Half Yearly Report and Accounts
Cross track digital-communications system owner and operator XTD Limited (ASX: XTD) (XTD or the Company) can announce that revenues for H1FY2018 were down 8% on the corresponding FY2017 period. This reflected revenue for the period of $1,979,870 against $2,151,320 for the same period in 2017.
Cash and cash equivalents as at 31 December 2017 were $2,338,399, up from $1,830,292 at 30 June 2017.
Overall 2017 saw a downturn of 5% in advertising revenue on Rail formats as reported by APN Outdoor in their annual report released on 19 February 2018. Industry body, the OMA is predicting growth in the Australian market of 6% in the calendar year 2018.
Subsequent to executing a renewal of its contract with APN Outdoor in June 2017, XTD has successfully completed a migration of content delivery technology across our network to align our screens to the Scala platform used by APN Outdoor. This ensures more timely and responsive distribution of content to the national XTrackTV network reaching millions of Australian commuters every day. XTD’s relationship with APN Outdoor will continue to address this rapidly growing market sector.
As reported in its announcement dated 15 December 2017, XTD’s previous CEO left the business, and the Company is in the midst of a strategic review. While a comprehensive announcement will be released to the market in due course, XTD would like to highlight the following activity:
- The Digital Out of Home (DOOH) market continues to see significant growth. As a percentage of total Out of Home market revenue, DOOH has grown from 40.2% to 47.3% in the year to 31 December, 20171. XTrackTV and Rail advertising revenue in general didn’t grow at these rates, but XTD expects this sector will enjoy a significant bounce in revenue that matches the greater advertising market as brands recognise it’s potential and greater dwell times. XTD remains convinced the XTrackTV medium is a market with significant potential.
- XTD’s partnership with APN has strengthened during the reporting period, with aligned goals and strategic intent. XTD expects the partnership to yield well-earned growth as we continue to evolve the XTD Business for the future.
- XTD’s innovation division, Contact Light, is commercialising two software products into global markets. Its flagship product, Embark, has been downloaded over 200,000 times and is forming the basis of tailored wayfinding and data solutions for Smart Cities and Tourism. Contact Light’s Nearcast product is also being commercialised to add innovation to XTD’s screen network, and to third party DOOH screen networks globally, to allow screen to mobile engagement. This unique feature will offer advertisers tangible value and data outcomes for their DOOH advertising investment.
XTD Limited looks forward to releasing a strategic update shortly.