REG - Dianomi PLC - Trading Statement

DianomiAnnouncement

18/07/2022 07:00

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RNS Number : 7252S  Dianomi PLC  18 July 2022

 

18 July 2022

Dianomi plc

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

Trading Update

 

Encouraging H1 performance. Strong pipeline of opportunities with revenues for
the full year expected to be broadly in line with market expectations.

 

Dianomi, a leading provider of native digital advertising services to premium
clients in the Business, Finance and Lifestyle sectors, is pleased to announce
the following trading update for the first six months to 30 June 2022.

The Group has delivered a good first half, with revenues expected to be up 4%
against a particularly strong comparative period last year, despite a negative
macro environment. Both the advertiser and publisher base have expanded so far
in 2022, including the successful rollout of the contract with CNN Business,
which, even though it is yet to be fully implemented, is already a top 5
publisher. Whilst it is too early to determine with certainty, the Company
still currently expects revenues for the full year to be broadly in line with
market expectations.

There are significant prospective publisher contracts being pursued,
representing a solid pipeline of new business. The business is reliant on
closing new contracts in the pipeline within expected timeframes to deliver
its second half growth expectations, and whilst the timing to convert these
opportunities varies, there are several opportunities being pursued which
provides confidence in the outlook.

In Q2, some advertisers spent more cautiously; however, historical patterns
consistently show trading to be weighted to the second half of the year for
both native and video campaigns, although there remains a risk that weaker
advertising spend persists. Trials are underway amongst new advertisers across
contextual and programmatic channels. Whilst the programmatic platform is
nascent, early results are encouraging and it is expected that increased
revenue will be generated through this solution in the second half of the
year. Video campaigns represent another growth area which generates ad hoc
income but can be significant, and a number of conversations with key
advertisers with video demand are ongoing.

The Group made investments in FY21 and in the first half of year to support
future growth, including the roll-out of Dianomi's contextually-led
programmatic platform. These investments were predominantly in marketing and
people, including a new Head of Programmatic. However, these investments as
well as the additional costs associated with being a public company, have
contributed to a decrease in Adjusted EBITDA* margin from 10% for the six
months to June 2021 to approximately 5% for the six months to 30 June 2022.
Adjusted EBITDA* margin is expected to improve in the second half of the year.
Unaudited cash at 30 June 2022 was £10.4 million.

Rupert Hodson, Chief Executive Officer of Dianomi, said:

"Given our significant growth in 2020 and 2021 and the uncertain macro
environment, we are encouraged by the Group's performance in the first half of
the year.

"With the investments made in future growth, as well as healthy pipelines and
historical track record, Dianomi is well placed going into the second half of
the year, and we are optimistic for a solid result for the year. In the medium
term, the market opportunities for the Group are expanding significantly, as
the advertising world adjusts to a cookie-less environment and increasing
numbers of potential clients reassess the power and accuracy of contextual
solutions."

*  Adjusted EBITDA is calculated as profit after tax before deducting net
finance costs, tax, depreciation, exceptional items and share based payment
charges

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No.
596/2014. It forms part of United Kingdom domestic law by virtue of the
European Union (Withdrawal) Act 2018. Upon the publication of this
announcement, this inside information is now considered to be in the public
domain.

For further information contact:

 Dianomi                                                  Tel: +44 (0)207 802 5530

 Rupert Hodson (Chief Executive Officer)

 Charlotte Stranner (Chief Financial Officer)

 Panmure Gordon (NOMAD, Sole Broker and Sole Bookrunner)  Tel: +44 (0)207 886 2500

 Emma Earl/ Freddy Crossley, Corporate Finance

 Rupert Dearden, Corporate Broking

 Novella Communications                                   Tel: +44 (0)203 151 7008

 Tim Robertson / Safia Colebrook

About Dianomi

Dianomi, established in 2003, is a leading provider of native digital
advertising services to premium clients in the Business, Finance and Lifestyle
sectors. The Group operates from its offices in London, New York and Sydney.
The Group enables premium brands to deliver native advertisements to a
targeted audience on the desktop and mobile websites, mobile and tablet
applications of premium publishers. It provides over 400 advertisers,
including blue chip names such as abrdn, Invesco and Baillie Gifford, with
access to an international audience of over 500 million devices per month
through its partnerships with over 300 premium publishers, including blue chip
names such as Reuters, CNN Business, Bloomberg and WSJ. Adverts served are
contextually relevant to the content of the webpages on which they appear and
mirror the style of the page, which enhances reader engagement.
http://www.dianom (http://www.dianom) i.com (http://www.dianomi.com/) .

 

 

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