Loss-making Artivision ties up with Israeli ad agency McCann

ARTIVISION Technologies said on Monday it has signed a "definitive and exclusive agreement" with McCann Worldgroup, one of the world's largest advertising agencies in Israel, for collaborations that might give its top and bottom lines a boost.

The salient terms of the deal include Artimedia providing McCann Worldgroup subsidiary McCann Disciplines (UMD) with its programmatic video advertising network which offers video inventory on major online Israeli publishers, with UMD expected to buy up to 18 million Israeli shekel (S$6.7 million) of media inventory from Artimedia annually.

Together with four other Israeli advertising agency contracts which it secured earlier this year, Artivision expects to generate a gross revenue of up to 27 million shekel over the next six to 18 months.

Artivision believes the agreement will have a positive impact on its consolidated net tangible assets per share and earnings per share for the current financial year ending March 31, 2016.

For its first quarter ended June 30, 2015, Artivision made a net loss of S$1.8 million, on revenue of S$1.74 million, which was 11 per cent lower than a year ago.