Podcast platform听Audioboom听has ended its formal sale process to focus on continued organic growth.听
The listed company, which is headquartered in London and is the听sixth largest publisher of podcasts in the United States, had invited bids from interested parties but听has opted against taking up the offers.听
It听also听announced听拢3.15m new growth capital investment from听Singaporean firm听One Nine Two, which intends to subscribe for听a 10听per cent听stake in听Audioboom.听
In a Q3 trading update,听Audioboom听revealed record revenue of $6.5m,听up 15听per cent听on听the same period last year and听up 19听per cent听on Q2 2020.听
Adjusted EBITDA loss in Q3听was听$400,000,听representing听an improvement of 59听per cent听on听the听Q3 2019听figure of听$1m.听听
鈥淭he company engaged with several interested parties during the process and a number of these discussions advanced to a stage at which potential deal structures and outline valuations were proposed and considered,鈥� the firm stated to the London Stock Exchange.听
鈥淭hroughout, the board has been focussed on achieving what it considers to be maximum value for shareholders and would only consider recommending any potential transaction where the terms of any such deal would create greater shareholder value than would likely be achieved by continuing to pursue the group’s own growth trajectory and plans in its current form.听听听
鈥淚n the current climate, there has been limited interest in paying the level of premium to the prevailing share price that the board considers would represent appropriate value for shareholders and, as such, the board has not taken these discussions further.鈥�听
It said its expanding听Audioboom听Originals Network, which saw the听launch of Truth Vs Hollywood, Baby Mamas No Dramas, Huddled Masses and Because Mom Said So, brings in 10 per cent higher average听revenue per 1,000 listens听than other podcasts hosted on its network,听at听$35.85.听
听It intends to grow this area of the business further using the new growth capital.听
“I am delighted with the speed at which听Audioboom听has rebounded from the challenges of COVID-19, growing 19听per cent听from the second quarter, highlighting the resilience and strong fundamentals that we have built into the business,鈥� said CEO听Stuart Last.听
鈥�Our growth continues to outpace that predicted for the wider industry, with revenues for the nine months to 30 September 2020 up 18听per cent听on the same period in 2019 – more than 70听per cent听faster than the projected US podcast market growth for 2020.听
鈥�New content partnerships with major tier one podcasts such as Rotten Mango and Skeptic Tank, plus strategic initiatives with Nielsen and Rogers Sports & Media will provide good momentum as we move into the final quarter, traditionally our strongest performing period.”听
Audioboom听operates internationally, with operations and global partnerships across North America, Europe, Asia and Australia.听
It听provides technology and advertising services for a premium network of 250 top tier podcasts, with key听UK听partners including No Such Thing听As听A Fish, The Cycling Podcast听and The Totally Football Show.听