DGAP-News: RNTS Media N.V. / Key word(s): Half Year Results
RNTS Media N.V.: H1 2016 Interim Report / Strong adoption of Real-time
business leads to 90% growth in the first half of 2016
21.09.2016 / 17:01
The issuer is solely responsible for the content of this announcement.
(The "Company" or The "Group")
H1 2016 Interim Report
Strong adoption of Real-time business leads to 90% growth in the first half
RNTS Media's strategic goal is to become the leading independent
monetization technology partner for mobile app developers and digital
publishers. The focus on Mobile, Video and Real-time Bidding (RTB) that has
been defined 18 months ago is today addressing the three top themes of the
ad tech space. In H1 2016 it has already shown an impressive impact on the
- Pro-forma revenues accelerated by 90% to EUR94.8m and EBITDA improved
to EUR-5.5m, including both Inneractive and Heyzap as of 1 January
2015. Revenues (reported) accelerated by 84% from EUR32.6m in H1 2015
to EUR59.8m in H1 2016 with EBITDA improving vs. H2 2015 by EUR2.4m to
- Strong growth in Programmatic trading & Real-time bidding as well as
- RTB acquisitions accelerating growth - Fyber RTB revenues increased
more than twelve-fold YoY to EUR20m and Inneractive revenues up 158% in
H1 2016 to EUR34.6m
- Share of revenue from video ad formats grew from 18% in H1 2015 to more
than 44% in H1 2016 on a pro-forma basis, growing more than 350% during
- Combined Group reached more than 1 billion monthly active users,
(pending deduplication between acquired companies), and offers
comprehensive ad monetization solutions for app developers and digital
publishers across all relevant ad formats
- Upgraded guidance for pro-forma gross revenues from more than EUR160m
to more than EUR185m for 2016 and introduced guidance for 2017 with
more than EUR240m in gross revenues and EBITDA break-even on a run-rate
basis for the end of the year
- Placed EUR50m in convertible bonds as the final tranche of the EUR150m
convertible bonds launched in 2015
- To fully capitalize on its successful strategic progression and
significant acceleration in the growth of its RTB and programmatic
businesses, RNTS Media has decided to appoint CEO and co-founder of
Inneractive, Ziv Elul, as COO and CEO designate of the Group. After a
transitional period, Ziv will take over the responsibility as CEO while
current CEO Andreas Bodczek will be appointed Group President, focusing
on the further development of the strategy, the successful post-merger
integration of the recently acquired companies and the building of new
6 months ended 30 June
Pro-forma figures1 2015 (EURm) 2016 (EURm) Change (%)
Revenue 49.9 94.8 90.2
Gross margin (%) 34.4 30.3 -4.1 pp
Adjusted EBITDA2 -5.8 -2.3 -59.9
Adjusted loss after -7.4 -12.4 n/m
1 Pro-forma results show the financials of the Group as if Heyzap and
Inneractive had been acquired on 1 January 2015
2 Results adjusted to exclude separately disclosed items as explained in
the notes to the consolidated financial statements in the Annual Report
Andreas Bodczek, CEO of RNTS Media, commented: "The successful closing of
the Inneractive transaction marks a step change in RNTS Media's scale and
technological offering. The strong growth we have seen already during the
first months of this year is a proof point for the management's strategic
decision to focus the Company on digital advertising technology, powering
the app economy with solutions for smarter ad monetization. We have
identified the importance and potential of programmatic trading and RTB for
this sector early and positioned RNTS Media, with Fyber and Inneractive at
its core, to fully participate in the continuous strong market growth.
Fyber RTB, former Falk Realtime, was acquired almost pre-revenue and has
since then increased revenues to EUR20m, benefitting, like Inneractive,
from the strong and fast-growing market adoption of the buying technology.
Considering that programmatic trading and RTB for brand advertising are
still in the early stages of its development, we are confident that ad
spending will continue to rise in the coming years.
Pro-forma revenues during the first six months of 2016 grew 90% to EUR94m,
compared to the same period last year. This was mainly driven by strong
growth of Fyber's Rewarded Video, with ad impressions up 190% compared to
H1 2015 including Heyzap on a pro-forma basis, and RTB. Fyber RTB showed
strong adoption, benefitting both from organic growth in their core
business of monetizing large media publishers and ad networks, in addition
to enabling all of Fyber's client base to access programmatic advertising
demand. In line with the overall market developments we see the same trend
in the Inneractive business. Inneractive exceeded the forecasts drawn up
before the acquisition, contributing to the increased revenue guidance the
Group communicated in July.
While Offer Wall continues to be a stable contributor to the Fyber Group
revenues, we expect more versatile ad units such as Video, Native and
Interstitial to power future growth. These products can be best leveraged
across all business units as they appeal to all publisher verticals,
whereas Offer Wall focuses on powering gaming apps.
Requirements for product excellence, a comprehensive portfolio of ad
formats and monetization tools are increasingly more important as revenue
streams from mobile advertising become more meaningful to developers. For
RNTS Media, this translates into continued strategic investment into
engineering and product development. With more than 40% of our employees
dedicated to Product and R&D, we put developing and delivering tailored
technology and ensuring leadership through technological edge at the heart
of everything we do.
In July, we increased pro-forma gross revenue guidance from more than
EUR160m to more than EUR185m for the full year 2016, as well as adding a
gross revenue goal of more than EUR240m for 2017. This is largely based on
the strong adoption of our RTB business, with both Inneractive and Fyber
RTB outperforming their forecasts, and good traction of Fyber.
With a strong emphasis on the integration of the acquired companies and an
immediate focus on organic growth, RTNS Media is heading for EBITDA break-
even in the fourth quarter of 2017 on a run-rate basis. Falk Realtime,
Heyzap and Inneractive have either been profitable or reached break-even
since acquisition and are contributing to cash generation for the wider
The connection with the Inneractive platform and the retirement of the
Heyzap infrastructure in 2017 will drive further synergy. Investments made
ahead of growth can now be leveraged across the Group, including the strong
management team, back-office systems and the server infrastructure,
enabling us to scale into profit over the coming year.
With this we have also reached a milestone that provides the opportunity to
re-define the future Management Board of the RNTS Media. Ziv Elul, co-
founder and CEO of Inneractive, has already joined RNTS Media's Management
Board, where he is now taking on the responsibilities as Chief Operating
Officer (COO) and at the same time becomes the designated CEO with
immediate effect. After a transitional period, Ziv will be taking over the
responsibilities as CEO from me while I will move to the new position of
President to focus on the further development of the Group's strategy, the
successful post-merger integration of the recently acquired companies and
strategic relationships and partnerships. I am convinced that this further
enhances our ability to execute against our clear vision of becoming the
leading independent monetization technology partner for mobile app
developers and digital publishers."
About RNTS Media N.V.
RNTS Media is a leading mobile advertising technology company.
Headquartered in Berlin, Germany and founded in 2010, it empowers app
developers and publishers to generate business-critical revenue streams
with targeted in-app advertising through its core assets Fyber and
Inneractive. RNTS Media is listed on the Prime Standard of Frankfurt Stock
Exchange under symbol 'RNM.' For more information, visit www.rntsmedia.com.
+49 30 609 855 555
+44 20 7680 6550
21.09.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
Company: RNTS Media N.V.
Phone: +49 30 609 855 528
Listed: Regulated Market in Frankfurt (Prime Standard)
End of News DGAP News Service