0R15 9263.0 5.0108% 0R1E 8452.1602 1.1266% 0M69 17150.1406 36.2203% 0R2V 172.4 -2.4335% 0QYR 1461.5286 -0.4069% 0QYP 428.0701 1.1986% 0LCV 139.42 -2.0239% 0RUK 2966.5117 1.5233% 0RYA 1810.0 2.1445% 0RIH 148.0 0.339% 0RIH 148.44 0.6373% 0R1O 177.75 10071.6738% 0R1O None None% 0QFP 9346.083 85.4382% 0M2Z 284.6256 0.0529% 0VSO 25.39 -28.6898% 0R1I None None% 0QZI 511.0 2.8169% 0QZ0 220.0 0.0% 0NZF 839.5385 68.4467%
Taptica International Ltd. (TAP) is a leading advertising technologies company having operations in more than 60 countries. The company offers advertising services, taking maximum advantage of the latest video and display technology to reach users for every app, service and brand. The company work for more than 450 leading advertisers including Amazon, Twitter and Disney etc.
Key Statistics
Recent News
On 8th April 2019, the Taptica International Ltd announced the Board of Director’s intention to change the company’s name to Tremor International Ltd.
Financial Results and Review – Financial Year 2018 ($, thousand)
(Source: Annual Report, Company Website)
For the financial year ending 31 December 2018, the company’s reported revenue stood at $276,872 thousand as compared to $210,925 thousand in the same period of last year. There was a significant increase of 31.3 per cent due to an increase in revenue from American and Asian region whereas, revenue from Europe and Israel declined. The business of the company remained highly cash generative with a strong balance sheet. The company had a sustained diversification of revenue streams with a focus on margin improvement. The Gross Profit for FY 18 increased by 38 per cent to $111,432 thousand from $80,575 thousand in FY 2017. The gross margin increased from 38.2 per cent in FY 2017 to 40.25 per cent in FY 2018 due to increased efficiencies enabling campaign optimisation. The company’s reported Adjusted EBITDA for FY 2018 stood at $44.1 millionas compared to $34.2 million in FY 2017.The profit from operations for FY 2018 stood at $26,696 thousand as compared to $17,627 thousand in FY 2017. The Profit before tax stood at $27,169 thousand in FY 2018 as compared to $17,320 thousand in FY 2017. The company’s reported total comprehensive Income for the Year 2018 stood at $22,515 thousand as compared to $13,758 thousand in FY 2017. The company’s reported EPS for FY 2018 stood at 32.81 cents as compared to 22.49 cents in FY 2017. The company’s Diluted EPS for FY 2018 stood at 31.79 cents as compared to 21.61 cents in FY 2017. The Net cash inflow from Operating activities for FY 2018 stood at $37.5 million as compared to $30.8 million in FY 2017.
Share Price Performance
Daily Chart as at April-08-19, before the market close(Source: Thomson Reuters)
On 8th April 2019, at the time of writing (before the market close, GMT 1:15 PM), Taptica International shares were trading at GBX 173.13, up by 4.30 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 400.00/GBX 130.00. The outstanding market capitalisation was around £224.48 million with a dividend yield of 3.03 per cent.
Valuation Methodology
Conclusion
The company had shown good financial growth as compared with the previous year. There had been strong growth in the overseas business of the company especially in America and Asia region. Recently released results for the financial year 2018 also showed the strong growth outlook of the company. The company’s business is highly cash generative with a strong balance sheet. Based on the strong growth prospects of the company and the valuation done using the above method, we have given the BUY recommendation at the closing price of GBX 166.00 (as on 5th April 2019) with single-digit upside potential based on 5.6x NTM Enterprise value to EBITDA (approx.) on FY19E EBITDA.
*All forecasted figures and peers have been taken from Thomson Reuters. Currency exchange rate taken for 1 USD = 0.7663 GBP
*The buy recommendation is also valid for the current price as covered in the report (as on April-08-19).
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