Tremor International Reports Slump in Q2 Earnings

Shares of Tremor International, the London-listed advertising company, experienced a significant drop following the release of its second-quarter earnings report. The company also revised its full-year earnings guidance, which further contributed to the decline in share prices.

Q2 Performance Overview

Tremor International's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter amounted to $21.0 million. While this represents a noteworthy improvement compared to the previous quarter, it is a decrease from $39.1 million recorded in the same period last year. Similarly, the adjusted EBITDA for the first half of the year amounted to $29.9 million, down from $77.8 million in the prior year.

Revenue Highlights

Revenue for the second quarter reached $84.2 million, surpassing the $75.8 million achieved in the same quarter last year. However, total revenue for the first half of the year remained relatively stable at $156.0 million compared to $156.7 million in 2020.

Revised Full-Year Earnings Guidance

Tremor International provided an updated outlook for its full-year adjusted EBITDA. It now expects the figure to fall within the range of $85 million to $90 million. This represents a downward revision from the previous guidance of $140 million to $145 million. The company anticipates further improvements in earnings and margin during the second half of the year, fueled by investments in connected TV. CEO Ofer Druker expressed confidence in these investments, despite acknowledging that accelerated revenue growth has been slower than initially anticipated.