Motio Limited (ASX:MXO) today advised that trading conditions post the Federal Election have been significantly stronger than expected resulting in the need to update their FY25 guidance.
They say that in particular, National advertising has experienced a period of elevated performance including campaigns that have been booked and actioned within the same day and that they have also benefited from increased spending in their programmatic channel which has similarly contributed to an increase in revenue during the June trading period.
Whilst Quarter 4 (April – June) is yet to complete, this quarter is now on track to be their most successful quarter to date, exceeding the results of their unusually high FY25 Quarter 1 (July – September).
In a letter to Motio shareholders Adam Cadwallader, CEO and Managing Director wrote “On behalf of the Motio Board I am pleased to provide an upgrade to guidance, our third for Financial Year 2025, as a result of continued positive trading through this period”.
- Revenue – Upgraded from $8.5-$8.9M+ to $9.0 to $9.5M
- Cash EBITDA(1) Target – Upgraded from $1.35M+ to $1.9M+
- Cash in bank – $2.65M as at 18th June 2025
- Net amount owed to OML – ($1.085M) inclusive of principal and interest
Adam Cadwallader said “Motio operates a business with high gross margins (75%+) and a relatively fixed cost base. In periods of strong revenue performance, as we are currently experiencing, shareholders can expect incremental revenue to drop substantially to the bottom line, particularly given Motio’s continued focus on cash flow generation. I also take this chance to remind shareholders that the Motio corporate entity retains substantial tax losses. As such the Board currently expects no income tax payable for the foreseeable future, supporting higher cash conversion and free cash flow. I look forward to continuing the conversation at our shareholder update this Friday at 930am AEST”.
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