Audioboom posts record revenue but warns economic downturn could hit advertising market
Published: 16:54 18 Jul 2022 AEST
Audioboom Group PLC (AIM:BOOM) posted record first-half and second-quarter revenues but cautioned that the current economic downturn is likely to test the advertising market.
The podcast company said revenues in the six months up to 30 June 2022 were up 79% to US$40.9mln, while adjusted underlying earnings (EBITDA) grew to US$2mln from US$200,000. Revenue in the second quarter was 59% higher at US$21.2mln.
Showcase, the global advertising partner, now contributes more than 12% of the group’s revenue.
In its interim earnings statement, the London-listed company said that despite remaining confident that it is well positioned to grow and achieve its goals for 2022, it does “expect the advertising market to be further tested by the economic downturn”.
As a result, it has seen a softening in advertising demand in the third quarter due to lower consumer spending impacting brands’ confidence.
Audioboom said the overall outlook remains positive for several reasons, including an increase in advertising bookings compared to last year, a “strong” new business pipeline and expected further monetisation partnerships in Showcase.
“2022 has presented global challenges and the advertising market is not immune to those, however, podcast revenue is expected to grow at a quicker pace than most other forms of audio and we are confident that our proven monetisation model will continue to deliver great value for brands,” said chief executive Stuart Last.
Operationally, the group signed new partnerships, as well as renewed existing ones during the first half, and climbed up one place into third in Triton Digital’s largest US podcast publishers based on weekly audience.
