TO A year ago, podcast producer Audioboom faced an uncertain future as management sought, ultimately unsuccessfully, to find a buyer who would inject cash to expand the business. When the company gives its last financial update this week, it will tell a very different story: In the last 12 months its market value has more than tripled and an inaugural profit is looming as Audioboom joins the ranks of the winners of the pandemic.
Netflix to Spotify digital entertainment services have been boosted with blocking viewing and listening, and Audioboom has been no exception. It now attracts 25 million listeners a month with partner content ranging from Formula One to Formula One. To bake presenter Sue Perkins.
Audioboom, which counts Nick Candy’s investment firm as its largest shareholder, posted revenue last year at a record $ 26.8 million and losses nearly halved to $ 1.7 million. This has been fueled by an advertiser boom that has created an increase in the amount of money the company now makes from the 85 million times its podcasts are downloaded and listened to each month.
Momentum shows no signs of slowing down, with Stuart Last, the chief executive, already hailing 2021 as a “breakthrough year,” and analysts forecast the 12-year-old business to make its first profits since listing in London in 2014. .
The drop in advertising demand traditionally seen in the first quarter has not materialized this year, as continued coronavirus restrictions leave millions of people with limited entertainment options. The business has already reached 80% of its projected ad revenue, and its first-quarter update on April 14 is likely to bring even more joy to investors.
Shares surged more than 250% over the past year, giving Audioboom a market value of £ 95 million, a similar figure to its global rivals, but which house broker Allenby Capital believes indicates that the company is still significantly undervalued. Last October, Audioboom sold a stake to a new Singaporean investor, raising £ 3 million to invest in its own original content, as it saw the risk of being outbid by rivals with deep pockets when podcast partner deals emerge to renew. Earlier this month it was released Dark air, a comedy series written by and starring Rainn Wilson from the American version of The office, and extended its official podcast partner agreement with Formula One until 2023.
Spotify has spent hundreds of millions of dollars on podcast companies and top talent, including deals with Obama and Harry and Meghan’s production company, in the battle for content and the scale of the crown jewel.
It said its strategy to diversify away from music was paying off: Hours of listening to podcasts doubled in the final quarter of last year, and this had been a significant factor in its 27% year-on-year increase in users, reported the company.
Last December, Amazon acquired Wondery, the network behind podcasts that include Dirty john Y Dr. deathas it also adds audio content to its Amazon Music service.
Audioboom’s revenue is growing at nearly twice the rate of the US podcasting ad market, the world’s largest at an estimated $ 1 billion, and the recent wave of purchases has left few independent competitors. on a large scale in the market. Audioboom investors will hope that its growth story will soon be enough to make it onto the buy list of one of the global players.
George is Digismak’s reported cum editor with 13 years of experience in Journalism