REG-Mirada PLC: Interim Results <Origin Href="QuoteRef">MIRA.L</Origin>
28/11/2014 07:12
28 November 2014
mirada plc
(AIM: MIRA)
("mirada", "the Company" or "the Group")
Interim results for the six months to 30 September 2014
mirada plc, the AIM quoted leading audiovisual content interaction specialist,
announces its unaudited interim results for the six months to 30 September
2014.
This was a busy period for the Company as it continued to strengthen its
proposition for large Tier 1 customers while developing its Over The Top
("OTT") service offering.
Operational Highlights
* On track for full year performance to be in line with market expectations.
* Inaugural Tier 1 contract win in May 2014 for the iris/inspire product.
* Tier 1 contract represents a minimum of US$15 million in subscriber-based
licence fees over a 3 to 5 year period.
* Project delivered to Tier 1 customer and commercial launch on course.
* First major OTT contract win announced on 18th September 2014.
* OTT product development ahead of schedule with commercial launch expected
early in the new financial year.
Key Points
* Revenue of £2.19 million (H1 2013: £2.30 million) during the six months to
30 September 2014.
* Adjusted EBITDA* loss of £0.09 million (H1 2013: £0.52 million profit)
reflecting costs incurred from delivery of Tier 1 customer project during
the first half.
* Tier 1 customer licence and professional services fees expected to drive
second half revenue higher from commercial launch in December 2014.
* Continued investment in product development.
* Oversubscribed £3.5 million Placing at 12.5p and strengthened institutional
investor base.
*Adjusted EBITDA is defined as earnings before interest, tax, depreciation,
amortisation and share based payment charges
Post period highlights
* 96% visibility of full year consensus revenue.
* Strengthened the Board with the appointments of José Gozalbo (CTO) as an
Executive Director and Matthew Earl as a Non-Executive Director.
* New Commercial launch for Telefonica Peru, using mirada's iris technology
for its OTT product, Movistar Go.
* Company developing relationships with further Tier 1 potential customers to
diversify its geographic reach and revenue base.
Commenting on the future outlook of the Group, José Luis Vázquez, CEO of
mirada, said:
"This was a transformational period for the Company as we proved our ability to
win and service Tier 1 customers. Importantly we also launched our presence in
the rapidly growing OTT market and continued to strengthen our product base -
ensuring that we are at the forefront of market developments. Additionally
there is a growing global demand for our full suite of products and services
and we are already having a number of conversations with potential customers
outside of Latin America.
"During the period we continued to invest in product development. Some revenue
elements from the Tier 1 contract, which implied incurred costs in the first
half of the year will be recorded in the second half. This is due to IFRS
policy on backoffice licences which requires invoicing following commercial
deployment. While this had an impact on our first half numbers, we are
confident that the second half and full year will be in line with market
expectations. We continue to develop relationships with a number of Tier 1
customers and look forward to updating the market in due course.
"Our team has performed extremely well by securing a successful deployment of
our technology in a very challenging environment - proving that mirada has one
of the most capable teams in the Digital TV technology world. I am encouraged
and extremely grateful for their continued performance, which has been
recognised by the backing of a new group of institutional investors, who are
making it possible for the Company to further develop its proposition."
Enquiries:
mirada plc +44 (0) 203 751 0320
José Luis Vázquez, Chief Executive Officer
Walbrook PR +44 (0) 207 933 8783
Nick Rome/Sam Allen
mirada@walbrookpr.com
Arden Partners plc (Nomad and Joint Broker) +44 (0) 207 614 5900
James Felix (Corporate Finance)
Kam Bansil (Corporate Broking)
Chief Executive Officer's Statement
Overview
I am pleased to present the Group's financial results for the six months ended
30 September 2014. During this period the Company further strengthened its
presence in the Latin American market while proving its ability to service
large Tier 1 customers as it secured the first Tier 1 reference of its OTT
offering.
Our contract win announced on 19 May 2014 was a significant milestone for the
Company reflecting our strategic shift to a scalable subscriber-based licence
fee model. This contract alone represents a minimum of US$15 million in
subscriber-based licence fees, which will be received during a 3-5 year period
following commercial deployment. This is expected to take place before the end
of this calendar year.
This contract provided a springboard for the Company to showcase its OTT
offering with the Company signing a separate contract to provide the existing
Tier 1 customer with a TV Everywhere platform.
As a result, the customer will benefit from live and on demand content
distribution, catch-up and start-over capabilities, remote control of the set
top box from any of the multi-screen devices, session transfer or multiroom
function. Management expects that the customer will achieve similar levels of
acceptance of the service as other comparable products in the market. This
being the case, it is expected that the contract could generate revenue in
excess of US$5 million during the three years following the commercial
roll-out, which is planned to start at the beginning of the new financial year.
Technical resourcing has been completed as planned, and the product development
progress is ahead of schedule, allowing the Company to showcase the
fully-integrated suite to other relevant customers across the globe.
