Bidstack Group PLC (AIM:BIDS, OTC:FTBGF), the in-game advertising platform, expects 2022 sales to double compared to 2021 despite the termination of its agreement with Azerion.
Unaudited revenue for the fiscal year is £5.3mln, a 103% increase on the prior year.
According to a statement, the group had expected this to be £9.3mln, but due to Azerion’s “purported termination” of its agreement with Bidstack and the cost of sales towards servicing the contract, the group expects revenue to be lower.
Bidstack initiated legal action against Azerion to enforce payment of overdue invoices earlier this year.
Azerion, a software publishing company in The Netherlands, has provided Bidstack security in respect of the initial part of the claim, it said.
A full hearing is expected to take place in the third quarter of the year.
Despite this, the board said it is confident it can operate independently of Azerion and believes its strategy positions the company for future growth in the US and success in its licensing business.
As a result, it expects fiscal year 2023 revenue to be "significantly greater" than 2022 and weighted towards the second half of the year.
"Although we will continue with our claims against Azerion in the coming year, we remain extremely confident for the future and are excited with the quality of the people we are now attracting to join us at Bidstack, and as the business momentum grows we look forward to keeping our shareholders informed on our progress throughout the year,” said chief executive James Draper.