An Impressive Q3 from Brightcom Group
Hyderabad, February 2023
The Board of Brightcom Group met on 3rd February 2023, to take stock of the Q3 earnings of the company.
THE HIGHLIGHTS
• The company reported a strong quarter, with consolidated revenues of Rs. 1683.07 crores and PAT of Rs. 320.68 crores for Q3 FY22-23.
• Consolidated revenues rose 52.48%YOY and PAT rose 51.15 %YOY. Notably, EBITDA also rose by 45.07%YOY.
• The company’s Return on Equity (ROE), on an annualized basis has nearly reached 20.74%. The focus continues to remain on improving this key metric.
• The company’s consolidated tax rate across all geographies in this quarter was 27.79%
• Achieved operating cash flow of approximately Rs. 216.5 Crores in the last quarter.
• The main drivers of revenue were:
– Efforts to enhance deeper client reach across various locations and businesses, and improve market share in the US and the EU markets.
– Increasing the overall publisher network, thus enhancing access to larger Internet traffic, helping our clients to identify relevant advertising focus while improving consumer privacy.
– The Company has decided to implement its path-breaking Hybrid Growth Model called HyGrowth Model. This is an innovative middle-path growth model, lying between organic and acquisition-led growth. The HyGrowth Model is capital-light and will result in growth without the need for large capital injections, as would be the case in outright acquisitions.
• Globally, advertising is inclined to be transacted digitally. Therefore, the future outlook is that all media will be digital and programmatic with AI-powered platforms.
UPDATE
• This February, our Brightcom team will be attending MWC Barcelona 2023 to meet and partner with global publishers, App developers, SSPs, and DSPs. The team comprises of EtaiEitany, Roni Gelman, and LahavYrimi.
• Why have it over zoom when we could have it in Berlin? This week members of our sales team – Sabrina Delas, Daria Oshry, Brad Brittan, and ArynaKartavenko flew to our office in Berlin to discuss strategies, share best practices, and for some joined quality time. There’s nothing like the freezing German weather to strengthen relationships and sharpen up skills.
• In January 2023, Sabrina Delas, Team Lead, of Publishers’ Development, attended the CES 2023 Event in Vegas. CES is the most influential tech event in the world — the proving ground for breakthrough technologies and global innovators. This is where the world’s biggest brands do business and meet new partners and the sharpest innovators on stage.
• The Brightcom team comprising of EtaiEitany, Ezequiel Moschcovich, and Sabrina Delasvisited the Buenos Aires office, to combine business, strategy, and the world cup homecoming carnival.
• The Brightcom Argentina office welcomed the newcomers into its energetic team – Tomos De Vincenzi and Federico Belaguer.
• In November, the Brightcom headquarters launched a dedicated ‘Brightcom Group Investor Relations Contact Centre’ to address queries of shareholders and investors by phone. Also created a dedicated team to attend to every concern of the investors.
• Brightcom Group was the Silver Sponsor at the TIE Global Summit – TGS 2023 held in Hyderabad in December 2022. The top team of Brightcom invited and hosted selected partners, investors, and the media at the event.
• In January Brightcom’s headquarters approved the appointment of Mr Rajesh Vankadara (ACS 44949) as a Company Secretary (CS) & Compliance Officer, based on the recommendation of the Nomination & Remuneration Committee.
• Under Brightcom’sHyGrowth Model (Hybrid Growth Model), Brightcom and Consumable, Inc, USA, signed a definitive agreement to form a joint venture to offer Audio Advertising Solutions. The transaction is expected to significantly benefit Brightcom’s standalone (parent) numbers while offering a capital-light growth model for the group. As a result, the two companies will pool their respective strengths to grow the AdTech business, without the involvement of any permanent capital. The HyGrowth Model is a very high ROE Model and results of the same will become evident in the coming quarters. This JV will directly benefit the Parent Standalone financials, as the 51% share of profit will flow into cash to the Parent, and further bolstering the standalone numbers.
CONFERENCECALLDETAILS
Brightcom Group will host a conference call on February 4th, 2023, Saturday at 4.00 PM Indian Standard Time to discuss the financial results.
