Taptica International (LON:TAP)
Share Price 242.5p Bid/Offer 240p - 245p
Market Cap 168.8 million Normal Market Size 1,500 shares
Enterprise Value £160 million
About the Company
The Company’s technology is based on artificial intelligence and machine learning at big data scale. The Company works with more than 450 advertisers, including Amazon, Disney, Facebook, Twitter, OpenTable, Expedia, and Zynga, and more than 50,000 supply and publishing partners worldwide.
The Recent Past
Back in July 2015, I wrote some notes on Marimedia plc (now Taptica International plc), an Israeli company which seem to have poor future prospects. Marimedia's profits that year in US dollar terms had declined by nearly 70%. The earnings stood at humble $0.033 earnings per share. This was now the third year in a row that profits had declined. Their business model was failing to perform.
I do recall having doubts about Marimedia's methods of generating business turnover. Another red flag was a large financial transaction with interconnected parties(directors). I was also mindful that some other UK listed Israeli companies had performed badly due to questionable accounting issues.
Earnings Per Share
Year End 31st Dec 2010 2011 2012 2013 2014 2015
EPS Normalised in US $ 0.000 0.046 0.052 0.11 0.10 0.033
Back to the Future
Normally a name change should not mean that much, but in September 2015 Marimedia plc renamed itself as Taptica International Ltd. A change in sentiment towards the shares became evident with the AreaOne Ltd acquisition in the same month. The key phrase within the RNS was the words "accredited Facebook Marketing Partner". The share price at that time was a lowly 61p.
Marimedia (AIM: MARI) (to be renamed Taptica), a proprietary marketing ad-technology solutions company that leverages big data to optimise mobile and online advertising spend, announces that it has entered into an agreement (the "Agreement") to purchase the entire issued and to be issued share capital of AreaOne Ltd. ("AreaOne"), a performance marketing technology company and accredited Facebook® Marketing Partner, for a total consideration of up to $17 million payable in cash and shares over a two-year period.
Each subsequent RNS announcement provided better revenue and prospects than the previous RNS. Tapitica International business model is to collect huge amounts of data and try to leverage that data in order to match adverts to the…
