REG - Dianomi PLC - Trading Statement

DianomiAnnouncement

17/07/2023 07:00

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RNS Number : 1410G  Dianomi PLC  17 July 2023

17 July 2023

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 2023.

As has been widely reported, the decline in traffic volumes has been a key
challenge for publishers in 2023. This trend is clear across Dianomi's direct
publisher inventory with traffic levels across key publishers down by between
10-30% in the six months to 30 June 2023 vs the same period in 2022.  As a
consequence, while demand from Dianomi's 400+ premium financial and lifestyle
advertisers has remained consistent with the backdrop announced at full year
2022 results, the reduced traffic across its publishers naturally impacts
Dianomi's ability to generate revenue from the adverts it places on their
digital properties. Furthermore, certain new publisher partnerships did not
materialise in the expected timeframe to offset the decline in traffic across
existing publishers, though they remain future opportunities.

Readership levels are also perhaps finding a new 'normal' level post pandemic.

Reflecting these lower traffic levels, revenue for the six months to 30 June
2023 is expected to show a c.18% decrease on the same period in the previous
year which benefitted from a strong Q1 before advertiser caution set in in Q2
2022.  As a result, the Group expects revenue for the year ended 31 December
2023 to be lower than market expectations and is providing new revenue
guidance of between £30.5 and £32.5 million (2022: £35.9 million).

Importantly, from a Company perspective, Dianomi continues to expand its
distribution channels in order to generate increased and more predictable
future income streams through:

·     Further developing programmatic distribution, a key driver of
future growth; and

·     Continuing to scale both existing and new publisher partnerships.

Dianomi's continues to develop its programmatic distribution capability with a
6 fold growth in programmatic revenue in the six months to 30 June 2023
compared to the same period last year, albeit from a relatively modest base.
This provides opportunities for Dianomi to unlock further demand from its
premium advertisers and scale the budgets they spend via the Company's trusted
and brand safe platform. Alongside programmatic, scaling its core direct
publisher inventory through expanding existing relationships and attracting
new publishers remains a key priority for Dianomi.

Retention of both publishers and advertisers has remained strong in 2023 and
year to date the Company has continued to attract new publishers and
advertisers to the platform providing the opportunity to scale these new
relationships alongside converting new pipeline opportunities.

The operational cost base of the Group has been significantly improved
following the restructuring of the Group's global management and sales teams
in March, resulting in the cost base reducing by £1 million on an annualised
basis. Given the challenging market backdrop, the Group continues to carefully
monitor its cost base whilst ensuring that sufficient investment is made to
support future growth. Cash as at 30 June 2023 was £7.1 million (31 December
2022: £11.7 million), reflecting the unwinding of the working capital benefit
highlighted at the time of the Company's final results for the year ended 31
December 2022, the delay in receipt of certain overdue debtor balances
amounting to c. £1.2 million (received shortly after the period end), one-off
restructuring costs of £0.8 million and foreign exchange movement as a result
of the strengthening of the pound against the dollar during the period. The
Company remains debt free and expects improved cash generation in the second
half of the year.

CEO of Dianomi, Rupert Hodson, commented: "The fall in traffic levels will
impact our business and the wider industry this year, nevertheless, it also
serves to highlight the importance of developing our ability to scale
distribution on a programmatic basis through the intelligent use of our deep
understanding of context and engagement. As mentioned, we are continuing to
attract new customers and expanding distribution through programmatic
initiatives. We are therefore in a solid position with a strong balance sheet
but as a business we are looking beyond the near term and focusing on our
future ability to offer our existing customer base the option to substantially
increase their spend with us."

 

 

For further information contact:

 Dianomi                                         Tel: +44 (0)207 802 5530

 Rupert Hodson (Chief Executive Officer)

 Charlotte Stranner (Chief Financial Officer)

 Panmure Gordon (Nominated Adviser 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

 Claire de Groot

 Safia Colebrook

About Dianomi

Dianomi, established in 2003, is a leading provider of native digital
advertising services to premium clients in the Financial Services and Business
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 400 million devices per month
through its partnerships with over 300 premium publishers of business and
finance content, including blue chip names such as Reuters, 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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