Video advertising technology company Tremor International said trading has been 'severely impacted' as clients cut advertising budgets due to the COVID-19 pandemic lockdown and warned that revenues will be 27% to 29% lower than expected in the first half of 2020.
In a trading update, the company reported that the travel, hospitality, automotive and retail verticals had experienced significantly reduced demand since mid-March 2020, although increased demand in certain industries such as online services, e-commerce and pharmaceuticals had mitigated some of the decline.
Tremor International said revenues in the first half of 2020 are therefore expected to be between $131-135m, 27% to 29% lower than expected, with an adjusted EBITDA loss in the first half of around $3m to $6m.
Trading volumes in April 2020 were 'significantly lower' when compared to April 2019.
The company previously announced a buyback of $10m in March, which was originally due to be completed across the remainder of 2020, but Tremor announced that the board has decided to accelerate this buyback with the aim of completing it within the next three months.
Tremor International said that it has introduced a number of cost-cutting initiatives which will result in cost savings of over $23m in 2020 versus the yearly budget.
Chief executive Ofer Druker said: 'We have stayed close to our advertiser customers and are pleased to see month by month recovery. We are now confident on emerging from this crisis in a strong position as the industry comes out of lockdown.'
Tremor International also announced that non-executive chairman Tim Weller intends to step down from the board and as a director of the company, having spent six years as chairman.
He will continue to carry out his duties and assist the company during a transition period up to 31 August 2020.
At 9:23am: (LON:TRMR) Tremor International LTD share price was -17.5p at 128.5p