Ahead of its annual general meeting (AGM) today, the company issued a statement in which it said it now expected to deliver in the region of US$20mln in annualised cost savings and synergy benefits in the current financial year and that RhythmOne is expected to make a meaningful contribution to the bottom line next year.
The integration of RhythmOne is progressing well, with a number of initiatives already implemented, including the integration of Tremor Video and YuMe's respective sales operations in the US, Taptica said.
“These operations are already generating good traction and are a clear example of the expansion of our international sales reach. We have also begun to consolidate our product development initiatives and are working to restructure the company under new business units, as we seek to foster cross-selling opportunities and to streamline our operations,” the company’s chairman, Tim Weller, was set to tell shareholders at the AGM.
See you tomorrow at UntAPPed! We will be discussing the future of video advertising. Interested in joining? Send us a message ☺#videoadvertising #londonevent #tapintoapps #london pic.twitter.com/FAQVvBvHNZ— Taptica Ltd. (@Taptica) June 10, 2019
The merger with RhythmOne and the 2017 acquisition of Tremor Video has transformed the Taptica business, Weller claimed, and has significantly broadened the group’s presence in the US.
“Taptica's Tremor Video platform is now ideally placed to exploit the high growth digital video advertising market in the US,” Weller said.
Turning to trading for the group as a whole in 2019, Weller said the performance so far had been mixed with the brand advertising platform continuing to trade well while the performance-based advertising unit’s continue to experience lower revenues than last year.
In spite of the weakness in the Performance division, management believes it is on track to meet the market's profitability expectations.