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RhythmOne losses widen on acquisition costs
RhythmOne saw its annual loss widen as a result of increasing costs linked to its recent acquisitions.
The digital advertising firm saw pre-tax losses widen 53% to $22.9m, despite a substantial increase of 71% in revenues to $255.1m, due to increased operating costs from its acquisitions of YuMe and RadiumOne.
RhythmOne's operating expenses totalled £110.3m, up 82% year-on-year, as a result of the acquisitions and exceptional items came to $16.2m, including $13.9m related to acquisitions.
Cost of revenue also expanded 53% to $151.3m.
RhythmOne revealed that it would not pay a dividend for the current year but told investors on Thursday that it had taken steps that would allow it to do so at a later date, including a capital reduction to create distributable reserves.
"The company has made a good start to the new financial year with trading in line with the board's expectation and the ongoing integration of YuMe. The company anticipates continued underlying revenue growth throughout financial year 2019," RhythmOne said.
As of 1500 BST, RhythmOne shares had lost 3.58% to 212.12p.