Podcast platform Audioboom Group PLC (LON:BOOM) has blamed its botched US$185mln takeover of Triton Digital earlier this year as it warned annual losses will be higher than previously thought.
Back in February, Audioboom struck a deal to acquire Triton, a technology provider to the online audio industry, but had to withdraw its offer after failing to raise enough money from investors.
READ: Audioboom agrees US$185mln reverse takeover of Triton Digital
“The abortive Triton Digital transaction earlier this year led to the company losing some key content which has adversely impacted EBITDA performance versus the company's and market expectations,” read Thursday’s gloomy statement.
On top of the lost content, the AIM-listed firm also incurred various costs as a result of the failed acquisition, including a £700,000 break fee.
Even excluding those exceptional costs, Audioboom now expects to post an underlying loss (EBITDA loss) of between US$4.5-5.5mln for 2018, not too dissimilar to the US$5.7mln it recorded last year.
Revenue is expected to show “strong year-on-year growth” though, jumping to US$11.5-13mln (2017: US$6.1mln).
At the end of September, Audioboom only had US$1.6mln of cash in the bank.
Shares lost a third of their value at the opening, slumping to 1.6p.