Motio Limited (ASX:MXO) this week announced that it will enhance its focus on the core Media business and reduce debt following the signing of binding Heads of Agreement to sell Spawtz Pty Ltd to a consortium of Motio staff members currently managing the Spawtz software business.
Under the Agreement, Motio will be given a long term, fee free licence to Spawtz (5+5) providing continued access to audience data, uninterrupted XML feeds to the digital displays from the software and the ability to sell online advertising inventory and Electronic Direct Mail to advertisers. This enables the business to continue to develop the growing motio.play media channel, which is in 80 sports centres across Australia.
Motio’s CEO Adam Cadwallader said the sale marked a significant step forward in ensuring Motio continued its evolution to being a unique media business that carried unmatched benefits for advertisers.
“Motio is more than out-of-home advertising, digital, and video — it’s a Dynamic Media Interface that combines the best aspects of all three into a single platform designed to influence, engage, and connect in ways no one else can. With the sale of Spawtz, this will allow a singular focus on continuing to develop our platform by expanding our current channels and to energise our continued development of new ones. Importantly, the sale will not change our earnings guidance of $1.2m+ EBITDA for FY25, despite a drop in revenue from the sale of Spawtz, as a result of the strong underlying performance of our core media assets”.
The Motio Board believes the sale of Spawtz allows the management team to focus entirely on its core business at a time when the investments of prior years are delivering value through continued top line growth and operating leverage.
Chair of Motio Jason Byrne said the sale proceeds would ensure the balance sheet is de-risked and the Company is self-funded for future growth, with the Company continuing to pursue potential acquisition opportunities in the Media space, subject to achieving terms that the Board deems accretive to shareholder value.
“Spawtz has taught us a great deal about how we run the business and where our focus needs to be, which is clearly in the development of how we continue to grow our Dynamic Media company and its unique characteristics. Seeing Spawtz continue to thrive under the existing team is also great to see, and we have managed to garner a very positive outcome for shareholders and importantly the future of Motio.”
The Motio and Spawtz team will work to complete the transaction – which includes subsidiaries Liquid Thinking Ltd (UK) and Motio NZ Tapui Ltd – over the next six weeks in readiness for expected completion on March 31, 2025.
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