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Tremor International shares soar on 40% revenue growth

Video advertising specialists, Tremor International Ltd (AIM:TRMR), watched their shares boom on Monday, with the company announcing a bumper end to their full-year 2020.

Among its key performance indicators, the company noted that private marketplace revenues grew dramatically year-on-year, up 1,519% in the third quarter and 1,095% during the fourth quarter. Similarly, the Group watched its connected TV revenues spiked by 140% in Q3 and 115% in Q4, while its self-service platform revenues increased by 647% and 551% respectively.

In its statement, Tremor International said that it: “[…] continues to drive substantial customer momentum in the second half of the current financial year, demonstrating strong organic growth despite the impact of Covid-19. Revenues generated across October and November 2020 were the highest in the Company’s history. Overall, it is anticipated that the Company will now achieve 37-43% revenue growth in the second half of 2020, compared to H2 2019.”

“As a consequence of this performance, the Company expects trading for the year ending 31 December 2020 to be significantly ahead of the ranges outlined in its October 2020 trading statement, which were $340-360 million for revenues and $30-36 million in Adjusted EBITDA, and provided under caution due to the uncertainty surrounding the US election. The Company now expects revenues, net revenue and Adjusted EBITDA to be in the ranges of $390-400 million, $171-175 million and $50-52 million respectively.”

The ‘significant’ sales traction being generated by the company is being primarily led by its Self-serve, PMP and Connected TV core segments. The Group say that its recent performance ‘provides clear validation’ of the company’s video, data and CTV focus – with the former accounting for more than 80% of company revenues.  

With the company’s management saying they believe the current growth trajectories will continue, Tremor International shares rocketed 26.43%, up to 290.80p a share 30/11/20 13:18 GMT.

On the one hand, the company currently has a p/e ratio of -26.35, and insiders have sold £526,635 of the company’s stock – while buying £0 – in the last three months. On the other hand, the Marketbeat community has a 55.56% stance on the stock, and it boasts a strong 4.73% dividend yield.