2017 Financial Review
The Company announced on May 8, 2017 a new strategic focus on core activities - Team Internet (domain monetisation) and Mobfox (programmatic in-app advertising) - resulting in higher revenue stability, gross margins and profitability. As a result, Matomy’s adjusted EBITDA increased by 16% to $20.7 million (FY2016: $17.7 million) and excluding the exited activities, on a pro-forma basis, adjusted EBITDA rose 29%, resulting in increased of cash generation.
Income statement
Year ended 31 December 2017
(US dollars in thousands except earnings per share data)
| |
2017 |
2016 |
| Revenues |
$ 245,056 |
$ 276,631 |
| Cost of revenues |
191,375 |
219,715 |
| Gross profit |
53,681 |
56,916 |
| Operating expenses |
|
|
| Research and development |
10,980 |
9,297 |
| Selling and marketing |
25,804 |
31,121 |
| General and administrative |
13,883 |
18,209 |
| Impairment, net of change in fair value of contingent consideration |
17,181 |
(425) |
| Restructuring costs |
924 |
- |
| Gain from sale of activity |
(913) |
- |
| Total operating expenses |
67,859 |
58,202 |
| Operating loss |
(14,178) |
(1,286) |
| Financial expenses, net |
2,536 |
2,057 |
| Loss before taxes on income |
(16,714) |
(3,343) |
| Tax on income (benefit) |
(2,145) |
4,689 |
| Income (loss) before equity losses of affiliated companies |
(14,569) |
(8,032) |
| Gain on remeasurement to fair value and equity gains (equity losses) of affiliated companies, net |
135 |
(73) |
| Net loss |
(14,434) |
(8,105) |
| Net income attributable to redeemable non-controlling interests in subsidiaries |
(1,466) |
(487) |
| Net income attributable to other non-controlling interests in subsidiary |
(23) |
- |
| Net loss attributable to Matomy Media Group Ltd. before accretion of redeemable non-controlling interest |
$ (15,923) |
$ (8,592) |
| Basic and diluted loss per ordinary share |
$ (0.35) |
$ (0.13) |