Interim Results

Gana Media

31/03/2025 07:00

RNS Number : 8107C

Mobile Streams plc

31 March 2025

 

31st March 2025

 

Mobile Streams plc

("MOS" or "the Company")

 

Interim Results

 

Mobile Streams plc, the AIM quoted mobile content and data intelligence company, is pleased to announce its unaudited interim results for the six months ended 31 December 2024. A copy of the Interims Results will be available on the Company's website, www.mobilestreams.com, and are set out below.

Highlights 

Our focus has been on continued development of the Sports betting and on-line casino platform in Mexico. This work has progressed strongly during the half year to 31 December 2024 with ongoing support from Capital Media Sports SA and key partners in Mexico.  Our revenue stream from this business has continued to grow as we support our Mexican Associate in the preparation of the consumer launch of the Sports Betting platform which was recently announced on 27th March.

 

Operations in our legacy mobile data businesses continue to produce a modest gross profit and this helps to absorb a portion of the group's overhead expenses.

 

Revenue for the period was £415k, up from £169k in 2023, and continues to reflect growth from the development of the Sports Betting business in Mexico. Whilst MOS accounts for the direct profit/ loss from the Sports Betting business on an associate basis in the Income Statement, it also derives revenues itself from the provision of services directly to Estadio Gana (the formal name of the betting platform).  Our pre-tax loss for the 6 months at £804k was higher than the loss of £289k in the 6 months to December 2023 and this reflects the scaling and focus of our support towards building a successful business in Mexico. I am very pleased to report that given the growing momentum to our sales we were able to reach our first month of operational profitability which was achieved in December 2024, as anticipated.  This puts the group on a firm footing for the future and we expect to see further months of profitability across 2025.

 

During December 2024 we took the opportunity to strengthen our direct holding in our Mexican Bet Business Associate to take our position up to 25.87%. Post period end this was further indirectly increased by the proposed acquisition of up to 90% of CMS as announced on 20th March 2025.

 

Throughout the period we have strengthened our balance sheet with the raising of £2.4m in equity, mostly via the exercising of warrants and this has led to a strong group cash position as at 31st December 2024 of £1.3m. This has continued to increase post period end.

 

We continued to develop our platforms during the period.  This is recorded as an intangible asset in the financial statements under IFRS with a net book value as at 31st December 2024 of £528k.  We believe however its trade sale value would be significantly higher based on market comparable platforms.

 

Outlook

The Company is now well positioned as a business, with strong and proprietary technology platforms.  The Directors believe that the actions taken over the past year to December 2024 will enable the business to fully capitalise on the opportunities in Mexican Sports publishing and online betting and casino services. We continue to create synergies of revenue to the betting business from our existing product portfolio, including both digital merchandise (NFTs), LiveScores and mobilegaming.com sites. Accordingly, we remain on track in our transition to delivering operational profitability.

 

 

 

Mark Epstein, CEO, said:

"We are very pleased with the progress that the organisation has made in the past 6 months in the progression of the Mexican sports betting business and preparation of the Consumer launch.  This has only been possible due to the quality and capability of our platforms combined with the dedication and skills of our team.  Our Company is now transitioned and developing into a growing and profitable business."

 

CONSOLIDATED INCOME STATEMENT

 

Unaudited
Unaudited
Audited
6 months
ended 31
December
6 months ended 31 December
12 months ended 30
June
2024
2023
2024
£000's
£000's
£000's
Revenue
415
169
436
Cost of sales
(20)
(21)
(46)
Gross profit
395
148
388
Selling and marketing costs
(14)
(34)
(82)
Administrative expenses **
(1,223)
(414)
(1,260)
Operating Loss
(841)
(300)
(953)
Finance income
37
11
6
Finance expense
-
-
-
Loss before tax
(804)
(289)
(947)
Share of after tax profit/ (loss) of associate
(33)
-
(12)
Tax expense
-
-
-
Loss for the period
(837)
(289)
(959)
Attributable to:
Attributable to equity shareholders of Mobile Streams Plc
(837)
(289)
(959)
(837)
(289)
(3,789)
Pence per share
Pence per share
Pence per
share
Basic loss per share
(0.011)
(0.006)
(0.019)
Diluted loss per share
(0.011)
(0.006)
(0.019)
* *Administrative expenses include depreciation, amortisation, impairment and share based compensation.


