Interim report January –
Q2 2023
- Net sales in the quarter amounted to
SEK 386.3 M (315.8), which corresponds to net sales growth of 22% (39%) - Organic net sales growth amounted to 15% (28%)
- Gross margin for the quarter was 36% (30%), the second quarter 2022 was negatively affected by one-off costs linked to certain podcast agreements
- EBITDA for the quarter amounted to
SEK -41.7 M (-98.6) and the EBITDA margin was -11% (-31%). The improvement in the EBITDA result means thatAcast is following the plan to reach a positive EBITDA in 2024 - Operating loss amounted to
SEK -59.3 M (-112.0) - The period’s result was positively affected by currency translation effects and amounted to
SEK -14.2 M (-70.6) - Cash flow from operating activities amounted to
SEK -57.5 M (-97.6) - Earnings per share for the period before and after dilution amounted to
SEK -0.08 (-0.40) - The number of listens amounted to 1,294 million (1,238), an increase of 4% compared to the same period last year, and Average Revenue Per Listen (ARPL) amounted to
SEK 0.30 (0.26)
Significant events in the second quarter of 2023
Acast signed an agreement withPresident Barack and Mrs Michelle Obama’s media company Higher Ground. The agreement means thatAcast will handle ad sales and content distribution for podcasts such asMichelle Obama : The Light Podcast, Renegades: Born in the USA (withBarack Obama andBruce Springsteen ) and The Michelle Obama Podcast; Tell Them, I Am- During the quarter, Acast+ Access was introduced, a technology that allows companies with existing paid subscriptions to include podcasts as a benefit in those subscriptions. Through Acast+ Access, businesses with existing membership benefits, such as news publishers, media organizations and streaming services, can now integrate podcasts into the paywall they already use for their subscribers and increase value for customers
Acast launched host-read sponsorships on its self-serve ad platform. This means that advertisers of all sizes can themselves book campaigns to be delivered as host-read sponsorships by podcast hosts in their own voices, opening more podcasts to monetization. Previously only pre-recorded podcast ads were available on a self-serve basisAcast launched Collections+, AI-powered data capabilities that increase the reach in our podcasts. Collections+ combines our subsidiary Podchaser’s podcast data and proprietary algorithms with Acast’s marketplace, scaling ad sales and increasing monetization in small and medium-sized podcasts. By utilizingAcast and Podchaser data, dependence on third-party data providers is reduced, resulting in increased cost efficiency
Comments from the CEO: Margin improvement and strengthened results
The second quarter of the year has been marked by a continued improvement of our margins and our results, driven by prudent cost control and positive revenue development especially in
Profit improvement for the second quarter in a row
Our net sales during the second quarter amounted to
Net sales in
The gross margin amounted to 36 percent (30), a significant improvement compared to the previous year when the gross margin was negatively affected by one-off costs linked to certain podcast agreements. In addition, stable development of all our products and an increasing share of SaaS revenues from Podchaser contribute to an improved gross margin compared to a year ago. Non-ad revenues now make up just over 10% of net sales.
The EBITDA result improved to
Focus on automation creates value
Our work to further develop our self-serve ad platform is an example of how we constantly strive for an increased proportion of automation in our flow. During the quarter we added host-read sponsorships to the platform, creating opportunities for advertisers to independently find and purchase relevant advertising space as host-read sponsorships from across the entire
Acast’s self-serve ad platform has had a promising start since launching late last year. By now adding host-read sponsorships to the platform, we further leverage our large and growing base of audio influencers. The launch positions
The work to automate our services and reduce manual sales work continues with several important initiatives during the second quarter. By automating the ad buying process, we create higher cost efficiency. At the same time, more opportunities are created for advertisers to reach an engaged and valuable podcast audience. Programmatic ad buying, which allows podcast ad buyers to book ad campaigns efficiently and in real time through the
AI-driven podcast advertising gives increased reach
After acquiring Podchaser a year ago, we have been working hard to build even better solutions that create value for advertisers, listeners and podcast creators. A good example is Collections+, which was launched in the second quarter.
Collections+ is an AI-powered data capability which increases advertiser reach in podcasts. Data about podcasts and their listeners is pulled from a very broad range of sources, including Podchaser’s own data. The data is processed using AI models that then sort podcasts into richer, more relevant sales verticals based on all available data points. It gives advertisers the opportunity to reach more relevant listeners through a wider variety of podcasts.
For
A growing advertising product
The timing of a broad recovery in the world’s advertising markets is still difficult to assess, but certain positive signals now appearing on the horizon give hope for the future. In the meantime,
Chief Executive Officer
Report presentation
CEO
Link to the presentation: https://ir.financialhearings.com/acast-q2-2023
Link to report
The Interim Report is attached to this press release and available on https://investors.acast.com/
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