OTT-enabled devices have just reached the 1 billion mark, and nearly 80% of all
IP traffic will be IP video by 2018, according to latest market research.
More than 50% of Sky subscribers now connect their Sky+ HD box to the internet
to access on-demand content, proving that the OTT growth is ahead of
expectations. With the new functionalities added to our iris platform, mirada
is in an excellent position to meet customer needs. Having now deployed its
technology for our first Tier 1 customer, and following today's announcement of
the commercial launch of Movistar Go with Telefónica Peru using our OTT
technology, we have two excellent reference points for other customers
worldwide.
Financial Overview
Turnover was £2.19 million (H1 2013: £2.30 million) due to the fact that
certain backoffice licence revenues related to the deployment of inspire with
our Tier 1 Customer will be recognised in the second half of the year. This was
due to IFRS policy, which states they can only be recognized following the
commercial launch. Overall, the company expects that total revenue for the year
will be in line with market expectations.
Loans and borrowings decreased to £2.26 million (March 2014: £2.63 million) due
to regular debt repayment. In order to speed-up the product development and to
facilitate further growth in the OTT market the Company successfully raised £
3.5 million via a placing at 12.5p during the period. The placing also allowed
the Company to reduce its Non-Current Liabilities to £1.80 million (March 2014:
£2.04 million), leaving cash and cash equivalents at £1.21 million for the
period. As such the Company is in an excellent position to focus on
strengthening its OTT offering and taking advantage of growing global demand.
Overseas activities remained strong at 61% of the total revenues (H1 2013:
68%), which is in line with expectations according to the increased revenue to
be reflected in the second half of the year. It is worth noting that the
revenues in Spain were up 67% from the previous period, mostly due to a
perceived increase of Digital TV investments in the country.
Appointments
During the period we were pleased to welcome José Gozalbo (CTO) as an Executive
Director and Matthew Earl as a Non-Executive Director. The addition of two such
highly experienced individuals to our Board further strengthens our ability to
grow our relationships with big telecoms suppliers and our corporate
governance, which will be invaluable as we expand our customer proposition and
develop our business.
Outlook
The Company remains on track for full year performance to be in line with
market expectations with around 96% visibility of full year consensus revenues.
In addition, the Company is in conversation with a number of potential
customers regarding the provision of its products and expertise. On the back of
the Company's strengthened relationship with Digital TV partners in the market,
new opportunities have arisen both in Latin America and in other Countries,
widening our area of commercial activity faster than expected. We are hopeful
of adding further Tier 1 references to our customers list in the near future.
I am encouraged and extremely grateful for continued hard work that has ensured
that mirada is well placed to take advantage of rapid market growth. This has
been recognised by the backing of a new group of institutional investors, who
are making it possible for the Company to further develop its proposition.
Jose Luis Vazquez
Chief Executive Officer
27 November 2014
Consolidated income statement for the six months to 30 September 2014
Note 6 months 6 months Year ended
ended ended 31 March
30 September 30 September 2014
2014 2013
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Revenue 2 2,191 2,300 4,572
Cost of sales (124) (95) (182)
Gross profit 2,067 2,205 4,390
Depreciation (9) (22) (43)
Amortisation (575) (429) (924)
Share-based payment charge (31) - (53)
Other administrative expenses (2,154) (1,693) (3,366)
Total administrative costs (2,769) (2,144) (4,386)
Operating (loss)/profit 3 (702) 61 4
Finance income - - 32
Finance expense (185) (234) (422)
(Loss)/profit before taxation (822) (173) (386)
Taxation - - 427
(Loss)/profit for period (887) (173) 41
(Loss)/earnings per share
- basic and diluted 4 (1.0p) (0.3p) 0.1p
The above amounts are attributable to the equity holders of the parent.
Consolidated statement of comprehensive income
Six months to 30 September 2014
6 months 6 months Year ended
ended ended 31 March
30 September 30 September 2014
2014 2013
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
(Loss)/profit for the financial period (887) (173) 41
Currency translation differences (77) 4 (26)
Total comprehensive (expense)/income (964) (169) 15
for the period
Consolidated statement of financial position as at 30 September 2014
30 September 30 September 31 March
2014 2013 2014
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Property, plant and equipment 39 48 37
Goodwill 6,946 6,946 6,946
Intangible assets 2,389 1,955 2,444
Deferred Tax assets 523 - 508
Non-current assets 9,897 8,949 9,935
Trade and other receivables 1,679 1,314 1,781
Cash and cash equivalents 1,218 3 30
Current assets 2,897 1,317 1,811
Total assets 12,794 10,266 11,746
Loans and borrowings (557) (616) (728)
Trade and other payables (1,556) (2,874) (2,339)
Provisions - (121) (76)
Current liabilities (2,113) (3,611) (3,143)
Net current Assets/liabilities 784 (2,294) (1,332)
Total assets less current 10,681 6,655 8,603
liabilities
Interest bearing loans and (1703) (2,854) (1,911)
borrowings
Embedded conversion option - (44) -
derivative
Other non-current liabilities (96) (163) (129)
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