Norway's Otello says AdColony CEO to step down, warns on unit's sales (updated)
21/12/2017 19:22
(Adds)
Dec 21 (Reuters) - Otello Corporation OPERA.OL says:
* AdColony's Chief Executive Officer, Will Kassoy. Mr.
Kassoy will
step down from his position effective immediately
* Lars Boilesen, Otello CEO, will act as interim CEO for
AdColony
while the company searches for his replacement
* 2017 has been a disappointing year for AdColony, which has
been
impacted by product delays and poor execution in the midst of a
strong and growing mobile advertising market
* Based on the preliminary numbers and developments thus far
in
Q4, Otello expects AdColony's revenues to be down between 5 and
10 pct versus Q3
* Despite the challenging year, AdColony remains uniquely
positioned to play a key role in the massive mobile advertising
market as the largest independent mobile video advertising
player
* Otello aims to return AdColony to growth and profitability
* Says mobile advertising market remains strong. AdColony is
experiencing increasing gross margins in Q4 compared to Q3
* In addition, the restructuring announced in connection
with
Otello's Q3 report has been successful, and we expect to enter
2018 with a cost base 40 pct below where we entered 2017
* The persistent cost focus has lowered AdColony's
break-even
run-rate significantly and has set AdColony up for a faster
return to profitability
* Otello continues to have a very strong financial position,
which
was further enhanced by the sale of SurfEasy in November 2017
* In addition, continued strong performance from Bemobi and
Skyfire's turnaround makes us optimistic looking into 2018
Source text for Eikon: ID:nWkr6LPGh1
Further company coverage: OPERA.OL
(Reporting by Oslo newsroom)
((terje.solsvik@thomsonreuters.com; +47 918 666 70; Reuters
Messaging: terje.solsvik.thomsonreuters.com@reuters.net))
Keywords: OTELLO OUTLOOK/