 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

Unaudited
Unaudited
Audited
31-Dec-24
31-Dec-23
30-Jun-24
£000's
£000's
£000's
Assets
Non- Current
Goodwill
-
-
-
Intangible assets
528
422
431
Investment in Associate
356
-
217
Other investments
193
-
56
1,077
422
704
Current
Trade and other receivables
749
395
413
Unsettled share subscription monies**
-
407
-
Cash and cash equivalents
1,343
337
235
2,072
1,139
648
Total assets
3,169
1,561
1,352
Equity
Equity attributable to equity holders of Mobile Streams plc
Called up share capital
1,213
864
973
Share Premium
24,272
21,909
22,149
Translation reserve
(2,940)
(3,050)
(3,050)
Share Based Payment Reserve
396
62
243
Retained earnings
(20,338)
(18,832)
(19,501)
Total equity
2,605
955
815
Trade and other payables
533
565
501
Bank debt
33
40
36
566
605
537
Total liabilities
566
605
537
Total equity and liabilities
3,169
1,561
1,352


 

 

** The unsettled share subscription monies in the prior year at 31 December 2023 in the amount of £407,000 were received in full in the first four days of January 2024.

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

 

Equity attributable to equity holders of Mobile Streams plc
Called up share capital
Share premium
Translation reserve
Share-based payment reserve
Retained earnings
Non- Controlling Interest
Total Equity
£000's
£000's
£000's
£000's
£000's
£000's
£000's
Balance at 1 July 2021
567
16,765
(3,050)
13
(11,480)
1
2,816
Loss for the 6 months
-
-
-
-
(639)
-
(639)
Warrants charge
-
-
-
-
-
-
-
Issue of shares
18
510
-
-
-
-
528
Balance at 31 December 2021
585
17,275
(3,050)
13
(12,119)
-
2,705
Loss for the 6 months
-
-
-
-
(2,125)
-
(2,125)
Warrants charge
-
-
-
255
-
-
255
Issue of shares
74
2,059
-
-
-
-
2,133
Acquisition of 51% of KrunchData Limited
-
-
-
-
(763)
(1)
(764)
Balance at 30 June 2022
659
19,334
(3,050)
268
(15,007)
-
2,204
Prior Year Adjustment
-
-
-
(255)
255
-
-
Balance at 1 July 2022
659
19,334
(3,050)
13
(14,752)
-
2,204
Loss for the 6 months
-
-
-
-
(1,231)
-
(1,231)
Share Options charge
-
-
-
-
-
-
-
Issue of shares
98
1,418
-
-
-
-
1,516
Balance at 31 December 2022
757
20,752
(3,050)
13
(15,983)
-
2,489
Loss for the 6 months
-
-
-
-
(2,558)
-
(2,558)
Share Options charge
-
-
-
12
-
-
12
Issue of shares
11
579
-
-
-
-
590
Balance at 30th June 2023
768
21,331
(3,050)
25
(18,541)
-
533
Loss for the 6 months
-
-
-
-
(289)
-
(289)
Share Options charge
-
-
-
37
-
-
37
Issue of shares
96
579
-
-
-
-
675
Balance at 31st December 2023
864
21,909
(3,050)
62
(18,832)
-
955
Loss for the 6 months
-
-
-
-
(669)
-
(669)
Share Options charge
-
-
-
181
-
-
181
Issue of shares
109
240
-
-
-
-
349
Balance at 30th June 2024
973
22,149
(3,050)
243
(19,501)
-
815
Loss for the 6 months
-
-
-
-
(837)
-
(837)
Foreign exchange on translation
-
-
110
-
-
-
110
Share Options charge
-
-
-
153
-
-
153
Issue of shares
240
2,124
-
-
-
-
2,364
Balance at 31st December 2024
1,213
24,273
(2,940)
396
(20,338)
-
2,605


 

 

 

CONSOLIDATED CASH FLOW STATEMENT

 

Unaudited
Unaudited
Audited
6 months ended 31 December 2024
6 months ended 31 December 2023
12 months ended 30 June 2024
£000's
£000's
£000's
Operating activities
Profit before taxation
(804)
(289)
(947)
Adjustments:
Amortisation of intangible assets
66
-
168
Impairment of Intangible assets
-
(305)
(305)
Impairment of receivables
-
-
-
Share based payments expense
153
37
217
Profit on disposal of investment
-
-
-
Remuneration paid to Senior managers in shares
-
100
-
Consultant fees paid in shares
-
-
-
Interest received
(37)
(11)
(6)
Changes in Trade and other receivables
(237)
(246)
(265)
Changes in Trade and other payables
52
78
14
Total cash utilised in operating activities
(807)
(636)
(1,124)
Investing Activities
Additions to intangible assets
(163)
(116)
(294)
Acquisition - Investment in Associate
(176)
-
(229)
Acquisition - Investment in Equity Investment
(143)
-
(56)
Interest received
37
11
6
Interest paid
-
-
-
Net Cash used in investing activities
(444)
(105)
(573
Issue of share capital (net of expenses paid)
2,433
168
1,171
Fund raise expenses
(69)
-
(148)
Bank loan
(4)
(1)
(6)
Net Cash generated from financing activities
2,361
167
1,018
Net change in cash and cash equivalents
1,109
(575)
(659)
Cash and cash equivalents at beginning of period
235
913
913
Exchange (loss)/ gain on cash and cash equivalents
(1)
(1)
1
Cash and cash equivalents at end of period
1,343
337
235

