AGM Statement

RNS Number : 0365C

Taptica International Ltd

13 June 2019

 

13 June 2019

Taptica International Ltd

("Taptica," or the "Company")

AGM Statement

Taptica International Ltd (AIM: TAP), a global leader in advertising technologies for brand advertising and performance-based mobile marketing, will be holding its Annual General Meeting today and at the meeting, Tim Weller, Non-Executive Chairman of Taptica, will make the following statement:

"The last 18 months have been transformational for Taptica, including the integration of the Tremor Video business into the Group, and culminating in the recent merger with RhythmOne, which completed in April 2019. Both deals significantly broadened our presence and increased our scale in the US, whilst further enriching our proprietary technology portfolio. As a result of the mergers, which bring a number of synergistic benefits, Taptica's Tremor Video platform is now ideally placed to exploit the high growth digital video advertising market in the US.

Trading in the first five months of the year has remained mixed, with the Group's performance-based advertising activities continuing to experience lower revenue than the prior year. 

Taptica's brand advertising platform has continued to trade well, with management also delivering sustainable margin improvement. In spite of the weakness in the Performance division, management believes it is on track to meet the market's profitability expectations.

The integration of RhythmOne is progressing well, with a number of initiatives already implemented, including the integration of Tremor Video and YuMe's respective sales operations in the US. These operations are already generating good traction and are a clear example of the expansion of our international sales reach. We have also begun to consolidate our product development initiatives and are working to restructure the Company under new business units, as we seek to foster cross-selling opportunities and to streamline our operations.

As a result of the rapid progress on the integration of RhythmOne, we now expect to deliver c. $20 million of cost savings and synergy benefits in the current financial year (on an annualised basis) and expect RhythmOne to make a meaningful contribution to the bottom line in the following year. The Company's cash generation also remains strong and Taptica's current cash position is approximately $70 million following the buyback referred to below.

Taptica's current independently managed $15 million share buyback programme, launched on 2 April 2019 has now completed. Pursuant to the buyback, the Company purchased a total of 8,022,104 ordinary shares of NIS 0.01 ("Ordinary Shares") at a weighted average price of 143 per Ordinary Share. In order to optimise shareholder value, the board is actively considering implementing a further buyback with the same parameters of the programme just concluded.

2019 was always going to be a year of integration and reorganisation. As highlighted above, I'm pleased to report our teams have already made substantial progress. The strategic rationale for the merger remains strong and in the best interest of shareholders, as such the board remains optimistic in the medium term.

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014. The Company confirms that it is no longer in possession of any unpublished price sensitive information.

For further information or enquiries please contact:

Taptica International Ltd	Tel: [phone]
Ofer Druker, Chief Executive Officer Yaniv Carmi, Chief Financial Officer
finnCap Ltd Corporate Finance - Jonny Franklin-Adams, James Thompson, Hannah Boros ECM - Tim Redfern, Richard Chambers	Tel: [phone]
Vigo Communications Jeremy Garcia Antonia Pollock Charlie Neish	Tel: [phone]

About Taptica

Taptica International Ltd is a global leader in advertising technologies, operating in more than 70 countries. It has three core divisions: Tremor Video DSP (brand advertising), Taptica (performance advertising) and a Media division.

Tremor Video DSP helps advertisers deliver impactful brand stories across all screens through the power of creative video intelligence-innovative video technology combined with advanced audience data and captivating creative. Tremor Video is one of the largest and most innovative video advertising companies in North America, with offerings in CTV, influencer marketing, and private marketplaces.

The Taptica performance business is an end-to-end mobile technology advertising platform that helps the world's top brands reach their most valuable users with the widest range of traffic sources available today. Its proprietary technology leverages big data to target quality media at scale. It works with more than 600 advertisers including Amazon, Alibaba, Bytedance, Netmarble, Stubhub and OpenTable.

Taptica International Ltd is headquartered in Israel and maintains offices throughout the US and Canada, Asia-Pacific, Europe, India, and Latin America, and is traded on the London Stock Exchange (AIM: TAP).

 

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