently received an additional $3m from the Australian Government R&D Tax Incentive in J
Slide 15: Strategic Review Update
Strategic Review Update
Slide 16: 2018 Strategic Review Objectives
2018 Strategic Review Objectives In February 2018 the Company agreed on a series of strategic imperatives for the business: 1. Maintain the Symphony product and grow its user base; 2. Focus on the US market for Trading Fee revenues; and, 3. Implement a cost reduction plan.
Slide 17: Maintain Symphony and grow its user base
Maintain Symphony and grow its user base Significant progress has been made in returning Symphony revenues to growth: • Successful Indian market deployment – second largest market to be activated under GroupM agreement; • Updated MSA terms with GroupM agreed; • Completed development for 3 x APAC mar
Slide 18: Maintain Symphony and grow its user base
Maintain Symphony and grow its user base • Contracted Symphony Licence Fee revenues forecast to grow by 51% to $6.0m in FY19 Notes: • Symphony Licence Fee revenues for FY17 and FY18 are normalised to allow for the reversal of a one-off payment, as outlined in the 20 July 2018 Symphony FY16 (a) FY17
Slide 19: Focus on the US market for Trading Fees
Focus on the US market for Trading Fees The focus on the US market is generating strong rewards Value of Media Traded (Normalised) for the Company: Stand Alone Adslot (AUD) 6,000,000 • Strong growth in value of media traded on the Adslot platform during September 2018 quarter, an almost four- 5,000,
Slide 20: Cost Management
Cost Management The Company has shown an ongoing commitment to cost management. • Operating costs reduced by 13% on PCP; • Improved net cash outflows over calendar year 2018; • Minimised impact on product investment; and, • No impact on key client relationships.
Slide 21: Ongoing Strategic Focus
Ongoing Strategic Focus The Company remains committed to further execution of the strategic plan announced in February 2018: 1. Continuing investment in the Symphony product and focus on deployment to larger markets in Europe; 2. Conversion of significant US sales pipeline to grow trading fee revenu
Slide 22: Disclaimer
Disclaimer The information contained in this presentation is given in good faith and has been prepared from information believed to be accurate and reliable. The information presented does not take into account your individual financial circumstances and it is not designed to be a substitute for spe
Slide 23: Thank You
Thank You @adslot investor.relations@adslot.com