Audioboom returns to revenue growth as advertising prospects improve

Audioboom returned to revenue growth in the final quarter of 2023, with the company targeting ‘record’ revenue this year thanks to an improving outlook for the advertising market.

The London-listed podcast publisher, one of the largest in the United States, announced revenue growth of 37 percent to $19.2 million (£15.1 million) in the latest quarter, and year-on-year growth of 5 percent.

The fourth quarter helped revive Audioboom’s fortunes, but total revenue for 2023 still fell from $74.9m to $65m (£51m).

The group’s global monthly downloads fell slightly to 110.1 million.

The company revealed this was due to Apple removing the automatic download feature, which has had an effect on the ‘wider podcast industry’, with numbers expected to drop by 10 percent.

Audioboom said it expects record sales in 2024, with operational improvements such as a “significant reduction in minimum warranty requirements,” and a return to adjusted earnings profitability.

Stuart Last, CEO of Audioboom, added: “I am buoyed by more positive sentiment in the advertising industry, with brands making strong budget commitments during the booking season, resulting in us contracting over $47 million in revenue by 2024 through advance bookings. .’

In October, the company saw a significant drop in sales due to a slump in the advertising market and the cancellation of a hit show.

The company revealed that sales fell by around a fifth to $45.8m (£37.6m) in the first nine months of 2023.

Much of the decline was driven by the departure of true crime anthology series Morbid to rival network Wondery in May 2022, after the pair agreed to an ad sale and a one-week blanket deal.

Morbid was not only the London-based company’s most popular podcast, with around 30 million downloads per month, but also generated around 20 percent of its revenue.

Audioboom Stocks fell 3.85 percent to 312.50p in Monday afternoon trading.