REG - Dianomi PLC - Trading Statement

DianomiAnnouncement

13/12/2022 07:00

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RNS Number : 4512J  Dianomi PLC  13 December 2022

13 December 2022

Dianomi plc

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

Trading Update

 

Dianomi, a leading provider of native digital advertising services to premium
clients in the Business, Finance and Lifestyle sectors, announces the
following trading update for the year to 31 December 2022

Revenues are expected to be in line with last year, client retention is
excellent and the Dianomi platform consistently reaches over half a billion
readers each month. Goldman Sachs, Porsche and Ameriprise all became
advertisers this year on the Dianomi ad platform.  Distribution of ads
continues to be supported by the Group's deep partnerships with premium
publishers throughout the world. Dianomi currently works with 387 premium
publishers, including those accessed programmatically.

The average spend for the top 100 advertisers is at similar levels to 2021,
despite newsletter spend decreasing significantly as highlighted in the
results for the six months to 30 June 2022. New advertiser spend in the second
half of the year has not grown as anticipated, with the changes to the
economic and political landscape over the course of 2022 creating a general
global slowdown. While revenues are expected to be in line with 2021 levels,
the decrease in gross margin as previously announced on 21 September 2022,
alongside the Group's investment in developing the talent base of the business
to support future growth, means that Adjusted EBITDA* for the year to 31
December 2022 is expected to be lower than consensus market expectations at
approximately half of that for the prior year. Unaudited cash at 30 November
remains strong at £10.8 million.

The strength of the Dianomi proposition for both advertisers and publishers
remains unchanged. The investment made in new talent which has expanded the
Company's sales and engineering capabilities is key to the roll-out of
Dianomi's contextually-led programmatically enabled platform, and an important
driver for future growth. The platform has been trialled by Porsche and Morgan
Stanley, initial results from both have been positive and programmatic
revenues are expected to build in 2023.

Macroeconomic headwinds and privacy legislation have caused short-term
industry digital ad spending forecasts to be lowered from those published in
March. However, total US digital ad spend is still forecast to grow in 2023
and beyond and, furthermore, privacy changes including the deprecation of
cookies are set to benefit the Group given Dianomi's premium positioning, the
quality of its inventory, the transparency of performance and its contextual
platform.

Rupert Hodson, Chief Executive Officer of Dianomi, said:

"The Group remains well placed for future growth, with strong cash generation
and a robust balance sheet. Though we are disappointed that the growth
originally forecast for this year has not materialised, we are encouraged by
the stickiness of both our advertiser and publisher base and the new names
which have joined our platform this year. The market environment is
challenging, but we are confident that the quality of our platform as well as
its contextual nature will prove to be an advantage in light of the expected
changes in privacy legislation. Furthermore, the roll-out of our programmatic
capabilities provides further opportunity for growth next year and beyond.
Alongside this, our investment in talent is for the long-term. Despite
macroeconomic headwinds, digital advertising remains a growth sector, Dianomi
is a leader in its chosen markets, and we are very focused on further
expanding our share."

 

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

** Source: eMarketer December 2022

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 and Broker)               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 Charles Schwab, 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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