Brimach1
05 Mar 2018
Re: Total Voting Rights Tricky, I agree. R1's rather small share float of 77.8 million makes for (somewhat) illiquid trading conditions and exaggerated share price swings.On a different matter... I am no lover of the ADVFM BB but a number of posts have been placed there from 1gw during the last two days. They are worth reading. I think they cast some realism on what to expect in losses/exceptionals, in the FY2018 ER. Realistically it is FY 2019 that we should all be looking towards, in my view.[link]
Tricky_Dicky
05 Mar 2018
Re: Total Voting Rights Hello Big Bear!My knee-jerk response would be certainly not to dilute the shares any further, unless a real bargain opportunity is ripe for the taking, and that buybacks often make no apparent difference or, at best, one whose effects are difficult to discern, and if the market is moving up or down it is not going to make much difference anyway.In the case of R1, however, the shares in circulation are in short-supply and we have seen how small volumes can make a big difference.So, you may well have a point about a buybacks now, however if Tosca is ruling the roost then they may well put pressure to bear on management against anything which could affect their ability to hoover up more shares on the cheap - at least until they have had their fill.Not sure how much this would cost but perhaps R1 have cash that was raised, which could be used to pay to shareholders as a one-off divi.I believ YuMe did the same fairly recently.Of course the cash can be used for other purposes, as under certain terms and conditions.More later no doubt...
Big Bear
04 Mar 2018
Re: Total Voting Rights Tricky, the current share price level represents, IMO, a great opportunity to make some share buybacks…The RhythmOne directors already have the authority to do this. Resolution 10 passed by shareholders at the June AGM is still in force. This gives RhythmOne directors the authority to purchase up to 4,952,000 shares of the Company’s issued share capital. That represents around 6.4% of RhythmOne’s issued share capital (77.48 million shares) as per that latest Total Voting Rights RNS that you refer to. Herewith the link to the AGM Resolution 10 authorising buybacks:[link] (see page 9 re. Resolution 10)The shares thus purchased under this authority could then be simply cancelled, or held within Treasury to be reissued or resold at a later date. Whatever, I do not think that one shareholder, i.e. Tosca, should be given a ‘clear run’ in being the only buyer of R1 shares at this giveaway price. Other shareholders, PIs like myself, would like to benefit.Anyway, Friday’s closing £2.18 share price is at a 45% discount to the £4 plus share price that prevailed when we were notified that Tosca acquired RhythmOne shares on or around 29th June last year, as per this RNS:[link] And, more recently, the 15 February RNS told us that Tosca acquired further shares in RhythmOne after the YuMe purchase was completed on 2nd February. [link] The RhythmOne share price traded between £2.70 and £2.40 in the first half of the month when I presume Tosca made those additional R1 share purchases.So Tosca clearly see value in picking up RhythmOne shares at these – and higher – prices. Why, then, do not we do the same, on behalf of those shareholders, like me, who are not part of Tosca? There is a precedent. I recall that YuMe, under Eric Singer as Chairman, announced (in Feb 2016) a $10 million share repurchase programme on behalf of YuMe shareholders. Which was successful…..YuMe had repurchased $8.1 million of their issued shares by the following February 2017 (as per their 10K report for 2017, page 28)… In summary, I believe it makes for better financial sense to use ‘acquisition’ cash, as a first priority, to acquire our own clearly undervalued shares, thereby reducing the number of shares in issue, and increasing the value of those shares that remain…IMO that’s the best way for shareholders to benefit from our share price being significantly undervalued, as I believe it is. And, by the way, I do not, in general, support the opposite idea of issuing more clearly undervalued shares as ‘currency’ to fund another acquisition, – {unless, of course, it can be shown that the potential acquisition target is similarly undervalued!}.
Tricky_Dicky
01 Mar 2018
Total Voting Rights Looks like another update from Tosca is on the cards with R1's RNS quoting voting rights.Not sure what all the thresholds are on their way beyond 26 to 29% now.The sp is certainly being held back with ease until that target is reached.As before.
