Reworld Media (PA:ALREW) combines leading media brands with performance marketing via its consolidated 30% TradeDoubler shareholding, providing advertisers with a strong data-driven proposition. Management has reinvigorated its brands, investing in their digital offers and driving reach, while structural profitability has improved through extensive overhead reduction. TradeDoubler (TD) reported adjusted positive EBITDA in H216 and management has indicated that group FY16e EBITDA will be roughly treble that of FY15. Medium-term earnings growth will be driven by operating leverage, along with the fast-growing digital share of global marketing spend, which should then reflect in the valuation.
Brands and performance advertising
Reworld has built a portfolio of media brands across the women’s, entertainment and lifestyle segments. Under previous owners, these had been underinvested, particularly in digital. With more active direction, they are gaining reach, profitability and generating a fast-growing digital income stream. In March 2016, Reworld took management control of Sweden-quoted TD, fully consolidating financials, despite a 30% shareholding. An established, substantial ad tech player, it has broadened from its affiliate marketing origins to a performance-oriented brand partner, with an international footprint (currently mostly European). It works with a wide roster of high-quality clients across consumer verticals. Aligning this with media brands’ data on audience profile and behaviour gives significant potential added value.
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