Fyber - Termination of coverage

Edison Investment Research is terminating coverage on Fyber (FBEN). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.

Taking its divisional name, Fyber

Reflecting the closer integration of its assets, RNTS will rename to Fyber. Revenue growth of 17% in Q1 falls short of full-year targets but is expected to accelerate as the year progresses and management has reiterated its full year targets of revenues over €280m and EBITDA over €3m. Putting in place additional financing would lift a significant overhang on the shares.

Programmatic and video power growth

Exponential growth of programmatic and video ad formats enabled RNTS to grow revenues by 69% in FY16, at the top of its peer set. Management has reiterated its expectation of ongoing strong growth in 2017 and EBITDA profitability. The recent restructuring of the €150m convertible bonds frees the group’s hand to put in place additional financing, required to satisfy earnouts. This would remove an overhang on the shares, which trade in line with peers on FY17e EV/sales multiples.

Strong momentum to continue into FY17

RNTS Media’s FY16 preliminary update points to pro forma (PF) FY16 revenue growth of at least 65%, in line with its recently raised guidance and our forecasts. RNTS reached EBITDA break-even during Q4, as expected. Contingent on planned financing, FY17 guidance for revenue growth of 30% and EBITDA profitability of over €3m has been introduced, a clear signal of ongoing strong momentum; we leave forecasts unchanged.

Programmatic and video drive exceptional growth

Exceptional revenue growth from RNTS Media’s programmatic technology and video ad formats continued into Q3 with revenues for the nine months up 83%. The company’s recently raised guidance seems comfortably achievable and we upgrade our revenue forecasts by 7% in FY16 and 9% in FY17. We now forecast adjusted EBITDA profitability from Q4 this year and in FY17. The 1.3x FY17 EV/sales rating, while a premium to peers, is looking increasingly justified.

Another increase in revenue guidance

RNTS Media has increased pro-forma revenue guidance for FY16 by c 10% to over €205m. The strong trading means the company will reach adjusted EBITDA breakeven in Q416 rather than during 2017 as previously targeted. The company’s guidance for 2017, currently for pro-forma revenues of over €240m, will be updated once it has finalised its budgeting. We will review our forecasts following the Q3 update on 18 November.

Significant acceleration in revenue growth

RNTS Media’s investment in programmatic trading, video and the recent acquisition of Inneractive drove a near doubling of pro forma revenues in H116. The recently raised revenue guidance, which has been reiterated, looks eminently achievable and the EV/Sales premium to peers increasingly justified.

Inneractive acquisition puts RNTS on the map

The proposed acquisition of Inneractive, a rapidly growing mobile SSP, will put RNTS firmly on the map among the larger listed ad tech groups. By connecting with the Fyber platform, it can offer a significantly wider audience reach to advertisers and deeper demand to publishers. With the first €100m of last year’s €150m convertible bond issue fully deployed, the EV/Sales valuation is becoming easier to digest.

Heyzap - accelerates growth

RNTS Media’s acquisition of Heyzap adds scale, as well the potential to accelerate the launch of new products on Fyber’s ad exchange. This is key to driving conversion to the exchange, which is already responding positively to the launch of video last year, but still has some way to go to bring the group to break-even.

Geared up for growth

Fyber recently enhanced its mobile video product and added other products on the Fyber ad exchange. Initial results are promising and with a widening network of developers using its mediation solution, it should be able to rapidly build share in these new products and reaccelerate growth, which has slowed over the first half of the year.

Scaling up with acquisitions

FY14 revenue growth of 55% for RNTS Media softened in Q1 to 23% as the market moved towards rewarded video. Having built out the leading mediation platform for RV during FY14, the relaunch of this format on its ad exchange over the summer and the integration of the recent Falk Realtime acquisition should re-ignite growth from H215. RNTS plan a €150m convertible bond issue to finance acquisitions and scale its platform, which should prove a support to the current EV/Sales rating.

Hybridan Small Cap Feast - 21 Feb 23

21 February 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objec

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6 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objective

Hybridan Small Cap Feast - 23 Mar 23

23 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

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NTU update and change of reporting date

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Hybridan Small Cap Feast - 21 Mar 23

21 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

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16 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

Hybridan Small Cap Feast - 24 Mar 23

24 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

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Hybridan Small Cap Feast - 13 Mar 23

13 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

Hybridan Small Cap Feast - 20 Mar 23

20 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv

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