Slide 1: Financial Year 2020 Half-Year Results
FINANCIAL YEAR 2020 HALF-YEAR RESULTS. 27 February 2020 (ASX: ADJ) 1
Slide 2: H1 FY20 Executive Summary
H1 FY20 EXECUTIVE SUMMARY. Improved revenue performance in all strategic revenue segments compared to the previous half • Growth in revenue from continuing operations up 6% HoH • Licence Fee revenues up 10% HoH • Trading Fee revenues up 7% HoH Improved licence fee revenues and an ongoing focus on co
Slide 3: FY20 Strategic Objectives
FY20 STRATEGIC OBJECTIVES. ADSLOT MEDIA • Secure MSAs with remaining agency holding companies • Activate contracted agencies to drive growth in trading fees • Secure additional premium publishers to grow the quality, quantity and variety of marketplace inventory • Develop partnerships with key data
Slide 4: Strategic Objectives: Our Progress
STRATEGIC OBJECTIVES OUR PROGRESS. AGENCY MSAs: ü Continued momentum with 2 x Agency Holding Companies (Cadreon and Havas Media Group) now signed and both anticipated to commence activation in the current quarter ü 2 x additional Agency Holding Company MSAs in legal review (1 in late stage of review
Slide 5: Strategic Objectives: Our Progress
STRATEGIC OBJECTIVES OUR PROGRESS. SYMPHONY: ü Value of media traded via the Symphony platform now exceeds $7B annually ü Pre-deployment activities underway for additional markets expected to deploy in the next financial year COST MANAGEMENT: ü Costs reduced by 9% vs the first half of FY2019 ü Focus
Slide 6: Financial Performance
FINANCIAL PERFORMANCE.
Slide 7: H1 FY20 Saw Overall Revenue Growth for the Business
H1 FY20 SAW OVERALL REVENUE GROWTH FOR THE BUSINESS. Group Revenue from Trading Licence Fee Trading Fee Revenue Continuing Technology Revenue Revenue Operations Revenue $5.342M $5.135M $4.207M $3.672M $0.535M + 2% + 2% Flat +11% - 39% vs PCP Thousands 7 Note: For the current period, Group Revenue in
Slide 8: Reduced Operating Costs, and Improved Adjusted EBITDA and Adjusted NPAT
REDUCED OPERATING COSTS, AND IMPROVED ADJUSTED EBITDA AND ADJUSTED NPAT. Operating Adjusted Adjusted Costs EBITDA Loss NPAT Loss $5.982M ($0.656M) ($2.579M) -9% -53% - 41% vs PCP Note: Adjusted EBITDA and Adjusted NPAT is after adding back once off provision for FY16 R&D Claim of $1.5m. Unadjusted E
Slide 9: Revenue Segments
Strategic Revenue REVENUE SEGMENTS. Licence Trading Three main revenue sources: Fee Fee Revenue Revenue 1. Licence Fees generated primarily from Symphony but also from Adslot Media; 2. Trading Fees generated primarily from Adslot Media but also from Symphony; Trading Technology and, Revenue 3. Servi
Slide 10: Licence Fee Revenue Growth
LICENCE FEE CAGR REVENUE GROWTH. 22% +10% HoH Licence Fees $3.672M +11% vs PCP • Licence Fees grew 10% half-on-half (HoH) and 11% on prior corresponding period (PCP) • Growth due to full impact of newly deployed Symphony markets and growth in existing markets 10
Slide 11: Trading Fee Revenues Improved from the Prior Half
TRADING FEE REVENUES IMPROVED FROM THE PRIOR HALF. +7% HoH Trading Fees $0.535M • Trading Fee revenue grew 7% half-on-half (HOH) • Strong growth in Adslot Media booking seen in Europe and the UK during the half. 11
Slide 12: However, These Were Reduced from the Prior Corresponding Period
HOWEVER, THESE WERE REDUCED FROM THE PRIOR CORRESPONDING PERIOD. Trading Fees $0.535M -39% vs PCP • The December 2018 half included two record bookings on platform quarters that were not repeated in the half to December 2019 • Expected activation of newly signed agency Master Service Agreements were
Slide 13: Trading Technology Revenue Overall Was Maintained
TRADING TECHNOLOGY REVENUE OVERALL WAS MAINTAINED. CAGR 16% 9% HoH Trading Technology $4.207M 0% vs PCP • Trading Technology revenue grew by 9% half-on-half (HoH) and 0.4% on prior corresponding period (PCP) • Activation of agency MSAs is expected to see growth in Trading Fees in H2 FY20 13
Slide 14: Services Revenue Grew from the Prior Corresponding Period
SERVICES REVENUE GREW FROM THE PRIOR CORRESPONDING PERIOD. -6% HoH Services $0.912M 9% vs PCP • Services revenue is ancillary and includes statement of works for Adslot Media and Symphony clients as well as the company’s Webfirm services division • Ancillary Services revenue of $0.912M represents a
Slide 15: Operating Costs Reduced
H1 FY19 OPERATING COSTS REDUCED. -5% HoH Operating Costs $5.982M -9% vs PCP • Total Operating costs of $5.982M for the half were 5% lower half on half (HoH), and 9% lower on prior corresponding period (PCP). • Operating Costs are Total Expenses excluding Depreciation and Amortisation, Interest Expen
Slide 16: Improved Adjusted EBITDA
IMPROVED ADJUSTED EBITDA. -47% HoH Adjusted EBITDA Loss ($0.656M) -53% vs PCP • Adjusted EBITDA loss for the half of $0.656M decreased by 47% half on half (HoH) and 53% on prior corresponding period (PCP). • Adjusted EBITDA is after adding back once off provision for FY16 R&D Claim. Unadjusted EBITD
Slide 17: Improved Adjusted NPAT
IMPROVED ADJUSTED NPAT. -4% HoH Adjusted NPAT Loss ($2.579M) -41% vs PCP • Adjusted NPAT loss for the half of $2.579M decreased by 4% half on half (HoH) and 41% on prior corresponding period (PCP). • Adjusted NPAT is after adding back once off provision for FY16 R&D Claim. Unadjusted NPAT for the pe
Slide 18: Cash Receipts and Net Operating Cash Flows
CASH RECEIPTS AND NET OPERATING CASH FLOWS. Net Cash Receipts Operating Cash Cashflows $ 9.544M $9.166M ($1.513M) +44% -74% +90% vs PCP 18 • Higher net cash operating outflows due to increased payments to Adslot Media publishers during the period
Slide 19: 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 sp