YOC — Expanding its European presence

YOC (DE: YOC.DE)

Last close As at 21/11/2024

12.40

−0.55 (−4.25%)

Market capitalisation

43m

More on this equity

Research: TMT

YOC — Expanding its European presence

YOC is expanding its presence in the European market by acquiring 100% of Zurich-based theINDUSTRY, an adtech company focusing on the development and distribution of high-impact ad formats. TheINDUSTRY’s ability to trade programmatically provides several synergies with YOC’s VIS.X platform, which we believe should provide YOC a platform to scale quickly in the region. Additionally, the acquisition highlights YOC’s success in establishing VIS.X in its core markets of Germany, Austria and Poland, as management was not planning on expanding to new regions until this was achieved.

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Written by

TMT

YOC

Expanding its European presence

Acquisition of Swiss platform

TMT

28 January 2022

Price

€12.3

Market cap

€43m

Net cash (€m) at 30 September 2021
(including lease liabilities and shareholder loans)

1.48

Shares in issue

3.48m

Free float

46%

Code

YOC

Primary exchange

FRA

Secondary exchange

N/A

Share price performance

Business description

YOC is a Germany-based technology company that develops software for the global digital advertising market. By using the platform VIS.X and YOC's proprietary ad formats, advertisers can increase awareness for their brand or products in combination with high-quality advertising inventory. Its supply-side platform VIS.X, launched in 2018, provides a programmatic marketplace for the automatic trading of digital advertising units, allowing for the real-time bidding of advertising budgets. YOC’s key markets include Germany, Austria and Poland.

Analysts

Max Hayes

+44 (0)20 3077 5700

Fiona Orford-Williams

+44 (0)20 3077 5739

YOC is a research client of Edison Investment Research Limited

YOC is expanding its presence in the European market by acquiring 100% of Zurich-based theINDUSTRY, an adtech company focusing on the development and distribution of high-impact ad formats. TheINDUSTRY’s ability to trade programmatically provides several synergies with YOC’s VIS.X platform, which we believe should provide YOC a platform to scale quickly in the region. Additionally, the acquisition highlights YOC’s success in establishing VIS.X in its core markets of Germany, Austria and Poland, as management was not planning on expanding to new regions until this was achieved.

Year end

Revenue (€m)

EBITDA
(€m)

PBT
(€m)

EPS
(€)

DPS
(€)

EV/EBITDA
(x)

P/E
(x)

12/18

14.9

0.4

(0.1)

(0.1)

0.0

108.4

N/A

12/19

14.9

0.8

0.1

(0.1)

0.0

54.2

N/A

12/20

15.5

1.8

0.9

0.1

0.0

24.1

123.0

12/21e*

18.8

2.7

N/A

0.5

N/A

16.1

24.6

Source: YOC. Note: *FY21e is based on the mid-point of management guidance.

As well as benefits for YOC, the introduction of VIS.X in Switzerland also offers publishers and agencies greater monetisation potential, supported by the platform’s ability to provide premium products at higher price points in an automated exchange environment..

For the consideration, YOC disclosed that it was paying a fixed component of CHF0.4m and further variable performance-related components, and that it would be financed entirely by the group’s operating cash flow. In December 2021, we also noted management’s raised guidance for FY21, with both EBITDA and net income expected to be ahead of the previously guided range. Greater expected profitability should help support the financing of the acquisition and the group’s balance sheet strength.

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