2br02b
24 Feb 2018
Interview with RhythmOneÂ’s Dan Slivjanovski on Recent YuMe Acquisition [link]
WEE WATT
23 Feb 2018
More good news Check out @YuMeVideo’s Tweet: [link]
WEE WATT
22 Feb 2018
Revenue increase www.rhythmone.com/blog/2018/02/12/how-we-delivered-40-revenue-increase-for-google-exchange-bidding-partners
Big Bear
21 Feb 2018
The RhythmOne Projections In my opinion, we are now well into ‘cash’ profit (i.e. after adding back the non-cash expenses such as depreciation, amortisation). The recent half-year results and Q3 Trading Update statements have already explicitly told us as much. And given the strong increase in revenues, margins and pricing we’ve seen in these statements (and for other reasons, as explained below), I also believe we are likely making net ‘real’ core taxable profits. {Of course, I’m no insider, so may be wrong – but I don’t think so, the evidence seems strong – see below}.The recent Q3 Trading Update, issued on 2nd February, on completion of the YuMe acquisition, indicated $78m revenues for RhythmOne in the December quarter…{i.e. 8263.8 vols times 0.35 Fill rate times $2.71 CPM avg pricing = $78 million revs for Q3}. That’s well up (The FY2017 Q3 number was $42 million revenues for the December quarter). And how much more would it have been if we added in YuMe revenues, as we will be doing in future?(Note: The Q3 Trading Update is in the second-half of the RNS statement, dated 2nd February, link given here below)[link] To continue, I believe there are several reasons why we are now making ‘real’ core taxable profits:First, let’s look at gross margin. {As you know, Gross margin is our sales revenues less that part thereof which we share with our publisher and content partners. So, after paying these inventory supply partners, the ‘gross margin’ remains, and that represents the direct contribution towards our fixed operating overheads in the business, with the balance remaining after that – if any - being our ‘real’ net taxable profits}.So, the good news is that our gross margin – as a percentage of sales revenues – has been trending up for several months now – it was shown as averaging at 38% for H12018 (i.e. the six months to end-September, 2017), that’s up from 34.5% from the same period in the previous year. Which represents an absolute jump of 10% year-on-year.....And the reason for that? The half-year results told us: “A strong year-on-year increase in pricing…..driven by monetization of high-value, high-impact and high-margin mobile, video and rich media inventory”[link] …And this upward trend continues, the recent Q3 Trading Update (in that February 2nd RNS, link given above) tells us that “Fill rate grew by 17% year-on-year…. and inventory saw a strong year-on-year increase in pricing of 20%, driven by monetization of high-value, high-impact and high-margin video and rich media inventory, and the packaging of premium supply through turnkey private marketplaces”.Since, historically, we know that YuMe’s business reports even higher gross margins than we do, we can, I think, expect this upward trend in gross margin to accelerate, now that YuMe is part of the family. As a point of reference, YuMe’s most recent published 10Q report (for the 9 months to end-September 2017) reported an average gross margin of 45.5% for their September quarter, with ytd ‘cash’ profit of $16 million, and ytd ‘real’ profit (after adding back the non-cash items to operating expenses) of just over $5 million….You can easily check this for yourself; herewith the link to YuMe’s most recent 9-month results (9 months to end-September, 2017):[link] And a second reason for the move to ‘real’ taxable profits, quite apart from this strong upward trend in gross margin, is that we have also seen operating expenses continue to decline as a percentage of revenues. That’s further good news. This trend was highlighted on slide 13 (Income Statement) in the most recent RhythmOne half-year results presentation on December, 4, 2017 (and the accompanying presentation, with audio conferenc
Tricky_Dicky
13 Feb 2018
Re: BLINX Rhythmone have many ways in which to provide a clean and safe environment for their own 'private' customers (depending on the demand) and they operate in a somewhat different world to Google/Twitter et al. who allow public uploading of video and text which is difficult to 'police' effectively owing to the sheer volume of uploads.Now it seems that many big name advertisers are not so much concerned about fraud/bots etcetera, which most companies can control by various means, but more about unregulated propaganda slipping inside.Terror, child-exploitation, fake news and similar 'toxic' online content is not a problem faced by companies such as R1 and whilst they may be able to provide fraud elimination etcetera, I doubt they have much to offer to the likes of Google/YouTube in order to cope with either the scope or content of 'toxic' material.So, no plum opportunities for R1 to get extra custom but you never know some players may decide to go elsewhere whilst boycotting Google and others.Many ad agency companies/networks are held under the umbrella of WPP (Martin Sorrell) and would no doubt be able to compete for extra custom too.sobeit may have other views but he is awol and these are just my thoughts for now.
