Crossrider plc Trading Update (5467N)
01 February 2016 - 6:00PM
UK Regulatory
TIDMCROS
RNS Number : 5467N
Crossrider plc
01 February 2016
Crossrider plc
("Crossrider," the "Company" or the "Group")
Trading Update, Directorate Change and Notice of Results
Crossrider (AIM: CROS), the creator of digital advertising
platforms specialising in monetising web and mobile media through
the use of big data, today provides the following year-end trading
update and announcement of a Directorate Change.
Trading Update
Trading in the period since the release of the Company's interim
results in September 2015 has been in line with market
expectations. The Company expects that Adjusted EBITDA* for the
full year to be in the region of c.US$10 million. Reflecting the
strategy set out in the interim results to deliver increased
margins rather than low margin revenue growth, revenue is expected
to be c. US$85 million. The balance sheet remains strong, with cash
of c. US$71 million at the period end.
Pleasingly, 2015 revenues from the targeted high volume lower
margin Mobile marketplace increased by c. 130% from H1 2015 to H2
2015 and now represent c. 26% of the Company's revenues. As
outlined at the time of IPO, this is in line with the Company's
organic growth strategy for its Mobile business.
Similarly, revenues from the higher margin but lower growth Web
business declined by c. 1% year on year and by 17% from H1 2015 to
H2 2015 reflecting the decrease in volume of average daily new
installations of Web applications which fell, as expected, from 1.4
billion in June 2015 to 0.4 billion in December 2015. Within the
Web business, the Desktop applications distribution platform
continued to perform well throughout 2015.
Considering the expected decline in the Web applications
marketplace and the Company's focus on the fast growing Mobile
sector, whilst the Board expects FY2016 revenue and earnings to be
ahead of FY2015 its current expectation is that any such increase
will be modest.
Directorate Change
The Board also announces that it has accepted the resignation of
Chief Executive Officer ("CEO") Koby Menachemi. Mr Menachemi was
one of the founders of the Company and following the achievement of
2014's successful Initial Public Offering, Mr Menachemi will be
leaving at the end of March 2016 to pursue other opportunities. A
search process is already underway for a new CEO and, pending this
appointment, Don Elgie has been appointed as Executive Chairman. Mr
Elgie is a respected industry figurehead having founded Creston
plc, a digitally focussed communications company, and served as CEO
until March 2014.
Don Elgie said, "The Board would like to take this opportunity
to thank Koby for his contribution to Crossrider since the founding
of the Company nearly five years ago and we look forward to
selecting a new CEO to lead Crossrider.
We continue to pursue our stated strategy of evaluating and
pursuing M&A opportunities to best leverage the Group's
technology and expertise."
Notice of Results
The Company will announce its preliminary results for FY2015 on
15 March 2016.
* Adjusted EBITDA is a non GAAP measure and a company specific
measure which excludes other operating income and expenses which
are considered to be one off and non-recurring in nature.
- ends -
For more information contact
Crossrider plc
Don Elgie, Executive Chairman
Mark Carlisle, Chief Financial
Officer
c/o Bell Pottinger +44 (0) 20 3772 2496
Shore Capital
Bidhi Bhoma
Toby Gibbs +44 (0) 20 7408 4090
Bell Pottinger
David Rydell
James Newman
Sam Cartwright +44 (0) 20 3772 2500
About Crossrider
Crossrider is a creator of digital advertising platforms
specialising in monetising web and mobile media through the use of
big data. The Company's web and mobile platforms power ad networks,
agencies and direct publishers and enable the delivery of relevant
digital advertising through the analysis of big data: making online
marketing significantly more efficient and cost effective.
The Group operates web and mobile platforms which generate big
data, enabling the development of a proprietary ad serving
algorithm and engine that can extract value from this data to
deliver relevant advertising to targeted users.
Crossrider's vision is to become the de facto standard platform
for delivering relevant web and mobile adverts to billions of
people, powering the next generation of digital advertising.
www.crossrider.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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