LONDON, July 6, 2016
Matomy Media Group Ltd. announces its adoption of a strategic investment plan (the “Strategic Plan”) across multiple business segments to enhance its innovative power in the digital advertising industry, and also provides a trading update for 2016 according to which the Company expects its revenue for 2016 to be in the range of $265 million to $300 million, and its adjusted EBITDA to be in the range of $17 million to $21 million.
The digital advertising industry continues to evolve and mature in one of the most interesting and challenging periods since its inception. The industry has experienced many technological, business and regulatory developments, including a rapid decline in desktop display advertising and the shift to mobile, the transition from contractual relationships to programmatic based transactions, and the broad adoption of video-based advertising as the leading medium to communicate with consumers.
The Company’s market-leading expertise in digital advertising has enabled it to identify these emerging trends. The Company has taken decisive action over the past 18 months to enhance and streamline its operations and technology and product development. Importantly, the Company has increased its investment in its strategic capabilities of Mobile, Video and Programmatic trading. The Company also identified the strategic importance of establishing a strong foot print in the Asian- Pacific (APAC) market and has launched its China- and Korea-based activities (as reported in April 2016) and has built a detailed plan to help mobile developers in the APAC market distribute and monetize their apps through a local point of contact with access to advanced global monetization solutions.
As a result, the Company:
– bases its core activities around proprietary Video, Mobile and other Programmatic technologies, following its purchase and development of Mobfox, Optimatic and previously Team Internet (July 2014);
– generates: (i) approximately 38% of its revenues in Q1 2016 from the fast-growing aggregate mobile related revenues (2015 FY: 30%), (ii) 40% of its revenues in Q1 2016 from Video related activity; (iii) 77% of its revenues in Q1 2016 programmatically;
– enhances its “big data” analytics and optimization capabilities, leverages its broad footprint in several channels of media and unique multi-channel cross device offering, and generates improved targeting and ad-matching capabilities.
The Company continues to be one of just a few profitable companies in this market, on an EBITDA basis. However, consistent with the overall digital advertising industry trend, the Company is experiencing a decline in desktop display activity. The Company has substituted most of these revenues with Video, Mobile Display and Native based advertising, which have tended to generate higher quality and more sustainable long-term revenues with enhanced user engagement.
To leverage the Company’s recent investments and acquisitions, the board has adopted the Strategic Plan, which allocates an initial sum of $3.3 million for expenditure during 2016 primarily in:
– additional research and development across the business, with a focus on Mobile and Video related developments;
– strengthening the sales force around current technology-based offerings and evolving geographies, in particular the Asian and the U.S. markets, mainly around Mobile and Programmatic activity. This follows the Company’s launch of China- and Korea-based activities (as the Company reported in April 2016); and
– increasing the Company’s marketing efforts.
About Matomy Media Group Ltd.
Matomy Media Group Ltd. is a world leading media company delivering smart technology solutions and a personalized approach to advertising. By providing customized performance and programmatic solutions supported by internal media capabilities, “big data” analytics and optimization technology, Matomy empowers advertising and media partners to meet their evolving growth-driven goals. Matomy offers a single gateway to digital media channels including mobile, video, display, social, email marketing, search marketing (SEM, SEO, and ASO) and domain monetization. Founded in 2007, with headquarters in Tel Aviv, growing presence in the USA and six offices around the world, Matomy is dual listed on the London and Tel Aviv Stock Exchanges.
