Mobile Ad Sell-Off Leaves Leaner Matomy

Israeli firm Matomy Media Group Ltd has announced results for the quarter ended 30th September 2018, with revenue of $US 101m and EBITDA of $US 4.2m. The troubled company sold its MobFox mobile supply side platform and exchange in November.

Comparisons with previous Q3s are not possible as the firm did not report quarterly until 2018.

Matomy says the 'bold' decision to sell MobFox 'rather than invest further in growing the activity' reflects a highly competitive mobile in-app advertising market, and notes that the sale will 'reduce operational costs, significantly cut corporate overhead, raise profitability, and in turn, should create higher value for Matomy's stakeholders', beginning with the 2019 financial reports. It has also exited from its email and video activities, whose revenues reached $13.5m in the period.

Matomy bought MR panellist recruiter and online marketing agency Adperio in 2011, and a 70% stake in Toronto-based ad targeting specialist Maven Marketing, / Avenlo, in 2015. However, by 2017 it had hit stormier waters and in May that year it announced it would henceforth focus its resources on programmatic mobile and video advertising, and domain monetization, exiting 'a broad range of other activities'. At the time, MobFox was not intended to be one of these, with more money being invested in it. Mobfox had revenue of $27.9m in the nine months of 2018, and an EBITDA loss of ($3.5m).

Matomy increased its stake in the Team Internet domain monetisation business earlier in the year, and saw its revenues grow to $59.6m with direct adjusted EBITDA of $11.4m.

In the latest statement, to the London Stock Exchange, the Directors confirmed that 'there remains some uncertainty regarding the Group's ability to meet certain obligations in the foreseeable future', with details provided in an Auditor's Report.

Liam Galin (pictured), Matomy's President and CEO since January 2018 said: 'In the first nine months of 2018, we continued our strategic path and exited our nonprofitable activities. Post Q3, we sold our in-app advertising activity, that needed heavy investments to take it to the next level. We can now focus our attention and resources on growing our profitable domain monetization activity. In parallel, we are working closely with our stakeholders to resolve concerns so we may move forward in maximizing value for all'.

Web site: www.matomy.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.