Teddy Sagi, wellknown for his Playtech (online gaming) and Markets.com or Plus500 (online trading, focused on forex, CFDs, etc) acquisition, one of the most successful brokers of the year 2015, had also some negative news to provide.
His company, Crossrider PLC has published its operation metrics, disaappointing investors that much, that they sent shares of the company down almost 20% over the previous week.
This is in stark contrast with the price of Sagi’s Crossrider IPO in September 2014, when it reached £1.03 and now it dropped to approximately 40p, what was over 60% lower.
Crossrider provides advertising technology for brokerage houses and online gaming companies to deliver advertising to its target segment of customers. It has created digital ad platforms focused on monetizing web and mobile media, using ‘big data’, now so much mentioned in basic needs of every advertising agency.
The Company’s web and mobile platforms power ad networks, agencies and direct publishers and enable the delivery of relevant digital advertising through the analysis of big data – making online marketing significantly more efficient and cost effective.
Crossrider’s CEO Koby Menachemi (also a co-founder) is also an experienced person from the online financial world. He was working for the online research site Seeking Alpha, focused on financial sector, as the Chief Technical Officer and has set Crossrider in 2011, already supported by Teddy Sagi, who owns around 73% of Crossrider.
But what about the operational metrics. Is it really that bad? The company reported approximately $85 million of Revenues in 2015, while EBITDA earnings reached $10 million. Moreover, it had over $70 million of cash on its balance sheet. All of these numbers point to the fact, that the company is not operating that poor as it seems, albeit the market sent it down with no respect.
This ended in Menachemi’s announcement that he will be stepping down as a CEO of Crossrider. We still don’t know if the market sent shares down due to Menachemi’s resignation or its 2016 outlook, which pointed to only a modest increase, in comparison with successful FY2015
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