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Tremor International Ltd

Tremor targets multi-screen revolution in advertising

Snapshot

The firm develops advertising technology through three main business arms, Tremor Video, RhythmOne and Taptica

Tremor International Ltd -

Quick facts: Tremor International Ltd

Price: £1.43

Market: AIM
Market Cap: £174.79 m
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  • Advertising technology group

  • Offers digital advertising solutions through three divisions

  • Works with brands including Amazon, Disney and Twitter

What Tremor does:

Tremor International Ltd (LON:TRMR) is an advertising technology firm that operates in more than 60 countries.

The firm delivers its services across three divisions;

Tremor Video: Video advertising company with TV and second-screen solutions. Helps advertisers use video technology to deliver their strategies across several platforms including TV and social media

RhythmOne: Specialises in multiscreen advertising, a method of having advertising across multiple devices such as TVs, computers and mobiles simultaneously as viewers switch between devices

Taptica: A mobile advertising platform that also uses big data technology to help brands target consumers

How it’s doing:

For its 2018 financial year, Tremor, then known as Taptica, reported adjusted earnings 9EBITDA) of US$44.1mln, up 29% year-on-year, while revenues rose 31% to US$276.9mln.

The group also said it had ended the year with net cash of US$54.4mln, swinging from net debt of US$4mln in 2017.

Inflexion points:

  • In July, Tremor announced the launch of its Connected TV (CTV) advertising offering in what it said was an “important milestone” for the group. The company said CTV would allow advertisers to deliver videos across all screens in real-time and reach TV audiences on second-screen devices such as smartphones and tablets
  • In June, the firm, then known as Taptica, said it 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

What the boss says – CEO Ofer Druker

Commenting on the launch of CTV, Tremor’s chief executive Ofer Druker said the new service would create a “compelling platform” for brands to realise the value of CTV as a digital advertising segment that demonstrated “robust growth”.

What the broker says:

In a note in June, Tremor’s (then Taptica’s) house broker finnCap, forecast adjusted pre-tax profits for 2019 of £63.6mln and £80.8mln for 2020.

Revenues, meanwhile, are expected to come in at £459.3mln in 2019 and £524.3mln in 2020.

The broker’s target price is 550p.

With the shares trading at around 157.5p as of 4 September, Tremor carries a market cap of £191.8mln.

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