LONDON and TEL AVIV, Israel, July 6, 2016 /PRNewswire/ --

Matomy Media Group Ltd. (LSE:MTMY; TASE: MTMY.TA) (the "Company") announces its adoption of a strategic investment plan (the "Strategic Plan") across multiple business segments to enhance its innovative power in the digital advertising industry, and also provides a trading update for 2016 according to which the Company expects its revenue for 2016 to be in the range of $265 million to $300 million, and its adjusted EBITDA to be in the range of $17 million to $21 million.

The digital advertising industry continues to evolve and mature in one of the most interesting and challenging periods since its inception. The industry has experienced many technological, business and regulatory developments, including a rapid decline in desktop display advertising and the shift to mobile, the transition from contractual relationships to programmatic based transactions, and the broad adoption of video-based advertising as the leading medium to communicate with consumers.

The Company's market-leading expertise in digital advertising has enabled it to identify these emerging trends. The Company has taken decisive action over the past 18 months to enhance and streamline its operations and technology and product development. Importantly, the Company has increased its investment in its strategic capabilities of Mobile, Video and Programmatic trading. The Company also identified the strategic importance of establishing a strong foot print in the Asian- Pacific (APAC) market and has launched its China- and Korea-based activities (as reported in April 2016) and has built a detailed plan to help mobile developers in the APAC market distribute and monetize their apps through a local point of contact with access to advanced global monetization solutions.

As a result, the Company:

• bases its core activities around proprietary Video, Mobile and other Programmatic technologies, following its purchase and development of Mobfox, Optimatic and previously Team Internet (July 2014);
• generates: (i) approximately 38% of its revenues in Q1 2016 from the fast-growing aggregate mobile related revenues (2015 FY: 30%), (ii) 40% of its revenues in Q1 2016 from Video related activity; (iii) 77% of its revenues in Q1 2016 programmatically;
• enhances its "big data" analytics and optimization capabilities, leverages its broad footprint in several channels of media and unique multi-channel cross device offering, and generates improved targeting and ad-matching capabilities.

The Company continues to be one of just a few profitable companies in this market, on an EBITDA basis. However, consistent with the overall digital advertising industry trend, the Company is experiencing a decline in desktop display activity. The Company has substituted most of these revenues with Video, Mobile Display and Native based advertising, which have tended to generate higher quality and more sustainable long-term revenues with enhanced user engagement.

To leverage the Company's recent investments and acquisitions, the board has adopted the Strategic Plan, which allocates an initial sum of $3.3 million for expenditure during 2016 primarily in:

• additional research and development across the business, with a focus on Mobile and Video related developments;
• strengthening the sales force around current technology-based offerings and evolving geographies, in particular the Asian and the U.S. markets, mainly around Mobile and Programmatic activity. This follows the Company's launch of China- and Korea-based activities (as the Company reported in April 2016); and
• increasing the Company's marketing efforts.

Trading Update 

Matomy expects its revenues for the first six months of 2016 to be no less than $122m*.  The Company has traded profitably on an EBITDA basis for the first six months of 2016.

Matomy will implement its Strategic Plan commencing as of the second half of 2016. As part of the Strategic Plan the Company expects to significantly increase investment in its Mobile and Video offering and implement a new sales strategy which will include an expanded sales force. This more robust and sustainable future growth strategy will be implemented and supported by the Company's management, development and sales teams, and is expected to start yielding results in mid-2017.

As a result of the financial and human resource investment needed to support these strategic initiatives, the overall transition in the Company's activities and the limited revenue visibility from Programmatic based activities, the Company expects revenue for the year ended 31 December 2016 to be in the range of $265 million to $300 million, and its adjusted EBITDA to be in the range of $17 million to $21 million.  

Ofer Druker, the Company's CEO, commented, "We have successfully identified the trends in the industry and made smart acquisitions in core growth areas of Mobile, Video and other Programmatic capabilities. Our diversified business is well positioned to benefit from the growth opportunities in our industry, especially with the support and focus of our new strategic plan to enhance our overall technology assets and business capabilities.

"Our main assets and growth prospects are where Mobile, Video and Programmatic intersect. The transition to programmatic-based activities generates certain advantages for the Company, such as ability to support fast scaling (reach and volume) operational efficiencies and enhanced ability to leverage data resulting in improved targeting and ad matching capabilities. However, this transition also reduces the Company's revenue visibility, requiring it to present a more conservative outlook.

"Today the Company's technology is already at the forefront of the industry, and even after the additional investment, we expect to remain one of the most efficient companies in the ad tech industry, and one of the only listed companies that is profitable on an EBITDA basis and cash generative. I'm confident that this Strategic Plan will better leverage our technological capabilities, excellent operational capabilities and unique corporate culture," concluded Mr. Druker.

This announcement contains inside information.

• Based on preliminary, unaudited results consolidated full Group members 

About Matomy Media Group Ltd. 

Matomy Media Group Ltd. (LSE: MTMY, TASE: MTMY.TA) is a world leading media company delivering smart technology solutions and a personalized approach to advertising. By providing customized performance and programmatic solutions supported by internal media capabilities, "big data" analytics and optimization technology, Matomy empowers advertising and media partners to meet their evolving growth-driven goals. Matomy offers a single gateway to digital media channels including mobile, video, display, social, email marketing, search marketing (SEM, SEO, and ASO) and domain monetization. Founded in 2007, with headquarters in Tel Aviv, growing presence in the USA and six offices around the world, Matomy is dual listed on the London and Tel Aviv Stock Exchanges. Learn more about Matomy at http://www.matomy.com.

For more information:

Facebook: http://www.facebook.com/MatomyMediaGroup

Follow Matomy on Twitter: @MatomyGroup  

LinkedIn: http://www.linkedin.com/company/matomy-media-group

Forward-Looking Statements 

Some statements in this announcement are forward-looking. They represent expectations for Matomy's businesses or share trading, and involve risks and uncertainties. These forward-looking statements are based on current expectations and projections about future events, and Matomy believes that current expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties may exist in some cases beyond the control of Matomy, actual results or performance may differ materially from those expressed or implied by such forward-looking statements.

Investor Contact(s): 

Matomy Media Group
Lipaz Kloper, Head of Investor Relations
lipaz.k@matomy.com 
+972-773606161

Investor Relations

Elizabeth Barker / Garth Russell
matomy@kcsa.com

SOURCE Matomy Media Group