Audioboom issues Q3 update

Audioboom has provided a trading update for the three months to Aug. 31.

"Following the release of the Interactive Advertising Bureau publishing guidelines in September 2016, Audioboom is adopting many of its recommendations as standard practice for all its future reporting.

"One of the key recommendations is that companies should now report unique file requests ("UFRs") as their measuring standard rather than listens, which has historically been one of Audioboom's KPIs.

"IAB has selected this new key measurement because UFRs provide a more definable measure and are standard across all platforms. The measurement standard is based on ubiquitous system log files, whereas 'listens' can be calculated by companies in many different and variable ways.

"Under the new IAB industry standards, Audioboom reported an increase in UFRs from 93.4m in Q2 to 102.5m in Q3, representing approximately 10% growth in real terms, quarter on quarter.

"Audioboom is now also calculating its served advertising impressions on a quarterly basis, as a measure of potential revenue. The Board believes that this is a valuable addition to its published KPIs and is pleased to report an increase in served advertising impressions from 43.5m in Q2 to 59.0m in Q3.

"This represents approximately 35% growth quarter on quarter, demonstrating Audioboom's commitment to commercialisation across its platform.

"Audioboom had 8,948 content channels at the end of Q3, adding over 800 during the quarter, including Saavn, India's largest music service. Additionally, Audioboom has signed new sales and distribution deals with Spotify, TargetSpot and Pandora.

"Most importantly, Q3 revenues exceeded the total revenue generated in H1, reflecting the momentum Audioboom is now enjoying. Advance bookings for Q4 and into 2017 show this growth continuing to accelerate.

"The Board is, therefore, confident in meeting its revenue expectations for the full year ending on 30 November 2016. The Board is targeting a cash-flow positive position by Q1 2018.

"Finally, the Company previously announced that it was considering the acquisition of SONR News Limited ("SONR"), primarily for the purpose of obtaining its engineering team and Neuro-Linguistic Programming and Artificial Intelligence algorithms but also for the potential to accelerate the Company's speed-to-market of its proposed ad-serving platform. The Board confirms that it is continuing with its due diligence and is in ongoing negotiations with the board of SONR. "

At 9:32am: (LON:BOOM) Audioboom Group share price was -0.13p at 2.38p