 

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. BASIS OF PREPARATION

The interim results of Mobile Streams plc are prepared in accordance with the requirements of IAS 34 Interim Financial Reporting as adopted by the EU and prepared in accordance with the accounting policies set out in the last financial statements for the 12 months ended 30 June 2024.

 

The interim results, which are not audited, do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.

 

The comparative financial information for the twelve months ended 30 June 2024 has been extracted from the statutory accounts for that period. In addition, the financial information for the 6 months ended 31 December 2023 has been extracted from the unaudited Interim results which were published on 25 March 2024.

 

The full audited accounts of the Group for the 12 months ended 30 June 2024 were prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the UK and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS and have been delivered to the Registrar of Companies. All references to IFRS in these statements refer to IFRS as adopted by the UK.   

 

The auditor's report on the financial statements for the 12 months ended 30 June 2024 was unqualified and did not contain statements under S498 (2) or S498 (3) of the Companies Act 2006.

2. SEGMENTAL REPORTING

As at 31 December 2024, the Group was organised into four geographical segments: Europe, North America, Latin America, and Asia Pacific. Revenues are from external customers only and generated from two principal business activities: the sale of mobile content through Multi-National Organisation's (Mobile Operator Services), and the provision of consulting and development support to Bet including NFT technology (Development, Marketing and Intelligence services) and Streams Data (Other Service Fees).

 

All operations are continuing and all inter-segment transfers, if any, are priced and carried out at arm's length.  The segmental results for the 6 months ended 31 December 2024 were as follows:

£000's
Europe
Asia
Pacific
North America
Latin America
Group
Mobile operator services
-
-
-
3
3
Other service fees
385
-
-
27
412
Total Revenue
385
-
-
30
415
Cost of sales
-
-
-
(20)
(20)
Gross profit
385
-
-
10
395
Operating expenses
(846)
(5)
-
(166)
(1,017)
EBITDA*
(461)
(5)
-
(156)
(622)
Depreciation, amortisation
(66)
-
-
-
(66)
Share based compensation
(153)
-
-
-
(153)
Finance income
37
-
-
-
37
Profit/(Loss) before tax
(643)
(5)
-
(156)
(804)
Income tax expense
-
-
-
-
-
Share of after-tax result of Associate
(33)
-
-
-
(33)
Profit/(Loss) after tax
(676)
(5)
-
(156)
(837)
*Calculated as profit before tax, interest, amortization, depreciation, share compensation expense and impairment of assets.


The segmental results for the 6 months ended 31 December 2023 were as follows:

£000's
Europe
Asia Pacific
North America
Latin America
Group
Mobile operator sales
-
-
-
36
36
Other service fees (NFT)
133
-
-
-
133
Total Revenue
133
-
-
36
169
Cost of sales
-
-
-
(21)
(21)
Gross profit
133
-
-
15
148
Operating expenses
(570)
(4)
-
(142)
(717)
EBITDA*
(438)
(4)
-
(127)
(568)
Depreciation, amortisation
305
-
-
-
305
Share based compensation
(37)
-
-
-
(37)
Finance income
-
-
-
11
11
Profit/(Loss) before tax
(170)
(4)
-
(116)
(289)
Income tax expense
-
-
-
-
-
Share of after-tax result of Associate
-
-
-
-
-
Profit/(Loss) after tax
(170)
(4)
-
(116)
(289)
*Calculated as profit before tax, interest, amortization, depreciation, share compensation expense and impairment of assets.

