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Year in Review

2016 Financial Review

Revenues on a GAAP basis in 2016 increased by $5.6 million, or 2.1%, to $276.6 million, with a continued shift in the revenue mix towards Matomy’s growth engines of programmatic video and mobile.

2016 saw Matomy continue its successful transition in the direction of programmatic mobile and video advertising. Anticipating the evolution of advertising towards mobile and video and away from desktop display, Matomy delivered several key initiatives to cement our leadership position serving the needs of advertisers and publishers and positioning the company for a strong 2017. For 2016, we reported a 2% increase in revenue to $276.6 million (FY2015: $271.0 million), driven primarily by our identified strategic growth areas of mobile, video and domain monetisation. Adjusted EBITDA decreased by 34%, primarily due to additional investments in research and development activities, mainly for Mobfox and Optimatic, as well as to strengthen Matomy’s sales force in light of the new technologies, shifting geographical focus and investment in support of our APAC expansion.

Income statement

Year ended 31 December 2016
(US dollars in thousands, except earnings per share data)

  2016 2015
Revenues $ 276,631 $ 270,976
Cost of revenues 219,781 208,696
Gross profit 56,850 62,280
Operating expenses
Research and development 12,624 7,871
Selling and marketing 30,630 26,210
General and administrative 14,882 16,083
Total operating expenses 58,136 50,164
Operating (loss) income (1,286) 12,116
Financial expenses, net 2,057 2,179
Income (loss) before taxes on income (3,343) 9,937
Taxes on income 4,689 2,681
Income (loss) before equity losses of affiliated companies (8,032) 7,256
Equity losses of affiliated companies 73 24
Net (loss) income (8,105) 7,232
Revaluation of redeemable non-controlling interest (3,141) (76)
Net income attributable to redeemable non-controlling interests (487) (545)
Net loss attributable to other non-controlling interests - 2
Net (loss) income attributable to Matomy Media Group Ltd. $ (11,733) $ 6,613
Basic and diluted (loss) earnings per ordinary share $ (0.13) $ 0.07