Rightster Group plc – Interim Results H1 2015

September 30th, 2015

Rightster Group plc
(“Rightster” or the “Group” or the “Company”)

Unaudited half year results for the six months ended 30 June 2015

Rightster Group plc (AIM: RSTR), the digital video distribution and monetisation network, today announces its half year results for the six months ended 30 June 2015.

Financial Highlights

  • Net Revenue of £7.0m (a 262% increase from H1 2014 and underlying growth of 81% from H1 2014)
  • Gross Profit of £3.5m (an increase of 534% from H1 2014)
  • Average monthly video views at 1.6bn (an uplift of 331% from H1 2014)
  • Loss before Tax of £11.5m (versus £7.2m in H1 2014)
  • Loss per share of 5.2p (versus 6.2p in H1 2014)
  • Annualised cost savings of £6m have been identified, which will be realised throughout the remainder of 2015 and 2016
  • Associated one-off restructuring costs for the period of £0.9m

Operational Highlights

  • Niall Dore joined the Company as CFO on 5 January 2015
  • Patrick Walker was appointed as CEO on 28 January 2015
  • Microsoft Lumia – partnership to develop a global YouTube campaign alongside Warner Music and the Dentsu Aegis Network
  • British Pathé – content deal to distribute their historical film archive
  • 20th Century Fox – extension of global partnership to fully manage their branded content across 17 international territories
  • Spotify – partnership to provide short-form video content to its millions of subscribers.
  • Procter & Gamble – new deals in India, France and across Asia Pacific, to generate awareness of specific products and engage audiences both on and off YouTube
  • Universal Pictures International deal around the Minions film release, utilising the Company’s network on YouTube, Instagram, Facebook and Snapchat

Post Period End

  • Base79 – acquisition completed with £24.3m of deferred consideration
  • VML – acquisition completed with issue of circa 6.2m new ordinary shares of 0.1 pence each (in aggregate) and deferred consideration of approx. £0.85m cash
  • Shiv Bhaduri appointed as Chief Product Officer
  • Partnership with Procter & Gamble in Asia Pacific
  • New partnership with Jack Jones TV, who has over 2.4 million Facebook page likes and the highest-ranking video with 13 million views to date
  • Turkish Airlines signed a new contract for 2015 campaign to promote Turkey 

Patrick Walker (CEO) commented:

“Rightster has made significant progress in the first half of 2015. I’m delighted that both of the acquired companies are now fully integrated and the Company continues to drive strong revenue growth. Substantial cost savings of £6m were identified during the period, which, once realised, will lead to a more streamlined and efficient business. We’re already seeing the benefit of the strategic acquisitions to our revenues, with the combined teams winning high profile, international deals. We aim to continue this momentum for the remainder of 2015.  I’m also excited about the innovative product launches in the pipeline that will further boost our revenue streams and bring efficiencies to both us and our partners. These products will continue to roll out throughout Q4 2015 and early 2016.”

You can find a full version of the results here.

For further information please contact:

Rightster Group plc
Patric Walker (CEO) / Niall Dore (CFO)
via Newgate

Cenkos Securities
Max Hartley / Mark Connelly (Nomad)
Tel: 020 7397 8900

Newgate
Tim Thompson/ Adam Lloyd / Robyn McConnachie
Tel: 0207 653 9850

About Rightster Group plc

Founded in 2011, Rightster is already the number one global multi-platform network for digital video. Rightster’s cloud-based software and services platform makes it simple for Content Owners, Creators, Brands, Publishers and Platforms to unlock the value of online video, whether on a licenced, ad-funded, direct to consumer or paid placement basis. Rightster’s network stands at over 2,500 Content Owners and over 10,500 Publishers, managed by global and local teams in 13 offices across North America, Europe and Asia Pacific