Adslot Reports $9.09M Monetised Transactions, Up 43% QoQ in Q2 FY25

Strong Momentum in Digital Advertising Sales

Adslot Ltd (ASX: ADS) has delivered a promising quarterly update for Q2 FY25, underscoring its growing footprint in the global digital advertising market. The company’s StoreFront digital advertising sales solution gained significant traction, securing contracts with major publishers such as Hearst UK, Rakuten Viber globally, Sonnant in the USA, and Country & Town House in the UK. These wins highlight Adslot’s expanding influence across key markets including the UK, USA, and Australia.

Alongside these contract activations, the company reported a 43% quarter-on-quarter increase in its monetised transaction value (MTV), reaching $9.09 million. This metric, which reflects the value of transactions generating fees on the Adslot Media platform, is a critical indicator of commercial performance and growth potential.

European Expansion and Platform Integration

Adslot’s progress in Europe was marked by the completion of the Springserve ad server integration, enhancing access to publisher inventory in Germany. Additionally, ongoing negotiations with Goldbach, a leading Swiss and German media conglomerate, aim to establish exclusive distribution of ad inventory through the Adslot Open Marketplace. These developments suggest a strategic push to deepen market penetration in Europe, complementing the company’s existing presence in North America and Australia.

Operational Restructuring and Cost Management

Following a strategic review completed in late October 2024, Adslot implemented substantial cost reductions and operational restructuring. The company achieved an approximate 40% reduction in group monthly payroll costs from November onwards, contributing to improved cash flow dynamics. Despite cash receipts from customers declining to $1.98 million, partly due to the seasonally low December quarter and a fixed-price contract with GroupM, net operating cash outflow improved by $1.18 million compared to the previous quarter.

These cost-saving measures, including a 25% reduction in salary costs quarter-on-quarter, have been pivotal in managing the company’s cash position, which stood at $1.49 million at the end of December 2024.

Diverse Business Units and Future Opportunities

Adslot’s portfolio includes several business units beyond StoreFront and the Open Marketplace. Symphony, a global SaaS platform serving major digital media agencies like GroupM, is exploring new agency partnerships. The Media Auctions platform, currently servicing realestate.com.au, is being positioned for expansion into new markets. Meanwhile, Webfirm, a digital marketing agency focused on SMEs, is expected to benefit from StoreFront’s SME market strategy, with potential rebranding and service expansion under consideration.

Technological enhancements such as the credit card gateway for campaign pre-payment and native advertising support are set to activate in Q3 FY25, potentially accelerating StoreFront adoption and revenue growth.

Market Challenges and Outlook

While the UK and European markets show robust monetisation, the Australian advertising market remains weak, contributing to a 40% year-on-year decline in total trading volume (TTV) and a 40% reduction in MTV compared to the prior corresponding period. This structural weakness has tempered overall revenue growth but has been partially offset by management’s focus on higher monetisation rates and cost discipline.

Adslot’s strategic initiatives and global expansion efforts position it well to capitalize on the evolving digital advertising landscape, though the company remains cautious about near-term market volatility, particularly in Australia.