- Digital marketing specialist engage:BDR (EN1) is signing on new publishers to its AdCel business and predicting massive revenues
- Mobile app creators AdvancedApp and PanSoft, which boast a combined 20 million users, have signed on for AdCel integration
- This means that advertisers can place mobile ads in AdvancedApp and PanSoft apps through the AdCel platform
- This is predicted to triple AdCel revenue compared to last month
- engage:BDR, however, didn’t give shareholders many predicted revenue figures
- As such, investors seem happy to wait for the new cash to hit the company’s balance sheet before placing more buy orders
- EN1 shares are down just under six per cent today and trading for 1.7 cents each
Digital marketing specialist engage:BDR (EN1) has released a string of updates to shareholders with the allure of massive revenue increases for upcoming quarters.
At the forefront of today’s news are two fresh publishers signed on for integration with EN1’s AdCel business, which the company bought out in May 2018.
AdCel has signed on mobile app creators AdvancedApp and PanSoft, which share a combined 20 million active users.
Advertising, publishing, and AdCel
AdCel essentially acts as a mobile advertising platform. It is designed to help publishers optimise the ads displayed on their platforms for maximum exposure and, subsequently, maximum payout.
Generally speaking, advertisers are the creators of an ad that are looking to grow their audience, while publishers are the platform through which the ads are displayed.
For example, if you received a pop-up ad for the mobile app Angry Birds while watching YouTube, in this scenario YouTube is the publisher and Angry Birds is the advertiser.
AdCel’s primary target publishers are mobile app developers.
Advertisers displaying adverts with AdCel integration generally give users an option: watch the ad in full and reap in-app rewards, or skip the ad early for no penalty.
Further, EN1’s “NetZero” publishing platform is designed to cut the time it takes for a publisher to get paid by an advertiser — allegedly approving and confirming payments within days.
AdvancedApp and PanSoft to triple revenue
AdvancedApp is the creator of the Advanced Download Manager app, which simply lets Android mobile users have more control over their internet downloads. According to EN1, the app has roughly 15 million active users.
PanSoft has a suite of apps that includes both games and utility apps, making up the remaining five million active users.
EN1 said the integration of AdCel into these platforms will bring about $220,000 in monthly revenue for AdCel — tripling AdCel’s revenue compared to January 2020.
Meanwhile, EN1 said MysteryTag, the first publisher signed on to its NetZero publishing platform, is expected to go live “any day now”. MysteryTag was signed on in late January this year.
New partnerships and publishers
Released in tandem with the AdCel deals is news of two new programming partnerships with EMX Digital and RevContent.
EN1 failed to mention exactly what these partnerships entail, but ensured shareholders the partners are “expected to be strong contributors for the engage:BDR programmatic exchange”.
Further, EN1 claims both companies generate hundreds of millions of dollars each and as such will severely bolster company revenue.
Further, app developers iFunny and Treble have also signed on as EN1 publishing partners, though not through the NetZero platform. Still, EN1 once again predicted “significant volume and revenue” from these partnerships.
Superlative fluff?
While today’s announcement certainly seems to point to a strong future for EN1, the lack of figures may be leaving shareholders sceptical.
In the company’s latest quarterly report from January, EN1 had roughly $1.8 million cash on hand and was expecting to spend $4.1 million in the current quarter. Though the company’s $5.15 million in customer receipts for the last quarter suggests earnings should outweigh spending, EN1”s share price stayed flat.
Further, investors seemed disappointed with an announcement yesterday in which EN1 highlighted some planned heavy dilution through the issue of new shares to directors based on performance targets. Since that announcement, EN1 shares have declined 10 per cent.
Today, it seems investors are happy to wait for the predicted huge revenues to hit EN1’s balance sheet before placing any more buy orders. While the company is certainly confident, cash will speak louder than words when it comes to reviving EN1’s share price, which has declined by 93 per cent since its ASX listing in December 2017.
At lunchtime AEDT, shares in EN1 are trading 5.56 per cent lower for 1.7 cents each. The company has a market cap evaluation of $12.57 million.