               

3. EARNINGS PER SHARE
Earnings per share
Earnings per share is calculated by dividing the(loss)/profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period.
Unaudited
Unaudited
Audited
6 months ended 31 December 2024
6 months ended 31 December 2023
12 months ended 30 June 2024
£000's
£000's
£000's
Loss for the period
(837)
(289)
(959)
Loss earnings per share (pence):
Basic
(0.011)
(0.006)
(0.019)
Diluted
(0.011)
(0.006)
(0.019)
Adjusted earnings per share
Adjusted earnings per share is calculated to reflect the underlying profitability of the business by excluding non-cash charges for depreciation, amortisation, impairments and share compensation charges.
6 months ended 31 December 2024
6 months ended 31 December 2023
12 months ended 30 June 2024
£000's
£000's
£000's
Loss for the period
(837)
(289)
(959)
Add back: share compensation expense
153
72
217
Add back: depreciation and amortisation
66
(305)
168
Adjusted Loss for the period
(618)
(557)
(575)
Pence per share
Pence per share
Pence per share
Adjusted loss per share
(0.008)
(0.012)
(0.011)
Adjusted diluted loss per share
(0.008)
(0.012)
(0.011)
Weighted average number of shares
6 months ended 31 December 2024
6 months ended 31 December 2023
12 months ended 30 June 2024
Basic
7,817,115,725
4,469,228,885
5,168,165,880
Exercisable share options
-
-
-
Diluted
7,817,115,725
4,469,228,885
5,168,165,880


Diluted (loss)/earnings per share is calculated adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company has only one category of ordinary shares.

 

The adjusted EPS has been calculated to reflect the underlying profitability of the business by excluding non-cash charges for depreciation, amortisation, impairments and share compensation charges.

4. GOING CONCERN

The Group had cash balances of £1.3m at 31 December 2024 (30 June 2023: £0.3m).  Having reviewed cash flow forecasts and budgets for the year ahead the Directors have a reasonable expectation that the Group has resources to continue in operational existence for the foreseeable future.

 

5. FOREIGN CURRENCY TRANSLATION

(a) Presentational currency

The consolidated financial statements are presented in British Pounds, which is also the functional currency of the parent entity.

 (b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date the transaction occurs. Any exchange gains or losses resulting from these transactions and from the translation of monetary assets and liabilities at the balance sheet date are reported in the income statement except when these represent a net investment in a subsidiary when they are charged or credited to equity.

Foreign currency balances are translated at the balance sheet date using exchange rates prevailing at the period end.

 (c) Group companies

The financial results and position of all group entities that have a functional currency different from the presentational currency of the Group are translated into the presentational currency as follows:

i.      assets and liabilities for each balance sheet are translated at the closing exchange rate at the date of the balance sheet

ii.     income and expenses for each income statement are translated at average exchange rates (unless it is not a reasonable approximation to the exchange rate at the date of transaction)

iii.    all resulting exchange differences are recognised as a separate component of equity (translation reserve)

iv.    The exchange rates used in respect of Argentinean Pesos are the official published exchange rates.

 

 

6. Intangible assets

 

Intangibles acquired: Platform Development & Software
Intangibles added internally
Streams
Subtotal
Goodwill
Total
£'000
£'000
£'000
£'000
£'000
Cost or valuation:
At 1 Jan 2023
485
485
970
360
1,330
Additions
-
141
141
-
141
Disposals
-
-
-
-
-
At 30 June 2023
485
626
1,111
360
1,471
Additions
-
116
116
-
116
Disposals
-
-
-
-
-
At 31 December 2023
485
742
1,227
360
1,587
Additions
-
-
-
Disposals
-
178
178
-
At 30 June 2024
485
920
1,405
360
1,765
Additions
-
163
163
-
163
Disposals
-
-
-
At 31 December 2024
485
1,083
1,568
360
1,928
Amortisation:
At 1 Jan 2023
324
254
578
-
578
Charge for the period
117
68
185
185
Disposals
-
-
-
-
Impairment
44
304
348
360
708
At 30 June 2023
485
626
1,111
360
1,471
Charge for the period
-
-
-
-
-
Disposals
-
-
-
-
-
Reversal of Impairment
(36)
(269)
(305)
-
(305)
31 December 2023
449
357
806
360
1,166
Charge for the period
36
132
168
-
168
Disposals
-
-
-
-
-
At 30 June 2024
485
489
974
360
1,334
Charge for the period
-
66
66
-
66
Disposals
-
-
-
-
-
At 31 December 2024
485
555
1,040
360
1,400
Carrying amount:
At 31 December 2023
36
390
422
-
422
At 30 June 2024
-
431
431
-
431
At 31 December 2024
-
528
528
-
528

                                                                                                                                                                                                               

During the 6 months to 31st December 2024 the group recognised further capitalised development costs on Streams Data platform in the amount of £163,000.

