EN1 Capper at 15c but good to see revenue upgrades today see annoucement.
EN1 is currently trading on just 2 times Revenue
· Local Peer ADJ trading on 4 times Revenue
· USA Peers trading on 7 – 12 times Revenue
Market Update and 2018 Revenue and Earnings Guidance Highlights
• engage:BDR’s annual revenues expected to grow to between AUD $24.0 million - $24.5 million in 2018 and EBITDA for the full financial year expected to be between AUD
$1.25 million and AUD $1.5 million
• Global digital advertising spending growing significantly and the industry migration to programmatic based advertising gathering pace
• Company continuing the transition of its existing and new clients to programmatic media buying through integration of their advertising platforms
• Influencer marketing business growing significantly and expected to continue to grow.
• The Company is analysing a number of potential complimentary strategic acquisitions
The Company’s January 2018 programmatic revenue was 280% higher than for the previous corresponding month and its February 2018 programmatic revenue was again 310% higher than the its February 2017 programmatic revenues. This growth in the programmatic advertising part of the Company’s business is expected to continue during 2018.
In addition the Company’s influencer marketing business “IconicReach” which was originally expected to generate revenues of approximately AUD $1.2 million with a 50% gross margin for the 2018 calendar year is now expecting to do considerably better than that. The Company has already almost achieved that anticipated full calendar year revenue in just the first two months of 2018 and is now expecting to do revenues in its influencer marketing business in the vicinity of AUD $3m for 2018 year.
Additionally, following the Company’s listing, management has further reduced its operating costs in several key areas resulting in it achieving an overall monthly cost reduction of AUD $516,000. This is comprised of AUD $234,000 in monthly payroll and AUD $282,000 in general and administrative expenses. The Company believes that further cost savings due to the migration of the business to
programmatic will be achieved during 2018.
EN1 is presenting at Techknow tomorrow in Sydney and Thursday in Melbourne.
(20min delay)