The Directors believe that Crossrider benefits from a number of key strengths that differentiate it from its competitors and which they believe will enable it to take advantage of current and future growth opportunities. These strengths include:

-- A diversified business model. Crossrider is uniquely positioned across the digital advertising ecosystem with resultant diversified revenue streams.

-- A strong position to take advantage of the growth in mobile which is expected to be the fastest growing stream of digital advertising.

-- An excellent track record in retaining publishers and advertisers. Crossrider's revenue retention rate for the six month period ending 30 June 2014 compared to the six month period ending 31 December 2013 was approximately 140 per cent. Crossrider defines its revenue retention factor as: revenue in the current period derived from customers who contributed to revenue in the prior period expressed as a percentage of total revenue in the prior period.

-- A market leading web app development platform.

-- Established relationships with a large network of digital media publishers.

-- A scalable and adaptable technology platform.

-- The Group is profitable and cash generative: generating adjusted EBITDA (on a pro forma basis) of US$7.7 million in the first half of 2014.

Digital Advertising Market

-- eMarketer estimates that global ad spending in 2014 will be $545 billion and, within this, it estimates that global digital ad spending is set to represent $138 billion.

-- Crossrider operates in a number of rapidly growing interlinked digital advertising markets. Global digital advertising is projected to grow to $204 billion in 2018, representing a compounded annual growth rate of 11.8 per cent. per annum from 2012 to 2018.

-- In 2018 digital is forecast to account for 31 per cent. of total advertising revenue and is expected to be the main growth driver in the overall market.

-- The digital advertising market includes both "online" and "mobile" segments. Mobile advertising has been growing rapidly and is considered a strong growth area in the future.

-- eMarketer estimates that the mobile advertising market has grown from $8.8 billion in 2012 to $18.0 billion in 2013 and expects the market to reach $94.9 billion in 2018. They expect this market to grow at a compound annual growth rate of 48.6 per cent. between 2012 and 2018, driven by the growth in the number of smart mobile devices in this market and the increased use of such devices.

- Ends -

This information is provided by RNS

The company news service from the London Stock Exchange

END

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