Josh Simons.
Emerging media player ASX-listed Vinyl, with redundancies and restructuring behind it, says the new financial year has started with a positive outlook.
Vinyl generated revenue of $4.6 million and cash receipts of $3.1 million in the June quarter, below management expectations, reflecting softer media trading late in the quarter, delayed campaign starts.
However, the company, with a significantly larger revenue platform following acquisitions, expects September quarter customer receipts of $7 million plus, supporting the company’s full financial year revenue forecast of $38 million to $40 million.
The company this week appointed Lucie Caswell chief business strategy officer and former Seven West Media sales chief Kurt Burnette interim chief commercial officer.
In the June quarter, Vinyl completed the acquisitions of Val Morgan Digital, Pedestrian Group and Time Out Australia, materially expanding the scale, audience reach and commercial capability of the company.
“The completion of three acquisitions during the quarter has fundamentally transformed Vinyl, expanding our portfolio of premium cultural assets and increasing our national audience reach,” said CEO Josh Simons.
“This enables us to deliver Adaptive Media campaigns at scale and improve ROI for advertisers seeking to align and activate with culture through our connected ecosystem.
"The early stages of integration resulted in one-off restructuring and redundancy costs, while the billing cycles of the acquired businesses delayed the conversion of revenue into cash.
“Notwithstanding these impacts, normalised operating cash burn on a proforma basis is at approximately $0.4M, demonstrating that the larger business is operating near breakeven.
“Q1 FY27 is now a critical commercial reset quarter. We enter the year with a materially larger media platform, a more efficient operating base, a refreshed and highly motivated executive team and a clear pathway to sustainable profitability.”
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