- 01Q1 revenue $6.33m, +38% QoQ, +30% YoY.
- 02Media acquisitions lift revenue; cash outflow down 56%.
- 03Record Q2 bookings; monthly profitability targeted from December.
Vinyl Group (ASX: VNL) has recorded first-quarter revenue of $6.33 million, up 38% from the preceding quarter and 30% from a year earlier, as its expanded media portfolio begins contributing to the company’s growth.
The September quarter was its first full three-month period incorporating Val Morgan Digital, Pedestrian Group, and Time Out Australia following their acquisitions earlier this year.
Customer receipts climbed 79% quarter-on-quarter to $5.52m, while net operating cash outflow narrowed 56% to $1.8m.
Gross margins improved from 53% in July to 56% in September, accompanied by declining monthly operating expenses as restructuring measures began taking effect.
With major advertising campaigns shifting into the December quarter, Vinyl has already booked record revenue for the period and is targeting a sustainably positive monthly earnings run-rate from December.
Acquisitions Delivering
The group is bringing its Publishing businesses together under a common operating model, eliminating duplicated staffing, software, property, and administrative costs while streamlining commercial processes.
Its refined Adaptive Media strategy combines 12 publishing titles with events, technology, and cross-channel distribution to sell larger integrated campaigns and develop recurring customer relationships.
Vinyl is seeking greater revenue per visitor and higher-margin business from its established audiences, supported by a planned All Access Report tracking youth behaviour and cultural trends.
“We have built the audience scale; o ur priority now is profitable business scale,” chief executive officer Josh Simons said.
“With record Q2 bookings and strong demand for Adaptive Media, our focus is on higher margin revenue across the portfolio while maintaining cost discipline and improving cash conversion.”
Working Capital Focus
Despite stronger trading, the business entered October with more than $5m in outstanding receivables, including over $1.5m already due at the end of September.
Integration of inherited billing systems complicated collections, prompting tighter debtor oversight and revised cash forecasting as management seeks to turn customer billings into cash.
Quarter-end cash stood at $777,000, with $53,000 of undrawn facilities then available, equivalent to approximately 0.45 quarters of funding at the September operating cash outflow rate.
After quarter-end, non-executive chairman Ken Gaunt increased his unsecured loan facility from $10m to $12m, providing an additional $2m in working capital capacity.
Vinyl expects higher December-quarter receipts from delayed campaigns and a seasonal trading uplift, alongside further cost reductions, although its cash conversion remains dependent on collecting receivables.
Expanding Audience Reach
The company reports monthly reach exceeding 50% of Australia’s deduplicated online audience, alongside approximately 31 million authenticated social followers and more than 524 million monthly social views and impressions.
Its adoption of Google Search Profiles is intended to consolidate audience identities across publishing and social channels, improving the visibility of the media assets offered to advertisers.
The second-year Mentos Fresh Sounds campaign with Havas Media was shortlisted for a 2026 industry award, providing an example of the recurring integrated campaigns Vinyl is targeting.
Meanwhile, the Serenade platform gained Billboard chart recognition for eligible Smart Media Album sales from 2 October, opening potential new commercial opportunities with North American music industry partners.
Vinyl has maintained its forecast of $38m to $40m in revenue for the 2027 financial year, with profitability ambitions relying on higher-margin sales, disciplined spending, and better collection of outstanding payments.
Get the wire before the market opens.
The ASX small-cap stories that matter, filed before 9am AEST. Curated by the Small Caps desk.