RhythmOne PLC (LON:RTHM) shares jumped higher on Thursday as the digital advertising group flagged up a surge in full-year results driven by the massive scale provided by its unified programmatic platform, RhythmMax.
In a trading update for the year ended 31 March 2018, the AIM-listed firm said its underlying adjusted earnings (EBITDA) soared by 900% to US$14mln, up from US$1.4mln a year earlier, as revenue jumped by 71% to US$255mln from US$149mln.
The group said the growth was primarily led by on-platform programmatic revenue, which saw an increase of approximately 13% year-on-year.
During the fourth quarter, the company completed its acquisition of YuMe Inc, gaining access to premium video and connected TV inventory, unique audience data, cross-screen targeting technology and established demand relationships.
RhythmOne expects net cash on hand to total approximately US$26mln as at 31 March 2018, including the impact of the US$26mln acquisition consideration for the YuMe transaction, down from US39.3mln a year earlier.
Ted Hastings, RhythmOne's CEO, commented: “We believe we are well positioned to deliver a further strong performance in financial year 2019 – fully in line with current consensus estimates in market – as we realise the full contribution of the YuMe acquisition.”
He added: “Further, we will maintain strong cost discipline, driving efficiency within the company with the aim of sustained profitability and value generation for shareholders,” Hastings concluded.
In mid morning trading, RhythmOne shares were 18% higher at 210p.