REG - Audioboom Group PLC - Q1 Trading Update

AudioboomAnnouncement

09/04/2025 07:02

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RNS Number : 2120E  Audioboom Group PLC  09 April 2025

 

This announcement contains inside information as stipulated under the UK
Market Abuse Regulations ("MAR").

 

Audioboom Group plc

("Audioboom", the "Group" or the "Company")

 

Q1 Trading Update

10X EBITDA increase and continued revenue growth

 

Audioboom (AIM: BOOM), the leading global podcast company, is pleased to
provide a trading update for the quarter ended 31 March 2025.

 

Financial and operating highlights

 

·     Q1 adjusted EBITDA((1)) profit of US$0.7 million, up 10X on Q1
2024 (US$0.07 million), highlighting the continued strong performance of the
business model

·     Q1 revenue of US$17.3 million, up 1% on Q1 2024 (US$17.1 million).
The Company continues to focus on high-quality revenue generation,
relinquishing and replacing low performing contracts with higher quality
revenue that is driving higher adjusted EBITDA profit

·      With Q1 historically the seasonal low point for revenue and
EBITDA profit, we expect revenue growth to accelerate in future quarters
alongside further gearing of adjusted EBITDA profit

·     Significant growth of Showcase - our higher gross margin,
tech-based global advertising marketplace - with Q1 revenue up 36%
year-on-year

·      Record Q1 RPM (average revenue per 1,000 downloads) of US$60.83,
up 17% (Q1 2024: US$52.17)

·      Record Q1 average total brand advertiser count of 8,974, up 14%
(Q1 2024: 7,839)

·      Q1 average monthly distribution of 94.8 million downloads and
video views (Q1 2024: 110.0 million). We expect Q1 2025 to be the final period
impacted by the Apple iOS17 update with a return to positive distribution
growth expected in Q2 2025

·      Group cash at 31 March 2025 of US$4.3 million (31 December 2024:
US$3.9 million)

·      The Company is confident it will at least meet its revenue and
adjusted EBITDA profit goals for 2025, and has made significant progress with
contracted revenue of more than US$63 million for the year through advanced
advertising bookings - more than US$9 million added since the January 2025
Trading Update and US$8 million more than at the same point last year

·      The Company expects minimal impact to its performance as a direct
result of the recently announced US tariffs, due to the production and sale of
its inventory being within specific territories. In addition, as the majority
of Company employees are based in the US, the increase in UK employers'
national insurance from April 2025 will not have a material impact on the
Company's operating costs

 

Commercial highlights

 

·    Launched a new partnership with Sounder to equip Showcase with
Artificial Intelligence capabilities. Showcase will utilise AI to expand our
work with global blue-chip brands through contextual ad targeting and brand
safety controls, enabling us to contract with brands that were not previously
able to trade with us

·    Expansion of the Audioboom Creator Network through new tier one
content partnerships, including Reading Reddit, Smosh Mouth, Not Loveline,
Take It Easy, Small Town Dicks, The Honeydew Podcast and Aware and Aggravated.
These shows are expected to contribute more than five million downloads and
YouTube views per month to the Audioboom Creator Network in 2025

·    Renewed key contracts with leading podcasts in our creator network
including Lights Out, The Sesh, The Cycling Podcast, Soder and Mile Higher.
These shows are downloaded and viewed more than 15 million times each year

·    Increased our investment in the UK podcast market through a
partnership with Hat Trick Productions - the company behind Have I got News
For You - and hired into our UK sales team to further develop our brand
partnerships at major UK advertising agencies

 

Stuart Last, CEO of Audioboom, commented:

 

"10x adjusted EBITDA profit growth is a fantastic way to kick-off 2025. Our
business model continues to go from strength to strength as our focus on
higher-margin revenue coupled with our continuing stable operating costs has
delivered a very positive Q1.

 

That focus on higher quality revenue led us to relinquish a number of
low-performing contracts during the quarter. We replaced them with
higher-margin revenue - so while our revenue growth is in the low single
figures, it is significantly healthier, and it is exactly where we expected it
to be.

 

In Q1 Showcase became AI-powered as we launched a new partnership with Sounder
to bring artificial intelligence to our marketplace. We'll use AI to provide
contextual targeting and brand safety guidance to our advertisers, adding a
level of sophistication that is needed to expand our work with global
blue-chip brands. Showcase had another impressive quarter - growing 36%
year-on-year - and with the power of AI will drive even more value for our
creators and customers.

 

The Audioboom Creator Network continues to grow. In March our new partnership
with Smosh Network went live and is already performing well. We expect new
network shows including Smosh Mouth and Smosh Reads Reddit Stories to generate
more than 5 million downloads and YouTube views each month.

 

It is very pleasing to see the positive momentum of 2024 continue into the
first quarter of 2025, and we are looking forward to that momentum building
through the rest of the year. The team at Audioboom are continuing to create
maximum value for our partners, and we look forward to delivering a record
2025."

 

1)     Earnings before interest, tax, depreciation, amortisation, share
based payments, non-cash foreign exchange movements, material one-off items
and onerous contract provisions and losses incurred

 

Enquiries

 Audioboom Group plc
 Stuart Last, Chief Executive Officer                             Tel: +44(0)20 3714 4285

 Brad Clarke, Chief Financial Officer

 Cavendish Capital Markets Ltd (Nominated Adviser and Broker)
 Jonny Franklin-Adams/Elysia Bough/Rory Sale (Corporate Finance)  Tel: +44(0)20 7220 0500

 Harriet Ward (ECM)

About Audioboom

 

Audioboom is a global leader in podcasting - our shows are downloaded 100
million times each month by 38 million unique listeners around the world.
Audioboom is ranked as the fourth largest podcast publisher in the US by
Triton Digital.

 

Audioboom's ad-tech and monetisation platform underpins a scalable content
business that provides commercial, distribution, marketing and production
services for a premium network of top tier podcasts. Key partners include the
official Formula 1 podcasts 'F1: Beyond the Grid' and 'F1 Nation', 'True Crime
Obsessed' (US), 'The Tim Dillon Show' (US), 'No Such Thing As A Fish' (UK) and
'The Cycling Podcast' (UK).

 

Audioboom operates internationally, with global partnerships across North
America, Europe, Asia and Australia. The platform distributes content via
Apple Podcasts, YouTube, Spotify, Pandora, Amazon Music, Google Podcasts,
iHeartRadio, Facebook and Twitter as well as a partner's own websites and
mobile apps.

 

 

For more information, visit audioboom.com.

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