Trading update

System1 Group PLC

13 July 2023

 

13 July 2023

System1 Group PLC (AIM: SYS1)

 ("System1", or "the Company", or "the Group")

System1 today issues an update on trading for the quarter ended 30 June 2023 (Q1).

Revenue £ million - unaudited	Q1 FY24	Q1 FY23	Q1
	Jun-23	Jun-22	% YoY
Predict Your (data)	4.0	3.0	36%
Improve Your (data-led consultancy)	0.9	0.8	15%
Platform Revenue	4.9	3.7	32%
Other consultancy (non-platform)	1.3	1.5	-16%
Total Revenue	6.2	5.2	18%

During Q1, the Company made further progress towards the strategic objectives that the board set out following the 2022 strategic review, growing standard Predict Your and Improve Your products by 32% versus Q1 FY23 and introducing new ad-testing variants specifically for digital and audio.

Predict Your (data) revenue grew by 36% on the comparable prior-year quarter to £4.0m, and Improve Your (data-led consultancy) revenue increased by 15% over the comparable prior-year quarter to £0.9m, bringing total platform revenue to £4.9m up 32%.

Total Group revenue grew by £0.9m (18%) on Q1 FY23 including a £0.2m reduction in non-platform consultancy, and growth in the US was in line with the Group.

The Company scored a series of new customer wins in the quarter. In the US, these included one of the world's largest publicly traded international oil and gas companies, a worldwide employment website, a global chocolate manufacturer, and a significant provider of search and advertising services on the internet. In Europe, the Company has begun working with a multinational manufacturer of luxury vehicles, a leading short-haul airline and an international business software company.

Partnerships

During the quarter the Company published and road-showed at Cannes and MADfest London four separate thought leadership pieces on creative effectiveness in collaboration with four new partners, namely, Pinterest (digital advertising in Europe), Finecast (addressable TV advertising US, UK Canada, Australia), Teads (mobile advertising US and UK) and JCDecaux (out-of-home advertising US and UK). The Board is encouraged by the development of these new partnerships and the adoption of System1's methodology across further advertising formats.

Products

In line with the plans announced last quarter, System1 launched two new Test Your Ad product variants. TYA Digital launched in May following the roll out of TYA Audio in April.  It is early days for both these products, but initial customer reaction has been pleasing.  

Commenting on the trading update, CEO James Gregory said: "The sales momentum in the platform business continues, with Q1 Predict Your revenue beating last year's comparable number by 36% and total platform revenue up 32%. I am also pleased to see System1's new product and fame-building initiatives attract new customers and partners".

Preliminary Results

The Company intends to release its preliminary results for the year ended 31 March 2023 on 1 August 2023

Further information on the Company can be found at www.system1group.com.

This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this information is now considered to be in the public domain.

For further information, please contact:

System1 Group PLC	Tel: [phone]
James Gregory, Chief Executive Officer
Chris Willford, Chief Financial Officer
Canaccord Genuity Limited (Nominated Adviser & Broker)	Tel: [phone]
Simon Bridges / Andrew Potts

 

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