Trading Update

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	[phone]
Shore Capital Bidhi Bhoma Toby Gibbs	[phone]
Bell Pottinger David Rydell James Newman Sam Cartwright	[phone]

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 

 

END

 

 

TSTWGUQCGUPQGGG