Audioboom Signs Formula 1 Deal And Expands Spotify Agreement

LONDON (Alliance News) - On-demand podcast platform Audioboom Group PLC said Thursday it signed ...

Alliance News 14 June, 2018 | 11:56AM
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LONDON (Alliance News) - On-demand podcast platform Audioboom Group PLC said Thursday it signed an agreement with Formula One Digital Media Ltd to co-produce a weekly podcast.

Audioboom shares plunged on Thursday, trading down 32% at 2.45 pence, after being restored to AIM trading.

Its shares had been suspended from trading since February as it sought funds to fund working capital requirements. Last week, Audioboom said it will raise GBP4.5 million through a placing and subscription of 150.0 million new shares at 3 pence each.

On the same day, the company reported a pretax loss of GBP5.0 million for the financial year to November 30, marginally widened from GBP4.9 million the year before.

The Formula 1 podcast, to be called "Beyond the Grid", has a fixed term until December 31, 2019, subject to performance hurdles in the first six months of the contract.

"The inaugural series of the podcast will run for an initial 52-week period and follow a topical audio magazine style format comprising comment and exclusive and insightful interviews from various global locations from the F1 Worldwide Grand Prix season," the company said.

It will be distributed across the Audioboom platform and partner platforms including Apple Podcasts, Spotify Technology SA and GooglePlay.

Audioboom will pay a guaranteed fee per podcast uploaded to is platform in addition to a revenue share on sponsorships, pre, mid and post roll advertising.

In a separate announcement Audioboom said that its partnership with Spotify boosted listens and live read ad inventory by 10% over the 12-month-period to May 31.

"The ability to deliver advertising inside the Spotify platform should result in increased revenue for Audioboom as more listeners are onboarded," the company said.

Until now, Audioboom uploaded manually just 1% of its content on Spotify. The companies have now established an application programming interface which will upload the entire Audioboom content on the platform.

The deal with Spotify includes a revenue-sharing component "whereby Spotify will share revenues derived from any pre and post roll advertising delivered programmatically by Spotify", Audioboom said.

By Elena Cherubini; elenacherubini@alliancenews.com.

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Audioboom Group PLC 1.08 GBX -4.44 -
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