Interim report January –
Q1 2023
- Net sales in the quarter amounted to
SEK 331.3 M (298.3), which corresponds to net sales growth of 11% (51%) - Organic net sales growth amounted to 6% (40%), compared to a very strong first quarter of 2022
- The gross margin for the quarter was 36% (36%)
- EBITDA for the quarter amounted to
SEK -60.7 M (-67.8) and the EBITDA margin was -18% (-23%). The improvement in the EBITDA result means thatAcast is following the plan to reach a positive EBITDA in 2024 - Operating loss amounted to
SEK -78.0 M (-80.1) - The period’s result was positively affected by currency translation effects and amounted to
SEK -72.0 M (-73.2 - Cash flow from operating activities amounted to
SEK -1.7 M (-87.6) - Earnings per share for the period before and after dilution amounted to
SEK -0.40 (-0.41) - The number of listens amounted to 1,283 million (1,256), an increase of 2% compared to the same period as year, and Average Revenue Per Listen (ARPL) amounted to
SEK 0.26 (0.24), a consequence of our strategy to increase revenues from existing content
Significant events in the first quarter of 2023
Acast introduced a new method for ad delivery, Interchangeable Ad Slots, which increases the volume of sellable ad space of our platformAcast Marketplace . This innovative solution for automated ad delivery increases the ad inventory by more than 10 percentAcast published the “Big Fat Podcast Report 2023”, a study focused on the Nordic podcast market. The report highlights an increasing interest in listening to podcasts, but also the strength of podcasts as an advertising medium with a higher return on investment (ROAS) than other advertising channels- In January Acast conducted an industry study which surveyed the knowledge and thoughts about programmatic advertising in podcasting among US marketers, indicating a high interest and demand from advertisers but also a need for further education in how programmatic advertising can benefit and support marketers in reaching their target audiences
- The
Bill & Melinda Gates Foundation announced a new podcast series called, Make Me Care About, hosted by award–winning podcast host and New York Times bestselling authorJen Hatmaker . Produced by Magnificent Noise, Make Me Care About will be distributed byAcast across all podcast platforms and listening apps Acast initiated a partnership with Tonny Media, one of The Netherlands’ most significant independent podcast production companies, improving podcasting content in the region even further after the market launch at the end of last year
Comments from the CEO: Stable start to the year
Improved results and continued growth
During the first quarter of 2023,
Net sales in
We see a continued positive trend in terms of programmatic advertising sales, our fastest-growing sales channel, which supports the scalability of our business model. During the quarter,
The average revenue per listen (ARPL) was
Adjusted EBITDA for the quarter was -60.7 MSEK (-67.8), a profit improvement of 10.5 percent compared to the previous year. The adjusted EBITDA margin improved to -18 percent (-23). Our work to reach the goal of a positive EBITDA result in 2024 is ongoing and the development at the beginning of the year indicates that we are on the right track.
Increased focus on existing inventory
During the quarter, we reached two important milestones: the number of podcasts on our platform reached 100,000 and the number of unique listeners per month exceeded 100 million. With 100,000 podcasts linked to our platform, we have achieved a good level for both reach and scalability, which now gives us the opportunity to focus on increasing sales in existing advertising inventory.
Today,
Automation drives marketplace value
An important strategic priority for us at
During the quarter we introduced a new method of ad delivery, Interchangeable Ad Slots. Ad inventory was previously reserved for just one type of advertising message: a sponsorship (read by the host) or a pre-recorded ad (made by the advertiser). Interchangeable Ad Slots mean that
In late 2022, we introduced our own self-serve ad platform, where advertisers can activate their own podcast strategy and create ad campaigns themselves. The platform has received a very positive reception in the first quarter of 2023, where we have seen that both large and small advertisers have chosen to create their own advertising campaigns through our platform, without the usual manual work on our part. Although the platform has only been on the market for a few months, we are happy to share that more than 150 advertisers have already advertised via the platform and that nearly 40 percent of these have booked more than one advertising campaign.
Higher Ground choose
After the end of the period, we welcomed President
It is with excitement and anticipation that I look forward to the coming year, despite the continued great macroeconomic uncertainty. In recent years,
Chief Executive Officer
Report presentation
CEO
Link to the presentation: https://ir.financialhearings.com/acast-q1-2023
Link to report
The Interim Report is attached to this press release and available on https://investors.acast.com/
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