steel-spagetti
13 Feb 2018
BLINX Do I remember being led to believe that the ability to quickly identify malicious Material on line was a key function of this companies unique technology ??There is now a huge demand for such tools !Did we loose it along the way ? Or were we misled ??
ajacko
12 Feb 2018
Unilever threatens online ad cuts to clean up internet LONDON (Reuters) - Consumer goods giant Unilever (ULVR.L)(UNc.AS), one of the world’s biggest advertisers, has threatened to pull investment from digital platforms such as Facebook and Google that “create division” in society or fail to protect children.Keith Weed, chief marketing officer at the maker of Ben & Jerry’s ice cream and Dove soap, will announce the company’s plan in a speech later on Monday at the annual Interactive Advertising Bureau conference in California.In the speech, Weed will call on the technology industry to improve transparency and consumer trust in an era of fake news and “toxic” online content.“Unilever, as a trusted advertiser, do not want to advertise on platforms which do not make a positive contribution to society,” Weed plans to say, according to a copy of the speech seen beforehand.Unilever also said it is committed to tackling gender stereotypes in advertising and will only partner with organizations that are committed to creating better digital infrastructure.Unilever itself was heavily criticized last year for a Dove advert on Facebook that many saw as racist. Amid a social media backlash and calls for a boycott, the brand apologized, saying it “missed the mark in representing women of color thoughtfully”.“Consumers don’t care about third party verification. They do care about fraudulent practice, fake news, and Russians influencing the U.S. election,” Weed plans to say. “They don’t care about good value for advertisers. But they do care when they see their brands being placed next to ads funding terror, or exploiting children.”Unilever has already been slashing its advertising spend, as it seeks to cut costs across the organization. It has cut the number of ads it makes and the number of agencies it works with.Google, a unit of tech giant Alphabet (GOOGL.O), and Facebook (FB.O) are estimated to have taken half of online ad revenue worldwide in 2017 and more than 60 percent in the United States, according to research firm eMarketer.Officials at Facebook and Google in Europe were not immediately available to comment.Weed’s comments echo complaints made a year ago by Procter & Gamble (PG.N) Chief Brand Officer, Mark Pritchard, who has lamented fake ad clicks by automated ‘bots’, the risk an ad can appear on social media next to an ISIS recruitment video and the realization that people don’t watch 30-second video advertisements any more.Only 25 percent of online ad spending reaches the consumer, with the rest skimmed off by a “murky, non-transparent, even fraudulent supply chain” within the industry, Pritchard told a digital marketing conference last autumn in Cologne, Germany.Facebook executives visiting Europe last month made a public show of contrition about the social media giant’s slow response to abuses on its platform, seeking to avoid further legislation along the lines of a new hate speech law in Germany it says goes too far.“We have over-invested in building new experiences and under-invested in preventing abuses,” Facebook’s communications and public policy chief, Elliot Schrage, told a tech conference in Munich.
Mome Wrath
02 Feb 2018
Re: No Data on some watch lists Miraculously, ALL my portfolios, even those with well over 29 stocks in are now restored.My stocks in the -29 portfolios were updated while same stocks in the 29+ were not.Having started to compile shorter portfolios it's set me back a considerable amount of timenow wasted. I recall this happened to me on a prior occasion some years ago.I wonder, can anybody recommend a portfolio platform with the ability to automaticallytrack buy/sales, displaying profits, losses and cash?
Inspection Eng
02 Feb 2018
Re: No Data on some watch lists I have been using Google Finance for my watchlists, but they are in a state of flux and have been for months, so are poor at present, but may improve again in due course. Prior to Google my preferred watchlist provider was DigitalLook. I had switched to them from iii and then to Google, am waiting on Google at present before deciding what to do next. Could be a few months.
Inspection Eng
02 Feb 2018
Re: No Data on some watch lists Moving trading platform, or watchlists?
fillmyboots
02 Feb 2018
Re: No Data on some watch lists Thanks for that info. There are other software bugs which I've pointed out to them, but instead of fixing them I get the standard reply. I'm thinking of moving to someone else, any suggestions?
