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 |