 

7. Investment in Associates

Investment in Associates
31 December 2024
30 June 2024
£000's
£000's
At 1st July b/f
217
-
Exchange adjustments
(4)
Additions
176
229
Disposals
-
-
Distributions received
-
-
Profit / (loss) after tax recognised in the consolidated income statement
(33)
(12)
Impairment of interest in Associate
-
-
At 30th December 2024
356
217

 

On 1st February 2024 the group acquired a 25% direct interest in Estadio Gana, a company duly incorporated and governed by the laws of Mexico.  From 30th April 2024 this stake became diluted to 22.72% as an additional investor was onboarded.  The Group accounts for investments in associates using the equity method of accounting.  In December 2024 the group purchased additional shares to increase its direct stake up to 25.96%.  Summarised income statement information in respect of Estadio Gana for the period ending 31st December 2024 is set-out below as well as the financial position at 31 December 2024. These results represent the earnings and financial position of the Associate based on the entity's unaudited management accounts. The group's share of after-tax losses of associates in the 6 months to 31 December 2024 was £33k (2023: £nil)

6 months to December 2024
6 months to June
2024
£000's
£000's
Turnover
-
-
Profit / (loss) after tax
(146)
(49)
Total comprehensive income
(146)
(49)
31 Dec 2024
30 June 2024
Estadio Gana Financial Position
£000's
£000's
Intangible Assets
996
675
Trade receivables
65
105
Prepayments
266
175
Cash and cash equivalents
90
345
Total assets
1,417
1,300
VAT payable
-
(6)
Trade payables
(566)
(173)
Total Current liabilities
(564)
(179)
Net assets
851
1,121
Capital and reserves
Called up share capital
1,243
1,243
Fx reserve
(196)
(73)
Retained Losses
(195)
(49)
Shareholders deficit / Shareholders funds
851
1,121


 

During the 6months to 31 December 2024 the Group provided £385,000 of Development, Marketing and Intelligence services to EstadioGana and £27,000 of payroll services. At 31st December 2025 Estadio Gana owes the group £552,000.  Estadio Gana's principal activity is the development of the Sports betting business in Mexico which it expects to launch to consumers during March 2025.

 

8. Other Investments

The group continues to hold a 10.0% interest in Capital Media Sports S.A. de C.V., a company duly incorporated and governed by the laws of Mexico Capital Media Sports. (31 December 2023: Nil).

 

 

9. Share Capital and Reserves

31 Dec 2024
31 Dec 2023
30 June 2024
£000s
£000's
£000's
Ordinary Share capital
1,213
864
973
Share premium
24,272
21,909
22,149
Translation Reserve
(2,940)
(3,050)
(3,050)
Share Based Payment reserve
396
62
243
Retained earnings
(20,319)
(18,832)
(19,501)
2,622
955
815

 

The total number of Ordinary Shares in issue as at 31 Dec 2024 was 8,825,217,939 with a par value of 0.01 pence per share (31 Dec 2023: 5,333,941,619 with a par value of 0.01 pence per share).  In addition, there are 140,753,533 Deferred Shares of 0.19 pence nominal value each in issue. The Deferred Shares, as their name suggests, have very limited rights which are deferred to the Ordinary Shares and effectively carry no value as a result.

                    

Allotted, called up and fully paid
6 months
ended
31 Dec 2024
6 months
ended
31 Dec 2023
Year
ended
30 June 2024
In issue at start of period
6,424,115,963
4,369,655,903
4,369,655,903
Issued during the period
2,401,101,976
964,285,716
2,054,460,058
In issue at end of period
8,825,217,939
5,333,941,619
6,424,115,963

 

The balance in the share premium account represents the proceeds received above the nominal value on the issue of the Company's equity share capital.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

For further information, please contact:

 

Mobile Streams plc

John Barker, Chairman

+44 7711 920 865

www.mobilestreams.com

 

Beaumont Cornish (Nominated Adviser)

James Biddle and Roland Cornish

+44 (0) 20 7628 3396

Peterhouse Capital Limited (Broker)

Lucy Williams and Duncan Vasey

+44 (0) 20 7469 0930

 

 

Beaumont Cornish Limited, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting as nominated adviser to the Company in relation to the matters referred herein. Beaumont Cornish Limited is acting exclusively for the Company and for no one else in relation to the matters described in this announcement and is not advising any other person and accordingly will not be responsible to anyone other than the Company for providing the protections afforded to clients of Beaumont Cornish Limited, or for providing advice in relation to the contents of this announcement or any matter referred to in it.

 

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