TIDMPHRM

RNS Number : 3504C

Phorm Corporation Limited

16 January 2015

16 January 2015

Phorm Corporation Limited

("Phorm" or the "Company")

Operational Update

Phorm (AIM: PHRM), a leading internet personalisation technology company, is pleased to announce an unaudited operational and financial update.

On 8 December 2014, Phorm announced that the growth in the group's key performance indicators ("KPIs") was continuing to strengthen, particularly in terms of the lead indicators of users and advertising requests and the Company is continuing to make very good progress in these areas.

 
                                  H1 2013        H2 2013        H1 2014        H2 2014 
  Key Performance                  6 months       6 months       6 months       6 months 
   Indicator 
----------------------------  -------------  -------------  -------------  ------------- 
 Peak Daily Unique 
  Users (m)                        0.8           14.1           37.8           148.1 
----------------------------  -------------  -------------  -------------  ------------- 
 Total Advertising 
  requests (bn)                    1.6           22.3           72.9           202.8 
----------------------------  -------------  -------------  -------------  ------------- 
 Total Advertising 
  impressions (bn)                 0.1            0.8            2.6            6.3 
----------------------------  -------------  -------------  -------------  ------------- 
 Total Revenues (US$'000s)*       28.5           251.3          528.8         1,051.8 
----------------------------  -------------  -------------  -------------  -------------

Note:

* Revenues are unaudited. The exchange rate used for H2 2014 is GBP0.614:USD1.000 and the above figure includes amounts yet to be invoiced.

The Company is delighted to announce that the peak daily unique users number for the 6 month period to 31 December 2014 was 148.1m (a significant increase from the 112.1m reported on 8 December 2014). The average number of daily unique users during December 2014 was 119.4m. These figures serve to demonstrate the acceleration of growth in user numbers as new publishers are brought onto our platform.

An increase in the number and size of publishers has also led to a sharp increase in the number of advertising requests, rising from 150.6bn for the 5 month period to 30 November 2014 to 202.8bn for the 6 month period to 31 December 2014.

The total number of advertising impressions served in the 6 month period to 31 December 2014 has grown to 6.3bn. This figure includes a sizeable number of advertising impressions served in test campaigns, which have been used by advertisers and agencies to evaluate the effectiveness of our platform.

The total unaudited revenue in the 6 month period to 31 December 2014 was approximately US$1.1m which is almost double the amount of revenue generated in the first half of the year. Revenue is currently anticipated to build rapidly with prices and margins increasing following the international New Year holiday periods. Large commercial campaigns have now been allocated in budgets for 2015.

The Company is also undertaking a major cost reduction programme that will result in a prioritisation of those markets where commercial traction is being achieved. As a result, the Company will be scaling back its operations in Turkey significantly and moving towards a remote cookie based platform.

In addition, the Company is pleased to announce that it is now also delivering both video and mobile advertising, which are the two areas of the market experiencing particularly rapid growth. The Company has also recently launched its machine learning algorithm which will further enhance performance.

The combination of the strong growth expected in our major markets, the cost reduction plan and the new product launches means that the Company remains optimistic about its commercial outlook for 2015.

-Ends-

For further information please contact:

Phorm Corporation Limited

   Andy Croxson (analysts and investors)                                     +44 20 3397 6001

UK Investors

   Mirabaud Securities LLP (Broker)                                        +44 20 7321 2508

Jason Woollard

Peter Krens

   Strand Hanson Limited (Nominated Adviser)                        +44 20 7409 3494

James Harris

Matthew Chandler

James Dance

US Investors

   Lippert/Heilshorn and Associates (Investor Relations)          +1 212 838 3777

John Heilshorn

About Phorm

Phorm is a global personalisation technology company that makes content and advertising more relevant to the consumer. Phorm's innovative platform preserves user privacy and delivers a more interesting online experience.

Phorm's industry leading technology enables its Internet Service Provider ("ISP") partners to offer a new type of online advertising platform and a free consumer internet content feature, ensuring more relevant advertisements and personalised content for opted-in users.

Phorm's advertising platform revolutionises current standards of online privacy, fully protecting the identity of consumers. Phorm's solution is completely opt-in. Only those users consenting to the service are profiled and only ever on an anonymous basis.

Phorm's partners include leading ISPs, Publishers, Advertising Networks and Advertisers.

Phorm, under a predecessor holding company, was admitted to trading on the AIM market of the London Stock Exchange in 2004.

For more information, please visit: www.phorm.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

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