Josh Simons.
Media and music technology company Vinyl has completed a strategic review, cut staff costs by 4% and reported strong revenue growth in April.
The company said momentum heading into the last quarter of the financial year is positive despite a "relatively soft" advertising market in the March quarter due to "geopolitical uncertainty and buying hesitation".
The high-margin platforms business was up 19% on the same period last year.
“The new senior leadership team is in the process of realising a refined strategic direction, with a focus on the pathway to enduring profitability,” Vinyl told the ASX in a March quarter update.
Guidance has been revised to an expected EBITDA (earnings before interest, taxes, depreciation, and amortisation) positive run-rate in the half year to December 2026.
The company said it continues to evaluate selective acquisition opportunities that have the potential to accelerate earnings and cash flow.
“We emerge from our seasonally softest quarter as a stronger business, having strengthened our management team and board and completed the acquisition of Val Morgan Digital,” said CEO Josh Simons.
“As a result, we now have a national audience reach comparable to Australia’s largest media organisations.
“The integration has also created an opportunity to undertake a comprehensive review of the group’s strategic direction.
“This review, together with the insights of our refreshed management team, has identified growth opportunities across our publishing product portfolio, including a simplified go-to-market strategy.
“Our outlook remains positive. Underlying revenue growth in April has been strong, and from mid-April we will benefit from the first contributions from Val Morgan Digital.”
The company intends to provide a broader update on its AI implementation strategy at the end of the current financial year.
Over the past six months, Vinyl has been lowering its fixed cost base.
Staff costs have trended down since the peak in the December quarter, following multiple acquisitions. They are down 4% in the March quarter compared to the December quarter.
Vinyl's March quarter update:
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